Navigating the November Budget: What does this mean for you?

The November Budget is a roadmap that will shape financial decisions for years to come. From tax thresholds, savings limits and property charges, these measures will influence borrowing capacity and financial planning. It is likely to affect your family finances, cost of living and how you protect what matters most.

The budget may affect your priorities, lending affordability, long term plans and future security. Our aim is to give you confidence and direction, proactive advice and become your trusted mortgage and protection advisor. Turn uncertainty into clarity.

Below, I break down some of the most significant changes, so you can assess their impact and act early.

Income tax threshold freeze extended

Personal income tax and National Insurance thresholds will remain frozen for a further three years until April 2031.

Two-child benefit cap scrapped

From April 2026, the cap on Universal Credit for families with more than two children will be removed, increasing household income for affected families and changing affordability calculations.

Minimum wage increases

From April 2026, there will an increase to minimum wages. This means:

• Eligible workers aged 21 and over on the National Living Wage will receive £12.71 an hour, up from £12.21.
• For workers between 18 and 20, the National Minimum Wage increases to £10.85 an hour, up from £10.
• For those aged 16 or 17, the minimum wage will rise to £8 an hour, up from £7.55.
• The separate apprentice rate which applies to eligible people under 19 – or    those over 19 in the first year of an apprenticeship – will also increase to £8 an hour, from £7.55.

Dividend and savings tax increases

From April 2026, the ordinary and upper rates of tax on dividend income will increase by 2 percentage points:

• Basic rate: 8.75% → 10.75%
• Higher rate: 33.75% → 35.75%

There is no change to the dividend additional rate, which will remain at 39.35%.

From April 2027, the Government will introduce separate tax rates for property income. These will be:

• Property basic rate: 22%
• Property higher rate: 42%
• Property additional rate: 47%

Savings income tax rates also increase by 2 points from April 2027:

• Basic: 20% → 22%
• Higher: 40% → 42%
• Additional: 45% → 47%


Electric vehicle mileage tax

From April 2028, EV drivers will pay £0.03 per mile (battery electric) and £0.015 per mile (plug-in hybrid), indexed to inflation. An average EV driver covering 8,500 miles will pay about £255 per year.


Workplace pensions: salary sacrifice cap

From April 2029, there will be a £2,000 cap on NIC relief on salary sacrifice. Contributions above this will attract both employee and employer National Insurance.

Inheritance tax reform

From April 2026, spouses and civil partners will be able to transfer 100% of any unused £1 million allowance for the 100% rate of Agricultural Property Relief and Business Property Relief to each other. This change simplifies estate planning and increases flexibility for intergenerational wealth transfers.

ISA allowance reform

From April 2027, the annual cash ISA limit will fall from £20,000 to £12,000 for those under 65. The overall ISA allowance remains £20,000, but £8,000 must be invested in stocks and shares. Over-65s retain the full £20,000 cash allowance.

Mansion tax introduced

From April 2028, a new council tax surcharge applies to homes worth over £2 million:

• £2m–£2.5m: £2,500 per year
• £5m+: £7,500 per year

Charges will rise annually with CPI.

Other measures

• State pension: rises 4.8% from April 2026.
• Energy bills: average household cut of £150 from April.
• Fuel duty: 5p cut extended until September 2026.

At Choicemortgages UK Ltd, our team have over 50 years of experience between them. We provide you with a dedicated personal service. We take the time to get to know you, to understand your individual needs and what you are looking to achieve, before advising you on the best mortgage and protection for your circumstances.

We offer a free no obligation consultation so if you would like to review the options available, please do not hesitate to contact us.