UK: Consultation on proposed tax measures for Finance Bill 2025-2026; HMRC Transformation Roadmap
Proposed tax measures include amendments to top-up taxes
The government on July 21, 2025, published draft legislation and explanatory notes for Finance Bill 2025-2026, which includes proposed tax measures relating to:
- Amendments to multinational top-up tax and domestic top-up tax
- Research and development (R&D) tax relief (clarifying scope of overseas R&D restriction)
- Land remediation relief
- Better use of new and improved third-party data
- Anti-avoidance
- Making tax digital (MTD) for income tax
- Inheritance tax
- Technical amendments to the non-dom regime
- Personal tax offshore anti-avoidance
- Charity compliance measures
- Inland border facilities
The draft legislation is open for consultation until September 15, 2025.
Read a July 2025 report prepared by the KPMG member firm in the UK, which includes links to separate articles on the following measures:
- Reforms to agricultural property relief and business property relief
- Reform of the tax treatment of carried interest
- Non-compliance in the umbrella company market
- Getting employment options ready for Private Intermittent Securities and Capital Exchange System (PISCES)
- Changes to employee car ownership schemes
In addition, HM Revenue & Customs (HMRC) on July 21, 2025, issued its Transformation Roadmap setting out how the UK will build “a tax and customs system that is fit for the future,” with easier interactions for everyday tasks due to simplified processes capitalizing on the use of new technologies and more digital self-serve options for taxpayers. Significantly, the roadmap announces that HMRC will not proceed with the “Making Tax Digital for Corporation Tax” initiative and instead will develop an approach for the administration of corporate tax that is “suited to the varying needs of the diverse [corporate tax] population.”
Read a July 2025 report prepared by the KPMG member firm in the UK