Business Update – January-February 2026
February 2, 2026
In November’s Autumn Budget the Chancellor unveiled a range of tax increases, avoiding changes to rates of income tax and NICs by extending the pandemic-legacy freeze on tax thresholds and allowances into 2030/31. The outcome will send more taxpayers into higher tax brackets. Increased tax rates on dividends for basic and higher rate taxpayers, as well as a high value council tax surcharge on properties worth over £2 million, went some way to answering those in favour of more ‘wealth taxes’, but not far enough for others.
This edition of our newsletter covers the effects of changes enacted in both these most recent Budgets, but our feature covers the Renters’ Rights Act 2025, due to become law in May, and the changes it brings for landlords and tenants. Designed to provide extra housing security for renters in the private sector, the Act ensures landlords’ rights are also upheld by specifying a clear route to repossession if they need to sell the property, live in it themselves, or reclaim it for a family member.
Alongside the feature, other stories we explore in this edition include:
ISAs shake up – Known as an established haven for tax-free savings, cash ISAs will be subject to restrictions for under-65s from tax year 2027/28, subject to a savings limit capped at £12,000 out of the overall £20,000 allowance and new transfer rules.
Salary sacrifice revisions – This well-known route to boosting pension funds by saving national insurance contributions (NICs) is going to be subject to an annual cap from 2029, after which employees will pay their standard rate on pension contributions.
Making Tax Digital updates – The next major phase of MTD rolls out in the new tax year. Self-employed workers and landlords with qualifying income of £50,000 or more will have to comply with HMRC’s digital pathway when submitting their tax returns, and file quarterly reports.
We also cover the widening of enterprise management incentives, changes to IHT business relief, Companies House fees rise, a capital allowances cut and more.
Our next newsletter will be out in April as the new tax year takes effect. Meanwhile please do contact us if we can continue to help or provide you with more information on any of the topics covered here.