Welcome to our monthly tax newsletter designed to keep you informed of the latest tax issues.

In this month’s edition:

A significant area to watch is the planned restrictions to Inheritance Tax (IHT) relief for Agricultural Property Relief (APR) and Business Property Relief (BPR), expected from 6 April 2026. The proposal includes a new £1 million allowance for the combined value of business and agricultural property assets that qualify for 100% relief. Assets exceeding this threshold would see the relief rate drop to 50%. Furthermore, 100% BPR will no longer be available for shares designated as ‘not listed’ on recognised stock exchanges, impacting investments like AIM shares. The newsletter strongly recommends that individuals establish their potential IHT exposure now and review their Wills, though it notes these are still just proposals, not yet law.

Another key topic is the long-awaited guidance from HMRC for Making Tax Digital (MTD) for Income Tax exemptions for digitally excluded individuals. ‘Digitally excluded’ status applies to those unable to use electronic communications or keep digital records due to reasons like age, disability, or religion. To apply, you or your representative should call HMRC’s self-assessment general enquiries line or write to the provided address. For company car drivers, HMRC has updated the Advisory Fuel Rates (AFRs) for electric vehicles, introducing separate rates for charging at home (8p per mile) and using public chargers (14p per mile), effective from 1 September 2025. Finally, the newsletter touches on recent tribunal cases regarding VAT on biscuits and SDLT/ATED relief.