Spring Forecast 2026

The Spring Forecast was announced in Parliament on Tuesday 3 March 2026 by the then Chancellor of the Exchequer, Rachel Reeves.

The Office for Budget Responsibility’s March 2026 Economic and fiscal outlook was published on the same day.

Previously the UK government’s spring fiscal event was called the Spring Statement, however in 2026 it was published as the Spring Forecast.

In her Spring Forecast speech, the then Chancellor said the government had “committed to a single major fiscal event a year”, limiting major policy changes to the Budget.

No new changes were announced relating to personal taxes, pensions, ISAs, inheritance tax or property taxes.

Figures may have changed or been updated in the Autumn Budget 2026, which was announced on 28 October 2026. You can learn more on our Autumn Budget page.

Pensions

For the 2026-27 tax year, the pension annual allowance is £60,000 and the lump sum allowance is £268,275.

The full rate of the new State Pension is £241.30 a week.

Under the Finance Act 2026, most unused pension funds and pension death benefits will count towards your estate for inheritance tax for deaths on or after 6 April 2027.

Tax

The income tax personal allowance for 2026-27 is £12,570. The Finance Act 2026 freezes the personal allowance and basic rate limit until the end of the 2030-31 tax year.

Dividend income above the £500 dividend allowance is taxed at 10.75% (basic rate), 35.75% (higher rate) and 39.35% (additional rate) from 6 April 2026.

Capital gains tax is charged at 18% and 24%, and the annual exempt amount for 2026-27 is £3,000. Business Asset Disposal Relief is charged at 18% on gains on qualifying assets disposed of from 6 April 2026.

Sole traders and landlords registered for Self Assessment with qualifying income over £50,000 in the 2024-25 tax year should have started using Making Tax Digital for Income Tax from 6 April 2026.

Savings & Investments

In the 2026-27 tax year, the maximum you can save in ISAs is £20,000.

The government has announced that, from 6 April 2027, the cash ISA limit will be £12,000 for people under 65. The regulations to make this change have been consulted on but not yet made.

Inheritance Tax & Estate Planning

A £2.5 million allowance applies to the combined value of property qualifying for 100% business property relief or agricultural property relief, with relief at 50% above it. Any unused allowance can be transferred to a surviving spouse or civil partner.

The inheritance tax nil-rate band is £325,000 and the residence nil-rate band is £175,000. The Finance Act 2026 extends the freeze on these thresholds to the 2030-31 tax year.

Property & Mortgages

Stamp Duty Land Tax (England and Northern Ireland): first-time buyers pay no SDLT up to £300,000 and 5% on the portion from £300,001 to £500,000. The relief is not available if the price is over £500,000.

From the 2027-28 tax year, income tax on property income will be charged at 22% (basic rate), 42% (higher rate) and 47% (additional rate). Rates for taxpayers in Scotland and Wales may differ.

The most recent Budget from the UK government is 2026’s Autumn Budget, which was delivered on Wednesday 28 October 2026. Our Autumn Budget page sets out what changes were confirmed in the Budget 2026.