Chancellor’s Spring Statement

No major tax measures were announced by the Chancellor this week in her Spring Statement where economic growth was downgraded to 1.1% and unemployment forecast to rise.  However, all forecasts were caveated with the likelihood for uncertainty due to the war in the Middle East.

Agricultural & Business Property Relief

Prior to the Spring Statement, Rachel Reeves announced reforms to take effect from 6 April 2026 allowing 100% relief from inheritance tax to the first £2.5 million of qualifying assets instead of the previously announced £1 million.  This means couples can now pass on up to £5 million of agricultural or business assets between them in addition to the standard inheritance tax allowances.

Company Directors & PSCs Identity Verification

It is now a legal requirement for all Company Directors and People with Significant Control (generally shareholders with 25% or more shareholding) to verify their identity for Companies House and receive a personal code.  We will keep you up to date with your individual deadline dates which are based on your Confirmation Statement dates or the first two weeks of your birth month if you are a PSC who does not hold a director role, but get in touch if you need help with this in the meantime.

Foreign Income? Don’t assume it’s already taxed

Even if tax has been deducted overseas, the income may still need to be declared on your UK tax return.  If foreign income isn’t declared, penalties and interest can apply. Penalties can be reduced by declaring income on a voluntary basis rather than waiting for HMRC to discover it. 

State Pension Age

In case you missed it, the state pension age is set to rise from 66 to 67 and 68 with the transition being tied to your exact date of birth.  If you are aged under 66 and want to check the date you will qualify there is an online calculator at Check your State Pension age - GOV.UK.

Employment Rights Act 2025

This came into law on 18 December 2025 and although changes are being phased in, the following will come into effect from April 2026:

Statutory Sick Pay

Employees will be entitled from the first day of absence not the fourth and the lower earnings limit will be removed.

Paternity and Ordinary Parental Leave

This will become a day one right and employees will also be able to take paternity leave after they have taken shared parental leave.  Eligible fathers and partners will be able to take up to 52 weeks of unpaid bereaved partner’s paternity leave if the mother or primary adopter dies.

Making Tax Digital (MTD)

The phased introduction of Making Tax Digital (MTD) starts this April.  The year you will be legally required to use MTD for your Income Tax, which essentially means quarterly reporting of your income and expenses, will be based on the level of qualifying income from self-employment and/or property as shown below:      

If we haven’t already spoken to you and you think you will be affected or you receive a notification from HMRC to start MTD please get in touch with us.

Advisory Fuel Rates from 1 March 2026

We are here to work alongside you, help you prosper, and turn profit into lasting wealth.  Please do get in touch at any time for strategic tax and business advice.

Janet, Elaine, Lucy, James, Josh, Dawn, Becky, Nat & Leanne

01969 624999