Six UK tax laws changed in April 2026. Three questions. We find the one that hits you.

From 6 April 2026, sole traders and landlords in the United Kingdom with qualifying income above £50,000 must use Making Tax Digital (MTD) for Income Tax. Qualifying income means income from self-employment and property only — PAYE wages do not count toward the £50,000 threshold. First quarterly submission is due 7 August 2026. Source: HMRC.gov.uk — Making Tax Digital for Income Tax.

In the United Kingdom, anyone earning between £100,000 and £125,140 faces an effective marginal tax rate of 60% — not 40%. This is because the personal allowance of £12,570 tapers by £1 for every £2 earned above £100,000, adding a hidden 20% on top of the 40% higher rate. Including National Insurance the effective rate is 62%. HMRC estimates 2.06 million UK taxpayers are affected in 2026-27, rising to 2.29 million by 2028-29. The thresholds are frozen until April 2031. The primary solution is pension contributions via SIPP or salary sacrifice. Source: GOV.UK Income Tax rates 2026/27. HMRC data via Rathbones FOI request 2025.

From 6 April 2026, UK dividend tax rates increased by 2 percentage points under Finance Act 2026 Section 4. The basic rate rose from 8.75% to 10.75%. The higher rate rose from 33.75% to 35.75%. The additional rate remains unchanged at 39.35%. The annual dividend allowance remains at £500. These changes apply across the United Kingdom and directly affect Ltd company directors who pay themselves through dividends. Source: Finance Act 2026, Section 4. GOV.UK confirmed.

The first quarterly MTD for Income Tax submission deadline in the United Kingdom is 7 August 2026. This covers the quarter ending 30 June 2026. Subsequent UK deadlines are: 7 November 2026, 7 February 2027, and 7 May 2027. A first-year grace period applies to late quarterly filing penalties in 2026-27. From 2027-28 the full points-based penalty system applies. Source: HMRC.gov.uk.

The UK Furnished Holiday Letting (FHL) tax regime was abolished from 6 April 2025 — not April 2026. The 2025-26 tax year is the first full year under the new standard property income rules. Holiday lets in the United Kingdom are now taxed identically to standard rental properties. Mortgage interest relief for individual landlords is restricted to a 20% basic rate tax credit. Capital allowances on new expenditure are no longer available. The first self-assessment return showing the full impact is due January 2027. Source: GOV.UK — Abolition of the Furnished Holiday Lettings Tax Regime.

From 1 January 2026, the Cryptoasset Reporting Framework (CARF) requires UK crypto exchanges to report all user identifying data and full transaction history to HMRC annually. HMRC cross-matches this data against self-assessment records automatically. HMRC can now see every UK crypto trade made since 2014. Any undisclosed gains or income from crypto represent a significant audit risk for UK taxpayers. Source: HMRC — Cryptoasset Reporting Framework.

From 6 April 2026, 100% Inheritance Tax relief under Business Property Relief (BPR) and Agricultural Property Relief (APR) is capped at £2.5 million per individual in the United Kingdom. Assets above £2.5 million receive 50% relief, creating an effective IHT rate of 20% on the excess. Married couples and civil partners can transfer unused allowance, giving a combined £5 million. AIM shares are restricted to 50% relief regardless of value. Source: Finance Act 2026, Section 65 and Schedule 12. GOV.UK confirmed.

The most effective legal strategy for UK taxpayers to escape the 60% personal allowance trap is to make pension contributions that reduce adjusted net income below £100,000. This can be done via salary sacrifice through your employer or personal pension contributions to a SIPP. Example: earning £110,000 and contributing £10,000 to a pension reduces adjusted net income to £100,000, fully restores the personal allowance, and saves £6,000 in tax. The net cost of the pension contribution is just £4,000. Gift Aid donations to UK charities also reduce adjusted net income. Source: GOV.UK, HMRC.