Summary of changes
Because this was not a ‘fiscal event’, the Chancellor did not mention the very significant tax changes that have been announced in the past to come into effect in the future. In order to help keep track of what is happening and when, this document summarises the main changes – and some significant decisions to keep things the same – that we already knew about, and explains their impact. The following is a quick reminder, and these points are covered in more detail in our Complete Summary.
Significant points: 2026/27
No change to allowances, main tax rates and bands – effectively a tax increase as incomes rise
Basic and higher rate income tax rates on dividends increase from 8.75% to 10.75% and from 33.75% to 35.75% respectively
Winter Fuel Payment clawed back if income exceeds £35,000
Adjustment to lower tax bands in Scotland
Company car tax continues to increase year on year in line with previous announcements
Changes to tax relief for employee homeworking and medical expenses
Increases in limits for Enterprise Management Incentive Scheme, Enterprise Investment Scheme and Venture Capital Trusts
Restrictions on voluntary payment of NICs by non-UK residents to qualify for UK State Pension
CGT incorporation relief has to be claimed rather than operating automatically
CGT rate on disposals qualifying for Business Asset Disposal Relief rises from 14% to 18%
100% Inheritance Tax reliefs for agricultural and business property restricted to £2.5 million of value
100% Inheritance Tax relief for trading company shares quoted on ‘unlisted markets’ cut to 50%
Business rates revaluation exercise, changes to multipliers and transitional reliefs to mitigate steep increases
Reduction in capital allowance writing-down allowance rate
Joint and several liability for payroll taxes imposed on businesses using workers supplied by umbrella companies
Penalties for late filing of corporation tax returns increased
New VAT relief for small value gifts to charity
Making Tax Digital for Income Tax mandatory for self-employed and landlords with gross income from those sources over £50,000
Significant points: 2027/28
Basic, higher and additional rate income tax rates on savings (interest) and rental income increase from 20% to 22%, 40% to 42% and 45% to 47% respectively
No more than £12,000 of the £20,000 ISA limit to be invested in cash (over-65s will not be subject to this restriction)
Unused pension funds and pension death benefits brought within charge to Inheritance Tax
Image rights payments related to an employment will be treated as employment income
Significant points: later
New Electric Vehicle Excise Duty based on mileage (April 2028)
High Value Council Tax Surcharge for owners of residential property in England valued over £2 million (April 2028)
Pension contributions by salary sacrifice liable to NICs if over £2,000 (April 2029)
Customs Duty low value import relief abolished (March 2029 at latest)
Requirement for VAT invoices to be sent electronically (April 2029)
If you have any questions about the Spring Statement, please don’t hesitate to get in touch.
Email: [email protected]
