For many businesses and individuals, 2026 has already become one of the most significant years for UK tax in over a decade. A combination of inheritance tax reform, changes to business taxation, increased HMRC compliance activity and further tax simplification measures means taxpayers need to review their affairs sooner rather than later.
Below we highlight the key developments that could affect you, your family or your business.
UK Tax Update 2026: The Changes Every Business and Individual Should Know
The UK tax landscape continues to evolve at pace. Following recent Budget announcements and HMRC policy updates, both businesses and private individuals face a number of important tax changes that require careful planning.
Whether you are a business owner, company director, landlord or someone looking to protect family wealth, understanding these developments could help you reduce future tax liabilities and avoid costly mistakes.
Inheritance Tax Reform Continues
Perhaps the biggest area of change remains Inheritance Tax (IHT).
The Government has introduced major reforms affecting Business Property Relief (BPR) and Agricultural Property Relief (APR), fundamentally changing succession planning for many business owners and farming families.
From April 2026:
➡️ 100% relief is now restricted to qualifying business and agricultural assets up to the new allowance.
➡️ Assets exceeding this threshold generally receive only 50% relief, creating an effective 20% inheritance tax charge on the excess value.
➡️ AIM-listed shares also receive reduced relief under the new rules.
For many family businesses, the tax payable on death could increase significantly unless succession plans are reviewed. Wills, shareholder agreements, trust arrangements and lifetime gifting strategies should all be reconsidered.
Pension Wealth Will Soon Form Part of Inheritance Tax Planning
One of the most significant future changes in UK Tax Updates is the planned inclusion of unused pension funds within an individual’s estate for inheritance tax purposes from April 2027.
Historically, pensions have been one of the most tax-efficient methods of passing wealth to future generations. That advantage is expected to reduce considerably.
Individuals with substantial pension funds should begin reviewing:
➡️ pension beneficiary nominations;
➡️ wider estate planning;
➡️ gifting strategies;
➡️ trust arrangements;
➡️ retirement income planning.
Leaving these decisions until 2027 may significantly reduce the planning opportunities available.
HMRC Compliance Activity Continues to Increase
HMRC continues to invest heavily in digital compliance and data matching technology.
Using information gathered from banks, property transactions, online marketplaces, payment providers and overseas tax authorities, HMRC is becoming increasingly effective at identifying undeclared income.
Areas receiving particular attention include:
➡️ rental income;
➡️ online trading;
➡️ cryptoassets;
➡️ overseas income;
➡️ director loans;
➡️ capital gains.
Businesses should ensure bookkeeping records remain accurate and up to date, while individuals should review previous tax returns if there is any uncertainty regarding historic disclosures.
The cost of voluntary disclosure is often considerably lower than waiting for HMRC to open an enquiry.
Tax Administration Is Becoming Simpler
Alongside increased compliance, the Government has announced measures aimed at reducing unnecessary administration.
Recent proposals include simplifying certain inheritance tax reporting requirements where no tax is due, helping trustees and individuals avoid submitting unnecessary paperwork.
While these changes will reduce administrative burdens for some taxpayers, professional advice remains important to determine whether reporting obligations still apply.
Business Owners Should Review Their Tax Position
Business owners continue to face several important tax considerations throughout 2026.
Key areas include:
➡️ corporation tax planning;
➡️ remuneration strategies;
➡️ dividend planning;
➡️ capital expenditure;
➡️ business succession;
➡️ employee benefits;
➡️ cash flow forecasting.
Many companies also continue to adjust following previous increases in employer National Insurance costs and other business tax measures.
Forward planning before the financial year-end can often produce significant tax savings that are unavailable after the year has closed
Property Owners Face Continued Tax Pressure
Landlords remain under increasing scrutiny from HMRC.
With improved access to Land Registry data, letting platform information and financial records, undeclared rental income is becoming much easier for HMRC to identify.
Property owners should regularly review:
➡️ allowable expenses;
➡️ mortgage interest treatment;
➡️ capital improvements;
➡️ capital gains planning;
➡️ ownership structures.
Professional advice can often identify legitimate tax-saving opportunities while ensuring compliance with current legislation.
Planning Has Never Been More Important
Many of today’s tax changes are being introduced gradually over several years.
This creates valuable planning opportunities—but only for taxpayers who act early.
Whether reviewing business structures, planning retirement, passing wealth to the next generation or preparing for future inheritance tax liabilities, proactive planning almost always delivers better outcomes than reacting after new legislation takes effect.
Good tax planning is no longer about finding loopholes—it is about making informed decisions using the reliefs and allowances that remain available.
How Robinsons London Can Help – UK Tax Updates
The UK tax system continues to become more complex, but expert advice can help you stay compliant while ensuring you pay no more tax than necessary.
At Robinsons London, we work with individuals, families and businesses to provide practical, proactive tax advice tailored to your circumstances. Whether you need assistance with tax planning, inheritance tax, business succession, corporation tax or personal tax compliance, our experienced team is here to help.
We believe the information contained in this newsletter is accurate at the time of writing. However, tax rules are complex and can change frequently.
Every taxpayer’s circumstances are different, and the information in this newsletter is necessarily general in nature. It should not be regarded as a substitute for professional advice tailored to your particular situation.
If you are considering taking action based on any of the matters discussed, we strongly recommend that you seek specific advice before doing so.
UK Tax Updates
UK Tax Updates at a glance July 2026
For many businesses and individuals, 2026 has already become one of the most significant years for UK tax in over a decade. A combination of inheritance tax reform, changes to business taxation, increased HMRC compliance activity and further tax simplification measures means taxpayers need to review their affairs sooner rather than later.
Below we highlight the key developments that could affect you, your family or your business.
UK Tax Update 2026: The Changes Every Business and Individual Should Know
The UK tax landscape continues to evolve at pace. Following recent Budget announcements and HMRC policy updates, both businesses and private individuals face a number of important tax changes that require careful planning.
Whether you are a business owner, company director, landlord or someone looking to protect family wealth, understanding these developments could help you reduce future tax liabilities and avoid costly mistakes.
Inheritance Tax Reform Continues
Perhaps the biggest area of change remains Inheritance Tax (IHT).
The Government has introduced major reforms affecting Business Property Relief (BPR) and Agricultural Property Relief (APR), fundamentally changing succession planning for many business owners and farming families.
From April 2026:
➡️ 100% relief is now restricted to qualifying business and agricultural assets up to the new allowance.
➡️ Assets exceeding this threshold generally receive only 50% relief, creating an effective 20% inheritance tax charge on the excess value.
➡️ AIM-listed shares also receive reduced relief under the new rules.
For many family businesses, the tax payable on death could increase significantly unless succession plans are reviewed. Wills, shareholder agreements, trust arrangements and lifetime gifting strategies should all be reconsidered.
Pension Wealth Will Soon Form Part of Inheritance Tax Planning
One of the most significant future changes in UK Tax Updates is the planned inclusion of unused pension funds within an individual’s estate for inheritance tax purposes from April 2027.
Historically, pensions have been one of the most tax-efficient methods of passing wealth to future generations. That advantage is expected to reduce considerably.
Individuals with substantial pension funds should begin reviewing:
➡️ pension beneficiary nominations;
➡️ wider estate planning;
➡️ gifting strategies;
➡️ trust arrangements;
➡️ retirement income planning.
Leaving these decisions until 2027 may significantly reduce the planning opportunities available.
HMRC Compliance Activity Continues to Increase
HMRC continues to invest heavily in digital compliance and data matching technology.
Using information gathered from banks, property transactions, online marketplaces, payment providers and overseas tax authorities, HMRC is becoming increasingly effective at identifying undeclared income.
Areas receiving particular attention include:
➡️ rental income;
➡️ online trading;
➡️ cryptoassets;
➡️ overseas income;
➡️ director loans;
➡️ capital gains.
Businesses should ensure bookkeeping records remain accurate and up to date, while individuals should review previous tax returns if there is any uncertainty regarding historic disclosures.
The cost of voluntary disclosure is often considerably lower than waiting for HMRC to open an enquiry.
Tax Administration Is Becoming Simpler
Alongside increased compliance, the Government has announced measures aimed at reducing unnecessary administration.
Recent proposals include simplifying certain inheritance tax reporting requirements where no tax is due, helping trustees and individuals avoid submitting unnecessary paperwork.
While these changes will reduce administrative burdens for some taxpayers, professional advice remains important to determine whether reporting obligations still apply.
Business Owners Should Review Their Tax Position
Business owners continue to face several important tax considerations throughout 2026.
Key areas include:
➡️ corporation tax planning;
➡️ remuneration strategies;
➡️ dividend planning;
➡️ capital expenditure;
➡️ business succession;
➡️ employee benefits;
➡️ cash flow forecasting.
Many companies also continue to adjust following previous increases in employer National Insurance costs and other business tax measures.
Forward planning before the financial year-end can often produce significant tax savings that are unavailable after the year has closed
Property Owners Face Continued Tax Pressure
Landlords remain under increasing scrutiny from HMRC.
With improved access to Land Registry data, letting platform information and financial records, undeclared rental income is becoming much easier for HMRC to identify.
Property owners should regularly review:
➡️ allowable expenses;
➡️ mortgage interest treatment;
➡️ capital improvements;
➡️ capital gains planning;
➡️ ownership structures.
Professional advice can often identify legitimate tax-saving opportunities while ensuring compliance with current legislation.
Planning Has Never Been More Important
Many of today’s tax changes are being introduced gradually over several years.
This creates valuable planning opportunities—but only for taxpayers who act early.
Whether reviewing business structures, planning retirement, passing wealth to the next generation or preparing for future inheritance tax liabilities, proactive planning almost always delivers better outcomes than reacting after new legislation takes effect.
Good tax planning is no longer about finding loopholes—it is about making informed decisions using the reliefs and allowances that remain available.
How Robinsons London Can Help – UK Tax Updates
The UK tax system continues to become more complex, but expert advice can help you stay compliant while ensuring you pay no more tax than necessary.
At Robinsons London, we work with individuals, families and businesses to provide practical, proactive tax advice tailored to your circumstances. Whether you need assistance with tax planning, inheritance tax, business succession, corporation tax or personal tax compliance, our experienced team is here to help.
CLICK HERE to Contact Robinsons London today to arrange a confidential consultation and discover how proactive tax planning can protect your wealth, support your business and give you greater financial certainty for the future.
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