VCTs are listed funds that invest in young, unquoted companies. They are a crucial source of capital for early-stage businesses. They have raised £4.3bn in the last five years, according to HMRC. Past beneficiaries include Graze, Virgin Wines, and Zoopla.

The annual VCT investment limit has doubled to £10m, intending to help companies scale beyond the start-up phase. But cutting the tax relief at the same time is seen as contradictory – “giving with one hand and taking with the other.” The last time VCT relief was cut – from 40% to 30% in 2006 – fundraising dropped by two-thirds year-on-year. Wealthier investors may redirect their money elsewhere, for example EIS/SEIS (offering 30-50% relief), pensions or mainstream equity income funds.

Estates above the nil rate band will face a 40% IHT charge. It is believed that 10,500 estates will pay IHT for the first time and 38,500 estates will see higher bills, averaging £34,000 extra. However, this change will only see a move from 5% to 8% of all estates paying IHT.

Despite this, research shows widespread anxiety with 54% of adults fearing their families will face higher IHT and 22% now feeling less confident about their pensions. People are already reacting to the impending change, with savers withdrawing £3.9bn in lump sums in the year after the announcement – £868m more than the previous year. One in seven are spending more of their pension; nearly half plan to. Other things to consider, if you feel your family will now receive an IHT bill, is to exchange your pension for an annuity (these are normally outside the scope of IHT) or use the gifting rules to reduce your estate’s overall value.

Please get in touch to discuss your options if you feel this rule change is going to affect you.

Taxpayers can apply if they cannot use digital tools because of age, disability, health conditions, or religious beliefs. Those approved can continue filing traditional Self-Assessment returns.

759 of the approved exemptions related to taxpayers entering the system in April 2026, ahead of the first rollout phase. Applications are expected to rise as the April 2027 deadline approaches as more sole traders and landlords will be eligible due to the earnings threshold dropping from £50k (earned in the 2024/25 tax year) to £30k (earned in the 2025/26 tax year).

As digital exclusion is hard to define and evidence, please get in touch if you would like us to assist in an exemption application.

This does not change the need to submit a self-assessment tax return by 31 January 2027. Tax payments are also still due on 31 January and 31 July each year, as before.

These quarterly updates must be submitted using HMRC recognised software. There are many free and paid for options available, as well as utilising an accountant to act as an agent for you. Don’t forget that separate submissions must be made for each income stream, for example if you earn money from being self-employed but also receive rental income, you’ll need to submit two updates.

Research shows 70% of sole traders don’t understand what they need to do under the new MTD system, only 37% know about the first deadline and just 8% currently use software to manage their tax records.

Please get in touch if you need assistance in choosing the right option for you or want to check that your choice will keep you compliant with the new rules as HMRC is introducing fines for non-compliance and late submissions.

HMRC still issues cheques when people don’t respond to rebate letters within 21 days – a legacy process that hasn’t fully adapted to the digital era. 1.74 million cheques were issued last year; although this is fewer than in the past, a significant number still go unclaimed.

HMRC is transitioning to a new system where cheques are only sent if someone specifically requests one. Around 20% of taxpayers are still on the old system, but HMRC aims to complete the switch by April next year.

Overpayments happen for common reasons such as job changes, incorrect tax codes or having multiple sources of income.

If you have an uncashed cheque from HMRC that was issued over six months ago, you will no longer be able to cash it. HMRC says it can be replaced on request.

The government wants to signal that Britain is ‘open for business’ and Ms Reeves has used the recent IMF meetings in Washington to promote the UK as a competitive destination for investment and residency. A senior Treasury official says geopolitical risk is reshaping where people choose to live and invest, and the UK wants to respond strategically.

The Treasury will launch a formal consultation on how Limited Liability Companies (LLCs) are taxed, as this has been a sticking point for potential wealthy arrivals. The review will look at targeted reliefs for new arrivals and possible reforms to offshore structures.

The Chancellor has faced criticism that her earlier tax increases drove millionaires out of the UK. The government hopes these new measures will reverse the exodus and bring high earners back.

The tax-free threshold for first-time buyers dropped from £425,000 to £300,000, increasing upfront costs. On average, buyers now pay about £4,618 more in stamp duty than before.

The change comes at a time when mortgage rates remain high, adding further pressure on new buyers. Over half (53%) of the extra revenue comes from property sales in London, with just under a quarter (23%) contributed from sales in the South East. Many properties in the North East and East Midlands remain below the £300,000 tax-free limit, contributing only 1.3% between them.

The premium increases depending on how long the property has been owned:

Under 2 years: double the standard rate

2–3 years: 300% surcharge

Over 3 years: full 500% premium

Empty homes are treated the same way. There are 35 second homes in Midlothian and only two are in Band G. So, this move is only expected to raise circa £200,000 in the 2026–27 financial year. But the council says the goal is behavioural change, not revenue – specifically to discourage second home ownership and free up housing for locals.

Scottish councils now have unlimited powers to set second home premiums. In England they are capped at 100% (double the standard rate), and in Wales it is up to 300%.

Critics argue they worsen the cost-of-living pressures, noting second homes already face an 8% additional dwelling supplement at purchase. The Adam Smith Institute warns extreme premiums could drive away investment and harm local economies.

Total gross HMRC tax and NICs receipts for April 2025 to January 2026 equalled £784.9 billion. This was £65.6 billion higher than the same period last year.

Income Tax, Capital Gains Tax & NICs Total were £460.7bn (up £52.0bn year-on-year). PAYE was £388.2bn (up £39.1bn). Self-Assessment brought in £70.3bn (up £12.8bn). January 2026 SA receipts are the highest on record.

Total VAT receipts were £154.3bn (up £9.0bn) with January 2026 VAT receipts being the highest on record. The growth was influenced by inflation and shifts in consumer spending.

Business Taxes, which include Corporation Tax, the Bank Levy, Digital Services Tax, and the Energy Profits Levy totalled £81.8bn (up £1.8bn). There were record-high December 2025 receipts due to strong onshore Corporation Tax receipts.

Stamp Taxes and Annual Tax Enveloped Dwellings (ATED) were £17.0bn (up £1.9bn). Receipts were influenced by Stamp Duty Land Tax (SDLT) rate changes, increased transaction volumes around Budget periods and the threshold changes effective from April 2025.

Inheritance Tax (IHT) totalled £7.1bn (up £0.1bn). The slightly higher receipts were linked to increased asset values and frozen thresholds (to 2030/31).

Critics argue her admission comes too late for businesses and workers already affected. The TaxPayers’ Alliance said the tax rise inevitably reduced job opportunities, pointing to rising youth unemployment. Some argue that reversing the employer NI increase would help businesses and improve job prospects for young people.

ONS data shows 957,000 young people (16 – 24) were classed as NEET (not in education, employment, or training) in the last quarter – an increase of 11,000 from the previous period.

Ms Reeves said that the Government was expanding apprenticeships and pointed to her ‘youth guarantee’ which promises paid work for young people who’ve been out of education or employment for 18 months.