I wanted to find out if my donor cars steering rack was colapsable so i asked on jag-lovers and got a reply that said all cars build after 1986 (mine was 87) had to have a colapsable rack by law.
Is there any truth behind that?

A half truth.
The steering colomn/steering wheel must be designed so that it does not hit the driver in the event of a frontal crash.
This can be done by a colapsable colomn or a dog leg and UJ's that mean that the colomn does not get pushed towards the driver.