6 April 2026: Tax year-end planning checklist
With the new tax year beginning on 6 April 2026, now is the ideal time for UK taxpayers to review how their business and personal finances are structured. Thoughtful planning can help manage upcoming tax increases, optimise reliefs and minimise future liabilities.
1. Tax planning for investors and savers
From 6 April 2026, dividend tax rates for basic and higher-rate taxpayers will rise by 2%, with a further 2% increase on savings and property income from 6 April 2027. Fixed thresholds until 2030/31 may push more individuals into higher tax bands as investments grow.
Key considerations:
- Are you maximising reliefs and allowances across all family members?
- Could you exceed any tax thresholds in the coming year?
- Have you reviewed your investments for tax efficiency (ISAs, EIS, VCTs, pensions, bonds)?
- Is a family investment company a structure you have considered for longer-term wealth protection?
- If you are now paying a large tax bill from interest income, have you considered gilts as a tax-efficient alternative?
2. Tax planning for landlords and property owners
Rental profit tax will increase by 2% from 6 April 2027. Making Tax Digital (MTD) will apply to landlords with income over £50,000 from 5 April 2026, and those with income over £20,000 by 5 April 2028, adding ongoing reporting and compliance requirements.
Key considerations:
- Is your property income held in the most taxefficient structure (company, partnership, joint ownership)?
- Do you need to revisit historic furnished-holiday-let (FHL) positions or buy-to-let (BTL) portfolios?
- Are you claiming all available reliefs, including capital allowances for commercial property?
3. Inheritance tax (IHT)
From 6 April 2027, pension funds will be included in the value subject to IHT, which may affect eligibility for the additional residence nilrate band.
From 6 April 2026, the current 100% IHT relief for business, shares in unquoted companies and agricultural businesses is withdrawn. The relief will be capped at £2.5 million per individual with only 50% relief in point above that. For larger businesses, this can be a significant cost, with an effective rate of 20%. Some planning can still be done before 5 April 2026 but time is running out.
Key considerations:
- Have you reviewed your will?
- Are you aware of the current IHT position of your estate?
- Are you fully aware of what reliefs are in point for you and the types of protection (both personally and via the business) you can put in place?
- Are you taking advantage of such reliefs as annual gifting and making use of the regular gifts-out-of-surplus-income rule (and keeping clear records)?
- Would you like to start planning to mitigate the impact of the reduced relief for business property or agricultural property relief on your estate?
- Are you aware of how trusts may provide both protection of assets and IHT efficiency?
4. Tax planning for ownermanaged businesses
Reward strategies and family ownership structures may need reviewing due to changes coming in on 6 April 2026, such as the 2% increase in the rate of tax on dividends and the capping of Business Property Relief for unquoted trading companies at £2. 5 million, limiting the value that can obtain 100% relief from IHT.
Key considerations:
- Is your remuneration mix (salary vs dividends) still optimal?
- Should you accelerate planned dividends before rate increases?
- Would broader family ownership improve tax efficiency and succession planning?
- How will changes to business property relief affect your IHT position?
- Do you hold large cash balances within the business?
5. Companies
Upcoming changes from April 2026 make proactive planning essential for companies and groups. Such changes include the reduction in the rate at which Writing Down Allowances ( WDA’s) on capital expenditure can be claimed, increased rate by 2% in point if a director or shareholder has an overdrawn loan account., increased scrutiny and tightening of claims to R & D reliefs, tightening of the circumstances in which a group re-structure may meet the conditions for tax free exchanges of shares and increased HMRC activity around investigations and enquiries .
Key considerations:
- Are you maximising full expensing for capital allowances before writing down allowances reduce in April 2026?
- Are you eligible for R&D reliefs and do your claims meet the strengthened compliance requirements?
- Could a group restructuring protect valuable assets or improve overall efficiency?
- Do you have overdrawn directors’ loan accounts and have you planned for the increased 2% on the s455 tax rate?
6. Business owners planning an exit
Increased capital gains tax rates affecting entrepreneurs (business assets disposal relief) and disposals to employee ownership trusts mean early planning is crucial to maximise your exit value
Key considerations:
- Are you planning a sale or succession in the next few years?
- Have you considered all viable options – third-party sale, management buy-out or employee ownership – to find the optimal route?
- Would introducing an employee share scheme support your exit strategy?
- Have you set up your finances in the most tax-efficient way post-exit? Did you know your IHT liability increases as soon as you complete the exit?
7. Employees and individuals
The freezing of personal allowances and tax rate bands mean more individuals are being drawn into higher rate tax bands. The personal allowance of £12,500 starts to be lost when total income exceeds £100,000. Without this allowance, higher rates of tax start to be incurred for income above £37,701. These allowances and tax thresholds are fixed until 5 April 2031. Have you reviewed your pension contributions to aid maintaining allowances?
- Are you taking advantage of tax-efficient benefits in kind planning (e.g., electric vehicles)?
- Have you claimed Gift Aid and higher rate pension relief?
- Do you claim child benefit or access tax-free childcare and have you considered the impact of freezing allowances on your position?
Summary
Every situation is unique and the upcoming tax changes introduce new complexities. Tailored planning can help safeguard your wealth, manage tax liabilities and position you, your family and your business for a successful year ahead.
How can we help?
Contact us for support in reviewing your current arrangements and preparing effectively for the changes ahead. Our team of tax advisers is experienced in understanding your needs and balancing the various taxes that may impact you.
