Small Rule Changes. Big Planning Consequences

A brief guide to pensions, ISAs, VCTs and tax efficiency as we head into 2026

Pensions

• ✅ £60,000 annual allowance stays.

• ⏳ Access age rises 55 → 57 in April 2028 : plan early access now if appropriate.

• ⚠️ Salary sacrifice NI advantage capped from April 2029 (£2k limit) : make the most of it before then.

• ❓ Pensions & Inheritance Tax still no final rules, but changes expected from 2027 : planning window is now.

• ⚠️State Pension increases by 4.8% pushing more into paying income tax

ISAs

• ✅ £20,000 ISA allowance unchanged.

• 🗣️ ISA reform consultation ongoing – direction of travel is more focus on investing, less cash.

VCT / EIS / SEIS

• ⚠️ VCT income tax relief drops from 30% → 20% in April 2026 : 2025/26 likely last year at 30%.

• ✅ EIS (30%) and SEIS (50%) reliefs unchanged – still attractive for higher-risk capital.

Tax

• 🧊 Income tax thresholds frozen : more people pulled into higher tax.

• 💡 Tax efficiency matters more than ever.

Takeaway

Use salary sacrifice, pension allowances, and higher VCT relief while they’re still available.