Construction & Real Estate Community news

In this episode, we look at the implications for individuals and businesses, from the reform of inheritance tax to changes to capital allowances.

Highlights from the broader tax news for the week ending 3 February 2026, including: the publication of a MTD agent toolkit by HMRC; and guidance from HMRC on a new step to take when enrolling VAT into the Business Tax Account.

The new 40% first year allowance (FYA) may benefit some businesses, including those in the leasing sector. However, more businesses could lose out because of the cut in the main rate of the writing down allowance (WDA).

Who’s on the move or been promoted in legal advisory.

The government estimates that the average pub in England will save £1,650 in business rates in 2026-27 as a result of measures announced on 27 January 2026.

The latest national Business Confidence Monitor (BCM) shows that business sentiment slipped deeper into negative territory amid uncertainty about the Budget and rising concern about both the tax burden and regulations. However, companies are optimistic that domestic sales and exports growth will improve over the next 12 months.

The latest national Business Confidence Monitor (BCM) shows that business sentiment slipped deeper into negative territory amid uncertainty about the Budget and rising concern about both the tax burden and regulations. However, companies are optimistic that domestic sales and exports growth will improve over the next 12 months.

Leasehold homes with a value of less than £2m could still be subject to the additional council tax charge. When valuing leaseholds for this purpose, the Government has been reported as choosing to ignore the length of a leasehold interest, valuing all leaseholds as if the owner has an interest of at least 99 years. Usually a discount is applied to the value of a leasehold property where the lease length is less than 80 years. The Telegraph reports that more than 10% of leasehold homes are in this potential predicament and could still suffer the annual charge of £2,500 from 2028.

Businesses in Wales that see their non-domestic rates bills rise by more than £300 from April 2026 due to the revaluation may benefit from a new transitional relief scheme in 2026-27 and 2027-28.