April’s tax highlights
In the ever-changing world of tax, there is a non-stop stream of information from HMRC. Much of it relates to increased compliance activity and directors’ loans are clearly in focus.
Stamp Duty Land Tax on periodic tenancies
The government has announced that no-one will be brought into Stamp Duty Land Tax (SDLT) as a result of the changes in the Renters’ Rights Act (RRA) 2025.
From 1 May 2026, the RRA will abolish fixed term assured shorthold tenancies and, instead, all tenancies will be periodic.
Following this change, the net present value of rent under a continuing lease will be calculated assuming a lease that continues indefinitely. This means the net present value of the rent could increase and exceed the £125,000 threshold at which SDLT becomes payable, even though the underlying tenancy arrangements have not substantively changed.
The government intends to legislate in Finance Bill 2026/27 so that any residential lease which will be considered an assured tenancy under the Housing Act 1988, as amended by the RRA, will not give rise to a SDLT charge on the rent element. The government will set out the detail of this legislation at or before this year’s Budget.
https://questions-statements.parliament.uk/written-statements/detail/2026-04-22/hcws1535
Paying back the Winter Fuel Payment
HMRC has updated their guidance on when people need to repay the Winter Fuel Payment or the Pension Age Winter Heating Payment and how HMRC will collect it.
In the 'How HMRC will take back your payment in your tax code' section, HMRC has added information about if someone does not need to repay the Winter Fuel Payment. They have also updated the 'Example of how we’ll work out your tax code if you’re a basic rate taxpayer' section to give information about how a K code is calculated.
https://www.gov.uk/guidance/paying-back-the-winter-fuel-payment
VAT return filing
The Chartered Institute of Taxation has published a reminder from HMRC that VAT returns (now dealt with via MTD for VAT) must be submitted by the statutory due date (one month and seven days after the end of the VAT period). There is no period of grace where the due date falls on a weekend or public holiday and HMRC consider that returns submitted on the next working day are late.
https://www.tax.org.uk/vat-returns-due-dates-for-submission
Technical note: Inheritance Tax on pensions
HMRC has released a technical note on Inheritance Tax (IHT) on pensions. From 6 April 2027, most unused pension funds and pension death benefits will be brought within the value of a deceased person’s estate for IHT purposes.
Much of the practical detail on the new system has yet to be published, but the timeline is laid out.