Autumn Budget: Where Are Taxes Being Raised? A Breakdown of the Numbers
The Autumn Budget includes one of the largest packages of tax-raising measures in recent years, with the government planning to increase tax revenues by £26 billion in 2029–30. While the changes are spread across a wide range of tax areas, the combined effect represents a major shift in the UK’s future tax landscape.
Here’s a clear breakdown of where the additional revenue is expected to come from.
1. Personal Tax & National Insurance Threshold Freezes – £8bn
The freeze on personal income tax thresholds and employer National Insurance thresholds will be extended for three years from 2028–29.
As earnings rise while thresholds stay still, more taxpayers are pushed into paying higher levels of tax. This measure alone raises £8 billion.
2. Pension Taxation: Salary-Sacrifice Changes – £4.7bn
Under the new rules, salary-sacrificed pension contributions will no longer offer the same tax advantages they currently do.
This change is forecast to raise £4.7 billion, and it will particularly affect higher earners and employers who use salary sacrifice to manage remuneration costs.
3. Dividend, Property & Savings Income Tax Increase – £2.1bn
Tax rates on dividends, property income and savings income will rise by 2 percentage points.
This affects:
- Company owners
- Landlords
- Investors with non-ISA savings income
The measure raises £2.1 billion.
4. Corporation Tax: Reduced Writing Down Allowance – £1.5bn
The main rate of the writing down allowance for capital expenditure will be reduced.
This increases corporation tax bills by reducing the amount companies can deduct for depreciation, raising £1.5 billion.
5. Electric Vehicle Mileage Charge – £1.4bn
From 2028, owners of battery electric and plug-in hybrid cars will face a new mileage-based road charge.
This generates £1.4 billion and marks a major shift in how electric vehicles will be taxed over the next decade.
6. Gambling Tax Changes – £1.1bn
The government will introduce reforms to how gambling is taxed.
These adjustments are expected to raise £1.1 billion.
7. Reduced CGT Relief for Employee Ownership Trusts – £900m
A reduction in capital gains tax relief on disposals to employee ownership trusts (EOTs) will raise £900 million.
This is a significant change for business succession planning.
8. High-Value Property Surcharge (“Mansion Tax”) – £400m
An annual council tax surcharge on properties worth over £2 million will generate an additional £400 million.
This is charged separately to normal council tax and applies to less than 1% of homes.
9. Tax Administration & Debt Collection Measures – £2.3bn
Improvements to tax administration, compliance activity, and debt recovery will raise £2.3 billion.
This includes operational changes rather than new taxes.
10. Fuel Duty Freeze & Future Increases – Costing £2.4bn Next Year
Although most measures raise revenue, the government is also incurring costs by freezing fuel duty for a further five months.
This results in:
- £2.4bn cost next year
- £900m per year ongoing
Staged increases will follow from 2026.
11. Other Tax Measures – £4.4bn
A range of smaller measures — including levies such as the Sizewell C charge — raise an additional £4.4 billion combined.
Summary: A Broad, Multi-Layered Tax Package
Taken together, these measures represent £26 billion of tax increases by 2029–30. Rather than relying on one major tax rise, the Budget spreads increases across:
- Income taxes
- Pensions
- Savings
- Property
- Corporate tax
- Electric vehicle usage
- Compliance and enforcement
For individuals and businesses, the cumulative impact could be significant — particularly when combined with threshold freezes already announced elsewhere in the Budget.
If you’d like a breakdown of how these changes affect you or your organisation, Merranti Accounting can provide tailored guidance.
