Rachel Reeves delivered the Spring Statement 2026 with relatively few new tax announcements. However, the absence of major policy changes does not mean the tax landscape is standing still.

A significant number of previously announced reforms are still scheduled to come into effect over the coming years. These include changes to dividend taxation, capital gains tax, inheritance tax reliefs, business rates and the ongoing rollout of Making Tax Digital for Income Tax.

To help businesses, entrepreneurs and individuals stay ahead of these developments, we would like to share a comprehensive Spring Statement 2026 tax summary. This guide brings together the key tax changes, confirmed rates and important implementation dates that will affect the UK tax system from 2026 onwards.

Because the Spring Statement was not a formal fiscal event, many of the most significant tax changes were not announced during the speech itself. Instead, they stem from measures confirmed in previous budgets and policy updates. This document therefore provides a clear reminder of what is changing, when those changes take effect and what they may mean for taxpayers.

Inside the guide you will find:

• A clear summary of confirmed tax changes for 2026/27, 2027/28 and beyond
• The key tax rates, allowances and thresholds businesses and individuals need to track
• Important updates affecting income tax, dividends, capital gains tax, inheritance tax and business taxation
• Policy developments impacting SMEs, entrepreneurs, landlords and investors
• Tax rate tables to help you quickly reference current and upcoming rates

While many allowances and headline tax rates remain frozen, this effectively increases the tax burden as incomes rise. Alongside this, a range of targeted changes, from Business Asset Disposal Relief and agricultural inheritance tax relief to Making Tax Digital requirements, will create new considerations for businesses and individuals.

The following pages provide a practical breakdown of the most important developments, beginning with a quick overview of the key points for 2026/27, followed by upcoming changes in later years.

• 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  

• 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  

• 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)