This guide covers the key tax and fiscal changes announced at each major Budget and Spring Statement from 2020 to 2026. Each entry focuses on the measures most relevant to practising accountants, SME owners, limited company directors, and self-employed people. Use it as a quick reference when advising clients on when specific rules changed, or when modelling multi-year tax positions.

The period spans one of the most turbulent stretches of UK fiscal policy in recent decades, taking in the pandemic response, post-Covid recovery measures, the cost-of-living crisis, and the transition from Conservative to Labour fiscal management.

Spring Budget 2020 (11 March 2020)

Chancellor Rishi Sunak delivered the Spring Budget 2020 just days before the first national lockdown. It was initially dominated by infrastructure and public spending commitments, but the Budget's legacy was almost entirely shaped by what followed: the emergency Covid response that began within weeks of the statement.

Key changes for accountants and SMEs

  • Employment Allowance doubled to £4,000: From April 2020, the Employment Allowance increased from £3,000 to £4,000, reducing employer NIC costs for small businesses. The allowance was also restricted to employers with a secondary Class 1 NIC liability below £100,000 in the prior tax year.
  • IR35 off-payroll reform delayed: The extension of IR35 reform to the private sector, originally planned for April 2020, was postponed by a year to April 2021, citing the disruption caused by the pandemic. This gave contractors and hiring businesses additional time to prepare.
  • Structures and Buildings Allowance increased: The annual rate for the Structures and Buildings Allowance was raised from 2% to 3%, accelerating tax relief for commercial construction and renovation spending.

Within days, the Budget's planned measures were overshadowed by emergency support schemes including the Coronavirus Job Retention Scheme (furlough) and the Self-Employment Income Support Scheme (SEISS), neither of which had been anticipated at the time of the Budget statement.

Autumn Statement 2022 (17 November 2022)

Chancellor Jeremy Hunt delivered the Autumn Statement 2022 in the aftermath of the Truss-Kwarteng mini-Budget crisis of September 2022, which had triggered a sharp rise in gilt yields and forced the Bank of England to intervene in bond markets. The statement reversed many of the mini-Budget's measures and set out a path of fiscal consolidation.

Key changes for accountants and SMEs

  • Income tax thresholds frozen until April 2028: The personal allowance (£12,570) and the higher rate threshold (£50,270) were frozen for a further two years until April 2028, extending a freeze that had already begun in 2022. This represented a significant stealth tax increase through fiscal drag as wages rose but thresholds remained static.
  • Additional rate threshold lowered to £125,140: The additional rate (45%) income tax threshold was reduced from £150,000 to £125,140, effective from April 2023. This brought a larger number of high earners into the top rate band and significantly increased the effective marginal rate for income between £100,000 and £125,140, where the personal allowance tapers to zero.
  • Dividend allowance and CGT annual exempt amount cut: The dividend allowance was cut from £2,000 to £1,000 from April 2023, and then to £500 from April 2024. The CGT annual exempt amount was reduced from £12,300 to £6,000 from April 2023, and further to £3,000 from April 2024. These changes significantly increased tax liabilities for limited company directors and investors.

Autumn Budget 2023 (22 November 2023)

Chancellor Jeremy Hunt delivered the Autumn Statement 2023 with the Conservative government under pressure ahead of a general election expected in 2024. The statement included significant tax cuts intended to ease the fiscal drag effect of frozen thresholds, particularly for employees and the self-employed.

Key changes for accountants and SMEs

  • Class 2 NIC abolished from April 2024: The flat-rate Class 2 National Insurance contribution paid by self-employed people (£3.45 per week in 2023/24) was abolished from April 2024. Self-employed people with profits above the small profits threshold (£6,725) retain access to contributory benefits through a NIC credit rather than a payment. This simplified the NIC position for sole traders significantly.
  • Class 4 NIC cut from 9% to 8%: The main rate of Class 4 National Insurance for the self-employed was reduced from 9% to 8% from April 2024, and then further to 6% from April 2025. This delivered a meaningful reduction in the tax burden on self-employed profits for basic rate taxpayers.
  • Full expensing made permanent: The 100% first-year allowance for qualifying new plant and machinery investments (known as full expensing) was made permanent for incorporated businesses. Previously scheduled to expire in March 2026, its permanence gave companies certainty when planning capital investment decisions.

Spring Budget 2024 (6 March 2024)

Chancellor Jeremy Hunt delivered the final Budget of the Conservative government before the July 2024 general election. It focused on further cuts to employee National Insurance contributions and measures to encourage long-term investment, alongside an attempt to address the high-income child benefit trap.

Key changes for accountants and SMEs

  • Employee NIC main rate cut to 8%: The main rate of employee Class 1 National Insurance was reduced from 10% to 8% from April 2024, following an earlier cut from 12% to 10% in January 2024. Together these cuts reduced the NIC burden for employed workers earning between £12,570 and £50,270 by a third compared to 2023/24. The self-employed had their own NIC cut announced in the Autumn Statement 2023.
  • High Income Child Benefit Charge threshold raised: The point at which the High Income Child Benefit Charge begins was increased from £50,000 to £60,000, with the charge now clawing back benefits fully at £80,000 rather than £60,000. This removed the punitive marginal rate faced by parents earning around the previous threshold.
  • Multiple Dwellings Relief abolished: The Stamp Duty Land Tax relief for purchases of multiple dwellings (Multiple Dwellings Relief, or MDR) was abolished from 1 June 2024. This had been commonly used by investors purchasing several properties in a single transaction or portfolios of residential properties, and its removal increased the SDLT cost of bulk property acquisitions.

Autumn Budget 2024 (30 October 2024)

The first Budget delivered by Chancellor Rachel Reeves following Labour's general election victory in July 2024. It represented a significant fiscal reset, raising employer National Insurance and Capital Gains Tax whilst maintaining the headline Corporation Tax rate and income tax rates. The Budget also confirmed a range of Business Property Relief and Agricultural Property Relief changes that provoked significant controversy in farming and small business communities.

Key changes for accountants and SMEs

  • Employer NIC rate raised to 15% and Secondary Threshold cut to £5,000: From April 2025, the employer National Insurance rate increased from 13.8% to 15%. At the same time, the Secondary Threshold, the point at which employers start paying NIC on wages, was reduced from £9,100 per year to £5,000 per year. To partly offset the impact on small employers, the Employment Allowance was increased from £5,000 to £10,500. The combined effect was to significantly raise payroll costs for most employers, whilst protecting the smallest businesses to some degree.
  • CGT rates increased: Capital Gains Tax rates were increased with immediate effect from 30 October 2024. The basic rate for most assets (excluding residential property and carried interest) was raised from 10% to 18%, and the higher rate was raised from 20% to 24%. Residential property CGT rates were aligned at 18% (basic rate) and 24% (higher rate). Business Asset Disposal Relief (previously Entrepreneurs' Relief) remained available but the applicable rate increased to 14% in 2025/26 and will rise to 18% from 2026/27.
  • IHT changes to Business and Agricultural Property Relief: Full 100% IHT relief on business and agricultural property was capped at a combined £1 million per person from April 2026 (subsequently revised upward to £2.5 million combined in a later Autumn Budget amendment). Assets above this threshold qualify for 50% relief rather than 100%. Additionally, unquoted shares on AIM and similar markets ceased to qualify for 100% BPR, instead qualifying for 50% relief only.

Spring Statement 2025 (26 March 2025)

The Spring Statement 2025, delivered by Chancellor Reeves, contained no new tax announcements. Following Labour's stated policy of reserving significant fiscal decisions for the annual Autumn Budget, the March statement was designed as an economic and forecasting update rather than a tax-raising event. Its significance lay primarily in the context it set for the Autumn Budget 2025.

Key points for accountants and SMEs

  • No new tax measures: The statement introduced no new taxes, reliefs, or threshold changes. All previously announced measures remained on track.
  • OBR forecast GDP growth of 1.5% for 2025: The Office for Budget Responsibility predicted moderate economic growth, with inflation continuing to fall towards the 2% target. Unemployment was forecast to rise modestly from 2024 levels.
  • Frozen thresholds context: By March 2025, the freeze on income tax thresholds originally announced in 2022 had already pushed large numbers of basic rate taxpayers into the higher rate band. The Spring Statement confirmed the freeze would continue to at least 2028, as previously announced. The Autumn Budget 2025 subsequently extended this to 2031.

Autumn Budget 2025 (26 November 2025)

Chancellor Reeves delivered a significant tax-raising Budget that introduced changes to dividend taxation, extended threshold freezes, launched Making Tax Digital for Income Tax, and reformed capital allowances. The overall tax burden was forecast to reach 38.5% of GDP by 2030/31, the highest since World War Two.

Key changes for accountants and SMEs

  • Dividend tax rates increased by 2% from April 2026: The basic rate of dividend tax increased from 8.75% to 10.75%, and the higher rate from 33.75% to 35.75%, from 6 April 2026. The additional rate remained at 39.35%. The dividend allowance stayed at £500. This was the most significant change for limited company directors, narrowing the tax efficiency advantage of taking income via dividends rather than salary.
  • Income tax thresholds frozen to April 2031: The freeze on all income tax thresholds was extended by a further three years to April 2031. With wages continuing to rise, the fiscal drag effect is expected to generate substantial additional revenue over the extended period without any nominal rate increase.
  • MTD ITSA launched from April 2026: Making Tax Digital for Income Tax Self Assessment was confirmed to launch from 6 April 2026 for sole traders and landlords with income above £50,000. The threshold reduces to £30,000 from April 2027 and £20,000 from April 2028. This was the most operationally significant change for accountants serving sole trader and landlord clients, requiring compatible software and quarterly digital reporting.

For a full analysis of the Autumn Budget 2025, see our dedicated summary.

Spring Statement 2026 (3 March 2026)

The Spring Statement 2026 followed the pattern of its 2025 predecessor: no new taxes, updated OBR forecasts, and confirmation of previously announced changes taking effect from April 2026. The statement occurred against a backdrop of slightly weaker-than-expected economic growth and rising unemployment.

Key points for accountants and SMEs

  • No new tax measures: All April 2026 changes announced in prior Budgets were confirmed as proceeding as planned, including the dividend tax rise, MTD ITSA launch, capital allowances WDA reduction to 14%, APR and BPR changes, and the doubled Corporation Tax late filing penalty.
  • GDP growth downgraded to 1.1% for 2026: The OBR revised its forecast for 2026 GDP growth downward from 1.4% to 1.1%, reflecting weaker output in late 2025 and subdued business investment sentiment. Unemployment was forecast to peak at 5.3% in 2026 before declining.
  • Fiscal headroom increased modestly to £23.6 billion: The government's fiscal headroom against its own rules rose slightly, driven by lower borrowing costs and stronger capital gains tax revenues. The OBR noted this headroom remained slim by historic standards and vulnerable to global economic shocks.

For a full analysis of the Spring Statement 2026, see our dedicated guide.

What is coming next

The next major fiscal event is the Autumn Budget 2026. Measures already legislated and due to take effect before then include the savings and property income tax rise of 2 percentage points from April 2027, and the further extension of MTD ITSA to landlords and sole traders with income above £30,000. The fuel duty 5p cut is also scheduled to expire in September 2026, which would represent an automatic tax rise unless extended.

Accountants advising clients on multi-year tax planning should note the April 2027 property income and savings income increases, the expanding MTD ITSA population, and the possibility of further changes at the Autumn Budget 2026 if growth continues to disappoint.

Disclaimer: This guide provides general information only and is not regulated financial or legal advice. Figures are accurate as of April 2026. Tax law and HMRC guidance can change; consult a qualified accountant for advice tailored to your circumstances.