Entity Setup

UK Tax Reliefs & Thresholds for UK Residents and Non-Residents: Navigating the April 2026 Changes

From April 2026, the UK will adjust many tax rules: increasing relief allowances, changing business rates, and altering rules for non-resident tax and inheritance taxes — impacting those setting up entities, moving in, or owning property.

By NomadicTax Research Team • 5-8 min read • March 27, 2026

## 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](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)) - **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](https://assets.publishing.service.gov.uk/media/69a6d7b62e1f4fbda4252208/economic-and-fiscal-outlook-march-2026-web-accessible.pdf?utm_source=openai)) - **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](https://assets.publishing.service.gov.uk/media/69a6d7b62e1f4fbda4252208/economic-and-fiscal-outlook-march-2026-web-accessible.pdf?utm_source=openai)) - **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](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)) - **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](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)) --- ## 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](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)) - 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.