Running a holiday let
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UK Act of Parliament
2025
United Kingdom
Finance Act 2025
At a glance
Enforced by
What's here
7 compliance obligations, 4 practical guides across 2 topics · 1 journey
Penalty landscape
1 of 7 obligations carry up to 2 years imprisonment. 6 have no criminal penalty — flagged in the list below.
Who this Act binds
Business-side actors with duties under this Act, ranked by how often they appear.
- Any Person 4
- Trader 1
Plus 2 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.
Step-by-step journeys using this legislation
Walkthroughs that take you from a real business situation to compliance.
Relevant guidance
Practical guides for businesses affected by this Act, ordered by how closely they engage with it.
Supporting — topic alignment
3 guidesMentioned in related content
1 guidesOther Acts binding the same actors
For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.
Any Person also bound by 2338 other Acts (top 5 shown)
- Human Medicines Regulations 2012 2012 169 duties
- Merchant Shipping Act 1995 1995 144 duties
- Insolvency (England and Wales) Rules 2016 2016 101 duties
- Road Traffic Act 1988 1988 95 duties
- Air Navigation Order 2016 2016 95 duties
Traders also bound by 826 other Acts (top 5 shown)
- Value Added Tax Regulations 1995 1995 413 duties
- Companies Act 2006 2006 243 duties
- The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 2008 114 duties
- Insolvency (England and Wales) Rules 2016 2016 62 duties
- Building Societies Act 1986 1986 56 duties
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Part 1 — Income tax, capital gains tax and corporate taxes
Freezing starting rate limit for savings for tax year 2025-26
2 years imprisonment- Fail to comply with or hinder a direction under section 2 Any Person
Browse 35 other sections in this Part — procedural / definitional / commencement
Income tax charge for tax year 2025-26
Main rates of income tax for tax year 2025-26
Default and savings rates of income tax for tax year 2025-26
Appropriate percentage for cars: tax year 2028-29
Appropriate percentage for cars: subsequent tax years
Main rates of CGT for gains other than carried interest gains
Business asset disposal relief: increase in rate
Investors’ relief: increase in rate
Investors’ relief: reduction in amount qualifying for relief
Sections 7 to 10 : transitional provision
Rate of CGT for carried interest gains
Charge and main rate for financial year 2026
Standard small profits rate and fraction for financial year 2026
Increase in rate of energy (oil and gas) profits levy
Relief from levy for investment expenditure
Extending the period for which levy has effect
Decommissioning of carbon storage installations
Pillar Two
Offshore receipts in respect of intangible property
Application of PAYE in relation to internationally mobile employees etc.
Advance pricing agreements: indirect participation in financing cases
Expenditure on zero-emission cars
Expenditure on plant or machinery for electric vehicle charging point
Commercial letting of furnished holiday accommodation
Films and television programmes: increased relief for visual effects
Certification of films etc: minor amendments
Films etc: unpaid amounts
Research and development relief: Northern Ireland companies
Research and development intensity condition: transitional provision
Employee-ownership trusts
Overseas transfer charge: pension schemes in EEA state or Gibraltar
Overseas pension schemes established in EEA states
Pension scheme administrators required to be resident in United Kingdom
Alternative finance: diminishing shared ownership refinancing arrangements
Statutory neonatal care pay
Part 2 — Replacement of special rules relating to domicile
Browse 10 other sections in this Part — procedural / definitional / commencement
Claim for relief on foreign income
Claim for relief on foreign employment income
Claim for relief on foreign gains
Remittance basis not available after tax year 2024-25
Temporary repatriation facility
Rebasing of assets
Trusts: connected amendments, transitional provision etc
Excluded property: domicile test replaced with long-term residence test
Corresponding change for settled property
Consequential, connected and transitional provision
Part 3 — Other taxes
Rates of tobacco products duty
- Pay the correct rates of tobacco products duty Trader
Rates of vehicle excise duty for rigid goods vehicles with trailers
- Pay the correct Vehicle Excise Duty for rigid goods vehicles with trailers Any Person
Vehicle excise duty for vehicles with exceptional loads etc
- Pay increased vehicle excise duty for heavy or exceptional loads Any Person
Rate of vehicle excise duty for haulage vehicles other than showman’s vehicles
- Pay increased vehicle excise duty for haulage vehicles Any Person
Browse 29 other sections in this Part — procedural / definitional / commencement
Removal of exemption for private school fees
Charge on pre-paid private school fees
Sections 47 and 48 : commencement
Increased rates for additional dwellings: transactions before 1 April 2025
Increased rates for additional dwellings: transactions on or after 1 April 2025
Contracts substantially performed before relevant rate change
Purchases by companies etc
Alternative finance: land in England, Scotland or Northern Ireland
Alternative finance: land in Wales
Testing of FMI technologies or practices
Rate bands etc for tax years 2028-29 and 2029-30
EBTs: prohibition on applying property for benefit of participators etc
EBTs: restriction on proportion of beneficiaries who may be participators etc
EBTs: shares entering trust to have been held for two years
Agricultural property relief: environmental management agreements
National Savings Bank: statements from HMRC no longer to be required
Rates of alcohol duty
Abolition of duty stamps for alcoholic products
Rates of vehicle excise duty for light passenger or light goods vehicles etc
Rates of vehicle excise duty for rigid goods vehicles without trailers etc
Vehicle excise duty: zero-emission vehicles
Rates of HGV road user levy
Rates of air passenger duty until 1 April 2026
Rates of air passenger duty from 1 April 2026
Rates of climate change levy
Rates of landfill tax
Rate of aggregates levy
Rate of plastic packaging tax
Rates of soft drinks industry levy
Part 4 — Miscellaneous and final
Duty on vaping products
Other duties (1) — Crown / regulator
- HMRC may prepare for a new vaping products duty Statutory regulator
Carbon border adjustment mechanism
Other duties (1) — Crown / regulator
- HMRC may prepare for a new Carbon Border Adjustment Mechanism (CBAM) tax Statutory regulator
Browse 6 other sections in this Part — procedural / definitional / commencement
Limited liability partnerships
Loans to participators
OECD crypto-asset reporting framework
Correction of wrong cross-reference etc
Interpretation
Short title
Schedules
Browse 340 other Schedules — structural / supplementary
Consequential provision in connection with section 7
Amendments of TCGA 1992
In section 6 of F(No.2)A 2024, omit—
In section 1I (income taxed at higher rates or gains...
In section 222A (determination of main residence: non-resident CGT disposals),...
In section 223 (amount of relief), in subsection (7)(b), for...
Omit Schedule 1B (residential property gains).
(1) Schedule 4AA (re-basing for non-residents in respect of UK...
Amendments of other Acts
In Schedule 1 to FA 2019, omit paragraph 15.
(1) Schedule 2 to that Act (returns and payments on...
Sections 7 to 10 : transitional provision
Introductory
Introductory
Assets transferred on or after 6 April 2025 under unconditional contract made before 30 October 2024
Assets transferred on or after 6 April 2025 under unconditional contract made on or after 30 October 2024 but before 6 April 2025
Assets transferred on or after 6 April 2026 under unconditional contract made in tax year 2025-26
Paragraphs 11 to 13: supplementary provision
Business asset disposal relief: reorganisations of share capital before 30 October 2024
Business asset disposal relief: reorganisations of share capital on or after 30 October 2024 but before 6 April 2026
Business asset disposal relief: exchanges of securities etc before 30 October 2024
Business asset disposal relief: exchanges of securities etc on or after 30 October 2024 but before 6 April 2026
Investors’ relief: reorganisations of share capital before 30 October 2024
Allocation of amounts to times before or after 30 October 2024
Investors’ relief: reorganisations of share capital on or after 30 October 2024 but before 6 April 2026
Interpretation
Foreign chargeable gains under section 809J of ITA 2007 (section...
Chargeable gains treated as accruing to a settlor under section...
(1) This paragraph makes provision in relation to—
Introductory
Assets transferred under unconditional contract made before 30 October 2024
Investors’ relief: reorganisations of share capital before 30 October 2024
Interpretation
Payments into decommissioning funds
Payments into decommissioning fund treated as general decommissioning expenditure
Meaning of “relevant transferred plant or machinery”
Application of
Prevention of subsequent allowance where expenditure paid out of qualifying payment
Application of the Energy (Oil and Gas) Profits Levy Act 2022
Commencement
Pillar two
F(No.2)A 2023 is amended in accordance with—
Commencement
Permanent establishments as excluded entities
Use of substituted values
Flow-through entities
In section 169 (certain non tax resident entities to be...
In section 170 (adjustments for ultimate parent that is a...
(1) Section 178 (reallocation of tax expense) is amended as...
In section 240 (location of flow-through entities and permanent establishments),...
Tax equity partnerships
In sections 175 and 176, in the headings, for “covered...
Multinational top-up tax to include undertaxed profits rule
(1) Section 176D (tax credits etc allocated under tax equity...
(1) Section 176E (flow-through tax benefits: proportional amortisation method) is...
(1) Section 176F (flow-through tax benefits: subtraction method) is amended...
After section 176F insert— Clawback of earlier qualifying flow-through tax...
In Schedule 15 (elections), in paragraph 2(1) (annual elections), omit...
Blended CFC regimes
No allocation of deferred tax assets and liabilities under blended CFC regimes
Cross-border allocation of current tax under cross-crediting regimes
Cross-border allocation of deferred tax
Extension of qualifying foreign tax credits
Expansion of chargeable persons
Deferred tax recapture
Existing deferred tax assets and liabilities arising under blended CFC regimes
Substance based income exclusion: permanent establishments and flow-through entities
For section 198 (eligible payroll costs and eligible tangible asset...
In section 196 (eligible payroll costs), after subsection (6) insert—...
In section 197 (eligible tangible asset amount), after subsection (9)...
Eligible payroll costs
Additional top-up amounts
(1) Section 206 (additional top-up amounts where recalculations required) is...
Joint ventures
Charge to multinational top-up tax to include UTPR
(1) Section 227 (application of Part to joint venture groups)...
(1) Section 266 (qualifying entities) is amended as follows.
Domestic top-up tax
(1) Section 272 (determining top-up amounts of entity that is...
Domestic top-up tax: excluded entities
De minimis rule
Transitional safe harbour
Transitional safe harbour: arbitrage arrangements
Substance based income exclusion: removal of provision for election
Inclusion ratio
New chapter to deal with UTPR
(1) Section 223 (adjustments) is amended as follows.
Specification of territories and taxes
Filing etc not required before 30 June 2026
Minor amendments
In section 148A (transferable tax credits), in subsection (5)(a)—
In section 170 (adjustments for ultimate parent that is a...
In section 171 (ultimate parent subject to qualifying dividend regime)—...
In section 176B (value of non-marketable transferable tax credits: originator),...
In section 176C (value of non-marketable transferable tax credits: purchaser)—...
In section 176D (tax credits etc allocated under tax equity...
Transition into regime
In section 211 (transfer of assets or liabilities to a...
In section 212 (meaning of “qualifying reorganisation”), in subsection (4),...
In section 215 (undistributed income amount), in subsection (2)(c) omit...
In section 216 (election where assets and liabilities adjusted to...
In section 217 (post filing adjustments of covered taxes), after...
In section 217(8), for paragraph (a) substitute—
In section 220 (top-up amount of investment entity)—
In section 222 (investment entity effective tax rate), in Step...
In section 242 (ownership interests and controlling interests), in subsection...
In section 255 (Pillar Two rules), in subsection (6), for...
Consequential amendments: IIR and qualifying undertaxed profits tax
In Schedule 14 (administration of multinational top-up tax)—
In Schedule 16A (multinational top-up tax: safe harbours), in paragraph...
Commencement
Other consequential amendments etc
(1) In Schedule 17 (index of defined expressions), in the...
Furnished holiday lettings
FA 2004
TCGA 1992
Consequential repeals of amending provisions
Commencement:
Commencement: Part 4
Anti-forestalling: disposals under unconditional contracts
Corporation tax: accounting periods straddling 1 April 2025
Carry-forward of losses: income tax
Carry-forward of losses: corporation tax
Plant and machinery allowances
Business asset disposal relief: disposals relating to pre-commencement businesses
ITTOIA 2005
Post-commencement disposals by companies with substantial shareholding
ITA 2007
Consequential repeals of amending provisions
CTA 2009
CTA 2010
Consequential repeals of amending provisions
CAA 2001
Consequential repeals of amending provisions
Employee-ownership trusts
Introduction
Requirement for trustees of employee-ownership trusts to be UK resident
Trustee independence
Temporary breach of trustee independence requirement or residence requirement arising from death of trustee
Consideration requirement
Extended period for disqualifying events
Additional information to be provided in claims
Participation requirement not infringed by exclusion of directors
Relief for distributions to trustees of employee-ownership trusts
Diminishing shared ownership refinancing arrangements
Income tax
Corporation tax
Capital gains tax
Application
Relief on foreign employment income: consequential and transitional provision
(1) ITEPA 2003 is amended as follows.
(1) ITA 2007 is amended as follows.
In Part 8 of Schedule 3 to the Social Security...
After section 690C of ITEPA 2003 (employees who were internationally...
Individuals no longer meeting section 26A requirement not qualifying new residents
Certain individuals meeting section 26A requirement treated as qualifying new residents
Limit on relief not to apply to certain foreign employment relief claims
Definitions
Income tax and capital gains tax: remittance basis and domicile
No remittance basis for tax years after 2024-25
In section 62 of TCGA 1992 (residence of personal representatives),...
Residence of trustees: domicile of settlor no longer relevant
(1) Section 69 of TCGA 1992 (trustees of settlements) is...
(1) In the Money Laundering, Terrorist Financing and Transfer of...
Application of Income Tax Acts in relation to deemed employment
Pension schemes
In section 7 of F(No.2)A 2005 (social security pension lump...
Domicile of overseas electors
In ITA 2007 omit section 835B (domicile for income tax...
Situs of debt
Amendments of TCGA 1992 connected with end of remittance basis
Trust reporting requirements
Trusts with vulnerable beneficiary
Disposals of deeply discounted securities
The accrued income scheme
FOTRA securities
Reliefs in respect of income from investments etc. of certain pension schemes
Education funding
Making Tax Digital
Amendments of ITEPA 2003 connected with end of remittance basis
Amendment of ITTOIA 2005 connected with end of remittance basis
When amounts will be remitted
Relief for amounts remitted again on becoming UK resident
Removal of exemption for persons not domiciled in United Kingdom
Transferable tax allowance for married couples etc
Residence of personal representatives: domicile of deceased no longer relevant
Temporary repatriation facility
Introduction and charge
Income tax exemptions and relief
Income tax exemptions: application of transfer of assets abroad rules in future years
Capital gains tax: main exemption
Capital gains tax: reliefs in respect of matched capital payments
Amounts derived from designated qualifying overseas capital
Effect of this Schedule on section 65(5) IHTA 1984 and section 260(2) of TCGA 1992
Temporary disapplication of nominated income ordering rules
Mixed funds: section 809Q of ITA 2007
Mixed funds: section 809R of ITA 2007
Mixed funds: TRF capital account
Temporary application of annualised basis to mixed funds containing TRF capital
Business investment relief
Qualifying overseas capital: main cases
No tax credits for pre 2016-17 dividends etc
Commencement
Capital payments made by settlement: section 87 and 89 TCGA 1992 cases
Capital payments made by settlement: offshore income gains cases
Capital payments made by settlement: Schedule 4C cases
Amounts of income treated as qualifying overseas capital
Deemed income under section 732 of ITA 2007 where pre-2025 gains available for matching
Designation of qualifying overseas capital
Payment of the TRF charge through the income tax system
Rebasing of assets
Rebasing of assets for individuals who have been subject to the remittance basis
Assets becoming situated in the United Kingdom before 6 April 2025
Election for paragraph 1 not to apply
Rebasing under Schedule 8 to F(No.2)A 2017
Trusts: connected amendments, transitional provision etc
Chapter 5 of Part 5 of ITTOIA 2005 (settlements: amounts...
In section 637 (qualifications to section 636), in subsections (5)...
For the italic heading before section 643A, substitute— Transitional provision...
Before section 643A insert— “Protected foreign-source income” and “transitional trust...
For section 643A substitute— Benefits paid out of protected foreign-source...
(1) Section 643B (meaning of “untaxed benefits total” in section...
For section 643C substitute— Meaning of “available protected income” in...
(1) Section 643E (reimbursement of tax paid by settlor) is...
After section 643E insert— Onward gifts from non-residents or qualifying...
(1) Section 643F (income attributed by section 643A to user...
(1) Section 643G (section 643F(4): benefits and income “relating” to...
In section 619 (charge to tax under Chapter 5), in...
In section 643H (meaning of close member of settlor’s family),...
Omit sections 643I to 643M (old onward gift provisions).
(1) Section 643N (person liable under section 643J or 643L...
(1) Section 645 (property or income originating from settlor) is...
(1) Section 646 (adjustments between settlor and trustees etc) is...
(1) Section 648 (income arising under a settlement) is amended...
Chapter 2 of Part 13 of ITA 2007 (transfer of...
In section 718 (meaning of “person abroad” etc)—
In section 720 (charge to tax on income treated as...
In section 721 (individuals with power to enjoy income as...
In section 622 (person liable), for “sections 643A and 643I...
Omit sections 721A and 721B (meaning of “protected foreign-source income”...
After section 725 insert— Recovery of tax paid as a...
(1) Section 726 (remittance basis etc) is amended as follows....
In section 727 (charge to tax on income treated as...
In section 728 (individuals receiving capital sums as a result...
Omit section 729A (meaning of “protected foreign-source income”).
Before section 730 insert— Recovery of tax paid as a...
(1) Section 730 (remittance basis etc) is amended as follows....
(1) Section 731 (charge to tax on income treated as...
(1) Section 732 (deemed income where benefit received) is amended...
In section 624 (income where settlor retains an interest), in...
(1) Section 733 (income charged under section 731) is amended...
Omit sections 733A to 733E and 734A (old provision about...
(1) Section 735 (remittance basis etc) is amended as follows....
(1) Section 735A (matching rules) is amended as follows.
After section 735A insert— Transitional provision about protected foreign-source income...
(1) Section 735B (settlor charge: remittance-basis users) is amended as...
(1) Section 735C (old onward gifts provisions: remittance-basis users) is...
In section 736 (exemptions: introduction)— (a) in subsection (1), for...
Omit section 742A (post-5 April 2012 transactions: exemption for genuine...
In section 747 (amounts corresponding to accrued income profits and...
Omit sections 628A to 628C (protected foreign-source income and transitional...
In section 751 (tribunal’s jurisdiction on appeals), omit paragraph (da)....
TCGA 1992 is amended in accordance with this Part of...
In section 1A (territorial scope), in subsection (2)(e), omit “87K,...
In section 1E (losses deductible only when within scope of...
In section 62 (death: general provisions), in subsection (2A), omit...
(1) Section 86 (attribution of gains to settlors with interest...
In section 86A (attribution of gains to settlor where temporarily...
In section 87 (non-UK resident settlements: attribution of gains to...
(1) Section 87B (section 87: remittance basis) is amended as...
In section 87D (sections 87 and 87A: capital payments to...
In section 629 (income paid to relevant children of settlor),...
(1) Section 87G (settlor liable if capital payment received by...
In section 87H (meaning of “close member of the settlor’s...
For sections 87I to 87M (old onward gifting provisions) substitute—...
In section 91 (increase in tax payable under section 87...
In section 97 (supplementary provisions)— (a) in subsection (1)(a)(ii), for...
In section 279A (deferred unascertainable consideration: election for treatment of...
In section 279C (effect of election under section 279A), in...
In Schedule 1 (UK resident individuals not domiciled in UK),...
(1) Schedule 4C (transfers of value: attribution of gains to...
(1) Schedule 5 (attribution of gains to settlors with interest...
Omit section 630A (exception to section 629 for protected foreign-source...
Commencement
Settlements: transitional protection where available protected income is increased by this Schedule
Onward gifts: settlements (income)
Onward gifts: transfer of assets abroad
Onward gifts: settlements (chargeable gains)
In section 635 (capital sums charge: amount of available income)—...
In section 636 (capital sums charge: calculation of undistributed income)—...
Inheritance tax
IHTA 1984
(1) Section 64 (charge at ten-year anniversary) is amended as...
(1) Section 65 (exit charges etc) is amended as follows....
(1) Section 74A (arrangements involving acquisition of interest in settled...
In section 75A, omit subsection (4).
In section 80 (initial interest of settlor or spouse), in...
In section 81 (property moving between settlements), in subsection (1)—...
For section 81B substitute— Excluded property: property to which section...
Omit sections 82 and 82A (excluded property: property to which...
In section 94 (close companies: charge on participators), in subsection...
In section 136 (transfers within three years before death: transactions...
In section 5 (meaning of estate), for subsection (1B) substitute—...
In section 155 (visiting forces etc), in subsections (2) and...
(1) Section 157 (non-residents’ bank accounts) is amended as follows....
In section 218 (non-resident trustees), in subsection (1)(a), for “domiciled...
Omit section 267 (persons treated as domiciled in United Kingdom)....
(1) Section 267ZA (election to be treated as domiciled in...
In section 267ZB (section 267ZA: further provision about election) (as...
Omit sections 267ZA and 267ZB (election to be treated as...
Before section 267A insert— Election to be treated as a...
(1) Section 272 (general interpretation) is amended as follows.
(1) Schedule A1 (non-excluded overseas property) is amended as follows....
In section 6 (excluded property), omit subsection (3).
In Schedule 4 (maintenance funds for historic buildings etc), in...
FA 1986
FA 2004
In paragraph 11 (exemptions from charge), in sub-paragraph (5), after...
In the italic heading before paragraph 12, for “resident or...
(1) Paragraph 12 is amended as follows.
Constitutional Reform and Governance Act 2010
Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004 (S.I. 2004/2543)
In regulation 2 (interpretation)— (a) the existing text becomes paragraph...
(1) Regulation 4 (excepted estates) is amended as follows.
In section 8D(9), omit the definitions of “tax year” and...
In regulation 5 (spouse, civil partner and charity transfers), in...
In regulation 5A (IHT threshold), in paragraph (4)(a), for “died...
In regulation 6 (production of information), in the heading, for...
(1) Regulation 6A (production of information) is amended as follows....
Inheritance Tax (Delivery of Accounts) (Excepted Settlements) Regulations 2008 (S.I. 2008/606)
Commencement
Certain pre-commencement emigrants treated as not being long-term UK residents
Property moving between settlements
Settlor’s death etc: application to bodies corporate
Deemed domicile rules still to apply in relation to times before commencement
In section 13A(3), omit the definition of “tax year”.
In section 18 (transfers between spouses or civil partners), in...
In section 28A, omit subsection (3).
(1) Section 53 (exceptions from charge under section 52) is...
(1) Section 54 (exceptions from charge on death) is amended...
Enforcement and responsible bodies
The regulators that administer or enforce this legislation.
HM Revenue & Customs
Tax collection, customs duties, national insurance, tax credits, and enforcement of the National Minimum Wage. Regulates all UK businesses for tax compliance …
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