Tax Planning
Essential Tax Planning Moves Before the 2026 UK Threshold Changes
With major Income Tax and Capital Gains Tax thresholds shifting from April 2026, individuals and business owners in the UK should take action now to minimise tax impact.
By NomadicTax Research Team • 6 min read • March 31, 2026
## Understanding the April 2026 Threshold Changes
From **6 April 2026**, the UK government is implementing several key tax changes that affect:
- **Income Tax**: personal allowances and higher rate thresholds (non-savings, non-dividend income) will change. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai))
- **Capital Gains Tax**: particularly for individuals and carried interest. BadR (Business Asset Disposal Relief) and Investors’ Relief will be adjusted to match the main lower rate at **18%**. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html?utm_source=openai))
- **Inheritance Tax (IHT) reliefs**: agricultural property and business property reliefs will also be reformed, especially combined allowances and transferrable unused reliefs. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai))
## Actionable Planning Strategies
### 1. Accelerate Gains and Disposals
- Individuals anticipating large capital gains might consider disposing **before 6 April 2026**, when rates on reliefs increase. For example, gains eligible for Investors’ Relief will rise from current rate up to 18% from that date. Timing matters. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html?utm_source=openai))
### 2. Use IHT Reliefs Wisely
- For those with agricultural or business property, make use of the **£1 million combined 100% relief allowance** before the 50% taper takes effect beyond that. Consider transferring ownership between spouses/civil partners to maximize benefits. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai))
### 3. Assess Ownership & Residency for Non-UK Domiciled Individuals
- For newcomers or returnees, review eligibility for the **Foreign Income & Gains (FIG)** regime. If you’ll be UK tax-resident from 6 April 2025 and meet the non-UK residence criteria, your foreign income and gains may be exempt initially. Plan migration of assets accordingly. ([gov.uk](https://www.gov.uk/government/publications/changes-to-the-taxation-of-non-uk-domiciled-individuals/technical-note-changes-to-the-taxation-of-non-uk-domiciled-individuals?utm_source=openai))
### 4. Salary Sacrifice & Pension Contributions
- The government plans to apply **NICs (National Insurance Contributions)** on pension contributions above £2,000 via salary sacrifice, from 6 April 2026/2027. Review how this may affect your structure and evaluate whether increasing contributions early offers better net benefit. ([gov.uk](https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar?utm_source=openai))
## Real-World Example
Meet Jane, a UK resident with £200,000 of non-savings income and £500,000 in agricultural land. Under the new rules, the first £1 million in agricultural/business property will still attract 100% relief, but anything beyond faces 50%. She could transfer a portion to her spouse before 6 April 2026 to utilize both allowances fully and avoid higher rates.
Meanwhile, she anticipates £150,000 capital gains through sale of shares. Disposing before 6 April ensures she accesses current lower relief rates, and using ISA or pension growth where possible to shelter gains.
## Key Takeaways
- **Act now**, before April 6th, for any gains disposal or ownership restructure.
- Use **spousal transfers** where possible to maximize reliefs.
- Non-UK domiciliaries should assess the new **FIG regime** eligibility.
- Review pension and salary sacrifice arrangements ahead of tightening thresholds.
- Stay informed via HMRC guidance and consult a tax professional for your specific situation.
**Benefit** from these changes by moving early and structuring assets, income sources, and reliefs optimally ahead of April 2026.