- No exit tax,
- No wealth tax,
- No general increase in Income Tax, Corporation Tax or VAT,
- No alignment of Capital Gains Tax to Income Tax rates,
- No reduction in tax relief on pension contributions or the tax-free lump sum,
- No imposition of a gift tax and
- No changes to the residence-based tax regime.
- The Triple Lock on the New State Pension survives and the full pension will be increased by 4.8% on 6th April 2026 from GBP 230.25 to GBP 241.30 per week, or GBP 12,547.60 per year. You will continue to need 35 full years to qualify for the full pension.
- The annual ISA subscription allowance will remain at GBP 20,000. From 6th April 2027 cash ISA subscriptions will be limited to GBP 12,000 for those aged below 65. ISA contributions are only permitted for UK residents.
- UK based Cryptoasset service providers will be required to report data on transactions to HM Revenue & Customs made by Non-Resident investors for the purpose of international Exchange of Information.
- Mandatory registration of UK tax advisers and the establishment of minimum legal standards of professional conduct.
- Personal Allowance and Basic Rate Thresholds will remain frozen for 10 tax years. Personal Allowance (GBP 12,570), Basic Rate of Tax (GBP 37,770) and Higher Rate of Tax (GBP 87,440) would remain frozen until 6th April 2031 at the earliest, as will the Inheritance Tax Nil Rate Band (GBP 325,000) and Main Residence Nil Rate Band (GBP 175,000).
Income Tax Rises
Table compiled by Spice Taxation – Click Here.
High Value Council Tax Surcharge
Will introduce an annual Council Tax surcharge on properties valued at GBP 2m and above on 1st April 2026. The Surcharge will apply from 1st April 2028 and will apply only to properties in England. It will be levied on the property owner (not the occupier/tenant) and will be collected alongside regular Council Tax payments. The proposed bandings are:
Table compiled by Spice Taxation – Click Here.
Foreign Income and Gains (FIG) Regime Unchanged
The FIG regime stays. It is still available for people moving to the UK for the first time or after living abroad for at least 10 years. Foreign income and gains are tax-free for the first four years in the UK. After that, normal UK tax rules apply.
Inheritance Tax - Long Term Residents (LTR) Regime Unchanged
There is no significant change to inheritance tax (IHT) exposure. For the first 10 years of UK residence, individuals are only subject to UK IHT on UK assets. After that, if they have been UK resident for 10 out of the previous 20 years, they become ‘long-term residents’ for IHT purposes, and their worldwide assets fall within the UK IHT net.
To avoid becoming an LTR, individuals need to leave the UK before the end of the ninth year. There is also a ‘tail’ rule: after leaving, they remain within the UK IHT net for between three and 10 years, depending on how long they were UK resident before departure.
Some IHT Relief for Large trusts
Under the old rules, trusts set up by non-doms were free from UK IHT forever. The new regime changed this. Once the settlor has been UK resident for 10 years, the trust comes within the ’10-year charging regime’. This means it faces tax charges of up to 6% every 10 years and when assets leave the trust – even if the settlor cannot benefit from the trust.
Talent Measures
The UK wants to attract skilled people. A new five-year Global Talent visa starts in late 2025 with relocation support. Employee share schemes will expand in 2026, making it easier for companies to offer shares to staff.
Anti-Avoidance Focus
The Government increases the intensity of its focus on tackling tax avoidance. The Budget reinforces this theme with further measures targeting offshore structures and disguised pay schemes. HMRC will gain stronger powers and impose bigger penalties. Most changes take effect from April 2026. Expect the ongoing pattern of more checks and enquiries to continue.
The move towards an increasing focus on tackling tax avoidance is likely to mean the rise in tax enquiries seen over recent years will continue. Wealthy individuals should take proactive steps.
