On 21 July 2025, the government published draft legislation for Finance Bill 2025-26 for consultation. In this brief episode, Mark Morton shares his immediate reaction. 

Much of the content was pre-announced, including:

• Inheritance Tax Overhaul – the government is proceeding with reforms to agricultural and business property reliefs, effective from April 2026, and bringing unused pension funds and death benefits into the scope of IHT from April 2027.
• Making Tax Digital (MTD) Evolves – the legislation aims to refine and simplify the MTD Income Tax and penalty reform regimes, including the deferral of implementation for specific groups and the pre-announced reduction in the qualifying income threshold to £20,000 from 2028/29 (based on returns for 2026/27).
• Tax Adviser Regulation - HMRC will mandate registration and minimum standards for tax advisers from April 2026, aiming to improve compliance and transparency.
• Carried Interest Recast – As announced at Autumn Budget 2024, qualifying carried interest will be taxed as trading income from 6 April 2026, aligning the tax treatment with other forms of remuneration.

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