Spring Forecast 2026: Outcomes and opportunities

Following Chancellor Reeves’ recent Spring Forecast, many will have been reassured to see that no new measures were introduced. But even in a quieter fiscal moment, it’s a valuable opportunity to pause, take stock and reflect on how the changes already announced — particularly those set out in the Autumn Budget 2025 — could shape your financial landscape over the coming years.

With a new tax year on the horizon, this is an especially timely moment to review your plans, understand what’s ahead and ensure your arrangements still work for you. Small adjustments made now can help strengthen your financial wellbeing and provide clarity in a period of ongoing change.
We’ve summarised the key tax and planning milestones to help you navigate what’s coming and feel confident about the steps you may wish to take.

Income Tax on savings and property income will rise by 2%, moving to:

• 22% (basic rate)
• 42% (higher rate)
• 47% (additional rate)

Because Income Tax reliefs apply to other types of income first, these increased rates will be most keenly felt by landlords and individuals with sizeable savings portfolios.

Cash ISA allowances will be reduced to £12,000 for those under 65, while savers aged 65+ will retain the existing £20,000 limit.

This narrowing of tax‑free cash allowances may encourage some savers to revisit their investment strategy or explore different risk levels within their ISA.

A further measure previously announced will also take effect: pensions begin to form part of an individual’s taxable estate, making estate planning even more important.

A new usage‑based road charge will be introduced:

• 3p per mile for electric vehicles
• 1.5p per mile for hybrids

This marks the government’s shift towards taxing road use more directly as fuel duty revenues decline.

A new annual surcharge will apply to higher‑value properties:

• £2,500 for homes valued above £2 million
• £7,500 for homes valued above £5 million

Those affected may want to factor the ongoing cost into their long‑term property planning.

Salary sacrifice pension contributions above £2,000 will no longer be exempt from National Insurance.
This makes larger salary sacrifice arrangements less efficient and may require higher earners to review their pension strategy and contributions.

Income tax thresholds remain frozen until 2030/31, meaning more individuals are likely to move into higher tax brackets as wages rise.

The IHT nil‑rate band remains frozen until 2031, increasing the chances of estates breaching the threshold as asset values grow.

CGT relief on the sale of a business to an Employee Ownership Trust will reduce from 100% to 50%, an important consideration for business owners thinking about succession.

These measures stretch all the way to 2031, creating a layered timeline that may influence how you save, invest, own property, or plan for retirement and succession. While the changes don’t all arrive at once, early preparation can make a meaningful difference — helping you make the most of available allowances and avoid unintended consequences.

Taking time now to understand your position — and, where needed, seeking timely advice — can help you stay one step ahead.

With tax year‑end in April, this is an ideal moment to look over your finances and ensure your plans reflect your priorities and the upcoming changes for the new tax year ahead.

You might want to consider:

• Making the most of ISA and pension allowances while current thresholds still apply
• Reviewing dividend and savings income ahead of the 2027 increases
• Thinking about estate planning measures before changes take effect in 2027
• Revisiting your investment risk profile, particularly if ISA rule changes may affect you
• Making use of any reliefs that are due to reduce in the coming years

Taking these steps now can help you protect your financial wellbeing and position yourself confidently for the years ahead.

Important information

The information contained in this document is believed to be correct but cannot be guaranteed. Past performance is not a reliable indicator of future results. The value of investments and the income from them may fall as well as rise and is not guaranteed. An investor may not get back the original amount invested. Opinions constitute our judgment as at the date shown and are subject to change without notice. This document is not intended as an offer or solicitation to buy or sell securities, nor does it constitute a personal recommendation. Where links to third party websites are provided, TrinityBridge accepts no responsibility for the content of such websites nor the services, products or items offered through such websites.