Planning Ahead for Change
Tax and regulation rarely stand still and the next 12 months look set to bring a number of changes that could affect business owners, investors and landlords.
In this month’s newsletter, we’re looking ahead at some of the issues our clients may need to consider: speculation around Capital Gains Tax in the forthcoming Budget, whether Dubai or Saudi Arabia could offer opportunities for entrepreneurs looking internationally and the new property Income Tax rates coming into force in April 2027.
We also have a short update from our partners at New Legal following changes to UK data protection legislation.
As always, the important message is not to make decisions based on headlines alone. Understanding how a change could affect your particular circumstances gives you the opportunity to plan properly and make informed choices.
Could Capital Gains Tax rise in the 2026 Budget?
With the new Labour Government preparing for its first Budget, Capital Gains Tax is one of the areas attracting considerable attention.
There has been growing discussion around whether the Government could seek to bring Capital Gains Tax rates closer to, or even into line with, Income Tax rates. Nothing has yet been confirmed, but such a move could have significant consequences for higher-rate taxpayers in particular.
For business owners considering an exit, landlords thinking about selling property and investors with assets outside tax-efficient wrappers, the difference could be substantial.
Our latest article looks at what has been reported so far, why CGT is under scrutiny and what taxpayers may want to consider ahead of the Budget.
READ: Could Capital Gains Tax Rise in the 2026 Budget?
The key at this stage is preparation rather than panic. If you are already contemplating a significant disposal, now may be a sensible time to understand the potential tax implications under different scenarios.
Dubai or Saudi Arabia – should UK entrepreneurs be looking overseas?
As the UK tax environment continues to evolve, we are increasingly seeing entrepreneurs explore opportunities outside the UK. Two destinations generating particular interest are Dubai and Saudi Arabia.
The UAE offers a comparatively low-tax environment, with a standard 9% Corporate Tax rate and the possibility of 0% tax on certain qualifying Free Zone income. Saudi Arabia is taking a more targeted approach, offering incentives through initiatives including Special Economic Zones and programmes designed to attract particular types of international businesses and investment.
On paper, some of these incentives can look extremely attractive, but establishing a company overseas is not the same as automatically removing a business or its owner from the UK tax system. Where the company is managed, where the owner lives, where employees and customers are based and whether there is still a UK permanent establishment can all affect the tax position.
Our new article takes a closer look at both jurisdictions and asks an important question: when does an international move genuinely make commercial and tax sense?
READ: Dubai or Saudi Arabia – Could Moving Your Business Reduce Your Tax Bill?
Richard Riley & Associates also has a connection with specialists who can help facilitate the establishment of businesses in Dubai and Saudi Arabia. If this is something you are considering, speak to us first. We can help you look at the UK tax implications alongside the overseas opportunity so that any decision is based on the complete picture.
Landlords: Property Income Tax is changing from April 2027
From 6 April 2027, property income will have separate Income Tax rates in England, Wales and Northern Ireland.
The new rates will be:
- 22% property basic rate
- 42% property higher rate
- 47% property additional rate
Each is two percentage points higher than the equivalent standard Income Tax rate.
For somebody with a single rental property, the increase may appear relatively modest. For landlords with larger portfolios, however, an additional two percentage points across significant rental profits can quickly become meaningful.
There are other details to consider too, including changes to residential mortgage finance-cost relief, which will increase from 20% to 22%.
Also in April next year, landlords with qualifying gross income above the updated Making Tax Digital threshold of £30,000 may also find themselves moving onto Making Tax Digital for Income Tax.
Our latest landlord article explains the new rates, who will be affected and what property owners may want to review before the changes arrive.
READ: Property Income Tax Is Changing in April 2027 – What Landlords Need to Know
If you own rental property, this is a good opportunity to start looking beyond your headline rental income and understand what your portfolio is actually expected to produce after tax, borrowing and other costs once the new rules apply.
Data protection update: is your privacy notice still up to date?
Our partners at New Legal have alerted us to changes introduced by the Data (Use and Access) Act 2025 (DUAA).
The legislation has introduced a number of changes to UK data protection rules, intended in part to simplify compliance while maintaining protections for individuals.
One area businesses should pay particular attention to is data protection complaints. New Legal’s updated privacy notice template now includes a formal complaints procedure under the amended Data Protection Act, covering how complaints are submitted, investigated and responded to. Their template provides for complaints to be acknowledged within 30 days and for businesses to have an appropriate process in place for handling them.
This means it may be a good time to review not only the privacy notice on your website, but also the internal procedures you would follow if a customer, employee or other individual raised a concern about how their personal data had been handled.
New Legal can review Richard Riley & Associates clients’ existing privacy policies and provide guidance on any changes that may be required to your policies and procedures.
If you would like us to introduce you to the New Legal team, please get in touch.
Need help planning ahead?
Whether you are concerned about future Capital Gains Tax changes, reviewing the profitability of a property portfolio, considering an international business opportunity or simply want to make sure you are prepared for upcoming tax changes, we are here to help.
Good advice is often most valuable before a change happens.
If any of the topics in this month’s newsletter could affect you or your business, please contact the team at Richard Riley & Associates for more information and guidance.