The government recently published draft legislation for Finance Bill 2025-26 for consultation.

The legislation includes an Inheritance Tax overhaul; measures intended to refine and simplify the Making Tax Digital for Income Tax (MTD for IT) and penalty reform regimes; tax adviser regulation; and changes to the treatment of carried interest.

Most measures included in the draft Finance Bill comprise a tax information and impact note (TIIN), which sets out what the policy seeks to achieve, and a summary of the expected impacts; draft legislation; and an explanatory note which provides a more detailed guide to the legislation.

The consultation closes on 15 September 2025. The final contents of the next Finance Bill will be decided by Chancellor Rachel Reeves.