There have been several tax changes announced across recent budgets, and many more are scheduled to take effect over the next few years. Below is a clear, consumer-friendly timeline of the main measures and what they could mean for your finances. If any item looks relevant to you, please get in touch so we can review your plan.
From 6 April 2025
- Capital gains on qualifying business disposals: Relief (Business Asset Disposal Relief) rose to 14% on the first £1m of lifetime gains. Another increase is due in 2026, so business owners considering a sale may want to review timing.
- Employer National Insurance: Employers' NICs rose and the earnings threshold at which employers start paying NICs was lowered and frozen to 2031.
- Non-UK domiciles: The old domicile test and remittance basis were replaced by a residency-based Foreign Income & Gains regime. Long-term residents may now face UK IHT on worldwide assets.
From 6 April 2026
- Dividends and VCTs: Dividend tax rates increase. Upfront income tax relief for Venture Capital Trust investments is cut from 30% to 20%.
- Inheritance Tax reliefs: Agricultural and Business Property Reliefs limited — full relief at 100% only up to a £2.5m allowance, with amounts above that relieved at 50%.
- Income tax thresholds: Personal allowance and higher-rate thresholds remain frozen until 2031 — pay growth could move people into higher bands.
From 6 April 2027
- Pensions and IHT: Most unused pension pots and lump sums will be subject to Inheritance Tax on death. This may significantly increase estate tax exposure.
- Savings and rental income: Tax on savings and property income will rise by 2 percentage points in each band.
From 6 April 2028
- Minimum pension age: The normal minimum age to access pension benefits rises from 55 to 57 for most people born after 5 April 1971.
From 6 April 2029
- NIC and pension salary sacrifice: The National Insurance exemption on salary-sacrifice pension contributions will be limited to £2,000 a year.
What This Means for You
Overall, the changes will increase your tax bill across multiple income and wealth streams and reduce the reliefs available. Practical actions to consider now: review timing for business disposals; revisit pension and estate planning in light of IHT and pension changes; check dividend strategies; and keep an eye on pay increases pushing you into higher tax bands.
Speak to Us
To get personalised guidance on how any of these changes affect your situation, contact Supportive Financial Planning and book a free consultation now.
📞 Call us on 0345 257 8494
📧 Email cliveperks@supportivefp.co.uk
This article is for information only and does not constitute financial advice. Tax rules and thresholds are subject to change. Figures and case details are correct as of January 2026.