The Mirror rounds up all the new tax changes that are coming up next month from April 6
The start of a new tax year is almost upon us – and with it, brings some big changes that you should be aware of.
Unlike the calendar year, the tax year runs from April 6 to April 5 the following year. It means your personal tax allowances, ISA limits, and pension allowances all reset.
It also brings new PAYE tax codes for employees. But here are some new changes that are coming up next month from April 6.
Making Tax Digital
Sole traders and landlords with an annual income over £50,000 will be required to maintain digital records and submit tax updates quarterly from April 2026.
HMRC calls the new process Making Tax Digital. You will need to use software that is compatible with Making Tax Digital, so it will need to be able to store information about your income, expenses, VAT (if VAT-registered) and tax adjustments.
Inheritance Tax
Changes to agricultural and business property reliefs for Inheritance Tax purposes will be introduced in April 2026.
There will be a new cap of £2.5million before Inheritance Tax is due – for assets above this, only 50% tax relief will be applied. The cap has been increased from £1million. The standard rate of Inheritance Tax is 40%.
Dividend Tax
The Dividend Tax rate will rise from 8.75% to 10.75% for basic rate taxpayers and 33.75% to 35.75% for higher rate taxpayers after changes were announced in the Budget.
A dividend is a distribution of profits made by a company to its shareholders.
Work from home relief
If you work from home, you will no longer be able to claim tax relief from HMRC for extra household costs – such as gas and electricity – from April 2026.
The work from home allowance in the UK is a flat rate of £6 per week. Under current rules, you can only claim the work from home tax relief if you have no office to go to – not if you choose to work remotely.
Capital Gains Tax
The rate of Capital Gains Tax that applies to Business Asset Disposal Relief and Investors’ Relief is increasing from 14% to 18% from April 2026.
The £1million lifetime limit for these reliefs remains. This means entrepreneurs and investors will pay more tax on qualifying business sales.
