This meant that the pundits were discussing the contents of the Budget before it had been delivered, which was unprecedented. Combined with the increasingly common leaks to media in the weeks leading up to the Budget, many of the main measures were well known in advance.
However, the Treasury document that was only released at the end of the speech contained a mass of detailed measures, some coming into effect immediately, others deferred for one, two, three or even more years. These had to be read carefully to be sure of which rumoured possibilities had not been implemented after all.
Our helpful guide covers the key tax changes announced and includes tables of the main rates and allowances, together with an explanation of what they are likely to mean for you, your business and your family. You can download our summary from the resources section of our website.
Summary of significant points
- Personal tax rates and allowances on income are frozen for a further three years to April 2031.
- Also frozen are the NICS employer threshold and upper earnings limit, and IHT nil band to April 2031, and the Plan 2 Student Loan repayment threshold to April 2030.
- There are no immediate changes to reliefs on pension schemes, but salary sacrifices above £2,000 will be subject to National Insurance from April 2029.
- There will be increases in income tax rates on dividend income from April 2026, and on rental and savings income from April 2027. The rate of s455 tax is also increasing, but the additional rate for dividends has been held.
- Only minor changes to Inheritance Tax rules that were announced last year. It was announced however that the £1m 100% BPR and APR allowance will now be transferable between spouses if not used on the first death.
- ISA investment limits and rules remain the same, but from April 2027 new £12,000 limit for cash within the £20,000.
- WDAs on qualifying main pool expenditure are reducing to 14% from April 2026, and a new 40% FYA is being introduced from January 2026.
- Capital Gains Tax relief on disposals to Employee Ownership Trusts has been halved to 50% immediately, and the BADR rate was confirmed to be increasing to 18% from 6 April 2026.
- Corporation tax penalties for late filing are being doubled from 1 April 2026. Penalties on late payment of income tax and VAT are also being increased from 1 April 2027. It was confirmed though that late admission penalties under the Making Tax Digital for Income Tax regime will not apply to quarterly updates for 2026/27.
