Spring 2026 Statement Summary

On 3 March 2026, Rachel Reeves, the UK Chancellor of the Exchequer, delivered the 2026 Spring Statement. This fiscal update outlined the Office for Budget Responsibility (OBR) economic forecasts, key taxation shifts, and priorities for the UK business community.

Our tax and advisory specialists have prepared a comprehensive breakdown of the key measures announced and what they mean for business owners, landlords, and individuals.

Corporation Tax & Compliance

The government reaffirmed its commitment to capping the main rate of Corporation Tax at 25% for the duration of the current Parliament. Small profits up to £50,000 continue to be taxed at the 19% rate, with marginal relief applying between £50,001 and £250,000.

Late filing penalties for Corporation Tax returns will double for returns where the statutory filing date falls on or after 1 April 2026.

Agricultural Property Relief & Business Property Relief

From 6 April 2026, agricultural and business property will continue to benefit from 100% Inheritance Tax (IHT) relief up to a combined limit of £2.5 million per person. Any qualifying value above this threshold will receive 50% relief.

Importantly, this £2.5 million allowance will be transferable between married couples and civil partners, including where the first death occurred before 6 April 2026. Both individual and trust limits will remain frozen until 6 April 2031.

Capital Allowances & Investment Incentives

Full Expensing remains in place, allowing companies a 100% write-off on qualifying new plant and machinery investments. Key changes to other capital allowance rates include:

• The main rate Writing Down Allowance (WDA) reduces from 18% to 14% annually from April 2026.
• A new 40% First Year Allowance (FYA) is introduced for main rate assets incurred on or after 1 January 2026.
• The Annual Investment Allowance (AIA) remains unchanged at £1 million per annum.
• The 100% FYA for electric vehicle chargepoints and zero-emission cars has been extended to 31 March 2027 (Corporation Tax) and 5 April 2027 (Income Tax).

Enterprise Schemes & R&D Advance Assurance

The Chancellor also announced enhancements to key growth and enterprise investment schemes:

• Enterprise Management Incentives (EMI): From 6 April 2026, the company employee limit rises from 250 to 500, the gross assets threshold increases from £30 million to £120 million, and the company share option limit increases to £6 million.
• EIS & VCT Schemes: Gross asset and investment limits for the Enterprise Investment Scheme and Venture Capital Trusts will be significantly raised from 6 April 2026.
• Targeted R&D Advance Assurance: A pilot advance assurance service launches in spring 2026 to assist SMEs with R&D tax relief claim certainty before formal filing.