Spring 2025 Statement Summary

On Wednesday 26 March 2025, Chancellor of the Exchequer Rachel Reeves presented the 2025 Spring Statement to the House of Commons. The Chancellor reiterated her commitment to holding a single major fiscal event each year, keeping major tax-raising measures confined to the Autumn Budget to provide stability and certainty for businesses and families.

While there were no major new tax announcements, the Statement outlined updated Office for Budget Responsibility (OBR) economic forecasts, key spending priorities, and essential tax administration updates.

Economic Outlook & Fiscal Strategy

The Spring Statement focused on consolidating public finances and supporting the government’s long-term growth mission:

• Growth and Inflation: The OBR published updated projections for GDP growth, borrowing requirements, and inflation trends across the forecast horizon.
• Public Spending Prioritisation: Confirmed measures included targeted welfare reforms, civil service efficiency savings, and planned increases in national defence spending.

Making Tax Digital for Income Tax (MTD IT)

The government reaffirmed the timetable for rolling out Making Tax Digital for Income Tax:

• April 2026 Mandate: Self-employed individuals and landlords with qualifying gross trading and property income over £50,000 in the 2024/25 tax year will be required to maintain digital records and file quarterly updates.
• Future Phases: The threshold lowers to £30,000 from April 2027, with extension to those earning above £20,000 scheduled from April 2028.
• Exemptions & Simplified Rules: Clearer guidance was provided on exemptions for digitally excluded taxpayers and simplified reporting rules for specific taxpayer groups.

Non-Dom Transition & Temporary Repatriation Facility

With the abolition of the remittance basis coming into effect on 6 April 2025, the Chancellor confirmed operational details for individuals previously claiming non-dom status:

• Temporary Repatriation Facility (TRF): A three-year facility allowing eligible individuals to designate and remit previously untaxed foreign income and gains at a concessional rate of 12% for 2025/26 and 2026/27, rising to 15% in 2027/28.
• Four-Year FIG Regime: Confirmation of the new four-year foreign income and gains exemption for individuals becoming UK tax resident after at least 10 years of non-residence.