On 13 July 2026 (Legislation day, or L day), the government published draft legislation for inclusion in Finance Bill 2026-27 that will give effect to changes across a wide range of areas. Many of the measures, which are summarised below (with expected commencement dates, where known, noted in brackets), were first announced at the Autumn Budget 2025 or as part of Tax Update 2026.

The draft legislation has been published for technical consultation, with further details provided in policy papers and other supporting documents, including consultation outcomes where relevant. The technical consultation closes on 7 September 2026.  

Additionally, the government has also published consultation documents seeking views on: 

• simplifying treaty relief from withholding tax on interest paid overseas (closing date: 7 September 2026);
• reforming land remediation relief (closing date: 21 September 2026);
• the tax treatment of predevelopment costs (following the decision of the Supreme Court in the case of Orsted, as explained in an earlier article) (closing date: 21 September 2026); and 
• aligning the time limits for recovery of national insurance contributions with income tax (closing date: 12 October 2026).  

The draft legislation and supporting documents, as well as the consultation documents, can be accessed from the government’s Finance Bill 2026-27 collection page.  

Personal taxes 

The draft legislation will: 

• allow defined benefit pension schemes to make authorised surplus payments to members (for payments made on or after 6 April 2027);
• remove the requirement to submit a notification of a grant of enterprise management incentives (EMI) options (for options granted on or after 6 April 2027);
• introduce an individual savings account (ISA) compliance framework that supports digital reporting and ensures the ISA system operates as intended (from April 2028); and
• provide for an annual international student levy on higher education providers (from 1 August 2028). 

Corporate tax 

The draft legislation will: 

• reform the taxation of foreign permanent establishments (see the earlier article covering the announcement of this measure); 
• explicitly treat exploration and exploitation rights in relation to activities undertaken in the UK or on the UK continental shelf as immovable property (profits arising on or after 1/6 April 2027);
• introduce the pillar two side-by-side package (for accounting periods beginning on or after 1 January 2026) and make amendments to the multinational top-up tax and domestic top-up tax (for accounting periods beginning on or after 31 December 2026). An earlier TAXline article explains more about the side-by-side package;
• replace the energy profits levy (once it ends, which is expected to be on 31 March 2030) with a new permanent levy: the oil and gas revenue levy; and
• modernise the stamp taxes on shares framework (to be introduced in 2027).  

Indirect and other taxes

The draft legislation will:

• implement the introduction of electric vehicle excise duty (eVED) (from April 2028). An earlier article explained how the eVED was expected to work based on the consultation document published in January 2026. The government has since published a consultation outcome, setting out the final policy design;
• introduce new VAT accounting rules for supplies made under a statutory deposit return scheme (autumn 2027);
• extend the scope of the higher rate of air passenger duty (from April 2027);
• reform late submission and late payment penalties for the purposes of alcohol duty (spring 2027);
• make changes to the soft drinks industry levy (from 1 January 2028);
• introduce a time-limited relief from stamp duty land tax on transfers of property from administering authorities into qualifying pooled investment vehicles established by local government pension scheme asset pool companies (transactions with an effective date between Budget Day 2026 and 31 March 2032);
• remove the landfill tax exemption for materials added to dredged material as stabilisers before disposal (from 1 April 2027); and
• give search and rescue charities an exemption from vehicle excise duty (VED) on eligible vehicles (from 1 April 2027). 

The government has also published a consultation outcome on its plans to reform the customs treatment of low value imports into the United Kingdom. An earlier article provides further details. 

Anti-avoidance

The draft legislation will:

• enable HMRC to publish more information of individuals and businesses who have been deliberately non-compliant with certain tax obligations and have met the conditions for their details to be published under HMRC’s publishing details of deliberate defaulters policy; and
• introduce a collection mechanism to ensure that informants who receive a reward under the Strengthened Reward Scheme receive the payment with income tax due deducted at source at the additional rate of 45% (from Royal Assent to Finance Bill 2026-27). 

Tax administration

The draft legislation will:

• reform the way in which benefits in kind (BIK) are reported and tax is paid on them. An earlier article explains the latest position with regard to the introduction of mandatory payrolling on BIK;
• treat eligible stablecoins more like money for tax purposes (from 1/6 April 2027). For individuals, this means that returns on stablecoins will be brought within the change to income tax, not CGT. An earlier article explains what stablecoins are, and how they are taxed currently;
• change the taxation of certain disposals involving cryptoasset loans and liquidity pools so that they are treated as being ‘no gain, no loss’ for capital gains tax (CGT) purposes, effectively deferring the CGT liability until an economic disposal of the cryptoasset (6 April 2027);
• remove the restriction on joint ownership of objects for the cultural gift scheme, so that joint owners can each claim relief on their share of the object (from 6 April 2027);
• introduce a new obligation for taxpayers to take corrective action when they become aware of an inaccuracy in a return or document;
• enable HMRC to issue customer correction notices where it has reason to believe that such a document contains an inaccuary; and
• modernise HMRC’s civil information and inspection powers and definitions about computer records (from Royal Assent to Finance Bill 2026-27).