Tax news: page 3
- July 2025
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.
- June 2025
ISA Regulations amended to allow long-term asset funds in innovative finance ISAs and tighten subscription rules
The Treasury has amended the ISA Regulations 2025 to add long-term asset funds to innovative finance ISAs, require national insurance information before subscriptions and tighten replacement subscription rules.
- May 2025
entitledto publishes 2025/26 review of English Council Tax Reduction schemes
entitledto's annual review of English Council Tax Reduction schemes finds 62 of 296 councils changed their calculations for 2025/26, with cuts to maximum support outnumbering increases.
- April 2025
Income Tax rates updated for 2025 to 2026
HMRC has updated its published Income Tax rates, allowances and bands for the 2025 to 2026 tax year, with the change logged on the GOV.UK rates and allowances page on 6 April 2025.
Scottish Income Tax changes take effect
Scottish Income Tax rates and bands for 2025-26 took effect on 6 April 2025, with the Starter and Basic rate bands widened and the Higher, Advanced and Top rate thresholds frozen.
April 2025 tax, benefit and bill changes take effect
Freezing of personal tax thresholds, a higher employer National Insurance rate, Council Tax and water bill rises, a £111 energy price cap increase and 1.7 per cent benefit uprating all took effect in April 2025.
Class 1 Secondary NICs rate to rise to 15% with threshold lowered to £5,000
Employer National Insurance contributions rise from 13.8% to 15% and the point at which they become payable falls from £9,100 to £5,000 a year from 6 April 2025.
Council tax bills expected to rise across England and Wales from April 2025
Council tax bills rise across England, Wales and Scotland from April 2025, with English bills up about 5% on average and Scottish bills up 9.6%, as most English councils use their referendum-free limit.
Employer NI rise took effect, pushing employee tax wedges up
The April 2025 employer National Insurance rise took effect, raising the effective tax rate on the median employee to 27 per cent, the highest since 2011-12.
HMRC to end overtaxing of first pension withdrawals from April 2025
HMRC has changed how tax codes are applied to new private pension withdrawals from April 2025, aiming to stop savers being overtaxed on their first payments.
Vehicle tax rates introduced for electric, zero and low emission vehicles
Electric, zero and low emission cars, vans and motorcycles became subject to vehicle tax rates introduced on 1 April 2025, with the change applying to both new and existing vehicles.
Winter Fuel Payments charge takes effect from 6 April 2025
A new income tax charge takes effect from 6 April 2025 to recover Winter Fuel Payments from pensioners with total income over £35,000, collected through PAYE or Self Assessment.
- March 2025
SDLT nil-rate bands and FTBR thresholds reverted to pre-September 2022 levels
From 1 April 2025 the stamp duty nil-rate band in England and Northern Ireland fell back to £125,000, with first-time buyer thresholds also reduced, as legislated in 2023.
Government confirms DRD restart in Spring Statement
The government confirmed in the Spring Statement that HMRC will restart its Direct Recovery of Debts power, taking unpaid tax directly from bank accounts and cash Isas.
Six English councils permitted to raise council tax above the 4.99% cap
Six English councils have been allowed to raise council tax above the 4.99% referendum threshold for 2025-26, with Bradford permitted the largest increase at 9.99%.
Spring Statement announces payroll option for paying the high-income child benefit charge
Families liable for the high income child benefit charge will be able to pay it through their tax code and company payroll from summer 2025, under changes announced in the Spring Statement.
- February 2025
Alcohol duty rates change from 1 February 2025 until 1 February 2026
New alcohol duty rates per litre of alcohol apply from 1 February 2025 until 1 February 2026, under rates published alongside the Autumn Budget 2024.
Alcohol duty rises in line with RPI, with a cut for draught products
Alcohol duty rose on 1 February 2025 in line with September 2024 inflation of 2.7%, while duty on draught products below 8.5% ABV was cut by 1.7%.
- December 2024
Scottish Budget 2024 unveiled at Holyrood
Shona Robison's Scottish Budget raises income tax thresholds, funds a new pensioner winter payment and sets out plans to scrap the two-child benefit cap from 2026.
SPICe publishes Scottish Budget 2025-26 taxes infographic
The Scottish Parliament has published an infographic of the Scottish Fiscal Commission's 2025-26 tax forecasts alongside the proposed Scottish Income Tax bands and rates set out in the Scottish Budget.
UK Personal Allowance confirmed frozen at £12,570
The Scottish Government has confirmed the UK-wide Personal Allowance stays frozen at £12,570 for 2025-26, while raising the Starter and Basic rate bands in Scotland and freezing its higher thresholds.
- November 2024
Autumn Budget 2024 extends Making Tax Digital for Income Tax to those with qualifying income over £20,000
The Autumn Budget 2024 extended Making Tax Digital for Income Tax to sole traders and landlords with qualifying income over £20,000, with the change to be introduced by the end of this Parliament.
- October 2024
Autumn Budget raises employer National Insurance contributions
The Autumn Budget of 30 October 2024 raised employer National Insurance contributions by 1.2 percentage points, cut the threshold at which employers start paying and increased the Employment Allowance.
Government announces Inheritance Tax reform including pensions measure at Autumn Budget 2024
At Autumn Budget 2024 the government announced that most unused pension funds and pension death benefits will count towards a person's estate for Inheritance Tax from 6 April 2027.
HICBC household-basis reform shelved
The Chancellor has shelved plans to move the High Income Child Benefit Charge to a household basis, after the estimated £1.4 billion cost of doubling the income threshold proved too high.
Inheritance Tax thresholds to be frozen for 2028 to 2030
HM Revenue & Customs has confirmed that Inheritance Tax thresholds will stay at their current levels for the 2028 to 2029 and 2029 to 2030 tax years, extending the freeze on the nil-rate band and residence nil-rate band.
Labour delivers first Budget in 14 years, first delivered by a woman
Rachel Reeves delivered Labour's first Budget in 14 years on 30 October 2024, the first ever delivered by a female chancellor, with employer National Insurance rises and a £40 billion overall tax increase.
Technical consultation launched on IHT reporting and payment processes for pensions
The government has published a technical consultation on bringing unused pension funds and death benefits into Inheritance Tax from 6 April 2027, with responses due by 22 January 2025.
Publication of ISA and Child Trust Fund (Amendment No 2) Regulations 2024 tax information and impact note
HM Revenue and Customs has published a tax information and impact note on rules for fractional shares in ISAs and Child Trust Funds, National Insurance number checks on new ISA applications and ISA transfers.
Autumn Budget announces tax rises and higher spending
The Chancellor announced tax increases of just over £40 billion a year by 2029/30 and additional spending of more than £70 billion by the end of the forecast period.