Finance Bill 2024-25 received Royal Assent on 20 March 2025 to become Finance Act 2025. It contains a number of key measures, including the abolition of the Furnished Holiday Letting and non-domicile tax regimes.
The Bill was originally published on 7 November 2024, following the Autumn Budget on 30 October 2024.
Some of the key measures in the new Finance Act include:
- Changes to Capital Gains Tax (CGT) rates.
- The abolition of the Non-domicile tax regime from 6 April 2025.
- Changes to rates of Stamp Duty Land Tax from 1 April 2025.
- Removal of the VAT exemption on private school fees.
- Extending Agricultural Property Relief (APR) to environmental management agreements.
- The abolition of the Furnished Holiday Letting regime from 1/6 April 2025.
- An extension to the freeze to the Inheritance Tax (IHT) Nil Rate Band (NRB) and Residence Nil Rate Band (RNRB).
Useful guides on this topic
Finance Acts 2024-25: tax update and Rolling Tax Planner
This rolling planner tracks the key tax announcements that impact the 2024-25 tax year and beyond. This planner is updated on an ongoing basis.
Non-Domicile: 2025 changes: Client Briefing
Originally proposed in Spring Budget 2024, the non-domicile tax regime and current version of the Remittance Basis rules would be abolished on 5 April 2025 and replaced with a new structure. The new government has confirmed this is its policy and has updated the proposals. We take a closer look.
Furnished Holiday Letting (FHL): Abolition of the regime briefing
HMRC have published draft legislation and related notes detailing how the abolition of the Furnished Holiday Letting (FHL) rules in April 2025 will operate. We consider the practical impact of losing the FHL rules and provide some essential planning points.
Tax Data Card 2025-26
A summary of key tax rates and allowances for 2025-26 and 2024-25.
Private school fees and VAT
On 29 July 2024, the Chancellor announced that from 1 January 2025, all education services, vocational training and boarding services supplied by a private school, or a connected person, will be subject to VAT at the standard rate of 20%. What does this mean?
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