Spring Budget 2026: Key Measures Every Fintech CFO Must Action

Macro Context: OBR Forecasts and the Fiscal Environment

The OBR's Spring 2026 Economic and Fiscal Outlook revised UK GDP growth upward to 1.6 percent for 2026 (from 1.4 percent in the October 2025 forecast), reflecting a modest improvement in consumer spending and business investment. Inflation has continued its return toward the 2 percent target, with CPI at approximately 2.4 percent in early 2026 after a period of more persistent services inflation than the MPC had anticipated.

The Chancellor's fiscal headroom against the primary rule (current budget balance over five years) remains tight, constraining the scope for significant tax giveaways. The Budget was therefore relatively modest in scale: targeted reliefs for priority sectors, threshold adjustments rather than rate changes, and a continuation of the fiscal strategy established in the October 2024 Autumn Budget rather than a significant departure from it.

For the fintech sector, the fiscal environment is not hostile but it is not generous either. The employer NIC increase from the October 2024 Budget (employer NICs rising from 13.8 to 15 percent, with the secondary threshold falling from £9,100 to £5,000 per annum) continues to weigh on the payroll cost base of headcount-intensive businesses. The Spring Budget provided no reversal of those measures, though the secondary threshold is being restored to £6,000 per annum from April 2026, providing a modest offset.

R&D Tax Credits: The Merged Scheme Update

The merged R&D tax credit scheme, which came into effect for accounting periods beginning on or after 1 April 2024, replaced the previous separate RDEC (Research and Development Expenditure Credit) and SME schemes with a single framework. After two years of operation, the Spring Budget 2026 delivered a minor but positive adjustment: the merged scheme credit rate has been increased from 20 percent to 22 percent of qualifying R&D expenditure for standard qualifying expenditure.

For profitable companies, this is a straightforward cash tax benefit. The credit reduces the corporation tax liability and, where it exceeds the liability, generates a repayable credit (subject to the payable credit cap). For loss-making companies, the credit is fully payable at the 22 percent rate (subject to PAYE and NIC cap provisions), making it a meaningful cash inflow for early-stage R&D-intensive fintechs.

The most important CFO action here is to review whether your R&D claim methodology is fully updated for the merged scheme. Many companies that previously filed under the SME scheme have not fully optimised their approach under the merged framework. The qualifying expenditure categories are broadly similar but the documentation requirements differ, and the subcontractor cost treatment (the 65 percent cap on externally contracted R&D) requires careful application.

Employer NIC: Secondary Threshold Adjustment

The October 2024 Autumn Budget increased employer NICs from 13.8 to 15.0 percent and simultaneously reduced the secondary threshold (the point at which employer NICs become payable on an employee's earnings) from £9,100 to £5,000 per annum. The combined effect was a significant increase in the per-employee NIC cost for employers, particularly for lower-paid workers.

The Spring Budget 2026 partially reversed the threshold reduction: the secondary threshold will increase from £5,000 to £6,000 per annum from 6 April 2026. This is a modest but tangible offset. For a company with 100 employees, each earning above the threshold, the saving is approximately £150 per employee per annum (£1,000 additional threshold at 15 percent), or £15,000 in total. Not a major figure, but worth updating in your cost base model.

The NIC rate itself remains at 15 percent. There is no indication from the Chancellor that a reversal is contemplated within the current fiscal plan, and the OBR's projections assume the 15 percent rate persists across the forecast period.

SEIS: Investment Limit Increase

The Seed Enterprise Investment Scheme (SEIS) annual investment limit has been increased from £250,000 to £300,000 per investor per tax year, effective 6 April 2026. This is the first increase since the October 2023 changes that raised the limit from £100,000 to £250,000 and expanded the qualifying company criteria.

For fintech founders raising seed capital, this is a useful increase: it allows each SEIS-qualifying investor to invest a higher amount before switching to EIS. The income tax relief (50 percent on qualifying investments), CGT exemption on disposal, and loss relief provisions remain unchanged. The qualifying company conditions (gross assets below £350,000, fewer than 25 full-time equivalent employees, trading for less than three years) are also unchanged.

The practical CFO implication is straightforward: update your SEIS advance assurance application and investor documentation if you are currently raising. If your current round includes SEIS-eligible investors who have already contributed at the previous £250,000 limit, they may now be able to subscribe a further £50,000 in the same tax year if they have not exceeded the new £300,000 annual limit.

Cryptoasset Corporation Tax Treatment: HMRC Guidance Update

HMRC published updated technical guidance on the corporation tax treatment of cryptoassets alongside the Spring Budget 2026. This guidance, while not changing the underlying tax law, provides important clarifications on several contested areas that have been generating uncertainty for fintech and crypto businesses.

The key clarifications in the guidance are as follows.

• Stablecoin issuers: HMRC has clarified that for FCA-authorised stablecoin issuers, the backing pool assets are held on trust for token holders and do not form part of the taxable income of the issuer. Income earned on backing assets (interest on gilts and deposits) is taxable in the hands of the issuer, but the backing pool itself is not a source of income or gain for CT purposes. This aligns with the regulatory treatment under the FCA's regime.
• Crypto trading businesses: HMRC has confirmed that the profit arising from crypto-asset trading activities (buy/sell of cryptoassets as a business activity, not investment) is subject to the ordinary corporation tax rules on trading income. The specific identification and FIFO rules that apply to individuals do not apply to companies; companies must use an appropriate consistent cost basis method.
• Token issuance proceeds: The guidance confirms that proceeds from initial token sales (where the tokens represent a service obligation or product access right) are treated as deferred income under normal accounting principles and are taxable as the performance obligation is discharged. Pure speculative token sales without an associated service obligation remain subject to case-by-case analysis.
• DeFi activities: HMRC has provided limited but useful guidance on the tax treatment of common DeFi activities: liquidity provision, yield farming, and staking. In each case, the income arising is taxable as trading or investment income depending on the nature and frequency of the activity. The guidance does not resolve all edge cases, but it provides a clearer starting framework.

Corporation Tax Rate: Unchanged at 25 Percent

The main corporation tax rate remains at 25 percent for companies with profits above £250,000, with the small profits rate of 19 percent continuing to apply to companies with profits below £50,000. Marginal relief applies between £50,000 and £250,000.

For fast-growing fintech companies that are approaching profitability, the effective rate matters for tax planning purposes. The marginal rate between £50,000 and £250,000 is effectively 26.5 percent due to the way marginal relief operates. Companies expecting to pass through this band during the current financial year should ensure their quarterly instalment payment (QIP) calculations reflect this marginal rate.

OBR Growth Forecasts: Implications for Fintech Funding

The OBR's revised growth forecast of 1.6 percent for 2026 and 1.9 percent for 2027 reflects an economy recovering gradually from the stagnation of 2023 to 2024, with consumer spending beginning to recover as real wages improve. For the fintech sector, the macro implications are modestly positive: consumer spending recovery supports volumes in payments and lending, and improving business confidence supports technology investment.

The OBR also revised down its forecast for UK public sector net borrowing, providing the Chancellor with marginally more headroom going into the Autumn Budget. This reduces the risk of further tax increases in the near term, which is relevant for venture-backed companies with exit planning horizons of two to three years. CGT rates remain at the October 2024 levels (18 percent basic rate, 24 percent higher rate for business asset disposals following the 2024 reform) and there is no indication of further increases in the current fiscal plan.

Key Takeaways

• The merged R&D credit rate has increased to 22 percent from 1 April 2026. Review your R&D claim methodology for the merged scheme if you have not done so in the last 12 months, and recalculate your expected credit value at the new rate.
• The employer NIC secondary threshold rises to £6,000 per annum from 6 April 2026. The NIC rate remains at 15 percent. Update your payroll cost model for the partial threshold restoration.
• SEIS investment limit increases to £300,000 per investor per tax year from 6 April 2026. If you are raising seed capital, update your SEIS advance assurance and investor documentation.
• HMRC's cryptoasset corporation tax guidance published with the Budget provides important clarifications on stablecoin backing pool treatment, token issuance proceeds, and DeFi income. Review it against your current tax position before your next CT filing.
• The marginal CT rate between £50,000 and £250,000 of profits is 26.5 percent, not 25 percent. If you are approaching profitability, adjust your QIP calculations to avoid underpayment.
• CGT rates remain at October 2024 levels, with no indication of further increases. Exit planning assumptions can remain stable for the near term.