Finance Act 2025

The complete text of Finance Act 2025 with every section annotated and explained.

Trustpilot

What's inside?

Browse the full content before ordering.

Part 1: Income tax, capital gains tax and corporate taxes

Income tax charge, rates etc

  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

Income tax provisions relating to cars

  1. Appropriate percentage for cars: tax year 2028–29
  2. Appropriate percentage for cars: subsequent tax years

Capital gains tax rates and reliefs

  1. Main rates of CGT for gains other than carried interest gains
  2. Business asset disposal relief: increase in rate
  3. Investors’ relief: increase in rate
  4. Investors’ relief: reduction in amount qualifying for relief
  5. Sections 7 to 10: transitional provision
  6. Rate of CGT for carried interest gains

Corporation tax charge and rates

  1. Charge and main rate for financial year 2026
  2. Standard small profits rate and fraction for financial year 2026

Oil and gas

  1. Increase in rate of energy (oil and gas) profits levy
  2. Relief from levy for investment expenditure
  3. Extending the period for which levy has effect
  4. Decommissioning of carbon storage installations

International matters

  1. Pillar Two
  2. Offshore receipts in respect of intangible property
  3. Application of PAYE in relation to internationally mobile employees etc.
  4. Advance pricing agreements: indirect participation in financing cases

Reliefs for businesses

  1. Expenditure on zero-emission cars
  2. Expenditure on plant or machinery for electric vehicle charging point
  3. Commercial letting of furnished holiday accommodation
  4. Films and television programmes: increased relief for visual effects
  5. Certification of films etc: minor amendments
  6. Films etc: unpaid amounts
  7. Research and development relief: Northern Ireland companies
  8. Research and development intensity condition: transitional provision

Employee-ownership trusts

  1. Employee-ownership trusts

Miscellaneous measures

  1. Overseas transfer charge: pension schemes in EEA state or Gibraltar
  2. Overseas pension schemes established in EEA states
  3. Pension scheme administrators required to be resident in United Kingdom
  4. Alternative finance: diminishing shared ownership refinancing arrangements
  5. 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

  1. Claim for relief on foreign income
  2. Claim for relief on foreign employment income
  3. Claim for relief on foreign gains

Chapter 2: Ending the special treatment of individuals not domiciled in United Kingdom

  1. Remittance basis not available after tax year 2024–25
  2. Temporary repatriation facility
  3. Rebasing of assets

Chapter 3: Trusts etc

  1. Trusts: connected amendments, transitional provision etc

Chapter 4: Inheritance tax

  1. Excluded property: domicile test replaced with long-term residence test
  2. Corresponding change for settled property
  3. Consequential, connected and transitional provision

Part 3: Other taxes

Value added tax

  1. Removal of exemption for private school fees
  2. Charge on pre-paid private school fees
  3. Sections 47 and 48: commencement

Stamp duty land tax

  1. Increased rates for additional dwellings: transactions before 1 April 2025
  2. Increased rates for additional dwellings: transactions on or after 1 April 2025
  3. Contracts substantially performed before relevant rate change
  4. Purchases by companies etc

Annual tax on enveloped dwellings

  1. Alternative finance: land in England, Scotland or Northern Ireland
  2. Alternative finance: land in Wales

Stamp duty and stamp duty reserve tax

  1. Testing of FMI technologies or practices

Inheritance tax

  1. Rate bands etc for tax years 2028–29 and 2029–30
  2. EBTs: prohibition on applying property for benefit of participators etc
  3. EBTs: restriction on proportion of beneficiaries who may be participators etc
  4. EBTs: shares entering trust to have been held for two years
  5. Agricultural property relief: environmental management agreements
  6. National Savings Bank: statements from HMRC no longer to be required

Alcohol duty

  1. Rates of alcohol duty
  2. Abolition of duty stamps for alcoholic products

Tobacco products duty

  1. Rates of tobacco products duty

Taxes relating to vehicles

  1. Rates of vehicle excise duty for light passenger or light goods vehicles etc
  2. Rates of vehicle excise duty for rigid goods vehicles without trailers etc
  3. Rates of vehicle excise duty for rigid goods vehicles with trailers
  4. Vehicle excise duty for vehicles with exceptional loads etc
  5. Rate of vehicle excise duty for haulage vehicles other than showman’s vehicles
  6. Vehicle excise duty: zero-emission vehicles
  7. Rates of HGV road user levy
  8. Rates of air passenger duty until 1 April 2026
  9. Rates of air passenger duty from 1 April 2026

Environmental taxes

  1. Rates of climate change levy
  2. Rates of landfill tax
  3. Rate of aggregates levy
  4. Rate of plastic packaging tax

Soft drinks industry levy

  1. Rates of soft drinks industry levy

Part 4: Miscellaneous and final

Avoidance

  1. Limited liability partnerships
  2. Loans to participators

Crypto-asset reporting framework

  1. OECD crypto-asset reporting framework

Preparing for new taxes and information sharing

  1. Duty on vaping products
  2. Carbon border adjustment mechanism

Wrong cross-reference etc

  1. Correction of wrong cross-reference etc

Final

  1. Interpretation
  2. Short title

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 4: Pillar Two
  • 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
  • Schedule 13: Inheritance tax

Preview

Watch a quick walkthrough.

How do I get it?

What happens after you order.

Fill in the form and we’ll email it to you straight away.

iPhone / iPad

Download the book and when you are asked what application to use to open it, choose the upward pointing arrow and “Copy to iBooks” (Apple’s ebook reader).

Android phone / tablet

Download the book and when you are asked what application to use to open it, choose “Google Play Books” (Google’s ebook reader).