The upcoming tax year is approaching with significant changes to be aware of. Unlike the calendar year, the tax year spans from April 6 to the following April 5, resetting personal tax allowances, ISA limits, and pension allowances.

New PAYE tax codes for employees are also on the horizon starting April 6. Additionally, from April 2026, sole traders and landlords earning over £50,000 annually must maintain digital records and submit tax updates quarterly under HMRC’s Making Tax Digital initiative.

Changes to agricultural and business property reliefs for Inheritance Tax will take effect in April 2026, including a new £2.5 million cap before Inheritance Tax applies, with a 40% standard rate. The Dividend Tax rate will increase for basic and higher rate taxpayers following recent Budget announcements.

Furthermore, from April 2026, individuals working from home will no longer be able to claim tax relief for extra household costs. The Capital Gains Tax rate for Business Asset Disposal Relief and Investors’ Relief is also set to rise from 14% to 18%, impacting entrepreneurs and investors.