Introduction
Also to come, the maximum subscription to cash individual savings accounts (ISAs) will be reduced to £12,000 from 2027/28 for investors under age 65, although the overall ISA limit will stay at £20,000. And salary sacrifice to fund pension contributions will be capped at £2,000 a year from 2029/30. The freeze on inheritance tax (IHT) nil rate bands will continue for a further year until April 2031. However, the cap on the 100% IHT relief for shares in unlisted trading companies and for farms has been increased to £2.5 million rather than the £1 million initially announced, and unused relief is now transferable between spouses. From April 2027, unused pension funds will be included in the value of the deceased’s estate (unless the funds are inherited by a spouse or civil partner). This guide highlights 50 ways in which you can currently use certain tax reliefs to your advantage, and how to avoid some of the tax penalties. It can help you navigate the complexity of certain tax rules and create more tax-efficient plans. This publication is for general information only and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking any action on the basis of the contents of this publication. The Financial Conduct Authority (FCA) does not regulate tax advice, so it is outside the investment protection rules of the Financial Services and Markets Act and the Financial Services Compensation Scheme. This publication represents our understanding of the Finance Act 2026, the law and HM Revenue & Customs practice as at 18 May 2026. All rights reserved. Taxation continues to present challenges for taxpayers and business owners. Personal tax allowances and income tax bands will now remain frozen until 5 April 2031, as will employee and self-employed national insurance contribution (NIC) thresholds, in effect raising taxes by the operation of inflation. Tax rates on dividends have risen by two percentage points for basic and higher rate taxpayers, and the basic higher and additional rates on savings and property income will rise by the same amount from 6 April 2027.
Salary sacrifice to fund pension contributions will be capped at £2,000 a year from 2029/30
Made with FlippingBook. PDF to flipbook with ease