Bank of England Holds Base Rate at 3.75%
The Monetary Policy Committee voted unanimously on 19 March to keep Bank Rate at 3.75%. The decision was heavily influenced by renewed pressure on global energy prices following escalating conflict in the Middle East, which is now expected to push CPI inflation to around 3% in Q2 — well above the February forecast of 2.1%. With inflation running hotter than hoped, the Committee signalled it would hold until it sees a clearer path back to the 2% target.
For mortgage holders on tracker deals, no movement means no immediate change to monthly payments. For savers, rates remain attractive relative to recent history — but the longer the hold continues, the closer cash ISA and savings account rates will drift downward in anticipation of an eventual cut.
MTD for Income Tax: Registration Closes in 4 Days
Making Tax Digital for Income Tax becomes mandatory from 6 April 2026 for sole traders and landlords with total annual income above £50,000. If that applies to you, the HMRC sign-up deadline is 1 April 2026 — four days away. From April, you must keep digital records and submit quarterly updates to HMRC instead of a single annual Self Assessment return. The first quarterly deadline falls on 7 August 2026.
HMRC has confirmed it will not issue penalty points for late quarterly updates in the first year (2026/27), but penalties for late tax returns and unpaid tax still apply. The threshold drops to £30,000 in April 2027 and to £20,000 in April 2028, extending MTD to a much wider population over the next two years.
Source: GOV.UK — Sign up for Making Tax Digital for Income Tax | Related: Self-Employed Tax Calculator
ISA Deadline: £20,000 Allowance Expires 5 April
The 2025/26 tax year closes on 5 April 2026. Any unused portion of your £20,000 ISA allowance cannot be carried forward — if you don't use it by midnight on 5 April, it is gone permanently. This applies to Cash ISAs, Stocks and Shares ISAs, Innovative Finance ISAs, and Lifetime ISAs (up to the £4,000 LISA limit, which counts within the overall £20,000).
It is also worth noting that from April 2027, the annual Cash ISA limit for under-65s is set to fall from £20,000 to £12,000, with the overall ISA allowance staying at £20,000. The 2025/26 year therefore represents the last full year of uncapped Cash ISA access for younger savers.
IHT Relief Cap of £2.5m Arrives Next Week for Farms and Family Businesses
From 6 April 2026, the 100% Inheritance Tax relief for Agricultural Property Relief (APR) and Business Property Relief (BPR) will be capped at a combined £2.5 million per individual. Assets above that threshold will receive 50% relief — meaning an effective IHT rate of up to 20% on the excess rather than the standard 40%. Any unused allowance is transferable between spouses and civil partners, allowing couples to shelter up to £5 million of qualifying assets between them (on top of the standard nil rate band).
HMRC estimates around 1,100 estates across the UK will pay more inheritance tax as a result in 2026/27. For most family farms and small businesses below the threshold, the 100% relief continues in full.
Source: GOV.UK — APR and BPR Changes from April 2026 | Related: IHT Planner
Spring Statement: No New Tax Rises, Growth Forecast Cut to 1.1%
Chancellor Rachel Reeves delivered the 2026 Spring Statement on 3 March. True to the government's framing, no new taxes were announced — the Statement was focused on economic forecasts rather than fiscal policy changes. The Office for Budget Responsibility revised its 2026 growth forecast down to 1.1% from the November prediction of 1.4%, citing global uncertainty, though 2027 and 2028 forecasts were nudged slightly upward to 1.6%. Unemployment is now expected to reach 5.3%. Proposed amendments to the Finance Bill were published, principally around the tax treatment of offshore income gains.
Key Dates This Week
1 April 2026 — Deadline to register for Making Tax Digital for Income Tax (mandatory for those with income above £50,000).
5 April 2026 — End of the 2025/26 tax year. ISA allowance (£20,000) expires. Final opportunity to declare dividends at 2025/26 rates before the 2% rate rise takes effect.
6 April 2026 — New tax year begins. MTD for Income Tax goes live. Dividend tax rates rise (10.75% basic / 35.75% higher). APR and BPR inheritance tax cap comes into force.