What’s Changing as of April 6, 2026
UK Budget 2025 and subsequent Economic & Fiscal Outlook (March 2026) introduced several effective tax changes, especially for non-residents, relief thresholds, and reliefs connected to inheritance and property. (gov.uk)
- Agricultural & Business Property Relief: The 100% allowance band will increase from £1 million to £2.5 million from April 2026 for certain agricultural or business properties. (assets.publishing.service.gov.uk)
- Business Rates Reliefs: Pubs and live music venues will see 15% business rates relief in 2026-27; will be followed by a real-terms freeze over the next two years. (assets.publishing.service.gov.uk)
- Non-resident capital gains: Changes affecting individuals and companies, including protections for property-rich entities, and differences in how UK companies pay on capital gains, taking effect from 1 and 6 April 2026. (gov.uk)
- Construction Industry Scheme (CIS) fraud-tackling powers strengthened: HRMC will have authority to revoke gross payment status immediately, impose penalties up to 30% on businesses / officers linked to fraudulent activity; nil filing obligation reinstated. Takes effect 6 April 2026. (gov.uk)
Who Should Be Watching Closely
Non-Residents & Incoming Investors
- Revisit property acquisitions: new non-resident CGT rules may affect investment returns and sale planning.
- Trust and entity structuring: property-rich entity definitions and taxation are updated; entities need legal review for cross-border holdings.
Businesses with Pubs, Venues, or in Property Sector
- Pubs and live-music venues benefit from business rates relief; landlords should assess projected savings and adjust lease or rental cashflows.
- Businesses within CIS need to ensure compliance frameworks in place to avoid loss of gross payment status or steep penalties.
Inheritance & Estate Planning
- Larger business/farm estates: use the elevated relief threshold carefully; if value exceeds £2.5 million, relief drops to 50% beyond that amount. Plan gifts or transfers accordingly. (gov.uk)
- Review succession plans: ensure spouses or civil partners make use of transferable allowances and that valuations happening prior to April reflect old vs new thresholds.
Practical Recommendations
- Conduct valuations before April 6, 2026 to lock in older thresholds where helpful.
- Entity paperwork: update residency, domicile status, trusts, and shareholder agreements in light of non-resident tax changes.
- Businesses in hospitality should plan budget projections factoring business rates relief, but also understand upcoming freezes and transitions.
These UK changes amplify the importance of timing, entity structure, and effective relief utilization. Professionals, cross-border individuals, business owners, estate planners should coordinate with legal/tax advisors to adapt to the altered thresholds and reliefs.