New Tax Year — 6 April 2026

A new tax year always brings changes — but April 2026 is busier than most. From dividend tax hikes to inheritance tax reforms, minimum wage rises to NIC increases, here is every financial change you need to know about.

1. Dividend Tax Rises

2. Inheritance Tax — Business and Farm Relief Capped

Previously unlimited, 100% IHT relief on agricultural and business property is now capped at £2.5 million combined from 6 April 2026. Above that, relief drops to 50%.

3. Capital Gains Tax on Business Assets Rises

The CGT rate under Business Asset Disposal Relief rises to 18% for 2026/27, up from 14% in 2025/26.

4. Self-Employed NIC Increases

5. Minimum Wage Rises to £12.71

The National Living Wage for workers aged 21+ increases to £12.71 per hour from April 2026 — above inflation.

6. Income Tax Thresholds — Still Frozen Until 2031

The personal allowance stays at £12,570. With wages rising, more people are being dragged into higher tax bands every year through fiscal drag.

7. Passport Fees Now Over £100

For the first time, an adult UK passport renewal costs over £100. If yours expires in the next 18 months, consider renewing now.

8. ISA Allowances — Use Them or Lose Them

The annual ISA allowance remains £20,000 for 2026/27. But from April 2027, Cash ISA contributions for under-65s are capped at £12,000. This year is one of the last to use the full £20,000 in cash.

By Chandraketu Tripathi · Updated April 2026 · kaeltripton.com