Tax Planning
Tax Planning Strategies 2026: Managing Your Wealth in the New UK Landscape
With upcoming changes to dividends, capital gains and wealth-tax measures, 2026 requires a fresh approach to planning for individuals and business owners alike—this article equips you with tax-efficient strategies.
By NomadicTax Research Team • 5-8 min read • March 15, 2026
## Newly Introduced Key Rules to Know (From Budget 2025)
- **Dividend Tax Rates Rise**: From April 2026, the ordinary and upper dividend rates increase by **2 percentage points**.([gov.uk](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html?utm_source=openai))
- **Changes to Capital Gains Tax (CGT) Reliefs**:
* Business Asset Disposal Relief & Investors’ Relief will increase to **18%** from 6 April 2026.([gov.uk](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html?utm_source=openai))
* Agricultural Property Relief & Business Property Relief are being reformed from that date.([gov.uk](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html?utm_source=openai))
- **Growth in Taxation of Asset & Property Income**:
* New separate tax rates for **property income** from April 2027 (basic rate 22%, higher 42%, additional 47%) to better align asset income with earned income tax burdens.([gov.uk](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html?utm_source=openai))
* Savings income rates also increase by 2 pp from April 2027.([gov.uk](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html?utm_source=openai))
## Planning Techniques in the New Regime
- **Accelerate asset disposals** before April 2026 where results may benefit from lower CGT or reliefs.
- **Dividend versus salary mix**: With dividends being taxed more, assess if paying salary (subject to NIC) or extracting dividends is more advantageous. Consider salary sacrifice schemes.
- **Use reliefs effectively**: If retiring, gifting or passing business/property to spouse, now with transferable reliefs (£1 million allowance transfer between spouses for certain reliefs) from April 2026.([gov.uk](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html?utm_source=openai))
## Examples
- **Example 1**: A business owner selling part of a company and claiming Business Asset Disposal Relief before 6 April 2026 can benefit from current CGT treatment; post that date relief level drops.
- **Example 2**: Landlords with property income receive sharper tax impact. Taking mortgage interest, allowable expenses deductions becomes even more important to reduce taxable property income.
## Other Wealth and Largeness-Based Changes
- **High Value Council Tax Surcharge (HVCTS)**: From April 2028 in England, properties worth £2 million+ will face a surcharge ranging £2,500–£7,500/year. Use this in evaluating property ownership and timing.([gov.uk](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html?utm_source=openai))
- **Inheritance Tax (IHT)** adjustments**: The unused £1 million allowance for agricultural/business reliefs becomes transferable between spouses/civil partners; but IHT including pensions from 6 April 2027 marks further wealth transfer scrutiny.([gov.uk](https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html?utm_source=openai))
## Actionable Steps for 2026 Planning
1. Review proposed disposals and consider moving them before 6 April 2026 where reliefs change.
2. Consult a tax professional about dividend vs salary strategy, especially if extracting profits.
3. Trusts and succession: ensure spouses can use transferable allowances.
4. For real estate investors: monitor property valuations relative to HVCTS thresholds.
5. For high net worth individuals: plan pension withdrawals carefully—since from April 2027, unused pension pots may become subject to IHT.