Budget 2025 — Overview of tax legislation and rates (OOTLAR)

Question 1

Introduction

Accepted Answer

This document sets out the detail of each tax policy measure announced at Budget 2025 and of previously announced measures that will be included in Finance Bill 2025-26. It is intended for tax practitioners and others with an interest in tax policy changes, especially those who will be involved in consultations both on the policy and on draft legislation.

All measures listed below are applicable UK wide unless specified otherwise. 

The information in the document is set out as follows:

Chapter 1 contains details of all measures that are included in Finance Bill 2025-26.

Chapter 2 contains details of measures which are part of Budget 2025 but are not in Finance Bill 2025-26.

Table 1 lists measures in this document without a corresponding announcement in Budget 2025. 

Annex A provides tables of tax rates and allowances for the tax year 2025 to 2026 and the tax year 2026 to 2027. 

Annex B provides a guide to the impact assessments set out in tax information and impact notes.

Question 2

Chapter 1 — Finance Bill 2025-26

Accepted Answer

Personal Tax

1.1 Income Tax Personal Allowance and higher rate thresholds

As announced at Budget 2025, the government will legislate in Finance Bill 2025-26 to set the Personal Allowance at £12,570 and basic rate limit at £37,700 for the 2028 to 2029 to 2030 to 2031 tax years. The higher rate threshold will therefore be £50,270 for these years.

Changes to the Personal Allowance will apply to the whole of the UK. Changes to the basic rate limit, and therefore the higher rate threshold, will apply to non-savings, dividend and property income in England, Wales and Northern Ireland, and to savings and dividend income in the UK. Income tax rates and rate limits for Scottish taxpayers are set by the Scottish Parliament.

1.2 Income Tax charge and rates 2026 to 2027

As announced at Budget 2025, the government will legislate in Finance Bill 2025-26 to set the charge for Income Tax and the corresponding rates for tax year 2026 to 2027.

Finance Bill 2025-26 will set:

the main rates for 2026 to 2027, which will apply to non-savings and non-dividend income of taxpayers in England, Wales, and Northern Ireland
the default rates for 2026 to 2027, which will apply to non-savings and non-dividend income of taxpayers who are not subject to the main rates of Income Tax, Welsh rates of income tax or the Scottish rates of Income Tax

Income tax rates and rate limits for Scottish taxpayers are set by the Scottish Parliament. The UK rates are reduced by 10p in £1 for Welsh taxpayers, and the Welsh rates of income tax are set by the Senedd and added to the UK rates.

1.3 Ordering of income tax reliefs and allowances

As announced at Budget 2025, the government will legislate in Finance Bill 2025-26 to change the Income Tax calculation rules so that reliefs and allowances deductible at steps 2 and 3 have to be applied against any income that is non-savings, dividend, property income first. This will still be subject to any provisions that require reliefs and allowances to be set against a specific type of income. The changes will take effect from 6 April 2027.

A technical note has also been published which outlines the proposed changes.

1.4 Tax rates for property income

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to create separate tax rates for property income. From 2027 to 2028, the property basic rate will be 22%, the property higher rate will be 42%, and the property additional rate will be 47%. These rates will apply across England, Wales and Northern Ireland. The government will engage with the devolved governments of Scotland and Wales to provide them with the ability to set property income rates in line with their current Income Tax powers in their fiscal frameworks. This will take effect from 6 April 2027.

A technical note has also been published which outlines the proposed changes.

1.5 Tax rates for dividend income

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to amend the rates of Income Tax applicable to dividend income. The ordinary rate will be increased by 2 percentage points to 10.75% and the upper rate will be increased by 2 percentage points to 35.75%. The additional rate will remain the same at 39.35%. The changes will take effect from 6 April 2026.

The tax information and impact note for this measure provides more information: Income Tax: Changes to Tax rates for Property, Savings and Dividend Income

A technical note has also been published which outlines the proposed changes.

1.6 Tax rates on savings income

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to amend the rates of Income Tax applicable to savings income. The savings basic rate will be increased by 2ppts to 22%, the savings higher rate will be increased by 2ppts to 42% and the savings additional rate will be increased by 2ppts to 47%. The changes will take effect from 6 April 2027.

A technical note has also been published which outlines the proposed changes.

1.7 Changes to the starting rate for savings (SRS) limit

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to retain the starting rate for savings limit at £5,000 for the tax years 2026 to 2027 up to and including 2030 to 2031, allowing individuals with less than £17,570 in employment or pensions income to receive up to £5,000 of savings income tax free.

1.8 Post Departure Trade Profits

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to remove the post departure trade profits provisions from the temporary non-residence anti-avoidance legislation so that all dividends received during a period of temporary non-residence are chargeable to UK tax. This change will take effect from 6 April 2026.

The tax information and impact note for this measure provides more information: Temporary non-residence rules — post departure trade profits

1.9 Venture Capital Trusts, Enterprise Investment Scheme investment limit increase and Venture Capital Trusts restructure

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to increase the investment and gross asset limits in the Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) scheme, and decrease the VCT income tax relief, from 30% to 20%. The changes will take effect from 6 April 2026.

The tax information and impact note for this measure provides more information: Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) changes

1.10 Carried interest

As announced at Autumn Budget 2024, the government will introduce legislation in Finance Bill 2025-26 to establish a revised tax regime for carried interest which sits wholly within the Income Tax framework. The revised regime will take effect from 6 April 2026.

Draft legislation was published for technical consultation on 21 July 2025. Changes have been made reflecting stakeholder feedback.

The tax information and impact note for this measure provides more information: Revised tax regime for carried interest

1.11 Capital allowances: new first-year allowance and reduced main rate writing-down allowances

As announced at Budget 2025, the government will legislate in Finance Bill 2025-26 to introduce a new 40% first-year allowance for expenditure incurred on or after 1 January 2026 and to reduce the main rate writing-down allowance to 14% with effect from 1 April 2026 for Corporation Tax and 6 April 2026 for Income Tax.

The tax information and impact note for this measure provides more information: New first-year allowance and main rate of writing-down allowances

1.12 Winter Fuel Payment (WFP)

As announced on 9 June 2025, the government will introduce legislation in Finance Bill 2025-26 to introduce a new Income Tax charge to individuals with annual total income over £35,000, who receive a Winter Fuel Payment, or a Pension Age Winter Heating Payment in Scotland. From 6 April 2025, the measure will apply across the UK for winter fuel payments received in winter 2025 and subsequent years. The charge will be equal to the full value of the payment. Individuals in receipt of certain social security benefits in the qualifying week for winter payments will not be liable to the charge, regardless of income.

The tax information and impact note for this measure provides more information: Income tax charge on winter fuel payments

1.13 Inheritance Tax thresholds

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 so the Inheritance Tax nil-rate bands, which are already set at current levels until 5 April 2030, will stay fixed at these levels for a further year until 5 April 2031. The nil-rate band will continue at £325,000, the residence nil-rate band at £175,000, and the residence nil-rate band taper will continue to start at £2 million. As previously announced, the forthcoming combined allowance for the 100% rate of agricultural property relief and business property relief is fixed at £1 million until 5 April 2030. As announced at Budget 2025, this will also be fixed at £1 million for one further year, until 5 April 2031.

The tax information and impact note for this measure provides more information: Inheritance Tax: thresholds

1.14 Inheritance Tax: unused allowance for agricultural and business property reliefs

As announced at Autumn Budget 2024, the government will introduce legislation in Finance Bill 2025-26 to amend the existing rate of relief for combined agricultural and business property. From 6 April 2026, the rate of 100% will continue for the first £1 million with a 50% rate of relief thereafter.

As announced at Budget 2025, any unused allowance for the 100% rate of relief will be transferable between spouses and civil partners. If the first death was before 6 April 2026, it will be assumed the entirety of the allowance will be available for transfer to the surviving spouse or civil partner.

The tax information and impact note for this measure provides more information: Changes to agricultural property relief and business property relief

1.15 Capping trust charges for excluded property in trusts at 30 October 2024

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to introduce a cap on relevant property trust regime charges for pre-30 October 2024 excluded property trusts. The changes will take effect for Inheritance Tax charges from 6 April 2025. 

The tax information and impact note for this measure provides more information: Capping inheritance tax trust charges for former non-UK domicile residents

1.16 Inheritance Tax treatment of unused pension funds and death benefits

As announced at Autumn Budget 2024, the government will introduce legislation in Finance Bill 2025-26 to bring unused pension funds and death benefits payable from a pension into a person’s estate for inheritance tax purposes from 6 April 2027. As part of these changes, personal representatives will be liable for reporting and paying any Inheritance Tax due on unused pension funds and death benefits.

As announced at Budget 2025, if personal representatives reasonably expect Inheritance Tax to be due, they can direct pension scheme administrators to withhold 50% of the taxable benefits for up to 15 months from the date of death. Personal representatives can then direct pension scheme administrators to pay the Inheritance Tax due to HMRC before releasing the rest of those benefits to pension beneficiaries. If the instruction is withdrawn or the period ends, the remaining funds can be paid out. This will not apply to exempt benefits, funds under £1,000, or continuing annuities. Personal representatives will also be discharged from liability for pensions discovered after they have received clearance from HMRC.

The tax information and impact note for this measure provides more information: Inheritance Tax: unused pension funds and death benefits

1.17 Infected blood compensation payments

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to extend the existing relief from Inheritance Tax relief for payments made under the Infected Blood Compensation Scheme and Infected Blood Interim Compensation Payment Scheme. If the eligible infected or affected person has already died at the time of payment, the first living recipients of that payment will be able to pass on the value of the compensation following their own death without an Inheritance Tax charge. This change is effective immediately and applies to compensation payments made before or after 26 November 2025.

The first living recipients will also have 2 years in which to gift some or all of the compensation payment they receive without an Inheritance Tax charge. These changes will have effect for gifts of compensation made during the lifetime of the first living recipient on or after 4 December 2025.

The tax information and impact note for this measure provides more information: Inheritance Tax and Infected Blood compensation payments

1.18 Inheritance Tax — anti-avoidance

As announced at Budget 2025, the government will legislate in Finance Bill 2025-26 to close Inheritance Tax loopholes for trusts, including those involving changes in situs before exit charges and charitable trusts. It will also ensure equal treatment for long-term UK residents and overseas investors in UK agricultural property, even when held in offshore structures. The changes will take effect for trust exit charges from Budget Day, gifts to charities in lifetime from Budget Day or on a death from 6 April 2026, and for UK agricultural property from 6 April 2026.

The tax information and impact note for this measure provides more information: Inheritance Tax: anti-avoidance measures for non-long-term UK residents and trusts

1.19 Expanding workplace benefits relief

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to exempt from Income Tax and National Insurance the reimbursement of costs for eye tests and home working equipment, and for the provision and reimbursement of flu vaccinations. This change will take effect from 6 April 2026.

The tax information and impact note for this measure provides more information: The expansion of workplace benefits relief

1.20 Non-reimbursed employment expenses for homeworking

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to remove a deduction from Income Tax for non-reimbursed home working expenses. Employers can still reimburse employees for these costs where eligible without deducting Income Tax and National Insurance contributions. The changes will take effect from 6 April 2026.

The tax information and impact note for this measure provides more information: Income Tax: removal of the tax relief for additional homeworking expenses

1.21 Tax treatment of payments for cancelled shifts

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to confirm that payments received for a cancelled, moved or curtailed shift under section 27BP of the Employment Rights Act 1996, will be subject to Income Tax. This will come into effect at the same time as the duty to make these payments under section 27BP.

The legislation will also clarify the notional location for earnings related to duties that have not been performed. This will take effect from 6 April 2026.

The tax information and impact note for this measure provides more information: Income Tax: cancelled, moved or curtailed shifts

1.22 Changes to Employee Car Ownership Schemes (ECOS)

As announced at Budget 2025 the government will introduce legislation in Finance Bill 2025-26 to amend the benefit in kind rules so that vehicles provided through Employee Car Ownership Schemes will be deemed as taxable benefits.

Following technical consultation on draft legislation published on 21 July 2025, implementation, originally planned for 6 April 2026, has been delayed to 6 April 2030 to support the automotive sector. Transitional arrangements will apply until April 2032.

The tax information and impact note for this measure provides more information: Changes to Employee Car Ownership Schemes for Income Tax

1.23 Company car tax: Plug‑in Hybrid Electric Vehicle (PHEV) tax easement

As announced in Budget 2025 the government will introduce legislation in Finance Bill 2025-26 to introduce a temporary easement to mitigate the increase in benefit in kind tax liabilities of PHEV, made available for private use, as a result of new emissions standards. The measure will deem the CO2 emission for affected vehicles to be a nominal value. This will have the effect of reducing the value of the taxable benefit-in-kind that would otherwise apply.

This change will take effect retrospectively from 1 January 2025 and apply until 5 April 2028, and for eligible vehicles until the earlier of variation or renewal of the arrangement or 5 April 2031.

The tax information and impact note for this measure provides more information: Benefits in kind: easement for plug-in hybrid electric vehicles

As announced on 21 July 2025, the government will introduce legislation in Finance Bill 2025-26 to allow existing EMI and CSOP contracts to be amended without losing the tax advantages. The amendment solely relates to including a sale on a PISCES platform as an exercisable event. The legislation applies to contracts agreed before 6 April 2028.

The changes take effect retrospectively from 15 May 2025, meaning that the amendment can be made any time on or after this date.

The tax information and impact note for this measure provides more information: Tax implications for Private Intermittent Securities and Capital Exchange System (PISCES)

1.25 Expanding the eligibility limits of the Enterprise Management Incentive (EMI) scheme

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to increase the following EMI scheme limits. The maximum values for:

company options will increase from £3 million to £6 million
gross assets will increase from £30 million to £120 million
number of employees will increase from 250 to 500
the exercise period will increase from 10 years to 15 years

The changes will have effect from 6 April 2026, and will apply to EMI contracts agreed on or after this date . The change to the exercise period will also be applicable for existing contracts retrospectively.

The changes apply to all companies offering EMI schemes in Great Britain and most companies offering EMI schemes in Northern Ireland.

The tax information and impacting note for this measure provides more information: Enterprise Management Incentive scheme: increasing the limits

1.26 Tackling non‑compliance in the umbrella company market

As announced at Autumn Budget 2024, the government will introduce legislation in Finance Bill 2025-26 to make agencies responsible for PAYE on payments made to workers that are supplied using umbrella companies. Where there is no agency in the chain, this responsibility will fall to the end client. The changes will take effect from 6 April 2026.

The tax information and impact note for this measure provides more information: PAYE changes for the umbrella company market

1.27 Collective money purchase (CMP)

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to enable unconnected, multiple employer collective money purchase (CMP) schemes to apply to HMRC to become registered pension schemes and allow HMRC to refuse to register or to de-register unauthorised CMP schemes. The measure will also provide HMRC with powers to make regulations to efficiently support the development of CMP schemes. The changes will have effect from the date of Royal Assent of the Finance Bill 2025-26.

The tax information and impact note for this measure provides more information: Collective money purchase: registration of unconnected multiple employer schemes

1.28 Loan charge review

In January 2025, the government commissioned an independent review of the loan charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers.

The government will introduce legislation in Finance Bill 2025-26 to give effect to its response to the independent review. This will provide for a new settlement opportunity to support those liable to the loan charge to resolve their affairs with HMRC. Affected customers should contact their dedicated caseworker for more information.

The final report and government response for the independent review of the Loan Charge are available.

The tax information and impact note for this measure provides more information: Loan charge independent review

1.29 Charity compliance measures

As announced at Autumn Budget 2024, the government will introduce legislation in Finance Bill 2025-26 to support charitable giving by preventing the abuse of the charity tax rules on tainted donations, approved investments and non-charitable expenditure, with effect from 6 April 2026. Draft legislation was published in July 2025.

The tax information and impact note for this measure provides more information: Changes to the charity compliance measures

Corporate Tax

1.30 Corporation Tax charge and rate

The government will introduce legislation in Finance Bill 2025-26 to set the charge for Corporation Tax as it does every year, and to maintain the main rate at 25% and the small profits rate at 19%, for the financial year beginning 1 April 2027. 

1.31 Economic Crime (Anti Money Laundering) Levy — changes to bands and charges

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 making changes to the bands and charges for the Economic Crime (AML) Levy (ECL). This measure will take effect from 1 April 2026, with the first increased payments due by 30 September 2027.

The previous large band will be split into 2 new bands:

band B for persons with UK revenue between £36 million and £500 million, with ECL payable of £36,000
band C for persons with UK revenue between £500 million and £1 billion, with ECL payable of £500,000

The remaining bands will be renamed as A and D. The ECL payable by Band A (UK revenue of £10.2 million to £36 million) will increase to £10,200, and Band D (UK revenue greater than £1 billion) will increase to £1,000,000.

The tax information and impact note for this measure provides more information: Economic Crime Levy: changes to bands and charges

1.32 Capital allowances: first-year allowances for zero emission cars and electric vehicle charge-points

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to extend the 100% first-year allowances for zero-emission cars and electric vehicle charge-points until 31 March 2027 for Corporation Tax and 5 April 2027 for Income Tax. 

The tax information and impact note for this measure provides more information: First-year allowances for zero-emission cars and electric vehicle chargepoints

1.33 Capital Gains Tax — Incorporation Relief claims process

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 requiring taxpayers to make a claim to Incorporation Relief, where previously it has applied to transfers of a business to a company automatically. The requirement to make a claim will apply for transfers made on or after 6 April 2026.

The tax information and impact note for this measure provides more information: Capital Gains Tax: Incorporation Relief claims

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to modernise the anti-avoidance provisions that apply to share exchanges and company reorganisations. The change will take effect for issues of shares or debentures on or after 26 November 2025.

The tax information and impact note for this measure provides more information: Capital Gains Tax: share exchanges and reorganisations

1.35 Capital Gains Tax: Employee Ownership Trusts

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to reduce the amount of relief available on disposals to an Employee Ownership Trust (EOT). With effect from 26 November 2025, relief from CGT will be restricted from 100% relief to relief on 50% of the gain on disposal of shares to the trustees of an EOT.

The tax information and impact note for this measure provides more detail: Capital Gains Tax — Employee Ownership Trusts

1.36 Reform of UK law in relation to transfer pricing, permanent establishment and Diverted Profits Tax

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to modernise and simplify three elements of UK international tax legislation. These are transfer pricing, permanent establishment and Diverted Profits Tax. The changes will take effect for chargeable periods beginning on or after 1 January 2026.

The tax information and impact note for this measure provides more information: The reform of transfer pricing, permanent establishment and Diverted Profits Tax

1.37 Pillar 2 Multinational Top-up Tax and Domestic Top-up Tax amendments

As announced on 21 July 2025 and confirmed in Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to amend Multinational Top-up Tax and Domestic Top-up Tax.

The amendments reflect the latest published internationally agreed guidance and technical adjustments to ensure the rules work effectively. Most amendments in this measure will have effect for accounting periods beginning on or after 31 December 2025, although most will also be permitted to have effect from 31 December 2023 by a taxpayer election.

The tax information and impact note for this measure provides more information: Further amendments to Multinational Top-up Tax and Domestic Top-up Tax

1.38 Controlled foreign companies: treatment of interest on reversal of state aid recovery

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 for the payment of interest on amounts collected from taxpayers and now repayable following a successful challenge of a European Commission decision. It will take effect from 2 December 2025.

The tax information and impact note for this measure provides more information: Controlled foreign companies: interest on the reversal of state aid recovery.

1.39 Anti-avoidance rule in relation to certain non-derecognition liabilities

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 for a new anti-avoidance provision in relation to certain arrangements where there is a non-derecognition liability. The provision will apply with effect from 26 November 2025.

The tax information and impact note for this measure provides more information: Anti-avoidance rule relating to certain non-derecognition liabilities

1.40 Energy Profits Levy: Decommissioning Relief Deeds

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to confirm the longstanding policy that no payments can be made under a Decommissioning Relief Deed by reference to the Energy Profits Levy, which excludes tax relief for decommissioning expenditure.

The tax information and impact note for this measure provides more information: Oil and gas taxation: decommissioning relief deeds

1.41 Advance tax certainty

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to provide increased tax certainty in advance for major projects.

The first phase of the advance tax certainty service will begin in July 2026. A response to the consultation launched in March 2025 has also been published alongside Budget 2025.

Technical guidance, alongside legislation, will be published shortly after Budget 2025.

The tax information and impact note for this measure provides more information: Advance Tax Certainty Service: major investment projects with certainty in advance

1.42 Stamp Duty Reserve Tax (SDRT) — UK listing relief

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to provide a relief from the 0.5% Stamp Duty Reserve Tax (SDRT) charge on agreements to transfer securities of a company whose shares are newly listed on a UK regulated market. The relief will apply to the company’s securities for a 3-year period from the listing of the company’s shares. The measure will take effect from 27 November 2025.

The tax information and impact note for this measure provides more information: Stamp Duty Reserve Tax: relief changes

1.43 Stamp Taxes on shares — modernisation of the Stamp Taxes on shares framework

As announced at Budget 2025, the government will legislate in Finance Bill 2025-26 to introduce a power allowing regulations that enable the testing of the new digital service for the Securities Transfer Charge. The Securities Transfer Charge will replace Stamp Duty and Stamp Duty Reserve Tax as part of modernisation of the Stamp Taxes on shares framework. The power will take effect from the date of Royal Assent to Finance Bill 2025-26.

The tax information and impact note for this measure provides more information: Stamp Taxes on Shares: modernisation

Indirect Tax

1.44 Gambling Duty changes

As announced at Budget 2025 and following consultation in April 2025, the government will introduce legislation in Finance Bill 2025-26 to make changes to gambling duties.

The government will not proceed with introducing a single tax on remote betting and gaming. Instead, to raise revenue and better reflect the modern nature and impacts of gambling, the following changes will be introduced.

Remote Gaming Duty — the rate of Remote Gaming Duty will be increased from 21% to 40% from 1 April 2026.

General Betting Duty — a new remote betting rate of 25% will be introduced within General Betting Duty from 1 April 2027. Remote bets on UK horseracing will be excluded from these changes and remain subject to current rates. The new rate does not include bets placed via self-service betting terminals, pool betting and spread betting.

Bingo Duty will be abolished from 1 April 2026.

The government has also published a summary of responses to the April 2025 consultation on the Tax Treatment of Remote Gambling.

The tax information and impact note for this measure provides more information: Changes to gambling duties

1.45 Gambling Duty penalties

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to allow HMRC to levy penalties for errors across a range of gambling duties. This change will correct a legislative oversight when the ‘place of consumption’ changes were introduced in Finance Act 2014. These omitted to reflect the changes in legislative references in the penalty legislation for General Betting Duty, Pool Betting Duty and Remote Gaming Duty in Finance Act 2007 Schedule 24.

This change will come into effect on 1 April 2026.

1.46 Aggregates Levy: Rates for tax year 2026 to 2027

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to increase the rate of Aggregates Levy in line with the Retail Price Index (RPI). 

The change will take effect from 1 April 2026. The rate is set out in Annex A. 

1.47 Aggregates Levy: devolution to Scotland

The government will introduce legislation in Finance Bill 2025-26 to make changes to Aggregates Levy in preparation for the devolution of the tax to the Scottish Parliament. The changes will reduce complexity and prevent double taxation for businesses supplying aggregates across the Scottish border. The changes will take effect from 1 April 2026 when the Scottish Government will introduce Scottish Aggregates Tax.

The tax information and impact note for this measure provides more information: Aggregates Levy: Devolution to Scotland

1.48 Landfill Tax increase in rates from 1 April 2026

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to increase Landfill Tax rates for 2026 to 2027.

The standard rate of Landfill Tax will increase in line with the Retail Price Index (RPI), rounded to the nearest 5 pence. The lower rate of Landfill Tax will increase by the cash amount of the increase to the standard rate.

The change will take effect from 1 April 2026.

Landfill Tax rates are set out in Annex A.

Landfill Tax was devolved to the Scottish Parliament in April 2015 and to the Welsh Assembly in April 2018.

The tax information and impact note for this measure provides more information: Landfill tax rates for 2026 to 2027

1.49 Plastic Packaging Tax rate and threshold 2026 to 2027

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to increase the rate of Plastic Packaging Tax in line with consumer price index (CPI). This change will take effect from 1 April 2026. The rate is set out in Annex A.

1.50 Plastic Packaging Tax — mass balance approach

As announced at Autumn Budget 2024, the government will introduce legislation in Finance Bill 2025-26 to allow businesses to use a mass balance approach to attribute chemically recycled plastic to their packaging and claim an exemption from Plastic Packaging Tax (PPT) if it meets the 30% recycled content threshold for the tax. This measure will take effect from 1 April 2027.

In addition, the government will also introduce legislation in Finance Bill 2025-26 to disallow pre-consumer plastic waste as a source of recycled plastic for PPT from the same date.

The tax information and impact note for this measure provides more information: Plastic Packaging Tax — mass balance approach and removal of pre-consumer plastic

1.51 Air Passenger Duty — rates for 2027 to 2028

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to increase Air Passenger Duty (APD) rates for 2027 to 2028.

APD rates will increase in line with Retail Price Index (RPI), rounded to the nearest penny.

The new rates will apply from 1 April 2027.

APD rates are set out at Annex A.

1.52 Climate Change Levy (main and reduced) 2027-28 rates

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to raise the main rates of Climate Change Levy (CCL) on electricity, gas, and solid fuels in line with the Retail Price Index (RPI) from 1 April 2027.  

The main rate of liquefied petroleum gas (LPG) will continue to be frozen.  

The reduced rates of CCL will remain at an unchanged fixed percentage of the main rates, therefore the liability for those eligible to pay reduced rates will increase proportionately. 

CCL rates are set out in Annex A.

1.53 Carbon Border Adjustment Mechanism (CBAM)

As announced in December 2023, and following policy consultation in 2024 and technical consultation in 2025 the government will introduce legislation in Finance Bill 2025-26 to introduce a new environmental tax, the Carbon Border Adjustment Mechanism (CBAM), from 1 January 2027.

CBAM will place a carbon price on emissions embodied in imports from aluminium, cement, fertiliser, hydrogen, iron and steel sectors at risk of carbon leakage.

At Budget 2025, the government also announced that indirect emissions linked to production of CBAM goods will not be included in scope of CBAM from 1 January 2027.

The legislation sets out the broad principles of the tax and includes provisions for the administrative framework for its operation. The legislation will have effect on imports into the United Kingdom from 1 January 2027.

The tax information and impact note for this measure provides more information: Introduction of Carbon Border Adjustment Mechanism

1.54 Vehicle Excise Duty rates for cars, vans and motorcycles for 2026 to 2027

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to uprate Vehicle Excise Duty rates for cars, vans and motorcycles in line with the Retail Price Index (RPI) for 2026 to 2027. This will take effect from 1 April 2026.

VED rates are set out in Annex A.

1.55 Heavy Goods Vehicle (HGV) Vehicle Excise Duty (VED) and HGV Levy rates for 2026-27

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to uprate Vehicle Excise Duty (VED) for Heavy Goods Vehicles (HGVs) in line with the Retail Price Index (RPI) for 2026 to 2027. This will take effect from 1 April 2026.

The government will also uprate the HGV levy in line with the Retail Price Index (RPI) for 2026 to 2027. This will take effect from 1 April 2026.

HGV VED and HGV Levy rates are set out in Annex A.

1.56 Vehicle Excise Duty (VED) — expensive car supplement (ECS) threshold increase for zero emission vehicles

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to increase the Vehicle Excise Duty Expensive Car Supplement threshold from £40,000 to £50,000 for zero-emission vehicles (ZEVs). This change will have effect from 1 April 2026 and will apply to ZEVs registered from 1 April 2025 onwards.

The tax information and impact note for this measure provides more information: Vehicle Excise Duty for expensive car supplement threshold increase for zero emission vehicles

1.57 Tobacco Duty Rates

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to increase duty rates for all tobacco products by the tobacco duty escalator of 2 percentage points above Retail Price Index (RPI) inflation. This will take effect from 6pm on 26 November 2025.

The government also confirmed further increases to take effect from 1 October 2026, which will also be legislated for in Finance Bill 2025-26. These increases consist of 2 elements:

as announced at Autumn Budget 2024, alongside the introduction of the Vaping Products Duty (VPD) there will be a one-off tobacco duty increase equivalent to the VPD rate of £2.20 per 100 cigarettes and £2.20 per 50g of other tobacco products
the government announced at Budget 2025 that to avoid operational issues the annual uprating of tobacco duties next year will also take place on 1 October 2026 — the duties will again increase by the tobacco duty escalator of 2 percentage points above the forecast RPI inflation

The tax information and impact note for this measure provides more information: Tobacco duty rate changes

The rates are set out in Annex A.

1.58 Alcohol Duty uprating and Duty-Free allowances

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to increase Alcohol Duty rates on alcoholic products in line with Retail Price Index (RPI) inflation.

The government will also increase the cash discount provided to small producers, maintaining the relative value of Small Producer Relief. The simplified rates in the Travellers’ Allowances Order 1994 have been amended in line with the alcohol duty rates increases.

These measures will take effect from 1 February 2026.

The government also announced minor changes to the alcoholic products categories for duty-free travellers’ allowances. The beer category will be amended to include cider, and the still wine category will be amended to include sparkling wine. Implementation is planned for next year, with the exact date to be confirmed.

The tax information and impact note for this measure provides more information: Alcohol duty: rates change

Alcohol duty rates and allowances are set out in Annex A.

1.59 Soft Drinks Industry Levy (SDIL) uprating

In line with the uprating strategy announced at Autumn Budget 2024, the government will introduce legislation in Finance Bill 2025-26 to increase the rates of the Soft Drink Industry Levy from 1 April 2026.

The increase is the total of:

an increase in line with the Office for Budget Responsibility forecast Consumer Price Index (CPI) Inflation
10 and 13 pence per 10 litres for the lower and higher rates respectively (one fifth of the 27% increase which reflects CPI between 2018 and 2024)

From 1 April 2026, chargeable soft drinks containing:

at least 5 grams of total sugar per 100 millilitres but less than 8 grams of total sugar per 100 millilitres, the rate will be £2.08 per 10 litres
8 grams or more of total sugar per 100 millilitres, the rate will be £2.78 per 10 litres

Drinks with less than 5 grams of total sugar per 100 millilitres are unaffected.

The tax information and impact note for this measure provides more information: Soft Drinks Industry Levy uprating

1.60 Vaping Product Duty

The government will introduce legislation in Finance Bill 2025-26 for a new Vaping Products Duty (VPD). VPD will come into effect on 1 October 2026 and aims to reduce the affordability and appeal of vaping products, particularly among young people and non-smokers, while maintaining the financial incentive for smokers to switch to less harmful alternatives. VPD will be charged at a flat rate of £2.20 per 10ml, applying to all vaping liquids including nicotine-free vaping liquids.

The tax information and impact note for this measure provides more information: Introduction of Vaping Products Duty from 1 October 2026

1.61 Vaping Duty Stamps

The government will introduce legislation in Finance Bill 2025-26 to provide a mechanism — Vaping Duty Stamps (VDS) — to strengthen Vaping Products Duty (VPD) compliance. VDS will require all vaping products manufactured or imported into the UK to have a duty stamp affixed to its final retail packaging. The changes will take effect from 1 October 2026.

The tax information and impact note for this measure provides more information: Introduction of Vaping Duty Stamps Scheme on 1 October 2026

1.62 VAT relief for business donations on goods to charities

As announced at Budget 2025 and following a consultation, the government will introduce legislation in Finance Bill 2025-26 where a new VAT relief will be introduced from 1 April 2026 for business donations of goods to charity for onward distribution or use in the delivery of their charitable services.

From 1 April 2026, a VAT charge will no longer arise when businesses donate business assets for onward donation or for use by the charity in their non-business charitable activities. Donations in scope of this relief must be valued at no more than £100 (or £200 for certain specified items), and donated to charities.

Alcohol and tobacco products subject to excise duty are excluded from this relief. Products which will be subject to vaping duty from October 2026 will also be excluded from this relief.

The summary of responses to the consultation on the VAT treatment of business donations of goods to charity was also published at Budget 2025.

The tax information and impact note for this measure provides more information: Removing VAT on donations of eligible good from businesses to charities

1.63 Tour Operators Margin Scheme — private hire vehicle operators

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 amending VAT legislation to exclude suppliers of private hire and taxi journeys from the VAT Tour Operators Margin Scheme, unless these journeys are supplied in conjunction with certain other travel services.

The measure will take effect from 2 January 2026.

The tax information and impact note for this measure provides more information: Tour Operators’ Margin Scheme: change in legislation for Private Hire Vehicle Operators

1.64 Motability Scheme: VAT on top-up payments and Insurance Premium Tax (IPT) on vehicle insurance

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025 to apply the standard rate of VAT to top-up payments on leases of motor vehicles through qualifying schemes for the use of disabled people. VAT will continue not to apply to payments made through benefits.

In addition, the government has announced that Insurance Premium Tax will be applied at the standard rate of 12% to insurance contracts relating to vehicles on the scheme.

These changes will apply to new leases from 1 July 2026. Tax changes will not apply to vehicles designed or substantially and permanently adapted for wheelchair or stretcher users.

The tax information and impact note for this measure provides more information: VAT and Insurance Premium Tax: change to reliefs for qualifying motor vehicle leasing schemes

Tax Administration and Other Measures

1.65 Better use of new and improved third-party data to make it easier to pay tax right first time

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to modernise HMRC’s bulk data-gathering powers. This will start with key datasets already provided to HMRC — financial account information (bank and building society interest and other sources of interest) and card sales data (data shared by providers of card acquiring services, such as merchant acquirers). The changes will take effect from April 2028.

1.66 Finalising design of Making Tax Digital (MTD)

As announced in July 2025, the government will introduce legislation in Finance Bill 2025-26 to provide for changes to Making Tax Digital (MTD) for Income Tax. The legislation clarifies the scope of MTD, provides new powers for HMRC to make regulations in relation to exemptions from MTD and to make regulations that require individuals within the scope of MTD to use MTD-compatible software to make, deliver and amend an end of year return. The legislation repeals Schedule 14 to The Finance (No. 2) Act 2017 (not yet in force) which is no longer required. Other minor technical and consequential amendments are also made to ensure consistency across MTD and Penalty Reform legislation. The changes will take effect from 1 April 2026.

The government will introduce legislation in Finance Bill 2025-26 to amend Schedules 24 to 26 to the Finance Act 2021 relating to Penalty Reform. This will create powers for HMRC to cancel and reset penalties, allow a “reasonable excuse” to have effect in the expiry of late submission points so the return may be treated as being filed on time, and repeal penalties for End of Period Statements in line with MTD legislative change. Late payment penalties on tax due on further appeals are brought in line with tax due following earlier appeals, Schedule 56 to the Finance Act 2009 is similarly amended.

The measure also amends section 16 of the Social Security Contributions and Benefits Act 1992. This clarifies that late payment penalties (when commenced) apply to Class 4 National Insurance Contributions payable via Income Tax Self-Assessment.

1.67 Modernising digital outbound communications

As announced on 28 April 2025, the government will introduce legislation in Finance Bill 2025-26 to amend Section 132 of Finance Act 1999 and Section 135 of Finance Act 2002 to enable HMRC to modernise its outbound communication by moving customers to ‘digital by default’ more easily. This means customers who use HMRC’s digital services (such as the HMRC app or online account) will automatically receive digital letters unless they actively opt out into the paper route. The legislation also enables HMRC to require digital contact details (such as email and/or mobile phone number) from customers using HMRC digital services at secure digital touchpoints. The amendments will have effect from the date of Royal Assent to Finance Bill 2025-26.

The tax information and impact note for this measure provides more information: Modernising HMRCs outbound digital communications

1.68 International Controlled Transactions Schedule (ICTS)

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to give the Commissioners for HM Revenue and Customs the power to issue regulations requiring in-scope multinationals to file an International Controlled Transactions Schedule (ICTS).

This requirement is expected to take effect for accounting periods beginning on or after 1 January 2027. The government will launch a technical consultation on detailed design considerations in spring 2026.

The tax information and impact note for this measure provides more information: Transfer pricing: international controlled transactions schedule

1.69 Corporate Interest Restriction — reporting companies

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to simplify administration in relation to reporting companies under Corporate Interest Restriction. Most of the changes take effect for periods ending on or after 31 March 2026.

The tax information and impact note for this measure provides more information: Corporate Interest Restriction: reporting companies

1.70 Corporate Interest Restriction — relief for certain capital expenditure in calculation of tax-EBITDA

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to make technical amendments to Corporate Interest Restriction in respect of relief for certain capital expenditure. The changes take effect for periods ending on or after 31 December 2021.

The tax information and impact note for this measure provides more information: Corporate Interest Restriction relief for certain capital expenditure in calculation of taxable earnings

1.71 Requiring domestic reporting of UK resident cryptoasset users under the Cryptoasset Reporting Framework

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 requiring UK reporting cryptoasset service providers to report on their UK tax resident customers under the Cryptoasset Reporting Framework (CARF). This is in addition to reporting on non-UK tax resident customers which is already required under the CARF. This will have effect on and after the date of Royal Assent to Finance Bill 2025-26, thereby requiring first reports to HMRC by 31 May 2027 for information collected from 1 January 2026 to 31 December 2026.

The tax information and impact note for this measure provides more information: Cryptoasset Reporting Framework: reporting of UK resident cryptoasset users

1.72 Annual Tax on Enveloped Dwellings (ATED): Out of time claims to relief

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 which will ensure that relief from the Annual Tax on Enveloped Dwellings (ATED) is available to companies holding property for qualifying commercial purposes. The time limit to claim relief from ATED will be removed. Late returns remain subject to late filing penalties.

The change will have effect from the date of Royal Assent to Finance Bill 2025-26 and will have effect as if it has always been in force.

The tax information and impact note for this measure provides more information: Annual Tax on Enveloped Dwellings — availability of relief

1.73 Annual Tax on Enveloped Dwellings (ATED) — Annual chargeable amounts

As announced at Budget 2025, the Annual Tax on Enveloped Dwellings (ATED) annual charges will rise by 3.8% from 1 April 2026 in line with the September 2025 Consumer Price Index. The 2026 to 2027 charges are set out in Annex A.

1.74 Non-resident capital gains

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to make various changes to the rules for non-resident capital gains. These include amending the definition of a property rich entity in respect of Protected Cell Companies from 26 November 2025 and other administrative changes that clarify the legislation, which will take effect from 1 April 2026 for companies and 6 April 2026 for individuals.

The tax information and impact note for this measure provides more information: Capital Gains Tax: non-resident capital gains

1.75 Non-resident dividend tax credit

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to abolish the notional tax credit received by non-resident individuals for tax treated as being paid on dividends received from UK companies. The changes will take effect from 6 April 2026.

The tax information and impact note for this measure provides more information: Abolition of the dividend tax credit for non-UK residents

1.76 Construction Industry Scheme

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to strengthen HMRC powers to tackle fraud within the Construction Industry Scheme. The changes take effect from 6 April 2026. Where a business makes or receives a payment they knew or should have known was connected to fraud, HMRC will have powers to remove Gross Payment Status (GPS) immediately, assess the business for the tax lost, and charge a penalty of up to 30% on the business or the business’ officers. The time limit for reapplication, where GPS has been immediately removed, is increased from one year to 5 years.

Alongside this, the government is announcing regulations to simplify the scheme by exempting payments to local authorities and certain public bodies. To improve administration of the scheme, the nil filing obligation for construction contractors will be reinstated. These changes will take effect from 6 April 2026 and will be subject to technical consultation.

The tax information and impact note for this measure provides more information: Construction Industry Scheme: tackling fraud

1.77 Enhancing HMRC’s powers and sanctions against tax adviser facilitated non-compliance

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to enhance HMRC’s powers to tackle bad advisers who deliberately facilitate client non-compliance. These changes will take effect from 1 April 2026.

The tax information and impact note for this measure provides more information: Tackling tax adviser facilitated non-compliance

1.78 Modernising and mandating tax adviser registration

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 for tax advisers who interact with HMRC on behalf of their clients to register with HMRC and meet minimum standards. This measure will take effect from May 2026.

The tax information and impact note for this measure provides more information: Mandatory tax adviser registration with HMRC

1.79 Increases to Corporation Tax late filing penalties

As announced at Budget 2025, the government will increase Corporation Tax late filing penalties:

if the return is late the penalty will increase from £100 to £200
if the return is more than 3 months late the penalty will increase from £200 to £400
if there are three successive failures and the return is late the penalty will increase from £500 to £1000
if there are 3 successive failures and the return is more than 3 months late the penalty will increase from £1000 to £2000

The government will introduce legislation in Finance Bill 2025-26 and the change will take effect for returns due on or after 1 April 2026.

The tax information and impact note for this measure provides more information: Corporation Tax: increases to late filing penalties

1.80 HMRC and Police Ombudsman for Northern Ireland

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-2026 to enable external oversight of HMRC tax enforcement functions within Northern Ireland from the Police Ombudsman for Northern Ireland. This oversight will be similar to existing independent oversight of HMRC tax enforcement activities in other UK jurisdictions. The changes will take effect from the date of Royal Asset to Finance Bill 2025-26.

1.81 Research & Development — clarifying the scope of the overseas restriction

As announced on 21 July 2025, the government will introduce legislation in Finance Bill 2025-26 amending s1138A(1)(b) of CTA2009, to put beyond doubt that restrictions on Research and Development (R&D) relief for overseas expenditure apply to companies across the United Kingdom claiming the R&D expenditure credit (RDEC). This legislation will apply to claims made on or after 30 October 2024 and will have effect from the date of Royal Assent to Finance Bill 2025-26.

1.82 Creative industries and research & development expenditure credits: administrative measures

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to:

clarify the Corporation Tax treatment of payments made in return for surrendered Research & Development Expenditure Credit (RDEC), Audio-Visual Expenditure Credit (AVEC) and Video Games Expenditure Credit (VGEC)
correct the transitional rules between Video Games Tax Relief and VGEC
prevent incorrect results and explain how to treat negative amounts resulting from the calculation of additional AVEC for visual effects costs

The changes are intended to provide clarity and ensure fairness for claimants. The changes will take effect from 26 November 2025.

The tax information and impact note for this measure provides more information: Creative industries and Research and Development tax reliefs: administrative changes

1.83 Aligning PAYE notifications with the Overseas Workday Relief

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to require employers submitting a PAYE notification form to HMRC on behalf of employees eligible for Overseas Workday Relief to limit the portion of income excluded from PAYE to a maximum of 30%. This corresponds with the percentage aspect of the financial limit that applies when employees claim Overseas Workday Relief.

This change will take effect from 6 April 2026.

The tax information and impact note for this measure provides more information: Aligning PAYE and Overseas Workday Relief

1.84 Crown Immunity: repeal of s.25 of Finance Act 1925

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to repeal s.25 Finance Act 1925. That section subjected to tax the trading income of overseas Dominion Governments. The measure was consulted on in 2022 alongside other reforms which were not taken forward. This measure will have effect from the date of Royal Assent to Finance Bill 2025-26.

The tax information and impact note for this measure provides more information: Crown Immunity: repeal of obsolete legislation

1.85 Technical amendments to residence-based tax regime

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to make minor corrective amendments to the residence-based tax regime, which was introduced in Finance Act 2025, as a replacement to the previous non-domicile regime. These amendments will ensure the legislation operates as intended.

The majority of these changes will take effect from 6 April 2025, with some changes taking effect from 6 April 2026, the date of Royal Assent or the date of announcement.

The tax information and impact note for this measure provides more information: Residence-based tax regime: technical amendments

1.86 Correction of typographical error in Finance Act 2008

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to amend a typographical error in paragraph 1 of Schedule 41 to FA 2008.

The amendment will remove reference to section 88 (Alcoholic product regulations) of F(No.2)A 2023 and insert the correct reference to section 82 (Approval requirement: producers) of F(No.2)A 2023.

This amendment will have effect from the date of Royal Assent to Finance Bill 2025-26.

1.87 VAT: admit combined county authorities (CCAs) to S33 VAT Act

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to amend section 33(3) of the Value Added Tax Act 1994 to include Combined County Authorities. This measure will remove the need for individual statutory instruments to be made specifying each combined county authority on its establishment.

The measure will have effect from the date of Royal Assent to the Finance Bill 2025-26 and will apply in relation to purchases and imports taking place on or after 1 December 2025.

The tax information and impact note for this measure provides more information: VAT: Refunds of VAT for Combined County Authorities

1.88 Amendment of customs tariff section of the Taxation (Cross-border Trade) Act 2018

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to amend the customs tariff section of the Taxation (Cross-border Trade) Act 2018 to provide ministers with greater control over specifying applicable rates of import duty. The amendment will not affect the current rates of import duty or have an immediate tax impact. The measure will have effect from the date of Royal Assent to Finance Bill 2025-26.

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to remove references to obsolete social security benefits in legislation. This measure will have effect on and after the date of Royal Assent to Finance Bill 2025-26.

1.90 Inland border facilities

As announced on 28 April 2025, the government will introduce legislation in Finance Bill 2025-26 to amend existing HMRC powers to require border locations assessed as having insufficient space to provide customs infrastructure on-site, to do so at an off-site location agreed by HMRC.

The amendment will have effect from the date of Royal Assent to Finance Bill 2025-26, and related secondary legislation will be updated in due course ahead of implementation.

The tax information and impact note for this measure provides more information: Inland border facilities: changes to port approvals legislation

1.91 Closing in on promoters of marketed tax avoidance

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2025-26 to introduce: 

a change to the process for issuing DOTAS and DASVOIT penalties to allow an Authorised Officer of HMRC to impose penalties instead of the First Tier Tribunal 
a prohibition on promoting avoidance arrangements that have no realistic prospect of success, and a power enabling HMRC to ban promotion of other arrangements that are not likely to succeed through secondary legislation
a new power to allow HMRC to require businesses to stop providing goods or services to promoters of tax avoidance when used in the promotion of avoidance 
new targeted anti-avoidance information powers to allow HMRC to better investigate marketed tax avoidance and identify the responsible individuals
changes to HMRC’s publication powers to allow HMRC to name legal professionals even where their involvement is limited to the design of tax avoidance schemes

These changes will have effect from the date of Royal Assent to Finance Bill 2025-26. 

The tax information and impact note for these measures provides more information: Tackling promoters of marketed tax avoidance 

In addition, the government will publish a consultation in early 2026 on a package of measures for landing consequences on promoters of marketed tax avoidance.

Question 3

Chapter 2 — Measures announced at Budget 2025 but not in Finance Bill 2025-26

Accepted Answer

This chapter contains details of other tax measures announced at Budget 2025 but are not in Finance Bill 2025-26. This includes consultations and measures that will be legislated by secondary legislation and future finance bills.

Personal Tax

2.1 National Insurance contributions thresholds for employees and the self-employed

As announced at Budget 2025, the government is maintaining the NICs Primary Threshold (PT) and Lower Profits Limit (LPL) at £12,570 from April 2028 until April 2031. The NICs Upper Earnings Limit (UEL) and Upper Profits Limit (UPL) will be maintained at £50,270 from April 2028 to April 2031, as well as other employer NICs relief thresholds aligned with the UEL, in line with the income tax higher rate threshold. The government will legislate for this measure in affirmative secondary legislation in early 2028 as part of the annual setting of National Insurance contributions limits and thresholds, as is standard practice.

Changes to all NICs thresholds will apply to the whole of the UK.

2.2 Employer National Insurance Contributions — secondary threshold

As announced at Budget 2025, the National Insurance contributions Secondary Threshold will remain at £5,000 from April 2028 until April 2031. The government will legislate for this measure in affirmative secondary legislation in early 2028 as part of the annual setting of National Insurance contributions limits and thresholds as is standard practice.

2.3 ISA reform

As announced at Budget 2025, the annual ISA cash limit will be set at £12,000, within the overall annual ISA limit of £20,000. Savers over the age of 65 will continue to be able to save up to £20k in a cash ISA each year. This change will be made by secondary legislation to be laid before parliament ahead of commencement in April 2027.

Annual subscription limits will remain at £20,000 for ISAs, £4,000 for Lifetime ISAs and £9,000 for Junior ISAs and Child Trust Funds until 5 April 2031.

Mandatory monthly digital reporting by ISA Managers has been postponed and will now come into effect from April 2028.

2.4 Help to Save reform

As announced at Budget 2025, the government will make the Help to Save scheme permanent.

From 6 April 2028, the eligibility of the scheme will be extended to all Universal Credit claimants who receive the child or caring element.

2.5 National Insurance contributions re-rating

As announced at Budget 2025, the government will use the September 2025 Consumer Prices Index (CPI) figure of 3.8% as the basis for uprating the Class 2 and Class 3 NICs rates for the 2026 to 2027 tax year. The Class 1 Lower Earnings Limit and Class 2 Small Profits Threshold will also be uprated by September CPI from 2026-2027. The government will introduce secondary legislation to make these changes in early 2026 as part of the annual setting of National Insurance contributions limits and thresholds, as is standard practice.

2.6 Voluntary National Insurance contributions (NICs) abroad

As announced at Budget 2025, the government will introduce legislation to remove access to pay voluntary Class 2 National Insurance contributions for periods abroad for employees and most self-employed individuals.

This measure will take effect from 6 April 2026 and will apply for the tax year 2026 to 2027 and onwards.

The legislation will also change the conditions for new applications for periods abroad to pay voluntary Class 3 National Insurance contributions in respect of periods abroad in the tax year 2026 to 2027 and onwards.

This measure will take effect from 6 April 2026 and will mean individuals submitting new applications will only be able to pay voluntary Class 3 National Insurance contributions if they have lived in the UK for at least 10 continuous years or have built at least 10 qualifying years on their National Insurance record (not including Class 2 or Class 3 VNICs paid for periods abroad).

These changes will be made by secondary legislation that will be laid before parliament ahead of April 2026.

The government will also launch a review of voluntary NICs with a call for evidence to be published in the new year.

2.7 Employer National Insurance contributions (NICs) relief for veterans

As announced at Budget 2025, the government is extending the employer NICs relief for employers hiring qualifying veterans for a final 2 years from April 2026 until April 2028. This means that, for the first year of a veteran’s employment in a civilian role, businesses will continue to pay no employer NICs up to annual earnings of the Veterans Upper Secondary Threshold of £50,270. From 2028 support for Veterans into Employment will be covered through MOD’s spending review settlements rather than through this tax relief. The extension of the relief from 6 April 2026 until 5 April 2028 will be delivered via secondary legislation in the new year.

2.8 Defined benefit pensions — surplus extraction tax regime

As announced at Budget 2025, the government will introduce legislation in Finance Bill 2026-27 enabling defined benefit pension schemes to make direct payments of surplus assets to individuals, where permitted by scheme rules and subject to trustee discretion. The scheme must be in surplus on the same funding basis as applies to payments to sponsoring employers. These payments will be authorised payments, taxed as pension income, provided specific conditions are met, including the member being above the normal minimum pension age and any safeguards to prevent avoidance as necessary. The change will take effect from 6 April 2027.

2.9 Salary sacrifice for pensions contributions

As announced at Budget 2025, the government will introduce legislation to apply an employer and employee NICs charge on pension contributions above £2,000 per annum made via salary sacrifice. Any salary sacrificed pension contributions above this threshold will be subject to employer and employee NICs at the existing rates. The changes will be introduced through primary and secondary legislation in due course, and will take effect from 6 April 2029.

2.10 Image rights payments

As announced at Budget 2025, the government will introduce legislation in a future Finance Bill to clarify the tax treatment of image rights to ensure that all image rights payments related to an employment are treated as taxable employment income and subject to income tax and National Insurance contributions. This change will take effect from April 2027.

As announced at Budget 2025, the government has published a summary of responses to the non-discretionary tax-advantaged share schemes call for evidence carried out in 2023.

2.12 Enterprise Management Incentives (EMI): removal of the requirement to submit a notification of a grant of options

As announced at Budget 2025, the government will introduce legislation in a future Finance Bill to remove the requirement for an employer to submit a notification of a grant of EMI options.

The changes will apply to options granted on or after 6 April 2027.

2.13 Offshore Anti Avoidance

Following the 2025 call for evidence on Personal Tax Offshore Anti-Avoidance Legislation, the government has committed to an ambitious reform agenda and intends to substantially simplify the legislation in this area.

HMRC will adopt a co-creation approach by engaging a small group of external experts from representative bodies, complemented by broader stakeholder engagement, to help shape the reforms. Representatives will be invited to share ideas on potential new policy and modernised legislation. While the core group will be intentionally small to maintain momentum, the government remains committed to inclusive engagement throughout this process.

2.14 Annual uprating of the van benefit charge and the car and van fuel benefit charges for 2026 to 2027

As announced at Budget 2025, the government will introduce secondary legislation to increase the van benefit charge and the car and van fuel benefit charges in line with the September 2025 Consumer Price Index. The change will take effect from 6 April 2026. Legislation will be made by Statutory Instrument in December 2025 to ensure the changes are reflected in tax codes for tax year 2026 to 2027.

Corporate Tax

2.15 Tax support for entrepreneurship call for evidence

As announced at Budget 2025, the government has published a call for evidence that seeks views on the effectiveness of existing tax incentives, and the wider tax system for business founders and scaling firms, and how the UK can better support these companies to start, scale and stay in the UK.

2.16 Land Remediation Relief (LRR) consultation update

As announced at Budget 2025, the government will not make any changes to Land Remediation Relief at this event.

This follows the consultation on Land Remediation Relief launched in July 2025, which ended in September 2025. A summary of responses to this consultation will be published in due course.

2.17 Qualifying Asset Holding Companies (QAHC) regime

As announced at Budget 2025, the government will work with industry stakeholders over the coming months to explore targeted legislative changes aimed at ensuring the QAHC regime continues to operate effectively. Any legislative changes will be introduced in a future Finance Bill.

2.18 Advance Corporation Tax (ACT) reform

As announced at Budget 2025, the government will legislate through statutory instrument to repeal the shadow Advance Corporation Tax (ACT) rules with effect from 1 April 2026, and will publish a consultation on the future of the remaining ACT.

2.19 Capital Gains Tax relief for gifts of business assets

The government will publish draft legislation for technical consultation in 2026 to modernise the formula that restricts gift holdover relief on the disposal of qualifying shares or securities, to include assets within the intangible fixed assets regime or that qualify for the substantial shareholding exemption.

2.20 The oil and gas price mechanism: summary of responses and outcome

As announced at Budget 2025, the government has published a summary of responses for the oil and gas price mechanism consultation confirming the mechanism will be revenue-based and apply an additional tax rate of 35% above price thresholds of $90 per barrel for oil and 90p per therm for gas. The threshold prices will be set for the financial year 2026, and in subsequent years will be adjusted for inflation. This measure will come into effect when the Energy Profits Levy ends in March 2030, or sooner if the Energy Security Investment Mechanism is triggered. The government will introduce legislation in the next Finance Bill (2026-27).

A summary of responses to the oil and gas price mechanism consultation is available.

Indirect Tax

2.21 Carbon Price Support

As announced at Budget 2025, the Carbon Price Support rates of Climate Change Levy and Fuel Duty will remain frozen at the equivalent of £18 per tonne of CO2.

The Carbon Price Support rates are set out in Annex A.

2.22 Climate Change Levy (CCL): treatment of electrolytic hydrogen in CCL and the changing energy context — policy decision and government response

At Budget 2025, the government published its response to ‘Climate Change Levy (CCL): treatment of electrolytic hydrogen in CCL and the changing energy landscape’ consultation.

Following the commitment made at Spring Statement 2025, the government response confirms that electricity used in electrolysis to produce hydrogen and natural gas as a source of CO2 in the production of sodium bicarbonate will be added to CCL’s non-fuel use exemption. The government will introduce legislation by Statutory Instrument to implement this change. Subject to parliamentary approval, these amendments will be in force by spring 2026.

2.23 Landfill Tax reform

As announced at Budget 2025, the government has published its response to the April 2025 consultation on Landfill Tax reform. The response confirms that the government will not proceed with the proposal to transition to a single rate of tax by 2030. Landfill tax rates for 2026-2027 are set out in Chapter 1 and Annex A.

The government will maintain the exemption for filling quarries, and the rate for materials disposed of at unauthorised waste sites will remain unchanged.

The government will proceed with removing the exemption for stabilisers used in dredged material from April 2027 and will introduce the necessary legislation in due course.

2.24 Landfill Communities Fund Value 2026 to 2027

The government will set the value of the Landfill Communities Fund for tax year 2026 to 2027 at an estimated £18.7 million, with the cap on credits claimed by landfill operators in respect of contributions remaining at 5.3% of their Landfill Tax liability.

2.25 Fuel Duty rates

As announced at Budget 2025, the government will introduce legislation to extend the temporary 5 pence per litre (ppl) cut in the main rates of fuel duty (originally introduced at Spring Statement 2022) from 23 March 2026 until 31 August 2026. Fuel duty rates for petrol and diesel will increase by 1 ppl on 1 September 2026, then by 2 ppl on 1 December 2026 and by a final 2 ppl on 1 March 2027, to gradually reverse the temporary cut and return to the rates that applied in early 2022. Lower rates of fuel duty and the rates for rebated fuels will increase proportionately.

2.26 Plastic Packaging Tax — Mechanically recycled plastic and certification

As announced at Budget 2025, the government will launch a consultation in early 2026, on the potential introduction of a new requirement for mechanically recycled plastic to be subject to mandatory certification in order for businesses to claim an exemption from Plastic Packaging Tax (PPT). Plastic packaging that contains at least 30% recycled plastic is exempt from PPT.

2.27 Air Passenger Duty — Extension of the higher rate

As announced at Budget 2025, the government has published a summary of responses to the October 2024 consultation on the reform of Air Passenger Duty (APD) for private jets. This confirms the government will extend the scope of the higher rate to include all private jets of 5.7 tonnes or more, to ensure these jets are taxed more equally and make a fairer contribution to the public finances.

The government will publish draft legislation for technical consultation.

This measure will take effect from 1 April 2027.

As announced at Budget 2025, the government will shortly consult on expanding the zero rate of VAT for the construction of new homes to the sale of land intended for new social housing. This is intended to simplify and accelerate the construction of social housing.

2.29 VAT and Drink Deposit Return Scheme (DRS)

As announced at Budget 2025, the government will introduce legislation in a future Finance Bill to simplify administration of the Deposit Return Schemes, which will introduce refundable deposits on single-use drinks containers, aiming to reduce litter and increase recycling rates. The requirement for individual producers to account for VAT on unreturned deposits will be removed. Instead, the Deposit Management Organisation will be responsible for accounting for the VAT.

This measure will take effect from October 2027.

2.30 Gaming Duty: gross gaming yield bands

As announced at Budget 2025, the gross gaming yield bandings used to determine the rate of gaming duty will be frozen from 1 April 2026 to 31 March 2027. 

Gross gaming yield bands are set out in Annex A.

2.31 Soft Drinks Industry Levy (SDIL) — review

The government will introduce legislation to make changes to the Soft Drinks Industry Levy. The threshold at which soft drinks with added sugar are liable to the levy will be lowered from 5g to 4.5g total sugars per 100ml. In addition, the existing exemptions for milk-based drinks and milk substitute drinks with added sugar will be removed. A ‘lactose allowance’ will be introduced to account for naturally occurring sugars in milk. The changes will take effect from 1 January 2028. Details of the changes and a full response to the Strengthening the Soft Drinks Industry Levy’ consultation are available.

A technical consultation on the draft legislation will be published in 2026 and changes to legislation introduced in a subsequent Finance Bill. The technical consultation will be to confirm whether the legislation works to deliver the policy intentions set out in the consultation response, rather than to re-open discussions on the policy itself.

2.32 Electric Vehicle Excise Duty (eVED): new mileage supplement for electric and plug-in hybrid cars, effective from April 2028

As announced at Budget 2025, the government will introduce legislation in a future Finance Bill for a new mileage charge for electric and plug-in hybrid cars from April 2028. eVED rates will be set on a per-mile basis and motorists will pay alongside their existing Vehicle Excise Duty. Electric cars will pay half the equivalent fuel duty rate of the average petrol/diesel car. Plug-in hybrid cars will pay 50% of the rate paid by electric cars. The government will increase rates by CPI in future years.

The government has published a consultation on the implementation of eVED.

2.33 VED exemption for search and rescue vehicles

As announced at Budget 2025, the government will introduce legislation in a future finance bill to exempt search and rescue vehicles from VED from April 2027.

2.34 E — Invoicing

As announced at Budget 2025, the government will require the use of electronic invoicing for all VAT invoices for business-to-business and business-to-government transactions from 2029. The government will publish a summary of responses to the Electronic invoicing: promoting e-invoicing across UK businesses and the public sector consultation carried out in 2025.

The government will collaborate with stakeholders to develop an implementation roadmap and standards for e-invoicing to be published at Budget 2026. This will give business time to prepare. We will also explore ways to support businesses with this transition.

2.35 VAT grouping — Amending cross border rules

As announced at Budget 2025, the government will remove the requirement to consider Revenue and Customs Brief 18/2015 when making cross-border transactions between members of a VAT group. This will return the UK to its previous position of operating unmodified whole-entity VAT grouping. This measure will take effect from 26 November 2025.

Tax administration and other measures

2.36 Tackling rogue company directors

As announced at Budget 2025, the government will introduce legislation in a future Finance Bill to amend the Company Directors Disqualification Act 1986, extending the circumstances in which directors who break the law can be disqualified.

2.37 Notification of Uncertain Tax Treatments (UTT) by large businesses — proposal to widen/extend

As announced at Budget 2025, the government will publish a consultation in early 2026 setting out proposed changes to extend and widen the notification of uncertain tax treatment regime.

The objective of the proposed changes is to reduce the legal interpretation portion of the tax gap by requiring more legal interpretation uncertainties to be brought to HMRC’s attention. The consultation will seek comments on the proposals and their implementation.

The government will introduce legislation in a future Finance Bill to implement any changes.

2.38 Company payments to participators — modernising the reporting framework

As announced at Budget 2025, the government will publish a consultation in early 2026 to explore introducing new requirements to report transactions between close companies and their shareholders to HMRC.

2.39 Modernising and standardising Corporation Tax submissions

As announced at Budget 2025, the government will publish a consultation in early 2026 on delivery timescales and enforcement options for prescribing the content and tagging of the Corporation Tax computation. This builds on prior public engagement by HMRC on this subject.

2.40 Business systems integration

As announced at Budget 2025, the government will publish a call for evidence in early 2026 to identify how the government can support the availability and uptake of integrations between the software and digital services businesses already use.

2.41 Clamping down on electronic sales suppression

As announced at Budget 2025, the government will publish a call for evidence in early 2026 to explore the introduction of software standards for the electronic and mobile point of sale sector.

2.42 Making Tax Digital (MTD) deferrals and exemptions

As announced at Budget 2025, the government will defer the following groups from MTD until April 2027 — recipients of trust and estates income, individuals who use averaging adjustments, recipients of qualifying care income and non-UK resident foreign entertainers or sportspeople.

Customers under a deputyship will be exempt. The government will introduce secondary legislation to implement this change before April 2026.

2.43 Stamp Duty Land Tax (SDLT) — Local Government Pension Scheme (LGPS) reform

As announced at Budget 2025, the government will legislate in Finance Bill 2026-27 to amend the Stamp Duty Land Tax (SDLT) rules so that acquisitions of land and property made by Local Government Pension Scheme (LGPS) asset pool companies from LGPS member funds are subject to SDLT relief.

2.44 Enhancing HMRC’s powers to ensure taxpayer errors in tax returns are corrected

As announced at Budget 2025, the government will consult on draft legislation on new customer correction powers, for technical consultation in 2026. This will include a general obligation on taxpayers to correct inaccuracies when they are identified. This follows the consultation on new ways to tackle non-compliance, published at Autumn Budget 2024, and the commitment to modernise HMRC’s compliance powers in the Transformation Roadmap published on 21 July 2025.

2.45 Behavioural penalties reform

As announced at Budget 2025, the government has published a summary of responses to the reform of behavioural penalties consultation. The government intends to simplify and strengthen HMRC’s inaccuracy and failure to notify penalties, while reducing administration costs for HMRC, taxpayers and agents.

2.46 Penalty reform: Updates to the penalty regime for Self Assessment and VAT

As announced at Budget 2025, the government will not apply late submission penalties for quarterly updates during the 2026 to 2027 tax year for Income tax Self Assessment (ITSA) taxpayers required to join Making Tax Digital. Customers will still need to submit their quarterly updates before they are able to submit their tax return. For their first year in the new penalty system, all customers will have an additional 15 days, giving 30 days in total to pay any outstanding tax before a late payment penalty is issued.

The government will legislate so that the new penalty regime for late submission and late payment, known as penalty reform, applies to individual income tax self-assessment taxpayers who are not mandated into Making Tax Digital from 6 April 2027.

The government will legislate by way of Statutory Instrument, to increase late payment penalties that currently apply to any amount outstanding at the end of day 15 and day 30 under penalty reform to 4%. These changes will take effect from April 2027.

2.47 Hidden economy: expanding tax conditionality to new sectors

As announced at Budget 2025, the government has published a summary of responses to the tackling the hidden economy: expanding tax conditionality to new sectors consultation, which was published at Autumn Budget 2024.

This confirms that the government will expand the tax conditionality tax check rules to new sectors. This will include licences in the waste and animal welfare sectors and additional transport licences. This builds on the tax conditionality reforms introduced to the taxi and scrap metal sectors from April 2022.

The government will undertake further engagement before confirming when the changes will take effect, and publish draft legislation for technical consultation

2.48 Recklessness offence

As announced at Budget 2025, the government will publish a consultation in early 2026 on the introduction of a new criminal offence of recklessness for direct taxes. This proposal seeks to align direct tax offences with those already in place for indirect taxes, ensuring that prosecutors have a consistent set of offences across both regimes.

2.49 Tackling the flow of debt

As announced at Budget 2025, the government will publish a consultation in early 2026 on requiring the payment of VAT and PAYE liabilities by Direct Debit, seeking views on how to implement the change, and the possible impacts, exemptions, and enforcement arrangements.

2.50 Rewards for informants of high value tax fraud

As announced at Budget 2025, the government has launched the strengthened reward scheme for informants of high value tax fraud. This scheme will target serious non-compliance involving large corporates, wealthy individuals, offshore and avoidance schemes. Informants can receive a taxable reward of between 15% and 30% when they provide information which leads directly to HMRC collecting more than £1.5 million tax.

The changes will take effect from 26 November 2025.

2.51 More timely payment for Self Assessment

As announced at Budget 2025, the government will require income tax Self Assessment taxpayers with Pay as You Earn (PAYE) income to pay more Self Assessment liabilities in-year via PAYE from April 2029. The government will consult on how this change is delivered, and on timelier tax payment for Self Assessment taxpayers more widely, including those with Self Assessment income only, in early 2026.

2.52 Administrative Changes to Expenses and Record-Keeping for Childminders

As announced at Budget 2025, childminders who are mandated to use Making Tax Digital for ITSA (MTD) will need to keep records and calculate their expenses following the standard rules for Income Tax, instead of using the methods set out in the historic agreement between HMRC and the Professional Association for Childcare and Early Years (PACEY). This will apply from April 2026, or from the point they are mandated into MTD if later. Childminders not within MTD can continue to use the agreement if they wish.

HMRC will also update guidance to set out that certain parts of the agreement can only be used for work from domestic premises. This clarifies how the agreement should apply following the Department for Education’s November 2024 announcement, which created a new category of childminder without domestic premises.

2.53 Reforming the customs treatment of low value imports into the UK

As announced at Budget 2025, the government is removing the customs duty relief on goods imported into the United Kingdom valued at £135 or below, making them subject to customs duty from March 2029 at the latest. In light of this change, the government is consulting on implementing a new set of customs arrangements for these goods.

2.54 Cryptoasset loans and liquidity pools

As announced at Budget 2025, the government has published a summary of responses to the taxation of decentralised finance (DeFi) involving the lending and staking of cryptoassets consultation.

Question 4

Table 1 — Measures in this document without a corresponding announcement in the Budget report

Accepted Answer

Measure Title	Paragraph Number
Income Tax charge and rates 2026 to 2027	1.2
Winter Fuel Payment (WFP)	1.12
Tackling noncompliance in the umbrella company market	1.26
Corporation Tax charge and rate	1.30
Gambling Duty Penalties	1.45
Aggregates Levy: Rates for tax year 2026 to 2027	1.46
Aggregates Levy: devolution to Scotland	1.47
Inland Border Facilities	1.90
Modernising digital outbound communications	1.67
Modernising and mandating tax adviser registration	1.78
HMRC and Police Ombudsman for Northern Ireland	1.80
Research & Development — clarifying the scope of the overseas restriction	1.81
Crown Immunity: repeal of s.25 of Finance Act 1925	1.84
Correction of typographical error in Finance Act 2008	1.86
VAT: Admit Combined County Authorities (CCAs) to S33 VAT Act	1.87
TCTA Tariff Raising Powers (Trade Defence)	1.88
Maintenance of social security in benefits legislation	1.89
National Insurance contributions thresholds for employees and the self-employed	2.1
Expanding the eligibility limits of the Enterprise Management Incentive (EMI) scheme	1.25
Enterprise Management Incentives (EMI): removal of the requirement to submit a notification of a grant of options	2.12
Land Remediation Relief (LRR) consultation update	2.16
Capital Gains Tax relief for gifts of business assets	2.19
Landfill Tax reform	2.23
Landfill Communities Fund Value 2026-27	2.24
Annual Tax on Enveloped Dwellings (ATED) — Annual chargeable amounts	1.73
VAT grouping — Amending cross border rules	2.35
Making Tax Digital (MTD) deferrals and exemptions	2.42
Stamp Duty Land Tax (SDLT) — Local Government Pension Scheme (LGPS) Reform	2.43

Cookies on GOV.UK

Introduction

Chapter 1 — Finance Bill 2025-26

Personal Tax

1.1 Income Tax Personal Allowance and higher rate thresholds

1.2 Income Tax charge and rates 2026 to 2027

1.3 Ordering of income tax reliefs and allowances

1.4 Tax rates for property income

1.5 Tax rates for dividend income

1.6 Tax rates on savings income

1.7 Changes to the starting rate for savings (SRS) limit

1.8 Post Departure Trade Profits

1.9 Venture Capital Trusts, Enterprise Investment Scheme investment limit increase and Venture Capital Trusts restructure

1.10 Carried interest

1.11 Capital allowances: new first-year allowance and reduced main rate writing-down allowances

1.12 Winter Fuel Payment (WFP)

1.13 Inheritance Tax thresholds

1.14 Inheritance Tax: unused allowance for agricultural and business property reliefs

1.15 Capping trust charges for excluded property in trusts at 30 October 2024

1.16 Inheritance Tax treatment of unused pension funds and death benefits

1.17 Infected blood compensation payments

1.18 Inheritance Tax — anti-avoidance

1.19 Expanding workplace benefits relief

1.20 Non-reimbursed employment expenses for homeworking

1.21 Tax treatment of payments for cancelled shifts

1.22 Changes to Employee Car Ownership Schemes (ECOS)

1.23 Company car tax: Plug‑in Hybrid Electric Vehicle (PHEV) tax easement

1.24 Allowing existing Enterprise Management Incentives (EMI) and Company Share Option Plan (CSOP) contracts to become exercisable at the sale at a Private Intermittent Securities and Capital Exchange System (PISCES) trading event

1.25 Expanding the eligibility limits of the Enterprise Management Incentive (EMI) scheme

1.26 Tackling non‑compliance in the umbrella company market

1.27 Collective money purchase (CMP)

1.28 Loan charge review

1.29 Charity compliance measures

Corporate Tax

1.30 Corporation Tax charge and rate

1.31 Economic Crime (Anti Money Laundering) Levy — changes to bands and charges

1.32 Capital allowances: first-year allowances for zero emission cars and electric vehicle charge-points

1.33 Capital Gains Tax — Incorporation Relief claims process

1.34 Capital Gains Tax: anti-avoidance: share exchanges and reorganisations

1.35 Capital Gains Tax: Employee Ownership Trusts

1.36 Reform of UK law in relation to transfer pricing, permanent establishment and Diverted Profits Tax

1.37 Pillar 2 Multinational Top-up Tax and Domestic Top-up Tax amendments

1.38 Controlled foreign companies: treatment of interest on reversal of state aid recovery

1.39 Anti-avoidance rule in relation to certain non-derecognition liabilities

1.40 Energy Profits Levy: Decommissioning Relief Deeds

1.41 Advance tax certainty

1.42 Stamp Duty Reserve Tax (SDRT) — UK listing relief

1.43 Stamp Taxes on shares — modernisation of the Stamp Taxes on shares framework

Indirect Tax

1.44 Gambling Duty changes

1.45 Gambling Duty penalties

1.46 Aggregates Levy: Rates for tax year 2026 to 2027

1.47 Aggregates Levy: devolution to Scotland

1.48 Landfill Tax increase in rates from 1 April 2026

1.49 Plastic Packaging Tax rate and threshold 2026 to 2027

1.50 Plastic Packaging Tax — mass balance approach

1.51 Air Passenger Duty — rates for 2027 to 2028

1.52 Climate Change Levy (main and reduced) 2027-28 rates

1.53 Carbon Border Adjustment Mechanism (CBAM)

1.54 Vehicle Excise Duty rates for cars, vans and motorcycles for 2026 to 2027

1.55 Heavy Goods Vehicle (HGV) Vehicle Excise Duty (VED) and HGV Levy rates for 2026-27

1.56 Vehicle Excise Duty (VED) — expensive car supplement (ECS) threshold increase for zero emission vehicles

1.57 Tobacco Duty Rates

1.58 Alcohol Duty uprating and Duty-Free allowances

1.59 Soft Drinks Industry Levy (SDIL) uprating

1.60 Vaping Product Duty

1.61 Vaping Duty Stamps

1.62 VAT relief for business donations on goods to charities

1.63 Tour Operators Margin Scheme — private hire vehicle operators

1.64 Motability Scheme: VAT on top-up payments and Insurance Premium Tax (IPT) on vehicle insurance

Tax Administration and Other Measures

1.65 Better use of new and improved third-party data to make it easier to pay tax right first time

1.66 Finalising design of Making Tax Digital (MTD)

1.67 Modernising digital outbound communications

1.68 International Controlled Transactions Schedule (ICTS)

1.69 Corporate Interest Restriction — reporting companies

1.70 Corporate Interest Restriction — relief for certain capital expenditure in calculation of tax-EBITDA

1.71 Requiring domestic reporting of UK resident cryptoasset users under the Cryptoasset Reporting Framework

1.72 Annual Tax on Enveloped Dwellings (ATED): Out of time claims to relief

1.73 Annual Tax on Enveloped Dwellings (ATED) — Annual chargeable amounts