Our third (and final) article in this series looking at the key changes to UK tax legislation which took effect due to the commencement of either the new Financial Year 2026 from 1 April 2026 or the new tax year 2026/27 which began on April 6 considers a range of miscellaneous changes. Part one of the series addressed Making Tax Digital for Income Tax and measures affecting tax agents. In part two we examined key changes to the capital taxes, income tax, corporation tax, and capital allowances.
Personal taxes
Due to the freezing of personal allowances and thresholds, there are only limited changes to income tax rates, thresholds, and allowances for 2026/27. The changes to be aware of are as follows:
- the dividend ordinary rate increased from 8.75 percent to 10.75 percent, and the dividend upper rate increased from 33.75 percent to 35.75 percent. The dividend additional rate remains at 39.35 percent,
- the amount of the married couple’s allowance (MCA) increased from £11,270 to £11,700. The income limit for, and the minimum amount of the MCA, also increased from £37,700 to £39,200 and from £4,360 to £4,530 respectively,
- the amount of the blind person’s allowance increased from £3,130 to £3,250,
- the rate of income tax relief for individuals investing in new venture capital trusts scheme shares reduced from 30 percent to 20 percent, and
- the annual fixed amount for qualifying care relief increased from £19,690 to £20,440. Increases were also made to the weekly amounts as set out in the associated legislation.
Tax advantaged venture capital schemes
Several changes were made to the Enterprise Investment Scheme and the Venture Capital Trust scheme limits from 6 April 2026 (though it should be noted that these do not apply to specified companies in Northern Ireland):
- the annual investment limit that a company can raise increased from £5 million to £10million,
- the overall investment limit increased from £12 million to £24 million, and
- the pre-investment gross assets threshold increased to £30 million from £15 million, and the post-investment threshold rose to £35 million from £16 million.
Official rate of interest (ORI)
HMRC has confirmed that the ORI, which is used to calculate benefits in kind in respect of employment-related loans and living accommodation, is unchanged at 3.75 percent from 6 April 2026. However, going forward, the ORI will be assessed quarterly, with any adjustments taking effect on 6 April, 6 July, 6 October and 6 January.
National minimum and living wage
The National Minimum Wage and National Living Wage rates both increased from 1 April 2026.
Vaping products duty (VPD)
VPD is a new excise duty on vaping products which will come into operation later this year from 1 October 2026. The duty will apply to vaping liquid which contains nicotine and either or both glycerine and glycol, or any liquid that is intended to be vapourised by a vape and is not a medical or tobacco product.
It will be charged on vaping products that are produced in or imported into the UK. VPD will be charged a flat rate of £2.20 per 10 millilitres of vaping liquid, regardless of how much nicotine is contained in the product.
Although the duty itself does not commence until October 2026, registrations for VPD and the VPD Stamps scheme opened from 1 April 2026. HMRC is therefore urging affected businesses to begin preparations now. VPD stamps will become mandatory for all vaping products from 1 April 2027. As a result, HMRC has also appointed a VPD Stamps scheme supplier which enables businesses to source duty stamps from one supplier.
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