May 2026 Newsletter | Cylchlythyr Misol Mai 2026
1. The Bank of England interest rate has been held at 3.75%. The Bank have noted that interest rates are likely to rise this year if the Iran war continues, and energy prices will increase in July, with the bank expecting these prices to remain high for the rest of 2026.
If you are on a variable mortgage and/or a variable energy tariff, you may wish to consider arranging fixed-term deals (make sure you shop around).
2. For landlords with properties in England, the Renters' Rights Act has come into effect on 1 May 2026. Major changes include abolishing Section 21 "no-fault evictions", powers to challenge rent hikes and a ban on mid-tenancy rent increases. Check with your letting agent if you have any concerns about the new regime.
3. Did you, or a member of your family receive the winter fuel payment last year? If your income was above £35,000 in the year to 5 April 2026, you will need to repay the winter fuel payment in full. This will be done either via your tax code, or via your self-assessment tax return. HMRC will not send texts or emails asking for repayments.
HMRC have already received over 25,000 winter fuel payment scam referrals - if you receive texts or emails asking for your bank details, delete the messages immediately!
Ask Huw & Aled
Q: Our grandson is 10 years old, and we are in the process of setting up a Junior ISA for him. This is so we can start gifting money to him now, instead of waiting until he's 18. However, we think the money might go to his head when he turns 18! Are we allowed to keep this account from him, until we feel he's financially disciplined?
A: Gifting money to grandchildren via Junior ISAs is becoming more popular, as grandparents worry about pensions being included for inheritance tax in 2027. Despite your concerns, once your grandson reaches 18, he will be legally entitled to the funds in his account.
If you have a strong relationship, hopefully you can have sensible conversations with your grandchild in their early teens to advise them of the ISA, guiding them to use the money wisely.
One of the most drastic solutions you could take would be to open a pension for your grandchild, instead of a Junior ISA. However, he will not be able to access this money until he's in his fifties (at least). As a Financial Times journalist noted recently "If they can't spend it wisely by then, there is probably no hope for them"!
Remember, there is a valuable exemption from Inheritance Tax for regular gifts from your income, and this often remains the most practical, and popular method to gift whilst avoiding Inheritance Tax implications.
