Finance (No. 2) Bill 2025-26 received Royal Assent on 18 March 2026 to become Finance Act 2026. It contains a number of key measures, including the mandatory registration of tax advisers and the reform of Agricultural Property Relief and Business Property Relief.
The Bill was originally published on 4 December 2025, following the Autumn Budget on 26 November 2025. It was substantively enacted for UK GAAP and IFRS tax accounting purposes on 11 March 2026.
Some of the key measures in the new Finance Act include:
- Tax rates and allowances for 2026-27 and later years, including increased rates of Income Tax for dividends, property income, and savings income.
- The Mandatory registration of tax advisers.
- Reform of Inheritance Tax, including significant changes to Agricultural and Business Property Relief.
- A new 40% First Year Allowance.
- Amendments to the Company reconstruction rules.
- A requirement to claim Incorporation Relief.
- The abolition of the notional tax credit on Distributions received by non-UK residents.
Useful guides on this topic
Finance Acts 2025-26: tax update and Rolling Tax Planner
This rolling planner tracks the key tax announcements that impact the 2025-26 tax year and beyond. This planner is updated on an ongoing basis.
Tax Data Card 2026-27
A summary of key tax rates and allowances for 2026-27 and 2025-26.
Finance Act 2026: Contents
The Finance (No. 2) Bill 2025-26 was published on 4 December 2025 and received Royal Assent on 18 March 2026 to become Finance Act 2026. This is a summary of its contents, which includes legislation for the new 40% First Year Allowance, the registration of tax advisers, and the reform of Agricultural Property Relief and Business Property Relief.
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