Autumn Budget Update 4: Income Tax Threshold Freeze, Mansion Tax & Everything in Between

Chancellor Rachel Reeves has unveiled a series of measures in the 2025 Autumn Budget aimed at shoring up public finances while targeting high earners and property owners. The announcements cover Income tax Thresholds and a new Mansion.

Income Tax Threshold Freeze Longer Than Expected

One of the most significant moves is the extension of the freeze on Income Tax and National Insurance thresholds. Originally set to last until 2028, the freeze will now continue until.

Reeves acknowledged that this decision “will affect working people” but insisted that “we are asking everyone to make a contribution.” The Office for Budget Responsibility (OBR) estimates that 780,000 more people will be brought into paying Income Tax in 2029/30 as a result of the extended freeze.

Mansion Tax & Stamp Duty Suspension

Reeves also introduced a new property tax. Owners of homes worth over £2 million will face an annual surcharge of £2,500, while properties valued above £5 million will be charged £7,500. The tax will be collected alongside Council Tax and is expected to raise more than £400 million by 2031.

At the same time, the Budget also includes initiatives such as the suspension of stamp duty for three years on newly listed London shares, designed to attract companies to list domestically and revive activity in the UK stock market.

What These Taxes Means for Working People

Taken together, these measures represent a mixed picture for UK working people. Working people face the extended freeze on thresholds, effectively increasing tax bills over time as wages rise.

Reeves has positioned these changes as part of a broader fiscal strategy to reduce borrowing while supporting investment. With projected revenue gains across Income Tax, property and pension measures, the government aims to balance the books and move toward a budget surplus by 2028/29.