Legislation – Finance Act 2025
Part 1
Income tax, capital gains tax and corporate taxes
1 Income tax charge for tax year 2025-26
2 Main rates of income tax for tax year 2025-26
3 Default and savings rates of income tax for tax year 2025-26
4 Freezing starting rate limit for savings for tax year 2025-26
5 Appropriate percentage for cars: tax year 2028-29
6 Appropriate percentage for cars: subsequent tax years
7 Main rates of CGT for gains other than carried interest gains
8 Business asset disposal relief: increase in rate
9 Investors’ relief: increase in rate
10 Investors’ relief: reduction in amount qualifying for relief
11 Sections 7 to 10: transitional provision
12 Rate of CGT for carried interest gains
13 Charge and main rate for financial year 2026
14 Standard small profits rate and fraction for financial year 2026
15 Increase in rate of energy (oil and gas) profits levy
16 Relief from levy for investment expenditure
17 Extending the period for which levy has effect
18 Decommissioning of carbon storage installations
20 Offshore receipts in respect of intangible property
21 Application of PAYE in relation to internationally mobile employees etc.
22 Advance pricing agreements: indirect participation in financing cases
23 Expenditure on zero-emission cars
24 Expenditure on plant or machinery for electric vehicle charging point
25 Commercial letting of furnished holiday accommodation
26 Films and television programmes: increased relief for visual effects
27 Certification of films etc: minor amendments
29 Research and development relief: Northern Ireland companies
30 Research and development intensity condition: transitional provision
32 Overseas transfer charge: pension schemes in EEA state or Gibraltar
33 Overseas pension schemes established in EEA states
34 Pension scheme administrators required to be resident in United Kingdom
35 Alternative finance: diminishing shared ownership refinancing arrangements
36 Statutory neonatal care pay
Part 2
Replacement of special rules relating to domicile
Chapter 1 New rules for foreign income and gains of individuals becoming UK resident
37 Claim for relief on foreign income
38 Claim for relief on foreign employment income
39 Claim for relief on foreign gains
Chapter 2 Ending the special treatment of individuals not domiciled in United Kingdom
40 Remittance basis not available after tax year 2024-25
41 Temporary repatriation facility
43 Trusts: connected amendments, transitional provision etc
44 Excluded property: domicile test replaced with long-term residence test
45 Corresponding change for settled property
46 Consequential, connected and transitional provision
Part 3
Other taxes
47 Removal of exemption for private school fees
48 Charge on pre-paid private school fees
49 Sections 47 and 48: commencement
50 Increased rates for additional dwellings: transactions before 1 April 2025
51 Increased rates for additional dwellings: transactions on or after 1 April 2025
52 Contracts substantially performed before relevant rate change
54 Alternative finance: land in England, Scotland or Northern Ireland
55 Alternative finance: land in Wales
56 Testing of FMI technologies or practices
57 Rate bands etc for tax years 2028-29 and 2029-30
58 EBTs: prohibition on applying property for benefit of participators etc
59 EBTs: restriction on proportion of beneficiaries who may be participators etc
60 EBTs: shares entering trust to have been held for two years
61 Agricultural property relief: environmental management agreements
62 National Savings Bank: statements from HMRC no longer to be required
64 Abolition of duty stamps for alcoholic products
65 Rates of tobacco products duty
66 Rates of vehicle excise duty for light passenger or light goods vehicles etc
67 Rates of vehicle excise duty for rigid goods vehicles without trailers etc
68 Rates of vehicle excise duty for rigid goods vehicles with trailers
69 Vehicle excise duty for vehicles with exceptional loads etc
70 Rate of vehicle excise duty for haulage vehicles other than showman’s vehicles
71 Vehicle excise duty: zero-emission vehicles
72 Rates of HGV road user levy
73 Rates of air passenger duty until 1 April 2026
74 Rates of air passenger duty from 1 April 2026
75 Rates of climate change levy
78 Rate of plastic packaging tax
79 Rates of soft drinks industry levy
Part 4
Miscellaneous and final
80 Limited liability partnerships
82 OECD crypto-asset reporting framework
84 Carbon border adjustment mechanism
85 Correction of wrong cross-reference etc
SCHEDULES
Schedule 1 Consequential provision in connection with section 7
Schedule 2 Sections 7 to 10 : transitional provision
Schedule 3 Payments into decommissioning funds
Schedule 5 Furnished holiday lettings
Schedule 6 Employee-ownership trusts
Schedule 7 Diminishing shared ownership refinancing arrangements
Schedule 8 Relief on foreign employment income: consequential and transitional provision
Schedule 9 Income tax and capital gains tax: remittance basis and domicile
Schedule 10 Temporary repatriation facility
Schedule 11 Rebasing of assets
Schedule 12 Trusts: connected amendments, transitional provision etc
Part 1Income tax, capital gains tax and corporate taxes
Income tax charge, rates etc
4Freezing starting rate limit for savings for tax year 2025-26
(1)
For the tax year 2025-26 the amount specified in section 12(3) of ITA 2007 (the starting rate limit for savings) is “£5,000”.
(2)
Accordingly, section 21 of that Act (indexation) does not apply in relation to the starting rate limit for savings for the tax year 2025-26.