March 2026
We’re approaching the end of yet another busy tax year, with several major financial and legislative changes coming into force in the 2026/27 term.
Here’s a round-up of seasonal news and changes you may need to be aware of:
Another Making Tax Digital deadline is approaching
MTD has been introduced in stages over a number of years, and now it’s the turn of Self-Assessment Income Tax for sole traders and landlords earning more than £50,000 gross income per annum. If your income in the 2024/25 tax year was above £50,000 (that’s gross income or turnover) from 6th April 2026, you need to register for Making Tax Digital and start keeping digital records that are submitted to HMRC every quarter.
We’ve covered this topic in detail across previous articles, and there’s lots of information on the gov.uk website.
https://www.rackhamsaccountants.co.uk/2025/08/13/making-tax-digital-for-sole-traders/
Renters’ Rights Act
A big shake-up in housing law will affect thousands of UK private tenants and landlords. The first phase of the Renters’ Rights Act comes into force on 1st May 2026.
| Current Situation | The Renters’ Rights Act 1 May 2026 |
| Tenants can be evicted under a section 21 notice for no reason | Tenants will have the right to ask the landlord’s permission to keep a pet. Landlords can only refuse if they have an acceptable reason. |
| Tenants can be asked to pay any amount of rent in advance | Landlords will only be able to ask for 1 month’s rent in advance |
| Tenants have to be given 1 months’ notice of rent increases | Tenants must be given 2 months’ notice of rent increases |
| Landlords will need a legal reason to evict tenants with a Section 8 notice | Tenants will have periodic tenancies |
| Tenants can give 1 months’ notice to end a periodic assured tenancy | Tenants will have to give 2 months’ notice to end a periodic tenancy |
| Landlords can refuse permission to have a pet. They do not need to give a reason. | Tenants will have the right to ask the landlord’s permission to keep a pet. Landlords can only refuse if they have an acceptable reason. |
What landlords need to do:
- Landlords need to give tenants an information sheet to be provided by the Government and available on the gov.uk website from March 2026. Tenants need to have the information before the end of May 2026.
- Landlords can still issue a Section 21 notice up until 30th April 2026 and will have until 31st July 2026 to apply for a possession order.
- Landlords do not have to issue new tenancy agreements to existing tenants.
- If a landlord is planning to sell or move into a property, they will have to wait until existing tenants have completed the first 12 months of a new tenancy and be given four months’ notice to leave from that date.
Major change to inheritance tax affecting private pensions
Changes to IHT rules regarding pensions will come into force from 6 April 2026 and are expected to generate approximately £1.5 billion tax revenue per year by the end of the decade.
Currently, pension funds are outside a person’s estate for inheritance tax purposes. This means you can leave your pension fund to your beneficiaries without any tax liability to your estate or to them, and all of your IHT allowances will still apply to your remaining financial portfolio and property.
Unless you are leaving your pension to your spouse, civil partner or a charity, this will no longer be the case for people with ‘defined contribution pensions’, which include personal pensions & SIPPs.
From 6 April, any undrawn funds you leave to anyone else (including your unmarried partner, children, other family members) will be liable to IHT, and, if you die after the age of 75, an income tax charge will apply as well.
Also, if the value of your estate and pension funds combined is greater than £2 million, you may also lose the Residential Nil Rate Band (up to £350,000).
The changes don’t apply to most defined benefit pensions, which include the Local Government Pension Scheme, or to lump sum death-in-service payments.
For everybody else, however, this is a significant tax change. Up until now, a pension fund was assumed to be ‘protected’ from IHT, and is often the second biggest asset after the family home. We recommend taking professional advice before making any decisions.
https://www.rackhamsaccountants.co.uk/2025/11/27/chancellors-autumn-statement-2025/
Chancellor’s Spring Statement 2026 – just an update (thankfully)!
Just when you’ve come out from behind the sofa after the Autumn Statement, the Chancellor has today presented her Spring Statement to the nation.
The Spring Statement will act as a fiscal update and report of the state of the nation’s finances throughout this Parliament, containing no major policy announcements as we’re used to hearing at this time of year.
Updated forecasts from the Bank of England and the Office for Budget Responsibility (OBR), an independent body that monitors the government’s spending and performance, showed steady-ish trends. However, the forecasts were calculated before the start of the ongoing military activity in the Middle East, which will have repercussions on global oil and gas prices at the very least.
The OBR forecasts for growth were downgraded for 2026 at 1.1%, but recovering slightly in 2027 and 2028 at 1.6% and at 1.5% for 2029 and 2030 inflation.
Similar movements are expected concerning Government borrowing, and whilst the trend is promisingly downwards, and headroom can very easily evaporate, the Chancellor’s spare change is now heading for around £23.6bn.
Inflation is expected to fall from its current level of 3% in January 2026, with the OBR forecasting that the 2% target will be met towards the end of this year. This should help the Bank of England to make further interest rate cuts. However, again, this does not take the impacts of the widening conflict in the Middle East into account.
Unemployment figures have been rising in the past quarter, with an anticipated peak of 5.3%. This is predicted to have fallen to 4.1% by 2030. However, with more than 16% unemployment amongst young people, including 113,000 who are not active in either employment, education, or training terms (NEETs) expect spending policy announcements on up-skilling, apprenticeships and youth employment support to come.
We’re here to help…
Rackham’s Accountants is always across major tax and legislative changes that may affect our clients, both in business terms and personally. We’re always happy to answer any questions you may have and welcome your enquiries.
Call 01482 631700, or use our website contact form:
