Insights budget

Scottish Budget makes changes to income tax thresholds

ICAEW’s Tax Faculty highlights some of the key announcements from the Scottish Budget, including changes to the income bands for the starter, basic and intermediate rates of Scottish income tax and a package of non-domestic (business) rates reliefs.

Tax news in brief

Highlights from the broader tax news for the period ending 6 January 2026, including: looking ahead to Spring Statement 2026; updated rates of interest on underpaid and overpaid tax; and news of the R&D advance assurance pilot.

Agents may be overlooking IHT on cryptoassets

HMRC is writing to agents who have previously submitted inheritance tax (IHT) returns to raise awareness of the requirement to account for IHT on cryptoassets. Any returns that contain an error should be corrected.

What are salary sacrificed pension contributions?

ICAEW’s Tax Faculty explains the circumstances in which the cap on the national insurance contributions (NIC) exemption for salary sacrificed pension contributions, announced at the Autumn Budget 2025, are likely to apply.

Budget: New loan charge settlement opportunity

The government has said it will accept almost all of Ray McCann’s recommendations for a new settlement opportunity and go further by writing off the first £5,000 of debt, in the hope that this will give individuals “a path to resolution”.

Budget 2025 announcements you may have missed

ICAEW’s Tax Faculty provides a summary of some of the Autumn Budget 2025 measures that didn’t make the headlines, from changes to tax relief for homeworkers to proposals for companies to report payments made to participators.

Budget: Further changes made to CGT, IHT and residence rules

The Chancellor announced a number of changes to capital gains tax (CGT), inheritance tax (IHT) and the residence-based tax regime , including a change in the rules for disposals to employee ownership trusts (EOTs), effective immediately.

Budget: Key changes to income tax administration, payments and penalties

Easements for Making Tax Digital (MTD) for income tax, penalty reform announcements and changes to self assessment payments.

Budget: Key changes impacting business taxation

ICAEW’s Tax Faculty provides a summary of some of the changes affecting businesses announced at the Budget, including capital allowances and business rates as well as adjustments to penalty rates for late corporation tax filings and increasing the limits for venture capital reliefs.

Budget: Taxes on property, savings and dividends increased

The rates of income tax on savings, property and dividend income will increase by two percentage points and owners of high value homes will face a new council tax surcharge.

Budget: New levies include charge on electric vehicles

The Chancellor announced a number of changes to levies and duties at the Autumn Budget 2025, including the introduction of a new levy on drivers of electric cars from April 2028.

Budget: Freeze on personal allowance extended

The Chancellor extended the period during which the personal allowance will be set at £12,570 and the higher rate threshold at £50,270 by three years, until April 2031. The amounts have been frozen since April 2021.

Budget: NIC saving on salary sacrifice pension contributions capped

At the Autumn Budget 2025, the government announced that employers and employees will be required to pay national insurance contributions (NIC) from April 2029 if the amount of salary sacrificed for pension contributions exceeds £2,000.

Budget: Changes made to VAT rules and processes

A new VAT relief for business donations of goods to charity and a significant change affecting suppliers of private hire vehicle (PHV) and taxi services were among the announcements made at the Autumn Budget 2025.

Budget: Government will not regulate tax advisers

The government has said that standards will be raised in the tax advice market using a variety of measures.

Draft Welsh Budget sets out changes to land transaction tax

The Welsh Government has ruled out increases to the Welsh rates of income tax and the thresholds for land transaction tax (LTT) for 2026-27 and has announced changes to LTT multiple dwellings relief (MDR).

New process for paying the high income child benefit charge

HMRC’s online service for paying the high income child benefit charge (HICBC) through pay as you earn (PAYE), which was previously announced at the Spring Statement 2025, is now live.

HMRC turns the screw on tax scheme promoters

The government has proposed giving HMRC “additional powers and stronger sanctions” to clamp down on promoters of tax avoidance schemes in a consultation published alongside the Spring Statement on 26 March 2025.

Tax news in brief

Highlights from the broader tax news for the week ending 9 April 2025, including: an update on legislation to enact changes announced at the Autumn Statement 2024; and new guidance for agents on Making Tax Digital (MTD) for income tax.

HMRC increases interest rates for tax paid late

As first announced at the Autumn Budget 2024, the interest rate charged by HMRC for late payments of most taxes and duties will increase from 7% to 8.5% from 6 April 2025.

Government considers extending R&D advanced clearance service

After preliminary discussions with key stakeholders, including ICAEW, a consultation on widening the advanced clearance process for research and development (R&D) tax relief was published alongside the Spring Statement on 26 March 2025.

MTD income tax will be extended in 2028

Alongside the Spring Statement 2025, it was announced that Making Tax Digital (MTD) for income tax will be extended to those with turnover of more than £20,000 from April 2028. Taxpayers in MTD income tax will need to use commercial software for their final tax return.

Government takes further action to reduce tax debt

At the Spring Statement 2025, the government announced a package of new measures intended to reduce tax debt and close the tax gap. Taken together, the measures are expected to raise over £1bn in additional tax revenue per year by 2029/30.

How do changes to tax come into effect?

The government announces changes to tax rules, rates and allowances at the Budget and other fiscal events. We explain how these changes become law in a new video.

Scottish Budget makes income tax changes

The Scottish government has set out its tax plans for 2025 to 2026, announcing changes to the income tax starter and basic rate bands and an increase in the rate of the additional dwelling supplement for land and building transaction tax (LBTT).

940,000 employers to pay more NIC in 2025/26

Legislation introduced to Parliament provides for the changes to employers’ national insurance contributions (NIC) announced at the Autumn Budget 2024.

Tax news in brief

Highlights from the broader tax news for the week ending 20 November 2024, including: an update on MTD ITSA; suggestions for HMRC on how to reduce the tax gap; and legislation to enact the changes to business rates announced at the Autumn Budget 2024.

HMRC cuts interest rates for tax

The rates at which HMRC charges and pays interest on tax have been reduced to reflect the recent fall in the base rate. As announced in the Autumn Budget 2024, the rates for late payments will increase by 1.5 percentage points from April 2025.

Budget measures you may have missed

ICAEW’s Tax Faculty picks out some important measures announced at Autumn Budget 2024 which didn’t make the headlines on the day.

Changes to indirect taxes made in Autumn Budget 2024

ICAEW’s Tax Faculty provides a round-up of indirect tax measures announced in the Budget on 30 October 2024, including VAT, duties and the carbon border adjustment mechanism (CBAM).

ICAEW welcomes increased funds for HMRC in Autumn Budget

HMRC has received additional investment, with its budget for 2024/25 increasing from £4.7bn to £5.2bn, and its initial budget for 2025/26 set at £5.8bn. However, HMRC is expected to make savings of £107m in 2025/26 from continuous improvement.

Autumn Budget makes significant changes to inheritance tax

The government has announced that the inheritance tax (IHT) nil rate band will be fixed for a further two years, business property relief (BPR) and agricultural property relief (APR) will be reformed and the exemption for pensions will be removed.

Government publishes its plans for corporation tax

The government has set out its intentions for corporation tax for the next five years, delivering on its commitment to publish a business tax roadmap at the Autumn Budget.

Budget updates on manifesto commitments

The government has provided updates on some of the key measures included in the Labour Party’s general election manifesto, including the taxation of “non-doms” and charging VAT on services provided by private schools.

CGT and SDLT rates increased in Budget

From 30 October 2024, the main rates of capital gains tax (CGT) will be increased to 18% and 24%. The 10% rate of CGT for disposals attracting business asset disposal relief (BADR) will increase to 14% (from April 2025) and to 18% (from April 2026).

National insurance increases for employers announced in Budget

From April 2025, employers will pay national insurance contributions (NIC) on an employee’s earnings above £5,000 at the rate of 15%. The employment allowance will be increased to £10,500 per year to help smaller businesses.

Budget makes changes to how the tax system is administered

The Budget included several announcements on how HMRC will tackle non-compliance in the tax system, as well as an important update on making tax digital for income tax self assessment (MTD ITSA).

Autumn Budget 2024 confirms agents must register with HMRC

The government has made three proposals for raising standards in the tax advice market in response to the consultation published in March 2024.

Budget investment urged for HMRC services

ICAEW and CIOT are calling for more finance for HMRC customer services in the upcoming Budget, following the success of previous funding earlier this year.

Chancellor promises to improve the tax system

Ahead of the Budget on 30 October 2024, the government has provided an update on how it intends to deliver on its commitment to reform, modernise and invest in HMRC.

ICAEW makes its case for Budget tax measures

ICAEW has set out its recommendations for the business tax roadmap to be published at the Budget and has encouraged the government to carry-out a wider review of the tax system. ICAEW's Tax Faculty goes through the details.

Budget to be delivered on 30 October

The government has set the date of the Budget and confirmed that VAT will be charged on private school fees paid from 29 July 2024 in relation to the school term starting in January 2025.

Finance (No. 2) Act 2024 receives Royal Assent

Some of the changes announced at the Spring Budget 2024 have now become law, including an increase in the thresholds for the high income child benefit charge for 2024/25.

Families should reconsider claiming child benefit from 6 April

Approximately 180,000 families are encouraged to reconsider claiming child benefit in light of changes to the high income child benefit charge, which apply from 6 April 2024.

Draft legislation published for some Spring Budget 2024 measures

The Spring Finance Bill contains legislation which increases the thresholds for the high income child benefit charge and abolishes multiple dwellings relief for SDLT.

Tax news in brief

Highlights from the broader tax news for the week ending 13 March 2024, including: the publication of legislation providing for the Spring Budget NIC cuts; changes made by secondary legislation across a range of areas, including R&D tax relief, PAYE and CIS; new HMRC guidance on ISAs; and the opportunity to claim a refund for Italian VAT paid on goods and services related to Italian business activities.

Spring Budget 2024: the measures you missed

ICAEW’s Tax Faculty scans the Spring Budget documents for other tax-related announcements that didn’t make the headlines.

Spring Budget 2024: measures for business

As promised in the Autumn Statement, the Chancellor used the Spring Budget 2024 to announce a suite of tax relief changes to incentivise and support growth in the UK’s creative sector.

Non-dom regime replaced by foreign income and gains regime

In the Spring Budget, the Chancellor announced that the current remittance basis of taxation will be abolished for UK resident non-domiciled individuals from 6 April 2025 and replaced by a new four-year foreign income and gains (FIG) regime.

Government cuts NIC rates again for employees and self-employed at Spring Budget 2024

From 6 April 2024, the headline rate of NIC will fall from 10% to 8% for employees, and from 9% to 6% for the self-employed. The government will also consult on how it will abolish Class 2 NIC.