Attivo’s Spring Statement 2026 overview

On 3 March 2026, Chancellor Rachel Reeves delivered the Spring Statement. 

As expected, it was the non-event she intended it to be, in terms of announcing new major policies, and was very much overshadowed by the escalation in Iran and the Middle East.

The Autumn Budget is of course very different, usually held in October/November and there were – and will continue to be – expectations of announcements on new policies.

The Spring Statement was a “temperature check” on the economy; an economic update from the Office of Budget Responsibility that provides a mid-year fiscal health check.

And it turns out that the situation is stable – at least in terms of previous expectations set. Although growth in the UK economy has been revised down for this year, it has been revised up for 2027 to 2030, with public sector borrowing due to fall by 2029.

However, we are fast approaching the new tax year (6 April), and there are some previously announced changes that are due to be implemented on 6 April 2026:

1. Dividends 

The Dividend basic rate and higher rate will increase to 10.75% and 35.75% respectively. The additional rate will remain at 39.35%.

2. Income tax relief 

Income tax relief on VCTs will reduce from 30% to 20%.

3. Capital Gains Tax (CGT)

CGT Business Asset Disposal Relief rate will increase further from 14% to 18% on the first £1m of gains on qualifying business disposals during an individual’s lifetime.

4. Inheritance Tax (IHT) 

Qualifying agricultural and business property will only receive Inheritance Tax (IHT) relief at 100% on values up to £2.5m. Anything above this will receive 50% relief. Additionally, IHT relief on AIM shares will be cut to 50%.

In Scotland, the thresholds for basic and intermediate rate will increase by 7.4% (to £16,537 and £29,526 respectively). All other thresholds will remain unchanged.

What do these new rules mean for you? 

Look out for our Tax Year 2026/2027 Financial Planning Guide from 6th April 2026. The guide will explore:

• What the new rules mean to you.
• How you can best plan for the major pension and IHT changes coming in April 2027.

… and more.

This article is intended for information only; it is not financial advice. We recommend consulting your Financial Planner before making any changes to your financial plans. Attivo (a trading name of Attivo Financial Limited) is authorised and regulated by the Financial Conduct Authority (FCA), however the FCA does not regulate activities such as Inheritance Tax and estate planning and are therefore not covered by the FCA regulatory framework.