Spring 2026 Newsletter

Six weeks have passed since the start of the conflict in Iran began, and aside from the human cost there has been considerable damage to oil fields and restrictions on the critical oil route through the Strait of Hormuz. It is not clear what the intentions of the war are, and what its impact will be on the wider world, but fuel prices are already increasing, and energy prices are certain to follow shortly.

While we wait to discover the short and longer term economic impact of the latest Middle East war, the new tax year turns and brings significant change for many. Although income tax bands stay fixed, as remains the case since 2022, several other tax changes are coming into effect from 6 April 2026. Our feature highlights those with the biggest impact, including the headline-grabbing £2.5 million cap on 100% inheritance tax (IHT) relief for farmers and business owners.

Another major change is to the Making Tax Digital programme, with self-employed workers and landlords earning over £50,000 required to comply with its reporting procedures for the first time. HMRC specifies system-compliant software for seamless accounts reporting, and reports must be submitted four times a year, rather than two. However, exceptions are available (but must be sought in advance) for those who are unable to fulfil the digital requirements.

Our other stories in this edition include:

• Time for an estate planning review? Hot on the heels of IHT relief reform for agriculture and business, April 2027 will see most pension death benefits included in the IHT net. Do you need to restructure your estate planning to take these changes into account?

• Annuities cycle back Annuities fell out of favour when pension flexibility reforms were originally introduced in the previous decade, affected by low interest rates and rigid terms and conditions. But with healthier interest rates, the popularity of these guaranteed incomes rose in 2025/26 and more people are opting for escalating annuities that compensate for inflation.

• Navigating student loans Disparity in repayment plans for student loans has led to students, alongside opposition MPs and others, demanding change to Plan 2 loans, where the highest-earning students faced repayment interest rates of 6.2% last year and could face debt lasting to their 60^th birthday.

Our next newsletter will be available in June when we will hopefully have put the US-Iran conflict behind us.

Please do get in touch if we can continue to help or provide you with more information on any of the topics covered.