Chancellor Rachel Reeves delivered the Spring Budget on March 18, 2026, announcing measures aimed at reducing the fiscal deficit while protecting public services. Key changes include a further increase in capital gains tax rates, frozen ISA allowances, and adjustments to pension contribution rules. The Office for Budget Responsibility forecast GDP growth of 1.3% for 2026, down from its earlier projection of 1.7%.
Capital Gains Tax
The main rate of capital gains tax was increased to 24% for higher-rate taxpayers (up from 20% on non-property assets), with the lower rate rising to 14%. The annual exempt amount remained frozen at 3,000 pounds, down from 12,300 in 2022-23. This means more ordinary investors, including those with modest share portfolios or buy-to-let properties, now face CGT on disposals.
HMRC confirmed that cryptocurrency disposals remain subject to CGT under existing rules. The changes make tax planning for crypto investors more complex, particularly for those realising gains from the 2024-25 bull market.
Pensions
The government maintained the annual pension contribution allowance at 60,000 pounds but reduced the lifetime pension tax relief threshold to 1.5 million pounds. The State Pension triple lock was maintained, with the new State Pension rising to 11,960 pounds per year from April 2026.
ISA Changes
The annual ISA allowance was frozen at 20,000 pounds. The proposed "British ISA" offering an additional 5,000 pounds for UK-listed stocks was quietly dropped. Junior ISA and Lifetime ISA limits remained unchanged at 9,000 and 4,000 respectively.
For full budget documents, visit HM Treasury Budget. For OBR forecasts, see Office for Budget Responsibility.