Spring Statement 2026

Presenting her Spring Statement on 3 March 2026 against a backdrop of heightened global uncertainty, the Chancellor reaffirmed her commitment to stability, holding firm on her pledge that there would be no tax changes this time around.

While economic forecasts now point to slightly slower than expected growth in 2026, the government maintains that the broader trajectory remains positive, with conditions expected to strengthen in the years ahead.

Against this shifting landscape, our tax specialists look back at the most significant measures from the last two Autumn Statements, helping organisations and individuals navigate the road ahead.

Here is a reminder of the significant tax changes that were announced in the 2024 and 2025 Autumn Statements:

Measures already in place:

Effective from November 2025, there has been a reduction in Capital Gains Tax (CGT) relief on disposals to Employee Ownership Trusts (EOT) to 50%, from 100%.

From January 2026, there is a general exemption from transfer pricing requirements on UK to UK related party transactions and the withdrawal of the Diverted Profits Tax regime which has been replaced by the Unassessed Transfer Pricing profits (UTPP).

Changes from April 2026

Business Asset Disposal Relief (BADR) will increase to 18% from 6 April 2026, and was previously increased to 14% from 10% with effect from 6 April 2025

From April 2026, the 100% rate of Agricultural Property Relief (APR) and Business Property Relief (BPR) will only be available on the first £2.5m. Above this, the relief will be limited to 50%, giving an effective rate of 20%. Importantly, the £2.5m is significantly higher than the £1m that was initially proposed and will be transferrable between spouses and civil partners, meaning that it will now be possible to get 100% relief up to £5m.

From April 2026, the basic and higher rates of tax on dividends will increase by 2%. From April 2027, the basic, higher and additional rates of tax for savings and property income will also increase by 2%

From April 2026, the carried interest rules will transition from the Capital Gains Tax regime to the Income Tax regime and will therefore be subject to Income Tax and Class 4 NICs. There will be a 72.5% multiplier applying to qualifying carried interest that is brought within the charge, meaning an effective rate of 34.1% for an additional rate taxpayer.

Umbrella company changes mean that from April 2026, end users of labour provided via umbrella companies will be jointly and severally liable for PAYE liabilities.

The main rate Writing Down Allowances (WDA) will reduce to 14% (from 18%) from 1 April 2026 for Corporation Tax purposes and 6 April 2026 for Income Tax purposes. There is also a new 40% First Year Allowance for qualifying new plant and machinery, including leased assets.

From April 2026, the Enterprise Management Incentives (EMI) and Enterprise Investment Scheme (EIS)/ Venture Capital Trust (VCT) limits are set to double, including the increase of asset thresholds, employee numbers and share value thresholds for EMI and the annual and lifetime investment limits for EIS.

Changes in 2027 and beyond

From 6 April 2027, unused pension funds and death benefits payable from a pension scheme into a person’s estate will no longer be exempt from Inheritance Tax (IHT).

From April 2027, UK employers will be required to report taxable Benefits in Kind through payroll.

From April 2028, a new “mansion tax” will apply where residential properties are valued over £2 million. This will be a recurring annual charge in addition to the existing Council Tax.

Electric cars mileage from April 2028 a new levy will be introduced for electric vehicles, however the scope and roll-out of this is to be determined as part of upcoming consultation.

From April 2029, salary sacrificed pension contributions above an annual £2,000 threshold will no longer be exempt from NICs meaning that amounts above this will be subject to both employee and employer NICs. Employer pension contributions will be unaffected.

The freeze on Inheritance Tax (IHT) thresholds has been extended to April 2031. The nil rate band will remain at £325,000 and the residence nil rate band will remain at £175,000.

The personal tax thresholds will remain frozen until 2030/31. This will mean that the Income Tax thresholds will be frozen at £12,570 for the Personal Allowance, £50,270 for the higher rate and £125,140 for additional rate. In addition, the employee National Insurance Contribution (NIC) thresholds will also be frozen over the same period.