Money news: page 17
- July 2025
Consultation on Council Tax administration and enforcement in Wales closes
The Welsh Government's consultation on changing Council Tax administration and enforcement in Wales closed on 23 July 2025, with 272 responses and proposals due to take effect from 1 April 2026.
Affordability, explanation and switching policy rules revised
The Financial Conduct Authority has updated mortgage rulebook provisions on remortgaging without additional borrowing, covering the more affordable test, explanation and warning requirements, and internal switching policies.
FCA updated MCOB 4.8A execution-only sales rules
The FCA Handbook shows mortgage advising and selling rules in MCOB 4 carrying a 22 July 2025 date, including a new requirement for firms to identify execution-only customers who may need advice.
New rule on expired term customers took effect
A new Financial Conduct Authority rule took effect on 22 July 2025 requiring mortgage firms to deal fairly with customers whose mortgage term has expired with a balance still outstanding.
Draft Finance Bill 2025-26 published
The Lords Economic Affairs Finance Bill Sub-Committee has published a report on inheritance tax measures covering unused pension funds and agricultural and business property reliefs in the draft Finance Bill 2025-26.
Draft legislation published for MTD for Income Tax and penalty reform
HMRC has published draft legislation to refine and simplify Making Tax Digital for Income Tax and penalty reform, including deferrals for certain groups and a consultation closing on 16 September 2025.
Government abandons PSA-led model for Inheritance Tax on pensions
The government has dropped plans to make pension scheme administrators responsible for reporting and paying Inheritance Tax on unused pension funds, keeping that duty with personal representatives from April 2027.
Government publishes consultation outcome confirming personal representatives liable for IHT on pensions from April 2027
The government has confirmed that personal representatives, not pension scheme administrators, will report and pay inheritance tax on unused pension funds and death benefits from 6 April 2027.
More than 18,000 claims for overpaid inheritance tax made in three years
HMRC figures obtained by NFU Mutual show more than 18,000 claims for overpaid inheritance tax in three years, most of them after property sold for less than its value at death.
FCA publishes consultation paper CP25/23 on final rules for BNPL lenders
The FCA has published consultation paper CP25/23 setting out proposed rules for buy now pay later lenders, with regulation limited to third-party lender agreements and due to take effect on 15 July 2026.
Which? highlights five phone scams currently circulating in the UK
Which? has set out five phone scams circulating in the UK, including calls impersonating a GP practice health adviser, WhatsApp job offers and bank fraud departments, alongside Ofcom survey data on suspicious calls.
ISA and CTF rule changes take effect for recognised funds, LTAFs and flexible ISAs
Rules covering Child Trust Funds, recognised funds, Long Term Asset Funds and flexible ISAs took effect on 15 July 2025, with separate National Insurance number requirements for ISA investors following in 2027.
Most ISA amendment provisions come into force
Most provisions of the Individual Savings Account (Amendment) Regulations 2025 came into force on 15th July 2025, changing ISA subscription, withdrawal and investment rules, with one measure deferred to April 2027.
2025 Order passed setting provisions for regulating BNPL products
The 2025 Order passed on 14 July 2025 sets provisions to bring interest-free buy now pay later products under Financial Conduct Authority regulation from 15 July 2026.
Guide updated following changes to Winter Fuel Payment
The Department for Work and Pensions updated its detailed Pension Credit guide for advisers on 14 July 2025 to reflect changes to Winter Fuel Payment, with further rate updates following in 2026.
Toolkit updated to remove Winter Fuel Payment link to Pension Credit
The Department for Work and Pensions has updated its Pension Credit toolkit to remove the link between Winter Fuel Payment and Pension Credit, saying entitlement to the payment no longer depends on the benefit.
Open letter urges Chancellor to maintain Cash ISA allowance
More than 50 building societies, trade associations and financial firms wrote to the Chancellor on 9 July 2025 urging the Government to keep the current Cash ISA allowance.
PIP eligibility rules unchanged pending Timms review
PIP reforms in the 2025 Welfare Reform Bill have been temporarily removed pending a review, with eligibility rules unchanged until that review is completed.
Scammers impersonate DWP with fake energy support texts
Which? has reported scam text messages impersonating the Department for Work and Pensions that offer fake energy grants of £200 to £300 and link to websites designed to steal personal and financial information.
Bank of England introduces temporary exemption to the 15% loan-to-income limit
The Bank of England introduced a temporary exemption to its 15% cap on mortgages above 4.5 times income in July 2025, letting individual lenders exceed the limit if the market as a whole does not.
BNPL to come under FCA regulation
Buy Now Pay Later will come under Financial Conduct Authority regulation in July, the Centre for Responsible Credit has told the Treasury Committee, though it warns current affordability rules may not protect borrowers.
DWP publishes fairness analysis of machine learning model for the first time
The Department for Work and Pensions has published detailed information on its fairness analysis of a machine learning model used to flag potentially fraudulent benefit claims, showing some groups are over-referred for review.
Energy price cap to rise by £221 (13%) from 1 July
The energy price cap rose by £221, or 13%, on 1 July, taking a typical household bill to £1,663 a year, with a further 4% rise confirmed for October.
Government consults on proposals to reform the FOS
The government has published its response to a consultation on reforming the Financial Ombudsman Service, confirming plans for a 10-year complaint time limit and a narrower fair and reasonable test.
Government relaunches the Pensions Commission
The Government has relaunched the Pensions Commission to examine how future pension savings could be boosted, as MPs separately call for a national strategy on pensioner poverty.
HMRC figures confirm more people pulled into higher tax bands
HMRC estimates show around half a million more people moving into the higher-rate tax band this year, with 420,000 more pensioners paying tax on retirement income.
PRA and FCA amend Loan-to-Income flow limit rule to apply industry-wide
The Prudential Regulation Authority and Financial Conduct Authority have changed the loan-to-income flow limit so the 15% cap on mortgages above 4.5 times income applies across the industry rather than to each lender.
Reimagining Insolvency report launched
The Money Advice Trust has published Reimagining Insolvency, a report proposing a single, flexible insolvency framework for England and Wales with two routes out of problem debt.
Santander UK increases credit card standard interest rates
Santander UK is raising standard interest rates on credit cards from July 2025 for customers who have been told their rate is going up, with a 60-day window to reject the change.
Virgin Money removes Covid vaccination exclusion from travel policy
Virgin Money has removed a clause that excluded cover for unvaccinated travellers hospitalised with Covid abroad, after Which? flagged the exclusion in a comparison of three travel insurers.