Autumn Budget 2025: B&B’s Expert Takeaways for UK Businesses

December 3, 2025

The Autumn Budget 2025 brought several important updates that could impact businesses across various sectors. In this blog, we’ll break down the key takeaways that affect R&D, Energy, Property, and AML.

Here’s what businesses need to know:

R&D Tax Relief: No Major Changes, But Increased Scrutiny

What were the changes?
The Autumn Budget introduced no significant changes to R&D Tax Relief. The structure of the scheme remains unchanged, including the recent reductions to SME enhancements, the merged scheme, and tighter administrative requirements. There is continued funding for HMRC’s compliance activity, signaling that the current framework is here to stay.

What does this mean for businesses?
While R&D Tax Relief still supports innovation, the value and accessibility have narrowed for many businesses. There is now a greater emphasis on process, evidence, and governance. Claims must be robust, well-documented, and capable of withstanding detailed scrutiny. For businesses with historical claims, it’s essential to ensure that both past and current claims meet the latest compliance standards.

The announcement of a pilot for R&D advance assurance from 2026 signals earlier involvement from HMRC, with a focus on prevention and control, rather than increased relief.

Takeaway: Greater scrutiny is expected in the claims process, so ensure your R&D claims are compliant and well-prepared. Early consultations with tax specialists like Bonham & Brook are recommended.

Energy: Strategic Shifts

What were the changes?
The Autumn Budget did not introduce new taxes or reliefs in the energy sector. However, it reaffirmed the government’s ongoing commitment to energy affordability for both households and industry. Existing support for energy-intensive businesses remains intact, and the government is signaling long-term strategies for fuel and road taxation as electric vehicles become more widespread.

What does this mean for businesses?
Energy-intensive businesses can expect continued stability in support for electricity costs, although the framework is becoming more targeted and managed. The government’s long-term approach to energy and transport taxation highlights potential changes in the future, particularly as electric vehicles become more common.

Takeaway: While there are no immediate changes, businesses should stay informed about the evolving landscape of energy and transport taxation.

Property: Capital Allowances & SDLT Updates

Capital Allowances: A Slowdown in Relief

What were the changes?
The Autumn Budget confirmed a reduction in the Main Rate Pool Writing Down Allowance (WDA) from 18% to 14% starting April 2026. For businesses with accounting periods straddling this date, hybrid rates will apply. Additionally, unincorporated businesses will benefit from a new 40% First-Year Allowance for Main Rate assets acquired from 1 January 2026.

What does this mean for businesses?
This reduction in WDA slows the pace at which tax relief is received, meaning tax benefits will be spread over a longer period. It’s crucial for businesses to accurately identify qualifying capital expenditure and ensure capital allowance reviews are thorough to avoid defaulting into pools unnecessarily.

Takeaway: The changes might have profound implications for claimants of capital allowances across the UK, for further guidance on the Budget changes refer to our recent article, by Capital Allowances manager Mark Anthistle.

Stamp Duty Land Tax (SDLT): Stability with a Future “Mansion Tax”

What were the changes?
There were no changes to SDLT in the November 2025 Budget. However, the government announced plans for a high-value property surcharge to be implemented in 2028. This surcharge will not affect current SDLT transactions but could impact the residential market in the future.

What does this mean for businesses?
While SDLT remains unchanged, the proposed surcharge could significantly affect high-value property transactions in the future. Buyers, sellers, and developers in the higher-end property market should factor this future surcharge into their long-term planning and affordability discussions.

Takeaway: No immediate changes to SDLT, but be prepared for future shifts in the residential property market.

AML: Strengthening the Fight Against Financial Crime

What were the changes?
The Autumn Budget did not introduce new Anti-Money Laundering (AML) requirements. However, it reinforced the government’s focus on tackling economic crime in cash-intensive and high-risk sectors. The National Risk Assessment highlights a more risk-based approach to regulated businesses, especially those dealing with cash-heavy operations.

What does this mean for businesses?
Regulated businesses, such as accountants and solicitors, must ensure they are adhering to stricter AML protocols. There is an increased focus on the identification of higher-risk clients and ensuring that due diligence checks are proportionate to the level of risk. Businesses should revisit their AML risk assessments, client files, and escalation processes to ensure compliance with evolving expectations.

Takeaway: Firms should review their AML practices to ensure they can meet heightened scrutiny from regulators.

Conclusion

The Autumn Budget 2025 introduces a mixed bag of stability and forward-looking changes for businesses. Whether you are involved in R&D, managing energy costs, navigating property taxes, or ensuring AML compliance, it’s essential to stay proactive and aligned with the government’s evolving policies.

If you’d like to discuss how these changes impact your business, get in touch with our experts at Bonham & Brook. We’re here to guide you through the complexities of the evolving UK tax landscape > contact us today

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