Nine April 2016 tax changes you need to know about

April 6 – the start of the 2016-2017 tax year is a big day for tax, with several new measures covering pensions and earnings affecting landlords.

Now’s the time to check out your finances in readiness for the day – and to make sure you do not lose out, here’s a list of the changes:

Landlords renting out furnished homes lose the 10% wear and tear allowance. The allowance is replaced with new wear and tear or replacement allowance for all landlords.

The 3% stamp duty surcharge for buy-to-let or second homes worth more than £40,000 in England and Wales also comes into force.

More about wear and tear allowance and the stamp duty surcharge

Rent A Room Relief for householders taking in a lodger rise from £4,250 to £7,500 a year

More about Rent A Room Relief

The basic and additional state pensions are replaced by the flat rate pension paying £155 a week to all qualifying pensioners. To receive the full payment, the qualifying rules have changed – from 30 years of full working to 35 years.

More about the single-tier state pension

The annual allowance for pension contributions tapers from £40,000 to £10,000 on tax relief depending on annual earnings. Those earning the highest- more than £150,000 a year – gain the least.

More about annual pension contributions

The lifetime allowance for retirement savings drops from £1.25 million to £1 million. Retirement savers already exceeding the cap can apply for protection – those that do not make the application will pay fines if their pension funds grow above the lifetime allowance limit.

More about the lifetime allowance

Tax rates on taxable lump sums paid by Qualifying Recognised Overseas Pension Schemes (QROPS) as death benefits are slashed from 45% to the recipient’s marginal rate.

More about offshore pension tax rules