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2026 is approaching fast. After the Chancellor’s Budget, delivered on 26 November, the media is swirling with headlines about what the coming year will bring. While useful in part, much of this noise is distracting at best and misleading at worst.
Cutting through the media noise, there are indeed some changes confirmed for 2026, many of which will come into force at the start of the new tax year on 6 April. Preparing for these may be crucial for you and your family, so here is what you need to know.
In the Budget, the Chancellor announced several taxation measures that will come into effect soon
When she stood up on 26 November, the Chancellor focused heavily on filling the £22 billion “black hole” in the public finances. She announced a range of measures that will be staggered over the coming years.
There were many important announcements made in the Budget. Here are three that could affect your family’s wealth in the years to come.
Remember – there are few Budget changes coming into force in 2026, with most scheduled for 2027 onwards. That said, there are previously announced legislative changes happening soon.
Agricultural Property Relief and Business Property Relief reforms will come into force in April
In the 2024 Budget, Reeves announced that Agricultural Property Relief (APR) and Business Property Relief (BPR) would be cut in April 2026.
Under existing rules, eligible agricultural and business property holdings receive 100% relief from Inheritance Tax (IHT), allowing individuals to pass these assets down tax-efficiently as part of their estate. But from 6 April 2026, the value of eligible assets in excess of £1 million will only be subject to 50% relief.
This reduction could hit family businesses hard, potentially forcing the sale of business assets upon death to pay the IHT due. A reminder that all relevant tax breaks are individual, so there may be ways to mitigate the effects of these changes through lifetime gifting, trust arrangements, and utilising the IHT spousal exemption.
It’s clear, though, that with the government seeking to extract more wealth from large estates and family businesses, professional planning is essential. Navigating APR and BPR unadvised could lead to costly errors and missed tax mitigation opportunities.
Making Tax Digital for Income Tax will change how sole traders and landlords report their income
At the time of writing, only VAT-registered businesses need to use the government’s Making Tax Digital reporting system.
From April 2026, however, self-employed earners and landlords earning £50,000 or more will need to change how they report their income, under a system called Making Tax Digital for Income Tax.
Your accountant will be aware of these changes and is likely already prepared to take them on. Nevertheless, it’s important to be aware of this legislation and ensure you are giving your accountant (and any other relevant professional) the right information on a quarterly, rather than annual, basis.
In an unpredictable landscape, professional advice is invaluable
While we cannot always predict the government’s next move, our job is to stay informed on legislative changes that could affect your wealth, investments, and goals. Your relationship manager is here to answer any questions you may have about the above topics.
Please email info@ipscap.com for more information.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article.
The Financial Conduct Authority does not regulate estate planning, trusts, or tax planning. IPS Capital does not provide tax or legal advice.
