ICAEW's Tax Faculty has outlined major UK tax changes effective from 6 April 2026, including higher income tax and capital gains tax (CGT) rates, alongside significant inheritance tax (IHT) reforms.
The updates feature increased Class 2 and Class 3 National Insurance contributions (e.g., Class 3 rising from £17.75 to £18.40 weekly), restrictions on voluntary NIC payments abroad, and a new £2.5m IHT allowance for 100% Agricultural Property Relief (APR) and Business Property Relief (BPR)—refreshing every seven years (10 for trusts). ICAEW welcomes government concessions but calls for further refinements, as noted in a House of Lords report. These shifts aim to balance revenue needs amid economic pressures but may complicate cross-border planning.
What this means
UAE business owners with UK exposure—via investments, expat staff, or family estates—should review CGT and IHT exposure now. Consult advisors to leverage the expanded reliefs and align with UAE's tax-free regime for optimal structuring.