Making the most of your available tax allowances and reliefs has always been an important part of effective tax planning. In recent years, this has become even more valuable, with the personal allowance and tax band thresholds remaining frozen.
With the freeze now extended from 2022/23 through to 2030/31, more people may find themselves paying higher levels of tax over time as incomes rise with inflation.
Several important changes also came into effect in April 2026, which should be considered as part of your tax planning.
Dividend tax rates have increased by two percentage points for basic and higher rate taxpayers. Changes to inheritance tax rules around business and agricultural reliefs have also been widely discussed, with the cap on 100% relief increasing to £2.5 million. While this offers some reassurance, careful planning remains important to help manage the potential impact.
The next phase of Making Tax Digital has also come into force. Sole traders and landlords with income of £50,000 or more are now required to use compatible software and submit more regular updates to HMRC, giving a more up-to-date view of their income. From April 2027, those with income of more than £30,000 in 2025/26 will also need to comply, so now is the time to prepare if you fall into the next group.
Our Tax Planning Tips guide for 2026/27 brings together 50 practical, bite-sized ideas to help you make the most of your reliefs, manage your tax position and identify opportunities to save money.
The guide covers key areas including personal and family tax planning, savings and investments, property, retirement, estate planning, business matters and employment issues. Each section also includes a short checklist to help you keep track of the strategies that may be relevant to you.
We hope the guide gives you useful ideas to support your tax planning for the year ahead. Acting on even a few of these tips could help you plan more effectively and move closer to your financial goals.
Please get in touch to discuss any issues that you think may affect you. For further information on any of the topics above and to view our Tax Planning Tips guide, download the PDF below.
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