A breakdown of the 2026 Spring Statement
On 3rd March 2026, Chancellor of the Exchequer, Rachel Reeves, set out the government’s Spring Statement, providing an update on the UK’s economic position and reaffirming the direction of policy, with Rachel Reeves reinforcing that she has the “right economic plan” for the UK.
The highlight of the Spring Statement was the announcement of the Office for Budget Responsibility (OBR) forecast for economic growth, which has been downgraded to 1.1% from its previous prediction of 1.4% at the Autumn Budget. However, the OBR have upgraded its forecast for 2027 and 2028 from 1.5% to 1.6%, indicating that although near-term growth is expected to slow, the outlook is marginally better than previously predicted which suggests confidence in economic recovery and fiscal measures taking effect over time.
However, previously announced measures from the 2025 Autumn Budget are due to be implemented from the start of the new tax year on 6 April 2026.
These upcoming changes may influence tax, investment and estate planning strategies, making early preparation and professional advice increasingly important to ensure your wealth strategy aligns with the upcoming changes.
Speaking on the Spring Statement, Simon Dawes, Managing Director of Cooper Associates Wealth Management, stated:
“Following the government’s previous commitment to a single major fiscal event each year, we weren’t expecting to see any major announcements in the Spring Statement today.
Clients should be aware that previously announced changes from the last Autumn Budget fast approaching and come into effect from April 2026/27. These include changes to Cash ISA limits, Inheritance Tax Relief for business and agricultural property, Business Asset Disposal Relief and Inheritance Tax treatment of pensions, making early preparation and professional advice key to ensuring you make the most of your finances and plan with confidence.”
The key upcoming changes for 2026/27
Changes to Business & Agricultural reliefs
From April 2026, changes to inheritance tax (IHT) on combined business and agricultural property come into effect.
While historically farming assets have been excluded from inheritance tax liabilities, from April 2026 the tax-free threshold on these assets will be capped at £2.5 million. IHT will apply to any assets over this amount with a 50% relief available. This results in an effective 20% IHT rate.
For families with business or agricultural relief, this change may alter existing succession and estate planning strategies. Reviewing asset structures, ownership arrangements, and long-term intentions ahead of implementation may help ensure plans remain aligned with family objectives.
Business Asset Disposal Relief (BADR)
Following a planned incremental increase first announced in the 2024 Autumn Budget, Business Asset Disposal Relief will rise to 18% from April 2026. This follows an increase from 10% to 14% in April 2025 and marks the final planned increase.
For business owners considering a future sale or exit, this change reinforces the importance of timing and long-term planning. Aligning exit strategies with broader wealth goals, such as retirement planning, reinvestment or gifting, can help ensure that decisions are not driven by tax considerations alone but remain consistent with wider financial priorities.
Inheritance tax treatment of pensions
One of the most significant long-term changes confirmed in the 2025 Autumn Budget is the inclusion of pensions within the inheritance tax framework, which will be introduced from April 2027.
From this point, pensions which have traditionally sat outside of an individual’s estate which allowed them to be passed on to beneficiaries free from IHT, will be brought under the IHT umbrella, meaning they will be subject to taxation at standard IHT rates.
This represents a meaningful shift for estate planning. Individuals may wish to review how pensions fit within their wider wealth strategy, including how and when pension funds are accessed, beneficiary nominations, and the balance between pension and non-pension assets.
Changes to the Cash ISA limit
The 2025 Autumn Budget also confirmed upcoming changes to Cash ISAs from 6 April 2027. For savers under the age of 65, the annual Cash ISA allowance will be reduced to £12,000, while those aged 65 and over will continue to benefit from the full £20,000 allowance.
The government also plans to tighten the rules around moving money into Cash ISAs and clarify what counts as “cash-like” investments. These changes will only apply to investors under 65 and will be consulted on with the industry before being finalised.
What this means in practice
Younger savers may need to think more carefully about how they split their £20,000 ISA allowance between cash and investments, while those approaching retirement may benefit from reviewing their ISA strategy with one of our financial advisers ahead of the 2027 changes.
How can Cooper Associates Wealth Management help?
Although no new announcements or policy changes were made in Spring Statement today, it is important to be aware of the wider changes that may impact you in other areas. Please follow the links to explore how the announcement could impact your mortgage or tax liabilities.
If you are feeling concerned about any of the upcoming changes, our team of expert financial advisers is here to provide tailored advice, helping you understand the implications of these changes and consider the options available.
Get in touch today to book a meeting with one of our advisers and discover how Cooper Associates Wealth Management can assist you.
The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.
SJP Approved 12/08/2026
