News

From 6 April 2026, higher dividend tax rates will increase the tax burden on company directors and shareholders, with rates rising to 10.75% for basic rate and 35.75% for higher rate taxpayers. While the increases are modest, their cumulative impact can be significant, particularly for those relying on dividends as a main source of income. As part of a wider trend reducing the tax efficiency of dividends, many business owners may need to review how they extract profits, including the balance between salary, dividends and other planning strategies, to ensure continued tax efficiency.

From 6 April 2027, unused pension funds and certain death benefits will be included within an individual’s estate for inheritance tax (IHT), marking a significant shift in long-standing UK tax planning. Pensions, particularly defined contribution schemes, have historically sat outside the estate and been used as a tax-efficient means of passing on wealth; however, this reform brings them into closer alignment with other assets. As a result, some estates may face increased IHT exposure, and existing strategies may need to be reviewed, especially for those with substantial pension savings or estates near current thresholds. The change also introduces more complex interactions between IHT and income tax for beneficiaries, reinforcing the need for a more joined-up approach to retirement and estate planning ahead of the April 2027 implementation date.

Making Tax Digital for Income Tax will begin on 6 April 2026, introducing a major change for sole traders and landlords who will need to keep digital records and submit quarterly updates to HMRC instead of relying solely on an annual tax return. The new rules will apply in stages based on qualifying income, starting with those above £50,000, then £30,000 and £20,000 in later years. While this will create a more frequent reporting process, it also offers the chance to improve accuracy, strengthen cash flow planning and make tax management more efficient.

The Renters’ Rights Act 2025, effective from 1 May 2026, introduces significant reforms to the private rented sector, including periodic tenancies, the end of Assured Shorthold Tenancies, and strengthened tenant rights.

Landlords must now provide all named tenants with the official Information Sheet by 31 May 2026. This is a mandatory requirement, and failure to comply may result in penalties. Landlords should also retain evidence of delivery to demonstrate compliance.

Estate planning is more than preparing a Will, it’s about creating certainty for your family, protecting wealth, and ensuring your wishes are carried out when it matters most. Many families delay these conversations, but with the right advice, you can reduce inheritance tax, protect your business, and provide lasting clarity for those you care about. At Ward Williams, we bring together legal, financial, and tax expertise to design estate plans that are practical, comprehensive, and built for peace of mind.

As we enter the 2026/27 tax year, the UK tax environment continues to evolve in ways that affect not only how much tax is paid, but how businesses are structured, how wealth is preserved and how long-term decisions should be approached. A number of changes taking effect from April 2026 are particularly significant for business owners, landlords, investors and families with intergenerational wealth considerations. While many of the headline changes will be familiar to those following recent Budgets and fiscal announcements, their practical impact is now beginning to crystallise.

As the end of your financial year approaches, attention naturally turns to what needs to be done before the deadline.

While much of the focus is often on compliance, year-end also provides an opportunity to take practical action. The decisions made in these final weeks can influence both your current tax position and how you start the next financial year.

This checklist brings together the key areas worth reviewing while there is still time to act.

For business owners and directors, year-end is often viewed through a commercial lens.

Performance is assessed, profits are measured, and attention turns to tax liabilities within the business. What can be overlooked, at least initially, is how those outcomes translate into personal financial position, both now and over the longer term.

For larger and mid-market businesses, the year-end is often defined by process. Timetables are set, audit files are prepared, and internal teams work towards delivering a compliant set of financial statements.

As the financial year draws to a close, many owner-managed businesses turn their attention to a familiar set of questions centred around how much profit has been generated, what the tax exposure will be, and how best to extract value from the business.