Published on 4 December 2025, Finance Bill 2025-26 introduces legislation that makes changes across a wide range of areas. At 554 pages, the Finance Bill looks set to be the longest Finance Act since Finance Act 2017 once it receives Royal Assent. 

To help you navigate your way through the Finance Bill, the Tax Faculty has published TAXguide 05/25 to support ICAEW members. The guide provides an overview and commencement date for all of the key measures and includes links to other ICAEW content for further information. The faculty will continue to update the TAXguide as the Finance Bill makes its way through parliament. 

Key Finance Bill measures

Some of the key measures from the Bill include:

• changes to the capital gains avoidance rules that apply to share exchanges and company reconstructions with effect from 26 November 2025, subject to transitional arrangements;
• a 2 percentage point increase in the basic and higher rates of income tax on dividends for 2026/27 onwards;
• a reduction in the rate of the writing down allowance for main rate plant and machinery from April 2026;
• a new VAT relief for business donations of goods to charity from April 2026; and
• a new requirement for agents to register with HMRC from May 2026, with at least a three-month transition period.

Other measures announced at the Budget

Many of the Finance Bill measures were announced or confirmed at the Autumn Budget 2025. For analysis of the Budget announcements, see ICAEW’s Budget hub. This includes links to articles, a recording of the faculty’s Budget webinar and an episode of The Tax Track podcast in which the faculty rates the Budget against ICAEW’s ten tenets for a better tax system. 

The announcement made at the Budget that national insurance contributions (NIC) will be charged on salary sacrificed pension contributions over £2,000 from April 2029 has attracted much attention. In a recent article, the faculty explains how the cap is expected to operate based on current understanding of what is and is not salary sacrifice. 

MTD for income tax

2026 also sees the start of the phased introduction of MTD for income tax. From April 2026, an estimated 840,000 sole traders and landlords will need to keep digital records and submit quarterly updates and an end of year return using compatible software.

ICAEW’s MTD hub has a range of content that can help you prepare for the challenges to come, including articles, detailed guidance and recordings of webinars and podcasts. 

New content added recently includes The Tax Track podcast episode The latest on MTD income tax in which Rebecca Benneyworth joins Lindsey Wicks, Senior Technical Manager – Tax Policy, ICAEW, to discuss recent developments and how to support taxpayers who are reluctant to use technology. 

Members wanting to know more and to speak to software providers can join the faculty’s free in-person event on 23 February. MTD Live will take place at Chartered Accountants Hall and will include a keynote from HMRC’s director of MTD, a panel discussion with experts and a series of demonstrations from software providers. 

More tax resources

Alongside producing tax news each week and a monthly Tax Track podcast to keep you up to date with the latest developments, the Tax Faculty produces detailed analysis and support. As an ICAEW member you have access to all these resources.

TAXguides offer expert insight, technical guidance and practical support on specific tax issues, often answering questions from tax practitioners. In 2025, guides have covered MTD for income tax, payroll and rewards, as well as rates, allowances and thresholds.

Alongside TAXguides, the faculty produces detailed feature articles each month offering a more in-depth look at topical issues. Recent articles have covered:

• the implications of a First-tier Tribunal ruling on loans to participators; 
• national insurance developments for internationally mobile employees;
• managing risk when taking on cryptoasset clients; and
• when a building is a dwelling for stamp duty land tax purposes.

The faculty also records regular webinars offering members a chance to hear from technical experts and pose their questions. These webinars are free to attend for ICAEW members and recordings can all be watched on icaew.com. This year the faculty has examined the construction industry scheme, the EU’s VAT in a Digital Age regime and the changes to the Windsor Framework.

ICAEW members are also provided access to tax support from selected external experts, including answers from Markel Tax on frequently asked questions from members. Members who have joined ICAEW’s Small Practitioner Community, can ring the Markel Tax advice helpline, while those working in ICAEW member firms have access to Bloomsbury Professional’s online Accounting and Tax Service, which comprises 80 ebooks.