New Tax Year Checklist: Whats Changed?

Reviewed by Ed WilkinsonLast updated: April 7, 2026 10:03 am

Image credit: Pixabay @Pexels

In this article:

Key Changes in Personal Taxation
Updates to Savings and Investments
Business Taxation and Benefits
Property Taxes and Stamp Duty
Checking Compliance and Deadlines

As the 2026/27 UK tax year begins, it’s important for individuals and businesses to understand what has changed and what has stayed the same. A clear view of the rules can help you plan ahead, budget effectively and avoid unnecessary surprises. This checklist highlights key updates and reminders that may affect your financial planning.

Key Changes in Personal Taxation

The start of a new tax year can bring adjustments to rates, allowances and thresholds. For 2026/27, note the following:

Personal Allowance: The standard Personal Allowance¹ remains £12,570 and is currently frozen until April 2028. It tapers by £1 for every £2 of adjusted net income over £100,000 and is fully withdrawn at £125,140.
Income Tax Bands: For England, Wales and Northern Ireland in 2026/27, the basic rate (20%) applies to taxable income up to £37,700 (generally earnings over the Personal Allowance up to £50,270); the higher rate (40%) applies from £50,271 to £125,140; and the additional rate (45%) applies above £125,140. If you are a resident in Scotland, different bands and rates apply under Scottish Income Tax.
National Insurance Contributions²: Most employees start paying Class 1 NIC when earnings exceed the Primary Threshold (£12,570). Employers generally pay 13.8% on earnings above the Secondary Threshold. Self‑employed people no longer pay Class 2 NIC in most cases, and Class 4 NIC is charged on profits above the relevant limits. Check current thresholds and rates on GOV.UK to ensure accurate payroll and budgeting.

Adjustments to Consider in Financial Planning

To manage your position around the thresholds, consider the timing of income and the use of tax‑efficient wrappers (for example, pensions and ISAs) to help manage your overall tax bill. The right approach depends on your circumstances.

Impact on Take-home Pay

Changes to thresholds and rates are reflected directly in your payslip. Knowing where your earnings sit against the bands and NIC thresholds can help you set an accurate budget for the year.

Utilising Tax-free Allowances and Benefits

Consider the Savings Allowance³ (£1,000 for basic‑rate taxpayers, £500 for higher‑rate taxpayers and £0 for additional‑rate taxpayers), the Dividend Allowance⁴ (£500 in 2026/27) and the Capital Gains Tax⁵ annual exempt amount (£3,000 in 2026/27). Using these allowances where appropriate can reduce the tax you pay. Allowances for trusts are usually lower.

As rules evolve, review your plans periodically. This content is for general information only; if you need help with your specific situation, consider regulated advice.

Updates to Savings and Investments

Your savings and investment strategy may benefit from a review in light of current rules:

ISA Allowance: For 2026/27, the ISA allowance⁶ remains £20,000. Since April 2024, you can subscribe to more than one ISA of the same type in a tax year and make partial transfers between providers (subject to provider processes). ISAs shelter interest, dividends and capital gains from UK tax.
Pension Contributions⁷: In 2026/27, the annual allowance is £60,000, subject to tapering for higher earners (from adjusted income above £260,000, tapering to a minimum of £10,000). The Money Purchase Annual Allowance⁸ is £10,000 if you have flexibly accessed a defined contribution pension. The lifetime allowance has been abolished; instead, limits apply to tax‑free lump sums, including the Lump Sum Allowance (£268,275 for most people) and the Lump Sum and Death Benefit Allowance⁹ (£1,073,100). Check how these apply to your arrangements.
Capital Gains Tax: The Capital Gains Tax annual exempt amount for 2026/27 is £3,000. Most gains are taxed at 10% or 20% (basic/higher‑rate bands). Chargeable gains on residential property are 18%/24% (basic/higher‑rate) where applicable. Planning disposals across tax years and using both spouses’ or civil partners’ allowances can help manage liabilities.

Strategic Considerations for Investment Planning

When adjusting your investment strategy, consider the timing of disposals and contributions. For example, if you are close to using the CGT annual exempt amount, it may be worth staging sales over more than one tax year to manage liabilities. Ensure pension and ISA contributions fit within your cash‑flow and risk tolerance.

Review and Plan Ahead

Regular reviews help ensure you utilise available allowances and reliefs. If your affairs are complex, regulated advice can help you understand options and risks so you can make informed decisions.

By staying informed and actively managing your savings and investments, you can help support financial stability and future prospects.

Business Taxation and Benefits

Business owners should keep a close eye on corporate tax changes and reliefs:

Corporation Tax Rates: The main Corporation Tax¹⁰ rate is 25% for profits over £250,000, with a small profits rate of 19% up to £50,000 and marginal relief between £50,000 and £250,000. These limits are apportioned between associated companies. Build these rates into your forecasts and cash‑flow planning for 2026/27.
Business Relief Schemes: Reliefs can materially affect liabilities. In England, Small Business Rate Relief¹¹ generally provides 100% relief for properties with a rateable value up to £12,000, tapering to £15,000. Research and Development relief¹² has been reformed: for most companies, a merged R&D scheme based on the RDEC applies to accounting periods beginning on or after 1 April 2024, offering a taxable credit of 20% on qualifying expenditure. Additional support may be available for R&D‑intensive SMEs. Check current eligibility and rates.
VAT Thresholds: The VAT registration threshold is £90,000, with a deregistration threshold of £88,000. If you are close to the limit, review pricing, invoicing and record‑keeping processes, and ensure your accounting software can handle VAT reporting efficiently.

Additional Considerations for Business Tax Compliance

Keeping up with tax compliance is essential for avoiding penalties and optimising business operations:

Regular reviews of tax liabilities and credits are recommended to ensure businesses take full advantage of available deductions and do not fall behind on new tax obligations.
Engaging with a tax professional can provide clarity on complex issues such as cross‑border VAT implications or changes in tax legislation affecting your specific industry.

Property Taxes and Stamp Duty

For those involved in the property market, staying updated with Stamp Duty Land Tax¹³ (SDLT) and other property‑related taxes is crucial:

Stamp Duty Thresholds: In 2026, the SDLT nil‑rate band for residential properties in England and Northern Ireland is £125,000 for individual buyers. First‑time buyers benefit from a raised nil‑rate threshold of £300,000, provided the purchase price does not exceed £500,000. Note that Scotland (LBTT) and Wales (LTT) have separate regimes with different thresholds and rates.
Buy-to-Let Tax Relief: For individual landlords, mortgage interest relief has been replaced by a basic‑rate (20%) tax credit on finance costs. Companies are subject to Corporation Tax and generally deduct finance costs in calculating profits (subject to the corporate interest restriction where relevant).

Additional Property Purchase Considerations

When purchasing additional properties, such as second homes or buy‑to‑let properties, an extra 3% SDLT surcharge applies on top of standard rates. This surcharge applies across all price brackets, so potential investors and homeowners planning to expand their property portfolios should budget accordingly.

Implications for Overseas Investors

As of 2026, non‑UK residents purchasing residential property in England and Northern Ireland are subject to an additional 2% SDLT surcharge. This applies in addition to any other relevant surcharges, increasing the overall cost of acquisition.

Given these complexities, regular consultations with a financial adviser familiar with property taxation can help you navigate the rules effectively. Professional guidance may help optimise liabilities and ensure compliance with current laws so that property investments are planned prudently.

Checking Compliance and Deadlines

Ensuring compliance with new regulations and meeting deadlines is critical to avoid penalties. Here are essential steps to take:

Review any changes in the tax return submission deadlines. For returns covering 6 April 2025 to 5 April 2026, the deadline for online Self Assessment filing is 31 January 2027. Always verify dates on GOV.UK, as exceptional extensions can occur.
Check for updates in the reporting requirements for income, dividends or capital gains. From April 2026, Making Tax Digital for Income Tax¹⁴ applies to sole traders and landlords with qualifying income over £50,000, requiring digital records, quarterly updates, an end-of-period statement, and finalisation. Ensure your accounting software complies with HMRC requirements.
Stay informed about penalties for late submissions and payments. A points‑based system already applies for VAT (from January 2023) and is scheduled to apply to ITSA when MTD obligations start from April 2026. Late payment penalties and interest may also apply.

Additional Compliance Considerations

Aside from the primary updates, consider the following to maintain compliance:

Ensure that your financial records are accurately updated throughout the year to avoid discrepancies during tax filing. Regular monthly reviews are recommended.
Engage with a financial adviser or a tax professional to discuss potential impacts of tax law changes on your specific circumstances. This is particularly important if you have complex investments or business interests.
Use authorised HMRC software for submissions, which is updated to comply with new tax rules and reporting methods.

Proactive Measures to Avoid Penalties

Being proactive in your tax planning and compliance strategy is vital. Setting reminders for key dates, maintaining organised financial records, and staying abreast of tax law updates can dramatically reduce the likelihood of facing penalties. Regular consultations with a financial adviser can also provide foresight and planning to navigate the tax year effectively.

By taking these steps, you can support compliance and create a more predictable financial management environment. This article provides general information and is not personal tax advice.

How to Prepare for These Changes

Preparing for tax changes requires a proactive approach:

Update your financial records and ensure they reflect the latest tax rates, thresholds and allowances (including any Scottish/Welsh variations).
Consider using accounting software that is updated in real time with the latest tax rules and reporting requirements.
Consult a professional for complex situations, especially if your tax position involves multiple income streams or international elements.

A Financial Adviser Can Help

Adapting to new tax rules can be challenging, particularly if you have complex affairs or run a business. A qualified, FCA‑authorised financial adviser can provide regulated advice tailored to your needs, helping you understand your options and the risks before making decisions.

FinancialAdvisers.co.uk can assist by helping you find an FCA‑authorised financial adviser in your area. Always check the firm and individual on the Financial Services Register. Any decision to proceed should be based on your objectives, constraints and risk tolerance.

This article contains external links for further information on topics. Whilst all attempts are made to verify the trustworthiness of these external sources, we accept no responsibilty for the upkeep or security of these external websites. Some of these links in particular are annotated below: