UK and International Tax news
Draft Finance Bill 2024-26
Monday 16th February 2026
Following the Autumn Budget of 26 November 2025, the draft Finance Bill 2024-26 has now passed through the Public Bill Committee stage and is due to go through its report stage. An updated copy of the Bill has been published and this contains 279 clauses, 23 schedules and over 550 pages, making it one of the longest bills to date.
The Bill, when enacted, is expected to give statutory effect to many of the changes announced in the Autumn Budget, including the following measures:
- increases of 2% in the income tax rates applicable to income from property and savings from April 2027, with the basic, higher and additional rates increasing to 22%, 42% and 47%.
- increases to limits applying to EMI and EIS schemes, and a reduction in the rate of tax relief available to investments in VCTs.
- abolition of the notional tax credit on distributions received by non UK residents.
- a new first year allowance of 40% and a reduction in writing down allowances to 16% for expenditure on plant and machinery.
- restriction of 50% to the relief on disposals to employee ownership trusts.
- amendments to the rules for taxing carried interest.
- changes to anti avoidance rules applying to share reorganisations.
- replacement of diverted profits tax with provisions to tax transfer pricing profits within corporation tax.
- reforms to transfer pricing and permanent establishments provisions.
- changes to Making Tax Digital for Income Tax.
- Prohibition of promotion of certain tax avoidance arrangements and sanctions.
- Tax adviser registration, conduct and sanctions.
- Changes to agricultural property and business property reliefs.
If you would like more information on the above, please contact Keith Rushen on 0207 486 2378.
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