The UK Finance Bill 2024–25 passed through the House of Lords on 19 March 2025 and received Royal Assent on 20 March 2025. The bill was published as Finance Act 2025 and enacts tax measures from the Autumn Budget 2024, effective from the 2025–26 tax year, and sets the corporation tax rate for 2026.
Corporation tax charged for the financial year 2026 is set at 25%. Other key provisions include introducing VAT on private school fees, replacing the non-domicile tax regime with a residence-based system, increasing the lower capital gains tax rate from 10% to 18% and the higher rate from 20% to 24%, and raising the energy profits levy on oil and gas from 35% to 38%.
Earlier, UK’s Finance Bill 2024-25 moved to the House of Lords, where it had its first reading on 4 March.
The Bill has passed through the House of Commons where MPs debated during the report stage on 3 March 2025, approving 66 amendments proposed by the government on 25 February 2025.
