Your time is valuable. So instead of a long analysis, here is a simple, direct FAQ guide highlighting exactly how the 2025 Budget affects people like you, established professionals, business owners, landlords, and families with growing assets.
How Does the 2025 Budget Affect Landlords?
Does the Budget change taxes for landlords?
No changes were made to Corporation Tax or Employer National Insurance, which is good news for landlords operating through a limited company (common for SPVs).
Will running costs rise?
Yes — but gradually.
The increase in the National Living Wage (from £12.21 to £12.71 in 2026) may raise costs for tradespeople, maintenance contractors, and letting agents.
Does the Energy Levy removal help landlords?
A little.
Household bills will fall by around £150 per property from April 2026, easing pressure on tenants and reducing arrears risk.
Will the Mansion Tax affect landlords?
Only landlords with properties valued above £2 million are affected (details below).
How Does the 2025 Budget Affect High Earners?
Will my income tax rate change?
No.
But tax thresholds remain frozen until 2031, meaning more people drift into higher tax bands over time (“fiscal drag”).
This mainly affects:
- Directors
- Consultants
- Senior managers
- High-earning professionals (£80k–£200k)
Are dividends going up?
Yes, dividend tax increases by 2 percentage points from April 2026.
If you take dividends through a limited company, expect slightly reduced take-home pay.
Will the Mansion Tax impact high earners?
Possibly, but only for those with high-value homes.
The Mansion Tax applies only to residential properties valued over £2 million, rising further for homes above £5 million. Most high earners will not be affected, but individuals with properties close to the £2 million threshold should keep an eye on rising valuations over the coming years. This is especially relevant for those planning long-term wealth, estate or property strategies.
How Does the 2025 Budget Affect Small Business Owners?
Was Corporation Tax changed?
No.
This is one of the most positive outcomes for SMEs.
Business owners with £250k–£5m turnover retain stable corporate tax planning, which helps with forecasting and investment.
Was Employer National Insurance changed?
No.
This is particularly helpful for owner-managed businesses with growing teams.
Does the wage increase impact employers?
Yes — from April 2026, the National Living Wage rises to £12.71 per hour.
Sectors most affected:
- Professional services with junior roles
- Property management
- Engineering and trades
- Recruitment agencies with entry-level talent
- Hospitality and retail (if applicable)
