House of Commons · Written Ministerial Statement
Finance Bill: 2025-26 draft legislation and tax documents
21 July 2025 · Treasury
Proposed by James Murray Lab Co-op Ealing North
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The government is publishing draft legislation for the 2025-26 Finance Bill to address non-compliance in various sectors.
- Draft measures aim to close the tax gap and ensure a fair and sustainable tax system.
- Consultations and technical updates will be included for better data use and tax digitalisation.
Issue summary
The statement discusses draft legislation and tax documents for the 2025-26 Finance Bill, focusing on measures to close the tax gap and maintain a fair and sustainable tax system.
Action requested
The government is publishing draft legislation aimed at closing the tax gap by addressing non-compliance in various sectors including umbrella companies, tax advisers, charitable donations, and pension funds. It also includes technical updates and consultations for better data use and tax digitalisation. The final contents of Finance Bill 2025-26 will be decided by the Chancellor at the next Budget.
Key facts
- Government is committed to engaging with interested groups when developing tax policy.
- Draft legislation aims to reduce tax non-compliance in umbrella companies, raising £500m by 2029-30.
- Enhancing HMRC's powers to tackle tax advisers facilitating non-compliance and mandate registration for tax advisers from April 2026.
- Legislation to change rules on charity compliance measures effective from April 2026.
- New regime for carried interest treatment as trading profits, effective from April 2026.
- Inheritance Tax changes to unused pension funds and death benefits from April 2027.
- Amendments to inheritance tax reliefs for agricultural property and business property from April 2026.
- PHEV BiK tax mitigation easement announced between April 2026 and April 2028.