Tax Planning
Maximising Tax Planning Opportunities with the 2026 HMRC Simplification Policies
New consultation items and reforms unveiled in HMRC’s ‘Tax Update 2026’ open potential tax planning windows—particularly for Self Assessment, ISAs, and Capital Gains for business assets.
By NomadicTax Research Team • 5-8 min read • September 13, 2026
## Overview of Key 2026 Tax Update Measures
In **June 2026**, the UK Government published **Tax Update 2026: Simplification, Modernisation and Fairness Summary**, outlining changes aiming to reduce admin burdens, increase fairness, and modernise HMRC systems. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-2026-simplification-modernisation-and-fairness/tax-update-2026-simplification-modernisation-and-fairness-summary?utm_source=openai)) Key reforms include: in-year payments via PAYE for forecasted Self Assessment liabilities from April 2029, ISA anticircumvention rules, changes to Capital Gains Tax gift relief for business assets, and reviews of Benchmark and Overseas Scale Rates. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-2026-simplification-modernisation-and-fairness/tax-update-2026-simplification-modernisation-and-fairness-summary?utm_source=openai))
These measures are policies in consultation or planned stage—some already legislated, some due later. For planners, understanding their timeline is key.
## Where the Planning Windows Exist
Here are some areas where proactive planning may provide benefits:
| Area | Opportunity | What To Do Now |
|------|-------------|----------------|
| **Self Assessment / PAYE Forecasting (from April 2029)** | Those with mixed income (PAYE plus self-assessment) could shift into more predictable PAYE deductions earlier. | Track income projections carefully. Keep records to support forecasts in case HMRC queries. Consider smoothing income or timing elements of income to avoid PAYE spikes. |
| **ISA Reforms and Anticircumvention Measures** | New rules will impose a **22% charge** on interest paid on non-Cash ISAs, prevent some transfers, limit money market fund holdings. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-2026-simplification-modernisation-and-fairness/tax-update-2026-simplification-modernisation-and-fairness-summary?utm_source=openai)) | Review current ISA holdings ahead of change. Consider shifting cash ISAs or pre-planning investments that may be affected. Seek professional advice where large funds are held across different ISA types. |
| **Capital Gains Gift Holdover Relief for Business Assets** | Draft legislation will modernise the gift holdover relief: particularly addressing assets unused within trade or in groups. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-2026-simplification-modernisation-and-fairness/tax-update-2026-simplification-modernisation-and-fairness-summary?utm_source=openai)) | If you're considering gifting business assets, plan timing. Use reliefs sooner rather than later if you expect policy tightening. Consider corporate structure if you hold assets not used in active trade. |
| **Benchmark & Overseas Scale Rates Review** | Employers may benefit from improved flat rates for travel and subsistence reimbursements. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-2026-simplification-modernisation-and-fairness/tax-update-2026-simplification-modernisation-and-fairness-summary?utm_source=openai)) | Businesses should audit their current reimbursement processes. Identify mileage, travel, accommodation, meals expenses and compare vs possible new rates. Employees could plan travel‐heavy assignments before any rate drops. |
## Case Example: Small Business Owner Planning Ahead
Imagine Sarah, who runs a small consultancy business. She works partly on PAYE remote work, partly through contracts via a limited company. Her ISA savings are split across a Stocks & Shares ISA and a Cash ISA. Under new reforms:
- Sarah should start forecasting her next year’s Self Assessment liability and explore shifting income to PAYE where possible, to avoid a tax shock from in-year payments after 2029.
- She should review her ISA allocations—if she holds a large Stocks & Shares ISA and anticipates shifting money to Cash ISA under new rules, she might do so early to avoid limitations.
- If she plans to gift business assets (for example, shares in her company) to family or trusts, she could benefit from existing gift holdover relief rules before the updated version comes into force.
## Pitfalls & Watchpoints
- These new policies are still in consultation or draft; some details may change before final legislation.
- There may be transitional rules or delays—tailor action plans to avoid being caught off guard.
- Ensure that tax planning doesn’t run afoul of aggressive avoidance rules—rules around promoters of avoidance schemes are also being tightened. ([gov.uk](https://www.gov.uk/government/publications/summary-of-tax-update-2026-simplification-modernisation-and-fairness/tax-update-2026-simplification-modernisation-and-fairness-summary?utm_source=openai))
## Actionable Checklist
- Use HMRC’s forecasts and plan PAYE self assessment mix now.
- Review ISA portfolio structure—identify possible transfers or rebalances.
- Audit business asset holdings—start planning gifts or transfers pre-legislation change.
- For frequent travel roles, model current vs forecasted rates under the review of BSR & OSR.
- Keep up to date with HMRC’s consultations—submit comments if affected.
**Conclusion**: With several major reforms in the pipeline through Tax Update 2026, there are concrete steps individuals and businesses can take now to reduce tax exposure or smooth compliance. Early action and professional advice will pay dividends.