SPRING STATEMENT 2026 I OUR INITIAL REACTION
As expected, Rachel Reeves’ second Spring Statement was a largely quiet affair today (03 March) with no real surprises or major tax announcements.
Alongside the Chancellor’s Statement, the Office for Budget Responsibility (OBR) also published its latest economic forecast. Interestingly, the Treasury’s “fiscal headroom” has increased, from £21.7bn to £23.6bn for 29/30.
Ahead of publishing their full report tomorrow, SRLV tax partners Steve Wren and Kieron Clement-Smith look ahead to 6 April 2026 and some of the key tax changes to be mindful of:
- Making Tax Digital (MTD) – mandatory for sole traders and landlords with business/property income over £50,000, requiring digital record-keeping and quarterly reporting.
- Inheritance Tax (IHT) Reliefs – a new £2.5 million cap applies to the combined value of assets qualifying for 100% agricultural and/or business relief, with 50% relief available thereafter.
- Capital Gains Tax (CGT) – the CGT rate for Business Asset Disposal Relief (BADR) increases from 14% to 18%.
- Dividend Taxes – the basic and higher dividend tax rates are set to increase by 2%.
WE WILL PUBLISH MORE IN-DEPTH ANALYSIS OF TAX CHANGES FROM 6 APRIL 2026, ALONG WITH FURTHER COMMENTARY ON THE CHANCELLOR’S SPRING STATEMENT TOMORROW.