Tax expert Graeme Hills at Duncan & Toplis has lauded the Autumn Budget as “surprisingly positive news for taxpayers” and SMEs, despite a particularly chaotic build-up rife with speculation.
Head of Tax at a leading group of UK accountants and business advisers representing around 13,000 businesses nationally, Graeme said that the measures were more constructive than many had expected, particularly when set against last year’s more far-reaching reforms.
Graeme Hills, Head of Tax at Duncan & Toplis, said: “The Autumn Budget was especially clumsy and poorly teased this year, with the government being widely condemned for briefing the press ahead of time. While the Chancellor herself said that the OBR leak was ‘deeply disappointing’, the Budget itself managed to shake off any such negativity, especially in relation to real-terms spending power increases for businesses and taxpayers.
“This is especially true when compared to last year’s sweeping changes to Inheritance Tax and employers’ National Insurance Contributions.
“Of course, property savings and dividend rates all increasing by 2% from April 2027 will likely have a rolling knock-on effect, particularly for investors relying on these income sources, meaning that many could see a real-term loss in their earnings - and increased rent across the sector.”
Hills welcomed the decision not to reduce the overall ISA limit and said reforms aimed at encouraging long-term investment could improve household resilience and support the wider economy.
“Keeping the £20,000 ISA allowance, but ensuring that £8,000 is secured in investments, is a bold move to incentivise the public to save,” he said. “This strikes a balance between maintaining choice for savers and nudging more money into productive parts of the economy.”
However, he warned that pension-related changes will be felt by some employees and employers in the years ahead. The government has confirmed that National Insurance relief on salary sacrifice pension contributions will be capped at £2,000 per year from April 2029, meaning contributions above that level will attract employer and employee National Insurance.
“Capping the National Insurance Contribution relief on Salary Sacrifice payments to pension pots at £2k per year from 2029 will reduce employees’ take-home pay and employers’ profits,” Hills said. “So, there will be less of an incentive for employees to save for the future. Employers with higher-earning workforces will need to plan now for the longer-term cost impact.”
For business investment, Hills said that the Budget showed visibly increased support, with upgrades and reassurance around key growth and scale-up incentives.
“It is definitely good news for Britain’s SMEs and all businesses with additional capital allowances,” he said. “Promises to enhance Enterprise Management Incentives, the Enterprise Investment Scheme and Venture Capital Trusts bode well for businesses as they will prompt more robust capital in the years to come.”
The government has reiterated support for EIS and VCT funding as part of its approach to unlocking private capital for high-growth businesses, providing continuity many investors and entrepreneurs had been calling for.
Hills added that while changes to capital allowances include helpful first-year support for some, the overall shape of reliefs should be read carefully.
“It should be said that lowering the Writing Down Allowance for businesses may not be offset by the additional 40% First Year Allowance, as this will only benefit businesses in their first year,” he said. “Businesses should model what this means for their investment timelines and tax positions, rather than assuming the headline first-year figure will compensate across the board.”
Overall, the tax expert confirms that the Budget has avoided the most damaging rumours and that the net picture for mainstream taxpayers and owner-managed businesses was more stable than anticipated.
“By and large, the Budget was surprisingly positive news for businesses and taxpayers,” he concluded. “There are clear areas to watch, particularly around pensions and ongoing allowance structures, but the wider direction of travel is supportive. The focus now should be on how businesses and individuals adapt early to make the most of the opportunities on offer.”
Business owners and taxpayers who want to learn more about today’s announcement are invited to join Duncan & Toplis’ panel of experts as they provide a detailed breakdown of the Autumn Budget and how it might impact them by visiting https://duncantoplis.co.uk/event/autumn-budget-2025-breakdown/.
For more information about Duncan & Toplis, visit www.duncantoplis.co.uk.