Guidance on new 40% FYA
Legislation included in the Finance Bill 2025-26 provides for the introduction of a new 40% FYA for qualifying expenditure incurred on or after 1 January 2026. HMRC has updated its Capital Allowances Manual to include guidance on the new FYA, starting at CA23195A.
Further information
Winners and losers from capital allowances changes | ICAEW
TAXguide 05/25: Finance Bill 2025-26 | ICAEW
Update on GOV.UK One Login
GOV.UK One Login is a new way of signing in to government services. Over time it will replace all other sign in routes, including Government Gateway.
From 9 February 2026, taxpayers who register to use HMRC’s digital services for the first time can sign-up using GOV.UK One Login. Taxpayers who use a Government Gateway account to access HMRC’s services do not need to take any action. HMRC says that they should “continue to use their current Government Gateway ID and will be contacted when it’s time for them to switch to GOV.UK One Login”.
Further information
HMRC introduces GOV.UK One Login for new customers - GOV.UK
Employees encouraged to claim refunds
HMRC is asking employers to encourage their employees to check the HMRC App and claim any refunds they are owed. HMRC no longer issues tax refunds automatically by cheque for most PAYE customers. HMRC says that: “last year, over 730,000 refunds went unclaimed, with the average refund worth £855”.
Further information
How do I use the HMRC app to claim a tax refund?
Payment deadlines fall on a Sunday
In the latest issue of its Employer Bulletin, HMRC has warned employers that the electronic payment deadlines fall on a Sunday on 22 February 2026 and 22 March 2026. HMRC says that, to make sure payments reach HMRC in time, employers need to have funds cleared into HMRC’s account by 20 February 2026 and 20 March 2026, unless they are able to arrange a Faster Payment.
Changes made to land transaction tax
Following an announcement made as part of the Welsh Budget process, secondary legislation has been made that makes a number of changes to land transaction tax (LTT). The changes include:
- introducing a new refund rule for the higher residential rates of LTT where a landlord leases a dwelling to a local authority in Wales through the Leasing Scheme Wales; and
- increasing the existing multiple dwelling relief minimum tax rule rate from 1% to 3%.
Further information
The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026
The Land Transaction Tax (Modification of Relief for Acquisitions Involving Multiple Dwellings) (Wales) Regulations 2026
Tax Faculty
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