Every year, HM Treasury uses ‘Legislation Day’ to outline changes that could shape the financial future of UK businesses. This year, on 21 July 2025, the announcements focused on three main areas: closing tax loopholes, modernising systems, and making tax policy “fairer.”
For small business owners and start-up founders already juggling enough – this kind of update can feel overwhelming. That’s exactly why we’ve pulled out the key changes that could impact your business or personal finances – and what you can do about them.
At A&C Chartered Accountants, we believe knowledge is power – and a solid plan beats a last-minute scramble every time.
1. Crackdown on avoidance: a push for transparency
HMRC wants to reduce the ‘tax gap’ – the difference between what’s owed and what’s actually collected. Here’s how:
-
Tax agents must register with HMRC
Anyone who deals with HMRC on your behalf (like us) will soon need to be officially registered. It’s all part of a wider effort to improve standards and accountability across the industry.
-
Making Tax Digital (MTD) continues
HMRC is pressing ahead with MTD for Income Tax, which means more businesses will need to file and report digitally – even sole traders and landlords.
If you’re unsure whether MTD will apply to you – or when – we’ll walk you through it, step by step.
2. Big shifts in inheritance and benefits
Several changes are aimed at levelling the playing field – but could create new tax burdens:
-
Inheritance tax relief cutbacks from April 2026
Relief for agricultural and business property is being scaled back, which could hit family-run firms or farms planning for succession.
-
Pension pots could now be taxed from April 2027
Inherited pensions may be treated as part of the estate for inheritance tax – this is a big change and one to plan around.
-
Employee car ownership schemes to be taxed as benefits
These schemes will now fall under the Benefit in Kind (BiK) rules – if you run a company car scheme, it’s time to double-check your setup.
3. Small print that matters
A couple of more technical — but still relevant — proposals:
-
Plug-in hybrids (PHEVs) and BiK changes
If the new Euro 6e emissions standard is introduced in Great Britain, BiK costs for PHEVs would soar — but the government plans an easement to soften the blow.
-
New PISCES share market
A draft tax framework was released for PISCES, a new platform that would allow private companies to trade shares on an intermittent basis. If you’re scaling or raising capital, this could be worth keeping on your radar.