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Finance Act 2025

Statutes amended

27 affected Acts; 62 amendments in total. Each block shows the target Act's text with this Act's changes applied.

Income Tax Act 2007

1 amendment · open Act

  1. Section 12(3)1 insertion

    12 The starting rate, savings nil rate and starting rate limit for savings

    subsections (1) – (2) unchanged

    3 The starting rate limit for savings for the tax year 2025-26 is treated for the purposes of this Act as “£5,000” (and section 21 on indexation does not apply for that year).

Income Tax (Earnings and Pensions) Act 2003

5 amendments · open Act

  1. part-21 insertion

    Part 2, Chapter 5C — Relief for new residents on foreign employment income (new)

    After Chapter 5B a new Chapter 5C is inserted, containing sections 41M–41Z and 41ZA: foreign-employment election for qualifying new residents, eligibility, election mechanics, foreign-workdays earnings disregarded subject to a £300,000/30% cap, anti-avoidance and definitions.

  2. Section 1394 changes

    139 Car with a CO2 emissions figure: the appropriate percentage

    subsection (1) – table of appropriate percentages substituted (rates for 2028-29 increased by ~1 percentage point per band)

    3 For a diesel car (paragraph (a)), the maximum percentage rises from 21%22%; for the upper diesel band (paragraph (b)) from 37%38%.

    subsections (4) – (8) unchanged; corresponding table in section 140 (cars without CO2 figure) is also substituted

  3. Section 1394 changes

    139 Car with a CO2 emissions figure: the appropriate percentage

    subsection (1) – appropriate-percentage table substituted (further increase for 2029-30 onwards)

    3 Paragraph (a) – 22%23%; paragraph (b) – 38%39%.

    subsections (4) – (8) unchanged; corresponding table in section 140 also substituted

  4. Section 6601 insertion

    660 Taxable UK benefits — Table A

    After the entry relating to statutory parental bereavement pay, a new row is inserted: “Statutory neonatal care pay — SSCBA 1992, section 171ZZ16”; the corresponding entry is added to the list in subsection (2). Consequential additions are made to paragraph 48 of Schedule 2 (notice of possible effect of deductions on benefit entitlement).

  5. Section 6901 change

    690 Employee non-resident etcInternationally mobile employees

    whole section substituted — establishes a new “internationally mobile employee” framework with employer notifications, treaty-non-resident sub-cases, and special accounting/return rules for tax year 2025-26 and subsequent years.

Taxation of Chargeable Gains Act 1992

8 amendments · open Act

  1. Section 1H6 changes, 3 deletions

    1H The main rates of CGT

    subsection (1) unchanged

    1A (rates for residential property gains accruing to individuals — omitted)
    3 Other chargeable gains accruing to individuals are charged at 10%18% (below the basic-rate band) and 20%24% (above it).
    4A (rates for residential property gains accruing to personal representatives — omitted)
    6 Gains accruing to personal representatives are charged at 20%24%.
    7 (rates for residential property gains accruing to trustees — omitted)
    8 Gains accruing to trustees are charged at 20%24%.

    Schedule 1 contains consequential amendments; Schedule 2 contains transitional provision

  2. Section 1H2 changes, 1 insertion, 1 deletion

    1H The main rates of CGT (carried interest)

    subsection (1) unchanged

    2 (former rates of 18%/28% on carried interest gains accruing to individuals — omitted)
    3 Other chargeable gainsChargeable gains other than carried interest gains (see subsections (4B) and (9) to (11))
    4B Chargeable gains accruing in a tax year to an individual that are carried interest gains are charged to capital gains tax at a rate of 32%.
    5 Carried interest gains accruing to personal representatives — 28%32%.
  3. Section 59AA1 insertion

    59AA Limited liability partnerships: deemed disposal (new)

    Inserted after section 59A. Where a member contributed an asset to an LLP in circumstances where section 59A(1) applied, and the LLP subsequently disposes of the asset (or part) to the member or a connected person after section 59A(1) has ceased to apply, the asset is deemed to have been disposed of and reacquired by the member immediately before contribution at market value; the resulting gain/loss accrues at the time of disposal by the LLP; just-and-reasonable reduction; effective from 30 October 2024.

  4. Section 151I3 changes

    Wrong cross-reference corrections

    In TCGA 1992 section 151I(1), paragraph (d) is substituted with a corrected cross-reference to paragraph 23 or paragraph 23B of Schedule 2 to FSMA 2000. In CTA 2009 section 1179AE(2), “either House of Parliament”“the House of Commons”. In Taxation (Post-transition Period) Act 2020 section 4(2)(a), “section 42”“section 47”.

  5. Section 169N2 changes

    169N Amount of relief – general

    subsections (1) – (2) unchanged

    3 The rate is 10%14% for disposals on or after 6 April 2025, and 18% for disposals on or after 6 April 2026.

    subsections (4) – (8) unchanged; corresponding cross-reference in section 1H(1)(a) updated to match

  6. Section 169VC2 changes

    169VC Amount of relief

    subsection (1) unchanged

    2 The rate is 10%14% for disposals on or after 6 April 2025, and 18% for disposals on or after 6 April 2026.

    consequential updates in section 1H(1)(b) and section 1I(4)(a)

  7. Section 169VK4 changes

    169VK / 169VL — Individual / trustee lifetime limit on investors’ relief

    structure unchanged

    1 In section 169VK(1) & (2) and section 169VL(2) & (3), the lifetime cap on gains qualifying for relief is reduced from £10 million£1 million.
  8. Schedule D11 insertion

    Schedule D1 — Relief for new residents on foreign gains (new)

    Inserted before Schedule 1, with paragraphs 1–10: claim for relief by qualifying new residents (within 12 months of 31 January following the tax year), reliefs (foreign gains disregarded; losses ignored), interaction with other CGT provisions, and definitions.

Energy (Oil and Gas) Profits Levy Act 2022

3 amendments · open Act

  1. Section 11 change

    1 Charge to tax

    1 A tax (to be known as the energy (oil and gas) profits levy) is charged on a ring fence trade for a qualifying accounting period at the rate of 35%38%.

    subsections (2) – (6) unchanged (with transitional rules for straddling periods)

  2. Section 1(3)(b)3 changes

    1 Charge to tax (extension)

    3 (b) ending with 31 March 20282030.

    corresponding dates in section 7(2) and section 16 (transitional provision for accounting periods straddling 31 March) updated to 2030.

  3. Section 2

    2 Additional expenditure treated as incurred for purposes of section 1

    whole section substituted — investment expenditure (capital de-carbonisation of upstream petroleum production for oil-related activities, excluding financing/decommissioning costs) is treated as additional expenditure for the purposes of section 1

Income Tax (Trading and Other Income) Act 2005

2 amendments · open Act

  1. part-5-chapter-2A1 deletion

    Part 5, Chapter 2A — Offshore receipts in respect of intangible property

    whole Chapter 2A omitted; in section 574 the references to that chapter (subs (1)(aa) and the parenthetical in subs (2)) are omitted; subsection (1) of section 576 (priority between Chapters) omitted; in section 873(3) paragraph (ba) omitted; in TIOPA 2010 the OIRP indirect-participation paragraphs are omitted from section 157 and section 159.

  2. part-81 insertion

    Part 8, Chapter 5 — Relief for new residents on foreign income (new)

    After Chapter 4 a new Chapter 5 is inserted, containing sections 845A–845K: foreign-income claims by qualifying new residents, eligibility (years of residence and 10-year prior non-residence), interaction with other reliefs, the effect of a claim (foreign income disregarded for the year), partnership rules, regulation-making power and definitions.

Taxation (International and Other Provisions) Act 2010

1 amendment · open Act

  1. Section 1581 change, 1 insertion, 1 deletion

    158 Indirect participation (general)

    subsections (1) – (3) unchanged

    4 paragraph (c) omitted (but the “and” at the end of that paragraph retained).
    5 For the purposes of section 219(2) (advance pricing agreements, in Part 5), a person is indirectly participating only if any of sections 159 to 162 so provide.

    consequential changes to section 161 (financing cases) extend its scope to section 219(2)

Capital Allowances Act 2001

2 amendments · open Act

  1. Section 45D1 change, 1 insertion, 1 deletion

    45D Expenditure on zero-emission cars

    1 (a) the expenditure is incurred in the period beginning with 17 April 2002 and ending with 31 March 2025 / 5 April 2025the relevant period,
    1A (former definition of the period — omitted)
    1B The “relevant period” is the period beginning with 17 April 2002 and ending with — (a) for corporation-tax expenditure, 31 March 2026; (b) for income-tax expenditure, 5 April 2026. 1C The Treasury may by regulations amend that period.

    subsections (2) – (3) unchanged

  2. Section 45EA2 changes

    45EA Expenditure on plant or machinery for electric vehicle charging point

    subsections (1) – (2) unchanged

    3 (a) and (b) — first-year allowance expiry date 1 April 2025 / 6 April 20251 April 2026 / 6 April 2026.

Corporation Tax Act 2009

4 amendments · open Act

  1. Section 1112J

    1112J Chapter 2 relief for Northern Ireland companies (substituted)

    In the section 1112A overview, subsection (6) is replaced. Section 1112J and its preceding heading are wholly substituted to determine Northern-Ireland-company entitlement to Chapter 2 relief with reference to a four-year accumulated cap and Northern Ireland subsidy controls.

  2. Section 1179AA

    Minor amendments to film / TV / video game certification

    in section 1179AA(7) the qualifying-company definition is reorganised into paragraphs (a) and (b) (the latter allowing certificate submission after the end of an accounting period); section 1179DJ (British certification condition for films/TV) is restructured; comparable changes to the video-games British-certification condition in section 1179FF.

  3. Section 1179DT1 insertion

    1179DT / 1179FL Excluded expenditure and unpaid amounts

    In each section the existing provision becomes subsection (1); a new subsection (2) treats as excluded any expenditure not paid within four months of the end of the accounting period. Section 1179DX(3) is omitted as a consequence.

  4. Section 1179EC1 insertion

    1179EC Special credit for visual effects (new)

    inserted after section 1179EB in Part 14A (films, television programmes and video games). Provides an additional audiovisual-expenditure credit where the production company has incurred qualifying UK visual-effects expenditure on a qualifying film or television programme during the completion period or a subsequent period; with cap of 80% of core expenditure, anti-double-relief rule, definitions, regulation-making power and territorial scope.

Finance Act 2024

1 amendment · open Act

  1. Schedule 1 ¶ 212 changes

    Schedule 1, paragraph 21 — higher R&D-intensive SME rate (transitional)

    sub-paragraph (4) substituted — for the transitional period that section is to be read as if for 30%40% in subsections (2) and (3), and paragraph (b) of subsection (7) is replaced with an updated relief-period definition.

Finance Act 2004

2 amendments · open Act

  1. Section 244C1 deletion

    244C Exclusion from overseas transfer charge where receiving scheme in EEA state or Gibraltar (and member resident in UK or EEA state)

    whole section omitted; references to it in section 244J(4) and section 244K(6) also struck out.

  2. Section 2703 changes, 1 deletion

    270 Meaning of “scheme administrator”

    2 A person cannot beis not a scheme administrator unlessat any time unless, at that time,—(a) the person or another (… residence wording omitted) …
    3 (b) omit the words from “, whether resident” to the end.
    4 (former residence provisions for administrators — omitted)

    in force on 6 April 2026

Inheritance Tax Act 1984

6 amendments · open Act

  1. Section 61 change, 1 insertion

    6 Excluded property

    1 Property situated outside the United Kingdom is excluded property if the person beneficially entitled to it is an individual domiciled outside the United Kingdomwho is not a long-term UK resident.

    subsection (1A) updated to mirror; new section 6A inserted after section 6 — defines “long-term UK resident”: a person who has been UK resident for at least 10 of the 20 tax years preceding the relevant tax year, with run-off rules for departing residents.

  2. Section 131 change, 2 insertions

    13 Dispositions by close companies for benefit of employees

    subsection (2) — in each of paragraphs (a), (b) and (d) a new temporal anchor “, at the time of the disposition,” is inserted; in (c) “has been”“is”. Parallel restrictions on applying trust property for the benefit of participators are added to section 28A, section 75 and section 86.

  3. Section 131 insertion

    13 Dispositions by close companies for benefit of employees (further amendment)

    After subsection (4) new subsections (4A)–(4B) inserted: subsection (4)(a) does not apply if more than 25% of relevant beneficiaries (disregarding subsection (4)(a)) are participators. Parallel additions are made to sections 28, 28A, 75 and 86.

  4. Section 282 insertions

    28 Employee trusts

    In subsection (1), after paragraph (b) a new paragraph (c) is inserted requiring the individual to have been beneficially entitled to the relevant shares throughout the two-year period ending with the transfer. A new subsection (8) defines what counts as the same shares for this purpose.

  5. Section 481 change, 1 insertion, 1 deletion

    48 Excluded property: reversionary interests and Treasury securities

    subsections (3) – (3F) (domicile-of-settlor rules) omitted. After section 48 a new section 48ZA is inserted: settled property situated outside the UK, or a holding in an authorised unit trust / open-ended investment company, is excluded property if the settlor was not a long-term UK resident at the time the property became settled.

  6. Section 124C1 change

    124C Application of agricultural property relief to land in habitat schemesEnvironmental management agreements

    whole section substituted — land in an environmental-management agreement is treated as agricultural property occupied for the purposes of agriculture, subject to a two-year qualifying period; with definitions of relevant agreements and Treasury power to designate further schemes.

Value Added Tax Act 1994

1 amendment · open Act

  1. Schedule 91 insertion

    Schedule 9 — Exemptions

    In Group 6 (education), item 3(b)(i) and item 4 are amended to refer to new Part 3 (Exceptions). After Part 2 a new Part 3 (Exceptions) is inserted: supplies of education, vocational training, or board and lodging by a “private school” (a school providing full-time education for pupils of compulsory school age, or full-time further education for fee-paying 16-19 year-olds) are excepted from the Group 6 exemption.

Stamp Duty Land Tax (Temporary Relief) Act 2023

1 amendment · open Act

  1. Section 11 insertion

    1 Reduced rates of SDLT (additional-dwellings transactions)

    Table A in subsection (3) is substituted — the rate for the £0–£250,000 band rises from 3% to 5%, with corresponding increases to higher bands.

Finance Act 2003

2 amendments · open Act

  1. Schedule 4A2 changes

    Schedule 4A / section 74 — Higher rate for purchases by companies etc.

    In Sch 4A paragraph 3(1)(a) and in step 4 of section 74(1A), the rate is increased from 15%17% for land transactions whose effective date falls on or after 31 October 2024.

  2. Schedule 4ZA

    Schedule 4ZA — Higher rates of SDLT for additional dwellings etc.

    Table A in section 55(1B), as cross-referenced in paragraph 1(2), is substituted — additional-dwellings surcharge bands set to 5% (≤£125k), 7% (£125k–£250k), 10% (£250k–£925k), 12% (£925k–£1.5m) and 17% (above).

Stamp Duty Land Tax (Temporary Relief) Act 2020

1 amendment · open Act

  1. Section 1

    1 Reduced rates of SDLT (transactions 8 July 2020 – 30 June 2021)

    Subsection (6) (exception from section 44(8) of FA 2003 for substantially performed contracts) is amended to extend the modified disregard rules to the new rate-change date.

Finance Act 2013

2 amendments · open Act

  1. Section 1573 changes

    157 Land in England etc sold to financial institution and leased to person

    subsection (2) — “If the lessee is a company, this Part”“This Part”; “company” in subsection (4) is extended to “or individual” wherever it appears; subsection (9) reference list extended to include subsections (2), (3),.

  2. Section 157B1 insertion

    157A157B Land in Wales sold to financial institution and leased to person (new)

    References to “Wales” are removed from the section 157 heading and subsection (1)(b); after section 157A a new section 157B is inserted, mirroring the alternative-finance treatment for ATED purposes where land in Wales is held under arrangements falling within paragraph 2 of Schedule 10 to LTTA 2017.

Finance Act 2021

2 amendments · open Act

  1. Section 451 change

    45 Rate of plastic packaging tax

    1 The rate is £217.85£223.69 per tonne of taxable chargeable plastic packaging components.

    effective in relation to packaging components produced or imported on or after 1 April 2025

  2. Section 862 changes

    86 No indexation of IHT rate bands etc for tax years up to 2027-282029-30

    In the operative text, “or 2026”“, 2026, 2027 or 2028” — extending the freeze on the IHT nil-rate band, residence nil-rate band and taper threshold to 2028-29 and 2029-30.

Finance (No. 2) Act 2023

3 amendments · open Act

  1. Section 1122 deletions

    112 & Schedule 12 Duty stamps for retail containers of alcoholic products

    Section 112 and Schedule 12 are repealed. Consequential omissions are made to FA 1994 section 12(2) (paragraph (ca)) and section 13A(2), and to related provisions in the Customs and Excise Management Act 1979.

  2. Section 3491 change, 1 insertion

    349 International arrangements for exchanging information

    2 After paragraph (f), a new paragraph (fa) is inserted: “the OECD Crypto-Asset Reporting Framework, published in 2022”; paragraph (g) cross-reference updated from (f)(fa).
  3. Schedule 71 insertion

    Schedule 7 — Rates of alcohol duty

    Schedule 7 (and the small-producer relief tables in Schedule 9) are substituted with updated per-litre-of-alcohol rates (Table 1) — £9.61 below 3.5% ABV, £29.54 at 8.5%–22%, £32.79 above 22%; intermediate band rates in Table 2; corresponding small-producer-relief schedule replaced.

Tobacco Products Duty Act 1979

1 amendment · open Act

  1. Schedule 11 insertion

    Schedule 1 — Table of rates of tobacco products duty

    Table substituted — Cigarettes: 16.5% of retail price plus £334.58 per 1,000, or £446.67 per 1,000 floor; Cigars £417.33/kg; Hand-rolling tobacco £476.83/kg; Other smoking / chewing tobacco rates updated.

Vehicle Excise and Registration Act 1994

6 amendments · open Act

  1. Section 622 insertions

    62 Other definitions

    After subsection (1A) a new subsection (1AA) defines a “zero-emission vehicle” (CO₂ emissions of zero grams per kilometre or per kilowatt-hour).

    Schedule 1 — Annual rates of duty (consequential)

    In paragraph 1 sub-paragraphs (2) and (2A), “, or zero-emission,” is inserted after “propelled”. In paragraph 1A new sub-paragraphs (1A)–(1B) treat zero-emission vehicles as having a CO₂ figure of zero. Equivalent treatment is added to paragraph 1GA (Part 1AA vehicles) and the Part 1B/1AA rate tables.

  2. Schedule 12 changes

    Schedule 1 — Annual rates of VED (paragraph 1 general rate)

    In sub-paragraph (2) (engine cylinder capacity exceeding 1,549cc) £345£360; in sub-paragraph (2A) (lower engine cap) corresponding uplift. Effective for licences taken out on or after 1 April 2025.

  3. Schedule 1 ¶ 10

    Schedule 1, paragraph 10 — Supplement for rigid goods vehicles with trailers

    In sub-paragraph (6) Tables 1 to 6 (supplement by trailer plated gross weight, total weight and axle count) are substituted with updated rates.

  4. Schedule 1 ¶ 6

    Schedule 1 — Special-rate bands for heaviest vehicles

    In each of paragraph 6(2A)(a) (exceptional loads), paragraph 9(3) (rigid goods over 44,000 kg) and paragraph 11(3) (tractive unit over 44,000 kg), the duty figure is uprated.

  5. Schedule 1 ¶ 71 change

    Schedule 1, paragraph 7(3A) — Haulage vehicles other than showman’s vehicles

    The duty figure is uprated from £350£365 for licences taken out on or after 1 April 2025.

  6. Schedule 1 ¶ 9

    Schedule 1, paragraph 9 — Rigid goods vehicles exceeding 3,500 kg revenue weight

    The rates table in sub-paragraph (1) is substituted with new bands by revenue weight and axle count.

HGV Road User Levy Act 2013

1 amendment · open Act

  1. Schedule 1

    Schedule 1 — Rates of HGV road user levy

    In paragraph 5 Tables 1 and (consequentially) 2 are substituted with new daily / weekly / monthly / half-yearly / yearly rates for Euro 6 vehicles by band.

Finance Act 1994

2 amendments · open Act

  1. Section 306 changes

    30 Air passenger duty: rates

    Short-haul (subs (2)): paragraph (b) £26£28. Long-haul (subs (2A)): (a) £88£90, (b) £194£216. Ultra-long-haul (subs (4A)) and corresponding business-class rates uprated similarly. Effective for carriage on or after 1 April 2025.

  2. Section 306 changes

    30 Air passenger duty: rates (further uplift from 1 April 2026)

    Domestic (subs (1B)): (a) £7£8, (b) £14£16. Short-haul, long-haul and ultra-long-haul rates further uplifted; effective for carriage on or after 1 April 2026.

Finance Act 2000

1 amendment · open Act

  1. Schedule 6 ¶ 421 insertion

    Schedule 6, paragraph 42(1) — Amount payable by way of climate change levy

    Table substituted — Electricity £0.00801/kWh; Gas £0.00978/kWh; Solid fuels £0.06064/kg; LPG £0.04102/kg (and reduced-rate percentages where applicable).

Finance Act 1996

1 amendment · open Act

  1. Section 423 changes

    42 Amount of landfill tax

    1 (a) standard rate £103.70£126.15 per tonne.
    2 Reduced rate provisions — £103.70£126.15 per tonne and £3.30£4.05 per tonne.

    effective in relation to disposals made (or treated as made) on or after 1 April 2025

Finance Act 2001

1 amendment · open Act

  1. Section 161 change

    16 Charge to aggregates levy

    4 The levy is charged at the rate of £2.03£2.08 per tonne.

    effective in relation to aggregate subjected to commercial exploitation on or after 1 April 2025

Finance Act 2017

1 amendment · open Act

  1. Section 362 changes

    36 Rates of soft drinks industry levy

    1 (a) higher-sugar drinks — £0.24 per litre£2.59 per 10 litres; (b) other drinks — £0.18 per litre£1.94 per 10 litres.

Corporation Tax Act 2010

1 amendment · open Act

  1. Section 464B1 insertion, 1 deletion

    464B Relief in case of return payment to company

    whole section repealed for payments on or after 30 October 2024

    464ZA Treatment of certain repayments (new)

    Inserted after section 464. Where within any 30-day period qualifying repayments totalling £5,000+ are made to a close company in respect of chargeable payments to a person, and the available amount of further chargeable payments to the person or an associate equals or exceeds the qualifying-repayment total, the repayments are treated for Part 10 purposes as not being repayments of the original chargeable payments.