Tax news: page 3
- April 2025
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.
Autumn Budget unveiled £40bn of tax rises and froze IHT thresholds until 2030
Rachel Reeves' Autumn Budget set out £40bn of tax rises and froze inheritance tax thresholds until 2030, with the next fiscal statement due on 26 March.
Capital gains tax rates on assets increased
Capital gains tax on assets rose to 18% for basic-rate taxpayers and 24% for higher-rate taxpayers, taking effect immediately after the Autumn Budget.
Inheritance tax freeze extended until 2030
Inheritance tax thresholds that were due to stay frozen until 2028 will now remain unchanged until 2030, keeping the £325,000 nil-rate band and residence allowances at their current levels.
October 2024 Budget announced pensions to enter inheritance tax from April 2027
Pensions will be brought into inheritance tax calculations from April 2027 under Budget reforms, a change expected to raise nearly £1.5bn in 2029-30 and affect around 8% of estates.
Option 2 recommended for the 2024 Regulations
The Scottish Government has recommended uprating the earnings arrestment tables with minor banding reform, raising the protected minimum amount from £655.83 to £750 a month from 6 April 2025.
Secondary Threshold reduced to £5,000 and secondary Class 1 rate raised to 15% announced
The Secondary Threshold for employer National Insurance will fall to £5,000 and the secondary Class 1 rate will rise to 15% from 6 April 2025, under regulations giving effect to Autumn Budget 2024.
Unspent pension pots to be included in estates for inheritance tax from April 2027
Unspent pension pots will count towards a person's estate for inheritance tax from April 2027, under a change announced in the 2024 Autumn Budget.
- August 2024
Corrections to 2021 to 2022 personal allowance and England, Northern Ireland and Wales bands
HM Revenue & Customs has corrected the 2021 to 2022 personal allowance to £12,570 and the basic and higher rate band figures for England, Northern Ireland and Wales.
Alcohol duties frozen until August 2024
Alcohol duties are frozen until August 2024, following a simplification of the way alcohol is taxed that took effect in summer 2023, according to Which?.