The daffodils are popping up, the evenings are getting lighter, and the end of the tax year is creeping ever closer. If you’re suddenly wondering whether you’ve made the most of this year’s allowances, you are definitely not alone. March is the great national moment of “Oh no… did I sort my tax stuff?”

This year, that feeling is even more justified. Several big changes land on 6 April 2026, so the decisions you make now can genuinely make a difference. Let’s take a look at what’s changing and how to get yourself organised before the deadline.

 

What’s actually changing from 6 April?

A surprisingly large amount. Here are the most important bits to know before you dive into your planning.

Dividend tax is about to rise

Basic and higher rate dividend tax will rise by two percentage points from 6 April 2026. If you take dividends, you may want to think carefully about timing.

Capital gains tax is increasing for some business owners

If you plan to use Business Asset Disposal Relief, the rate jumps from 14 percent to 18 percent in April. For anyone selling a business or shares, timing could affect what you pay.

Inheritance tax relief is getting a new cap

Business property relief and agricultural property relief will be capped at a combined value of £2.5m for full relief. Anything above that receives 50% relief. This change may affect long term succession plans.

Income tax thresholds are frozen

Your personal allowance and tax bands are still stuck at the same levels and will be until at least 2031. Because income often rises over time, more of it can fall into higher bands, which is known as fiscal drag.

Making Tax Digital is almost here

From April, some sole traders and landlords will begin moving into the new digital reporting system. Getting prepared now means fewer headaches later.

 

So what should you actually do before the deadline?

Think of this as your “let’s get this sorted” checklist for March.

✔ Review your income and allowances

Check whether you have used allowances available for this tax year. This might include your ISA, pension contributions or personal savings allowance.

✔ Look at dividend timing

If you are a company director who takes dividends, it’s worth checking whether taking them before 6 April reduces your future tax bill, given the confirmed rate increases.

✔ Consider any planned business or asset sales

If you are thinking of selling a business or shares that qualify for Business Asset Disposal Relief, bringing forward the sale might save tax. Always weigh this against commercial timing though.

✔ Review your inheritance planning

If your estate includes business or agricultural assets, the new relief caps may affect your long-term plans. It’s a good time to have a quick sense check of any existing arrangements.

✔ Get ready for Making Tax Digital

If you are a landlord or sole trader affected by the April changes, now is the perfect time to tidy up your bookkeeping and make sure you have the right software or systems in place.

 

A fresh start for the new tax year

The run up to 6 April can feel a little intense, but a few small checks now can put you in a great position for the new tax year. Think of it as financial spring cleaning. Once it’s done, you get the same sense of relief as finishing a big house tidy… but with potentially much more long-term benefit.

If you would like some help navigating the changes or figuring out which actions apply to you, our team is always happy to chat. A quick conversation now can make the start of the new tax year feel lighter and much more manageable.

Get in touch