Recent and Upcoming Headline Tax Changes

Tax Area: Personal Tax, OMB

This measure changes the basis of taxation for self-employed traders, partners in trading partnerships and other unincorporated entities with trading income.

More information can be found at Basis period reform - GOV.UK and Basis period reform: moving to a 31 March year-end | Tax Adviser

Tax Area: OMB, Large corporate

This measure combines the current Research and Development Expenditure Credit (RDEC) and small or medium enterprise (SME) R&D relief into a merged scheme.

More information can be found at Merger of current small or medium enterprise (SME) and Research and Development Expenditure Credit (RDEC) schemes - GOV.UK  and R&D changes: why you need to act now | Tax Adviser

Tax Area: Personal Tax, OMB

This measure increases the main rates of Capital Gains Tax on a range of assets, persons and reliefs.

More information can be found at Changes to the rates of Capital Gains Tax - GOV.UK.

Tax Area: Personal Tax, OMB

This measure removes restrictions on the use of the cash basis and makes the cash basis the default method of calculating trading profits. An election will be required to use the accruals basis. 

More information can be found at Expanding the cash basis - GOV.UK. 

Tax Area: Personal Tax, OMB

This measure abolishes the lifetime allowance from pension tax legislation.

More information can be found at Abolishing the pensions lifetime allowance - GOV.UK.

Tax Area: Inheritance tax and trusts

This measure legislates and extends an existing concession by providing that trusts and estates with income up to £500 do not pay tax on that income as it arises.

More information can be found at Estates in administration and trusts - GOV.UK.

Tax Area: Personal Tax, OMB

This measure removes the liability to pay the weekly Class 2 flat rate for those with profits above £12,570 from 6 April 2024.

More information can be found at Removal of the requirement to pay Class 2 National Insurance contributions - GOV.UK

Tax Area: Personal Tax, OMB

This measure removes the specific tax treatment and separate reporting requirements for furnished holiday lettings (FHLs).

More information can be found at Abolition of the furnished holiday lettings tax regime - GOV.UK and Abolition of the furnished holiday lets regime | Tax Adviser.

Tax Area: Personal Tax, OMB

This measure removes the concept of domicile from the assessment of foreign income and capital gains and replaces it by a regime based on residence. At the same time, residence will also replace domicile as a basis for UK inheritance tax liability.

More information can be found here Reforming the taxation of non-UK domiciled individuals - GOV.UK and Search | Tax Adviser.

Tax Area: General feature

This measure changes how HMRC will interpret the terms “car” and “van” for tax (though not VAT) purposes. From 6 April 2025.

More information can be found at EIM23151 - Car benefit: double cab pickups 6 April 2025 onwards - HMRC internal manual - GOV.UK.