UKPGA-2026-11 Finance Act 2026 UK

For the tax year 2026-27 the default rates of income tax are as follows—

For the tax year 2026-27 the savings rates of income tax are as follows—

In section 8 of ITA 2007 (which provides, among other things, for the dividend ordinary rate and dividend upper rate)—

The amendments made by this section have effect for the tax year 2026-27 and subsequent tax years.

Part 1 of ITA 2007 (rates at which income tax is charged etc) is amended as follows.

After section 6C insert—

After section 11C insert—

After section 16 insert—

After section 17 insert—

In section 25 (reliefs and allowances deductible at Steps 2 and 3: supplementary), after subsection (3) insert—

Schedule 1 makes amendments in connection with, or otherwise related to, provision made by this section and section 5 (including amendments concerning savings rates).

The amendments made by this section and that Schedule have effect for the tax year 2027-28 and subsequent tax years.

Schedule 2 makes provision for Scottish and Welsh property rates to be set by the Scottish Parliament and Senedd Cymru.

This section and that Schedule come into force on such day as the Treasury may by regulations appoint.

The amendments made by this section and that Schedule have effect in relation to—

The tax year appointed under subsection (3)—

Regulations under this section may appoint different days for different purposes.

For further provision about regulations under this section, see section 1014(1), (3) and (6)(b) of ITA 2007.

For the tax years 2026-27, 2027-28, 2028-29, 2029-30 and 2030-31, the amount specified in section 12(3) of ITA 2007 (the starting rate limit for savings) is “£5,000”.

Accordingly, section 21 of that Act (indexation) does not apply in relation to the starting rate limit for savings for any of those tax years.

Section 5 of FA 2021 (basic rate limit and personal allowance for tax years up to 2027-28) is amended as follows.

In subsection (1) (which specifies the basic rate limit in section 10(5) of ITA 2007 as £37,700 for tax years up to 2027-28), for “and 2027-28” substitute “, 2027-28, 2028-29, 2029-30 and 2030-31”.

In subsection (2) (which specifies the personal allowance in section 35(1) of ITA 2007 as £12,570 for tax years up to 2027-28), for “and 2027-28” substitute “, 2027-28, 2028-29, 2029-30 and 2030-31”.

In subsection (3) (which makes consequential provision preventing the uprating of those amounts for the affected tax years), in the words after paragraph (b), for “and 2027-28” substitute “, 2027-28, 2028-29, 2029-30 and 2030-31”.

Corporation tax is charged for the financial year 2027.

The main rate of corporation tax for that year is 25%.

In section 529 of ITEPA 2003 (scope of tax advantages: option must be exercised within 10 years)—

Schedule 5 to ITEPA 2003 is amended as set out in subsections (3) to (7).

In paragraph 7 (maximum value of options in respect of relevant company’s shares)—

In paragraph 12 (the gross assets requirement)—

In paragraph 12A (the number of employees requirement)—

In paragraph 36 (option to be capable of exercise within ten years)—

After paragraph 57E, insert—.

In section 169I(7D)(b) of TCGA 1992 (material disposal of business assets)—

The amendments made by subsections (1) to (8) come into force on 6 April 2026.

On and after 6 April 2026, Schedule 5 to ITEPA 2003 has effect in relation to an option granted before 6 April 2026 as if the following paragraph were inserted after paragraph 37—.

Part 5 of ITA 2007 is amended as follows.

In section 173A(1) (the maximum amount raised annually through risk finance investments requirement), for paragraphs (a) and (b) substitute—.

In section 173AA(1) (maximum risk finance investments at the issue date requirement), for paragraphs (a) and (b) substitute—.

In section 173AB(4) (maximum risk finance investments during period B requirement) for paragraphs (a) and (b) substitute—.

In section 175 (the use of the money raised requirement)—

In section 186 (the gross assets requirement)—

After section 256A, insert—.

The amendments made by this section come into force on 6 April 2026.

Part 6 of ITA 2007 is amended as follows.

In section 263(2) (form and amount of relief), for “30%” substitute “20%”.

In section 292A(1) (the maximum amount raised annually through risk finance investments requirement​ ), for paragraphs (a) and (b) substitute—.

In section 292AA(1) (maximum risk finance investments when relevant holding is issued requirement), for paragraphs (a) and (b) substitute—.

In section 292AB(4) (maximum risk finance investments during the 5-year post-investment period requirement), for paragraphs (a) and (b) substitute—.

In section 293 (the use of the money raised requirement)—

In section 297 (the gross assets requirement)—

After section 331B, insert—.

The amendments made by this section come into force on 6 April 2026.

If—the provision mentioned in paragraph (c) is to be treated for the purposes of the CSOP code as if it had been included in the share option at the time at which the option was granted.

Subsection (1) is to have effect as if contained in Schedule 4 to ITEPA 2003.

If—the provision mentioned in paragraph (c) is to be treated for the purposes of the EMI code as if it had been included in the share option at the time at which the option was granted.

Subsection (3) is to have effect as if contained in Schedule 5 to ITEPA 2003.

A variation of an option is not to count for the purposes of this section unless—

For the purposes of this section, “PISCES shares” and “a PISCES” have the same meaning as in the applicable PISCES regulations.

For this purpose, “the applicable PISCES regulations” means—

If—this section has effect as if the references to PISCES shares or a PISCES are to those other expressions.

Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans and related benefits) is amended in accordance with subsections (2) to (4).

In section 114(1)(a) (cars, vans and related benefits)—

In section 116(1) (meaning of when car or van is available to employee)—

After section 116 insert—

The amendments made by subsections (2) to (4) have effect for the tax year 2030-31 and subsequent tax years.

But in relation to a car or van made available to an employee or a member of the employee’s family or household pursuant to pre-6 April 2030 arrangements, the amendments made by subsections (2) to (4) have effect for the tax year 2032-33 and subsequent tax years.

If pre-6 April 2030 arrangements are varied or renewed on or after 6 April 2030, the car or van is treated, with effect from the beginning of the day on which the variation or renewal takes effect, as not being made available pursuant to pre-6 April 2030 arrangements.

In subsection (7) the reference to arrangements being varied does not include any variation which is required for reasons beyond the control of the parties to the arrangements.

In this section “pre-6 April 2030 arrangements” means arrangements which are entered into before 6 April 2030.

In section 117 of ITEPA 2003 (meaning of car or van made available by reason of employment)—

The amendments made by subsection (1) have effect for the tax year 2026-27 and subsequent tax years.

Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars etc) is amended in accordance with subsections (2) and (3).

In section 136A (cars with a CO 2 emissions figure: registration on or after IP completion day), after subsection (4) insert—

After section 138 insert—

The amendments made by subsections (2) and (3) have effect—

This subsection applies to a car made available to an employee or a member of the employee’s family or household pursuant to pre-6 April 2028 arrangements.

Where—the car is treated as being made available by the employer to the other employee or member pursuant to pre-6 April 2028 arrangements.

If pre-6 April 2028 arrangements are otherwise varied or renewed on or after 6 April 2028, the car is treated, with effect from the beginning of the day on which the variation or renewal takes effect, as not being made available pursuant to pre-6 April 2028 arrangements.

In subsection (7) the reference to arrangements being varied does not include a variation which is required for reasons beyond the control of the parties to the arrangements.

In this section “pre-6 April 2028 arrangements” means arrangements which are entered into before 6 April 2028.

Sections 136A(5) and 138A of ITEPA 2003, and subsections (1) to (3) of this section, are repealed.

Subsection (10) comes into force on 6 April 2031.

Chapter 11 of Part 4 of ITEPA 2003 (employment income: miscellaneous exemptions) is amended in accordance with subsections (2) to (4).

After section 316 insert—

In section 320A (eye tests and special corrective appliances)—

After section 320C insert—

In section 266(3) of ITEPA 2003 (exemption of non-cash vouchers for exempt benefits)—

In section 267(2) of ITEPA 2003 (exemption of credit-tokens used for exempt benefits)—

The amendments made by this section have effect in relation to the tax year 2026-2027 and subsequent tax years.

After section 360A of ITEPA 2003 (no deduction from earnings for social security contributions) insert—

The amendment made by this section has effect for the tax year 2026-27 and subsequent tax years.

After section 221 of ITEPA 2003 (payments where employee absent because of sickness or disability) insert—

The amendment made by this section comes into force on the first day on which the duty in section 27BP(1) of the Employment Rights Act 1996 has effect.

ITEPA 2003 is amended as follows.

In section 27 (UK-based earnings for year when employee not resident in UK)—

In section 38 (earnings for period of absence from employment)—

After section 38 (earnings for period of absence from employment) insert—

In section 41Y (location of employment duties), in subsection (1), for “applies” substitute “and section 38A (earnings in respect of duties not performed) apply”.

In section 402B (termination awards not benefiting from threshold to be treated as earnings), omit subsection (1)(b) (and the “but” before it).

The amendments made by this section have effect in relation to general earnings that are, for the purposes of Chapter 4 or 5 of Part 2 of ITEPA 2003—

ITEPA 2003 is amended as follows.

In Part 2 (employment income: charge to tax), after Chapter 10 insert—

In section 7 (meaning of employment income etc), in subsection (5)(a)—

In section 44 (treatment of workers supplied by agencies)—

In section 61V (consequences of providing fraudulent information), after subsection (4) insert—

In section 684(2) (PAYE regulations), in the list of provisions, after item 7 insert—

In section 689(4) (employee of non-UK employer), after “sections” insert “61Z1(5)(c)(i),”.

In section 716B (employment intermediaries to keep, preserve and provide information etc)—

In regulation 69 of the Income Tax (Pay As You Earn) Regulations 2003, in paragraph (1A)—

In regulation 80 of those Regulations (determination of unpaid tax and appeal against determination), after paragraph (5) insert—

The amendments made by this section have effect in relation to payments made on or after 6 April 2026.

The Treasury must by regulations provide for a scheme under which persons who are liable to pay loan charge amounts may enter into an agreement (“a settlement agreement”) with the Commissioners as regards those amounts.

The scheme must provide that the Commissioners must, in accordance with the scheme, make an offer to enter into a settlement agreement (“a settlement offer”) to every person who—

The scheme must provide that a settlement offer made to a person (P) must—

The scheme must provide that the relevant loan charge amounts must not include loan charge amounts which are the subject of, or under, a contract settlement entered into before 1 June 2021.

The scheme must provide that if P enters into the proposed settlement agreement with the Commissioners—

The scheme must provide for the calculation of P’s settlement amount and must secure—

In this section—“loan charge amount” means an amount which—arises in connection with a Schedule 11 or 12 to F(No. 2)A 2017 loan or quasi-loan, is not an amount of inheritance tax, is payable, or becomes payable in the future, to the Commissioners under or by virtue of any enactment or under a contract settlement, and has not yet been paid;“loan charge gross liability”, in relation to a person, means the total of the loan charge amounts the person was liable to pay before any payment of those amounts.

A reference in this section to a Schedule 11 or 12 to F(No. 2)A 2017 loan or quasi-loan is to—

In this section—“the Commissioners” means the Commissioners for His Majesty’s Revenue and Customs;“contract settlement” has the meaning given by section 25 of CRCA 2005;“shadow director” has the meaning given by section 251 of the Companies Act 2006.

The scheme may provide that, if a person enters into a settlement agreement, amounts of inheritance tax payable by the person which—cease to payable by the person.

The scheme may provide, if a person enters into a settlement agreement, for adjustments in amounts of inheritance tax payable by other persons which—

The scheme must provide that, if a person enters into a settlement agreement, no relevant Schedule 11 or 12 to F(No. 2)A 2017 loan or quasi-loan is to be treated as a liability for the purposes of section 5(3) of IHTA 1984.

In this section, references to relevant Schedule 11 or 12 to F(No. 2)A 2017 loans and quasi-loans are to the Schedule 11 or 12 to F(No. 2)A 2017 loans and quasi-loans to which the loan charge amounts to which the settlement agreement applies are connected.

Expressions used in this section and section 25 have the same meaning in this section as they have in section 25.

In this section, “transfer of value” has the same meaning as in IHTA 1984 (see, in particular, section 3 of that Act).

The scheme may make provision—

The things specified under subsection (1)(b) may include, for example, a person to whom a settlement offer is made entering into a contract settlement in relation to amounts specified in the settlement offer which—

The provision which may be made under subsection (1)(d)(ii) includes provision setting out the descriptions of amounts which arise in connection with a Schedule 11 or 12 to F(No. 2)A 2017 loan or quasi-loan.

The provision which may be made under subsection (1)(g) includes provision—

The scheme may make—

Regulations providing for the scheme are to be made by statutory instrument and are subject to annulment in pursuance of a resolution of the House of Commons.

A settlement agreement is a contract settlement for the purposes of sections 25 and 25A of CRCA 2005.

Expressions used in this section and section 25 or 26 have the same meaning in this section as they have in section 25 or 26.

In section 56 of CAA 2001 (amount of plant and machinery allowances), in subsection (1) (which specifies the main rate of writing-down allowances), for “18%” substitute “14%”.

The amendment made by subsection (1) has effect in relation to chargeable periods beginning on or after the relevant day, that is to say—

The amendment made by subsection (1) also has effect in relation to chargeable periods beginning before and ending on or after the relevant day but as if the reference to 14% were a reference instead to X%.

For this purpose X is found by adding (18 x BRD/CP) to (14 x ARD/CP).

Where X would be a figure with more than 2 decimal places, it is to be rounded up to the nearest second decimal place.

In subsection (4)—“BRD” means the number of days in the chargeable period before the relevant day,“ARD” means the number of days in the chargeable period on and after the relevant day, and“CP” means the number of days in the chargeable period.

Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.

In section 39 (first-year allowances available for certain types of qualifying expenditure only), after the entry relating to section 45S insert—.

After section 45T insert—

In section 46 (general exclusions)—

In section 52 (first-year allowances), in subsection (3), in the table, at the end insert—.

In section 1042N of CTA 2009 (amounts surrendered to other group companies), after subsection (4) insert—

In section 1179CE of CTA 2009 (amounts surrendered to other group companies), after subsection (4) insert—

The amendments made by this section have effect in relation to payments made on or after 26 November 2025.

Schedule 2 to FA 2024 (expenditure credits for films, television programmes and video games) is amended as follows.

After paragraph 24 insert—

In paragraph 18 (opting into new regime during transitional period), in sub-paragraph (5)(b), for “24” substitute “24A”.

The amendments made by this section have effect in relation to elections made under section 1179B(1) of CTA 2009 in relation to any opt-in period commencing on or after 26 November 2025.

Section 1179EC of CTA 2009 (special credit for visual effects) is amended as follows.

In subsection (2)—

In subsection (3)(b) for paragraph (i) substitute—.

In subsection (4)—

After subsection (6) insert—

The amendments made by this section have effect in relation to any claim made for Chapter 3 credit, or an additional amount of audiovisual expenditure credit, for accounting periods beginning on or after 26 November 2025.

In section 1138A(1)(b) of CTA 2009, at beginning insert “for the purposes of relief under Chapter 2”.

The amendment made by subsection (1) has effect in relation to claims made on or after 30 October 2024.

Section 236H of TCGA 1992 (disposals to employee-ownership trusts) is amended as follows.

For subsection (2) substitute—

In subsection (3), for “The”, in the first place it occurs, substitute “Where this subsection applies, the”.

The amendments made by this section have effect in relation to disposals made on or after 26 November 2025.

TCGA 1992 is amended as follows.

In section 103G (exchange of units for those in another collective investment scheme), in subsection (4), for “section 103K(1)” to the end of the subsection substitute “section 103K (anti-avoidance)”.

In section 103H (scheme of reconstruction involving issue of units), in subsection (5), for “section 103K(1)” to the end of the subsection substitute “section 103K (anti-avoidance)”.

In section 103I (scheme of reconstruction involving conversion scheme), in subsection (4), for “section 103K(1)” to the end of the subsection substitute “section 103K (anti-avoidance)”.

In section 103K (restriction on application of sections 103G, 103H and 103I)—

The amendments made by this section have effect in relation to arrangements involving an issue of units in a collective investment scheme on or after 26 November 2025.

But those amendments do not have effect in a case where—

TCGA 1992 is amended as follows.

In section 135 (exchange of securities for those in another company), in subsection (6), for “section 137(1)” to the end of the subsection substitute “section 137 (anti-avoidance)”.

In section 136 (scheme of reconstruction involving issue of securities), in subsection (6), for “section 137(1)” to the end of the subsection substitute “section 137 (anti-avoidance)”.

In section 137 (restriction on company reconstruction provisions)—

In section 138 (procedure for clearance in advance)—

The amendments made by this section have effect in relation to arrangements involving an issue of shares in, or debentures of, a company on or after 26 November 2025.

But those do not have effect in a case where—

In section 139 (reconstruction involving transfer of business)—

The amendments made by this section have effect in relation to arrangements involving the transfer of assets of a business on or after 26 November 2025.

But this section does not have effect in relation to a case where—

Section 162 of TCGA 1992 (roll-over relief on transfer of business) is amended as follows.

In subsection (1)—

After subsection (5) insert—

Omit section 162A of TCGA 1992 (election for section 162 not to apply).

The amendments made by this section have effect in relation to transfers of businesses made on or after 6 April 2026.

Part 4 of Schedule 1A to TCGA 1992 (anti-avoidance relating to assets deriving 75% of value from UK land) is amended as follows.

For the heading of the Part substitute “Cell companies and anti-avoidance”.

Before paragraph 11 insert—.

The amendments made by this section have effect in relation to disposals made on or after 26 November 2025.

In paragraph 2 of Schedule 18 to FA 1998 (duty to give notice of chargeability to corporation tax), after sub-paragraph (2) insert—

In section 55A of FA 2004 (exception to duty to give notice to coming within charge to corporation tax), after subsection (4) insert—

In Schedule 2 to FA 2019—

The amendments made by subsections (1) and (2) have effect in relation to disposals made on or after 1 April 2026.

The amendments made by subsection (3) have effect in relation to disposals made on or after 6 April 2026.

Omit section 399 of ITTOIA 2005 (tax treated as paid on distributions received by non-UK resident persons).

In ITA 2007—

In TMA 1970—

In the Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I.‌ 2013/2819), in regulation 12 (treatment of income of an exempt unauthorised unit trust), omit paragraph (3)(b).

The amendments made by this section have effect for the tax year 2026-27 and subsequent tax years.

Part 1 of Schedule 3 makes provision about income tax and capital gains tax in connection with whether an individual has been non-UK resident or domiciled outside the United Kingdom, including—

Part 2 of that Schedule makes provision amending Schedule 10 to FA 2025 (temporary repatriation facility).

Part 3 of that Schedule makes provision about individuals who have been temporarily non-resident.

In Chapter 5 of Part 5 of ITTOIA 2005 (settlements), in section 643C (meaning of “available protected income”)—

In Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad), in section 733 (benefits charge: amount of deemed income), in subsection (2B)—

In section 87HA of TCGA 1992 (onward gifts from non-residents or qualifying new residents), in subsections (2) and (3), omit “capital”.

In FA 2025, in Schedule 12 (trust protections), in Part 4 (commencement and transitional provision), after paragraph 70 insert—

The amendments made by subsection (1) come into force on 6 April 2026.

The amendments made by subsections (2) to (4) are treated as having come into force on 6 April 2025.

Schedule 4—

The amendments made by Schedule 4 have effect for the tax year 2026-27 and subsequent tax years (but see paragraph 8(2) of that Schedule).

Schedule 5 provides—

The amendments made by that Schedule have effect in relation to accounting periods beginning on or after 1 January 2026.

The Commissioners for His Majesty's Revenue and Customs may by regulations make provision—

The regulations may—

For the purposes of subsection (1)—

The transfer pricing condition is that—

The permanent establishment condition is that the transaction is relevant to the determination of—

References in this section to a transaction includes any transaction that may be treated to have occurred for the purposes of applying Chapter 3A or 4 of Part 2 of CTA 2009 (profits of permanent establishments).

This section applies if a repayment of interest (“the relevant repayment”) is, or has been at any time, made to a company in consequence of the cancellation of an interest charging notice given to the company under Schedule 7ZA to TIOPA 2010 (recovery of unlawful state aid).

Interest must be paid to the company in respect of the relevant repayment.

The amount of interest payable under this section is the amount that would have been payable by virtue of section 826 of the Income and Corporation Taxes Act 1988 (interest on tax overpaid) in respect of the relevant repayment if, at the time of the relevant repayment—

Interest payable under this section must be paid—

Nothing in paragraph 10(1) of Schedule 7ZA to TIOPA 2010 (Treasury duty to make regulations where Commission Decision is revoked or annulled) requires the Treasury to make any further provision in relation to the repayment of interest paid by virtue of that Schedule.

References in this section to Schedule 7ZA to TIOPA 2010 are to the Schedule treated as inserted in that Act by paragraph (b) of Schedule 4 to the Taxation (Post-transition Period) Act 2020.

This section is treated as having come into force on 2 December 2025.

In the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001)—

In consequence of the amendments made by subsection (1)—

Section 53 makes provision preserving in certain cases the effect of the law as it applied before the amendments made by this section.

This section—

This section applies in relation to an offshore income gain arising to the trustees of a settlement in a case where Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad) applies in relation to that gain for the tax year 2025-26 or any subsequent tax year because of the amendments made by section 52.

If the offshore income gain arose in a tax year before the tax year 2025-26 and, by reason of that offshore income gain or a part of it, an offshore income gain was treated as arising in a tax year before the tax year 2025-26 to an individual under paragraphs (2) to (5) of regulation 20 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001)—

An individual is not chargeable to income tax under Chapter 2 of Part 13 of ITA 2007 on income treated as arising to the individual under section 732 of ITA 2007 by reason of the offshore income gain to the extent that the income, without the amendments made by section 52(1) and (2)(b)—

The income would have been non-chargeable income if, without the amendments made by section 52(1) and (2)(b)—

The income would have been non-chargeable income to the extent that, without the amendments made by section 52(1) and (2)(b), it would have exceeded the relevant proportion of income—and, for that purpose, “relevant proportion” has the meaning given by sub-paragraphs (9) to (18) of paragraph 126 of that Schedule as they would have been modified by sub-paragraph (3) of paragraph 101 of that Schedule.

The income would have been non-chargeable income to the extent that, without the amendments made by section 52(1) and (2)(b), it would have exceeded the relevant proportion of income—and, for that purpose, “relevant proportion” has the meaning given by sub-paragraphs (4) to (7) of paragraph 127 of that Schedule as they would have been modified by sub-paragraph (4) of paragraph 102 of that Schedule.

Subsection (3) does not prevent Chapter 2 of Part 13 of ITA 2007 from having effect as though the income not chargeable to tax under that subsection had been charged to tax under section 731 of that Act.

Accordingly—

In section 733 of ITA 2007, after subsection (2D) insert—

This section—

Part 10 of ITA 2007 (special rules about charitable trusts etc) is amended in accordance with subsections (2) to (4).

In section 518 (overview), in subsection (1), for “523” substitute “523A”.

After section 523 (but beneath the same italic heading) insert—

In section 562 (excess expenditure), in subsection (5) (definition of “non-taxable sums”), omit “, legacies”.

In ITTOIA 2005, in section 636 (settlements: calculation of undistributed income), in subsection (7), at the appropriate place insert—.

Part 11 of CTA 2010 (charitable companies etc) is amended in accordance with subsections (7) to (9).

In section 466 (overview), in subsection (1), for “474” substitute “474A”.

After section 474 (but beneath the same italic heading) insert—

In section 515 (excess expenditure), in subsection (5) (definition of “non-taxable sums”), omit “, legacies”.

The amendments made by this section have effect in relation to gifts received on or after 6 April 2026.

Section 558 of ITA 2007 (approved charitable investments) is amended in accordance with subsections (2) to (5).

The existing text becomes subsection (2).

Before that subsection insert—

In subsection (2)—

At the end insert—

Section 511 of CTA 2010 (approved charitable investments) is amended in accordance with subsections (7) to (10).

The existing text becomes subsection (2).

Before that subsection insert—

In subsection (2)—

At the end insert—

The amendments made by this section have effect in relation to investments made on or after 6 April 2026.

Section 809ZJ of ITA 2007 (tainted donations) is amended in accordance with subsections (2) and (3).

For subsection (5) substitute—

In subsection (8), at the appropriate place insert—.

Section 939C of CTA 2010 (tainted donations) is amended in accordance with subsections (5) and (6).

For subsection (5) substitute—

In subsection (8), at the appropriate place insert—.

Schedule 9 contains amendments connected with those made by this section in relation to tainted charity donations.

The amendments made by this section and by Schedule 9 have effect in relation to relievable charitable donations made on or after 6 April 2026.

In a case where an associated donation is made on or after 6 April 2026 in relation to a tainted donation made before that date, the tainted donation is regarded for the purposes of sections 809ZMB of ITA 2007, section 939FB of CTA 2010 and section 257B of TCGA 1992 as having “become” a tainted donation at the time when it was made.

In subsections (8) and (9)—“associated donation” means an associated donation within the meaning of section 809ZMB of ITA 2007 or section 939FB of CTA 2010 (as inserted, in each case, by Schedule 9);“relievable charitable donation” means a relievable charity donation within the meaning of Chapter 8 of Part 13 of ITA 2007 or Part 21C of CTA 2010;“tainted donation” means a tainted donation within the meaning of Chapter 8 of Part 13 of ITA 2007 or Part 21C of CTA 2010.

ITTOIA 2005 is amended in accordance with subsections (2) to (4).

After section 23H (double taxation) insert—

In section 7 (income charged), in subsection (1), after “section 23E(1)” insert “, section 23I or section 23M”.

In section 845H (qualifying foreign income)—

In Schedule 11—

The amendments made by this section and that Schedule have effect for the tax year 2026-27 and subsequent tax years (but in relation to investment management services whenever performed).

Paragraph 134 of Schedule 9 to FA 2024 (power to make further provision in connection with the abolition of the lifetime allowance charge) is amended as follows.

In sub-paragraph (2)—

In sub-paragraph (3) omit “that increase any person’s liability to tax”.

In sub-paragraph (4), for “5 April” substitute “30 June”.

Part 4 of FA 2004 (pension schemes) is amended in accordance with subsections (2) to (9).

In section 153 (registration of pension schemes), in subsection (5)—

In section 158 (grounds for de-registration), in subsection (1)—

For the italic heading before section 274ZA substitute “Master Trust schemes, collective money purchase schemes etc”.

Before section 274ZA (but after the italic heading) insert—

Section 274ZA (National Employment Savings Trust and Master Trust schemes) is amended as follows—

In section 279 (other definitions), omit subsections (1B) to (1D).

In section 280(2) (general index), in the table—

In section 282 (orders and regulations), after subsection (1A) insert—

In FA 2018, in Schedule 3 (pension schemes), in paragraph 4 (Master Trust schemes registered before passing of FA 2018), in sub-paragraph (2), for “Section 274B(2) of FA 2004 (as inserted by paragraph 1(5))” substitute “Section 274ZA(2) of FA 2004”.

Schedule 7A to TIOPA 2010 (interest restriction returns) is amended as follows.

For paragraph 1 (appointment by a worldwide group of a reporting company) substitute—

After that paragraph insert—

For paragraph 2 (revocation by worldwide group of appointment under paragraph 1), substitute—

In paragraph 4 (appointment of reporting company by Revenue and Customs)—

In paragraph 5 (appointment by officer of Revenue and Customs of replacement reporting company), in sub-paragraph (6)(a), omit sub-paragraph (ii) and the “and” before that sub-paragraph.

In paragraph 6 (obligation of reporting company to notify group members of its status)—

In paragraph 7 (obligation of reporting company to submit interest restriction return)—

Consequently, the italic heading before that paragraph becomes “Submission of interest restriction returns by reporting companies”.

In paragraph 8 (revised interest restriction return), in sub-paragraph (3), for paragraph (b) substitute—

In paragraph 10 (meaning of “consenting company” and “non-consenting company”)—

Omit paragraph 11 (company authorising reporting company appointment treated as consenting company) together with the italic cross-heading before it.

After paragraph 11 insert—

In paragraph 20 (required contents of interest restriction return: full returns and abbreviated returns)—

In paragraph 29 (penalty for failure to deliver return)—

In paragraph 44 (enquiry into return for wrong period or wrong group)—

In paragraph 56 (power of Revenue and Customs to make determinations where no return filed etc), in sub-paragraph (4)(a), after “has effect” insert “under paragraph 4 or 5”.

In paragraph 61 (provision of information between members of group where no reporting company appointed), for sub-paragraph (2) substitute—

The amendment made by subsection (3) has effect in relation to periods of account ending on or after 31 March 2024 (except so far as it relates to the new paragraph 11A of Schedule 7A to TIOPA 2010).

The amendments made by subsection (14) have effect in accordance with provision made by regulations made by the Commissioners for His Majesty’s Revenue and Customs.

The remaining amendments made by this section have effect in relation to periods of account ending on or after 31 March 2026.

In section 407 of TIOPA 2010 (amounts not brought into account in determining a company’s tax-EBITDA)—

The amendments made by this section have effect in relation to periods of account ending on or after 31 December 2021.

An interest restriction return which is revised to take account of the amendments made by this section is, despite paragraph 8(3) of Schedule 7A to TIOPA 2010, of effect if the revised return is received by an officer of Revenue and Customs before 1 October 2026.

In Part 20 of CTA 2009 (general calculation rules), in Chapter 1 (restriction of deductions), after section 1305A insert—

The amendment made by this section has effect in relation to accounting periods beginning on or after 26 November 2025; and for that purpose an accounting period beginning before and ending on or after that date is treated as if so much of the period as falls before that date, and so much of the period as falls on or after that date, were separate accounting periods.

In section 80 of FA 2013 (decommissioning relief agreements), after subsection (4) insert—

The amendment made by subsection (1) has effect in relation to claims under decommissioning relief agreements made in relation to decommissioning expenditure incurred on or after 26 November 2025.

IHTA 1984 is amended as follows.

For section 210 substitute—

In section 211 (burden of tax on death), for subsection (3) substitute—

In section 212 (powers to raise tax), in subsection (1), for “or any part of it” substitute “, any property derived from that property, or any part of that property or of property derived from it”.

In section 239 (certificates of discharge), after subsection (4) insert—

IHTA 1984 is amended as follows.

Omit section 12A (pension drawdown fund not used up: no deemed disposition).

In section 18 (exemption for transfers between spouses or civil partners), after subsection (3) insert—

In section 23 (gifts to charities or registered clubs), after subsection (5A) insert—

In section 24 (gifts to political parties), after subsection (4) insert—

In section 24A (gifts to housing associations), after subsection (3) insert—

In section 25 (gifts for national purposes etc), after subsection (3) insert—

In section 27 (maintenance funds for historic buildings etc), after subsection (2) insert—

In section 151 (treatment of pension rights etc)—

Omit section 152 (cash options).

After section 218A insert—

In section 272 (general interpretation), in subsection (1)—

ITEPA 2003 is amended in accordance with subsections (2) to (6).

In section 567 (amount charged to tax), in subsection (5), at the appropriate place insert—.

After section 567A insert—

After section 579CA insert—

In section 637T (availability of individual’s lump sum and death benefit allowance where multiple lump sum death benefits paid), after subsection (4) insert—

In section 683 (PAYE income), in subsection (3B), at the end insert “or section 579CB (inheritance tax overpaid by scheme administrator: refund treated as pension)”.

FA 2004 is amended in accordance with subsections (8) to (10).

In section 164 (authorised member payments), in subsection (1), after paragraph (e) (but before the “and” that follows it) insert—.

After section 206 insert—

In section 274A (power to split pension schemes), at the end insert—

In IHTA 1984, in section 65 (relevant property: exit charges), after subsection (8A) insert—

The amendment made by subsection (1) is treated as having come into force on 26 November 2025.

In IHTA 1984, after section 75A insert—

The amendment made by subsection (1) is treated as having come into force on 6 April 2025.

In IHTA 1984, after section 155 insert—

The amendment made by subsection (1) is treated as having come into force on 6 April 2025 (and has effect in relation to tax years ending before that date as it has effect in relation to later tax years).

IHTA 1984 is amended in accordance with subsections (2) and (3).

In section 267ZD (further provision about elections under section 267ZC), in subsection (8), for “a lifetime election” substitute “an election under section 267ZC”.

In section 157 (non-residents’ bank accounts), in subsection (3), in each of paragraphs (c) and (d), omit “not”.

The amendment made by subsection (2) is treated as having come into force on 6 April 2025.

The amendment made by subsection (3) is treated as having come into force on 26 November 2025.

Section 157(3) of IHTA 1984 is treated as having had effect for the period beginning with 6 April 2025 and ending with 26 November 2025 with the omission of its paragraphs (c) and (d) (and the insertion of “or” after paragraph (a)).

The Treasury may by regulations made by statutory instrument make provision conferring relief from inheritance tax in respect of infected blood compensation payments.

The provision that may be made under subsection (1) includes provision about the treatment of dispositions of amounts received by way of, or that are otherwise referable to, infected blood compensation payments.

Regulations under subsection (1) may—

In this section—“infected blood compensation payment” means a payment that—is made under an infected blood compensation scheme, and is a qualifying payment for the purposes of Schedule 15 to FA 2020 (tax relief for scheme payments etc) by virtue of regulations made under paragraph 2(5) of that Schedule;“infected blood compensation scheme” means—the infected blood compensation scheme established by virtue of section 49 of the Victims and Prisoners Act 2024, or the scheme known as the Infected Blood Interim Compensation Payment Scheme (a non-statutory scheme established before that mentioned in paragraph (a)).

A statutory instrument containing regulations under subsection (1) that amend or otherwise modify Schedule 15 to FA 2020 may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.

A statutory instrument containing any other regulations under subsection (1) is subject to annulment in pursuance of a resolution of the House of Commons.

IHTA 1984 is amended as follows.

In section 23 (gifts to charities or registered clubs), in subsection (6)—

In section 29A (abatement of exemption where claim settled out of beneficiary’s own resources), in subsection (6), in paragraph (b) of the definition of “the exempt beneficiary”, omit sub-paragraph (ii) and the “or” before it.

In section 142 (alteration of dispositions taking effect on death)—

The amendments made by this section have effect—References in this subsection to the making of a transfer of value are to be construed in accordance with IHTA 1984.

Subsection (2) applies in relation to a transfer of value (“the original transfer”) to the extent that the value transferred by it is attributable to property which meets each of the following conditions, namely—

For the purposes of IHTA 1984—

Subsections (1) and (2) have effect—

Subsections (1) to (3) are to be construed as though they were contained in section 23 of IHTA 1984.

VATA 1994 is amended as follows.

In Schedule 8, in Group 12 (drugs, medicines, aids for the disabled, etc), omit item 14.

In consequence of the amendment made by subsection (2), in that Group—

In Schedule 6 (valuation: special cases), after paragraph 11A insert—

The amendments made by this section have effect in relation to leases of motor vehicles commencing on or after—

In Schedule 7A to FA 1994 (insurance premium tax: contracts that are not taxable), for paragraph 3 (and the italic heading before it) substitute—

The amendment made by this section has effect in relation to contracts relating to leases of motor vehicles where the lease commences on or after—

In section 53 of VATA 1994 (tour operators), after subsection (3) insert—

The amendment made by subsection (1) has effect in relation to supplies made on or after 2 January 2026.

Schedule 4 to VATA 1994 (matters to be treated as supply of goods or services) is amended as follows.

In paragraph 5 (transfer of business goods treated as supply)—

After paragraph 5 insert—

The amendments made by subsections (1) to (3) have effect in relation to donations made on or after 1 April 2026.

In section 33 of VATA 1994 (refunds of VAT in certain cases), in subsection (3)(a) (which provides for the section to apply to local authorities and combined authorities), for the words from “and” to the end substitute “, a combined authority established by an order made under section 103(1) of the Local Democracy, Economic Development and Construction Act 2009 and a combined county authority established by regulations made under section 9(1) of the Levelling-up and Regeneration Act 2023;”.

The amendment made by this section has effect in relation to supplies made, and importations or acquisitions taking place, on or after 1 December 2025.

After section 89B of FA 1986 (stamp duty reserve tax) insert—

The amendment made by subsection (1) has effect in relation to an agreement to transfer chargeable securities in a company that is first listed on or after 27 November 2025 (with “first listed” having the same meaning as in section 89C(1)(a) of FA 1986, as inserted by subsection (1)).

In Chapter 3 of Part 3 of FA 2014 (remote gaming duty), in section 155(3) (which specifies the rate), for “21%” substitute “40%”.

The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2026.

In a case where an accounting period (a “straddling period”) begins before 1 April 2026 and ends on or after that date—are to be treated as separate accounting periods for the purpose of calculating the duty concerned for the straddling period.

For the purposes of subsection (3), the amount on which duty is charged is apportioned to those separate accounting periods on a time basis according to the respective lengths of those periods.

Chapter 1 of Part 3 of FA 2014 (general betting duty) is amended as follows.

In the cross-heading after section 125, after “General” insert “, remote”.

In section 126 (meaning of “general bet”), in subsection (1) after paragraph (a) insert—.

After 127 (general bets) insert—

In section 190 of FA 2014 (index of defined expressions), in the Table, after the entry for “registrable person” insert—.

In section 194(4) of FA 2014 (made affirmative procedure for regulations), before paragraph (za) insert—.

This section has effect in relation to accounting periods beginning on or after 1 April 2027, and the charge under section 127A of FA 2014 is on bets made on or after that date.

In a case where an accounting period (a “straddling period”) begins before 1 April 2027 and ends on or after that date—are to be treated as separate accounting periods for the purpose of calculating the duty concerned for the straddling period.

For the purposes of subsection (8), the amount on which duty is charged is apportioned to those separate accounting periods on a time basis according to the respective lengths of those periods.

Omit—

Schedule 13 makes—

The repeals and amendments made by this section and Schedule 13 come into force on 1 April 2026.

The Treasury may by regulations make such further transitional, transitory or saving provision as the Treasury consider appropriate in connection with the coming into force of those repeals and amendments.

Regulations under subsection (4) are to be made by statutory instrument.

Part 2 of F(No.2)A 2023 (alcohol duty) is amended as follows.

For Schedule 7 (main rates) substitute—.

For Schedule 8 (reduced rates for qualifying draught products) substitute—.

For Schedule 9 (duty discount for small producer alcoholic products)—.

In consequence of the amendments made by the preceding subsections of this section, in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—

The amendments made by this section are treated as having come into force on 1 February 2026.

In Schedule 1 to TPDA 1979 (table of rates of tobacco products duty), for the Table substitute—.

In consequence of the provision made by subsection (1), in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—

The amendments made by this section are treated as having come into force at 6pm on 26 November 2025.

In Schedule 1 to TPDA 1979 (table of rates of tobacco products duty), for the Table substitute—.

In consequence of the provision made by subsection (1), in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—

The amendments made by this section come into force on 1 October 2026.

Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.

In paragraph 1 (general rate)—

In paragraph 1B, for the Table substitute—.

In the sentence immediately following the Table in that paragraph, for the words from “as if” to the end substitute “as if, in column (3), in the last two rows, “445” were substituted for “760” and “790”.”

In paragraph 1GC, for Table 1 (vehicles other than higher rate diesel vehicles) substitute—.

In that paragraph, for Table 2 (higher rate diesel vehicles) substitute—.

In paragraph 1GD(1)(rates for any other licence for light passenger vehicles registered on or after 1 April 2017), for “£195” substitute “£200”.

In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000), for “£620” substitute “£640”.

In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007 or post-2008 lower emission vans), for “£345” substitute “£360”.

In paragraph 2(1) (rates for motorcycles)—

The amendments made by this section have effect in relation to licences taken out on or after 1 April 2026.

Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.

In paragraph 9 (rigid goods vehicles exceeding 3,500 kgs revenue weight), for the table in sub-paragraph (1) substitute—.

In paragraph 11(1) (tractive units), for Table 1 and Table 2 substitute—.

The amendments made by this section have effect in relation to licences taken out on or after 1 April 2026.

In paragraph 10 of Schedule 1 to VERA 1994 (supplement to annual rate of duty for rigid goods vehicles with trailers), in sub-paragraph (6), for the Tables 1 to 6 substitute—.

In that paragraph, in sub-paragraph (7), for “£631” substitute “£654”.

The amendments made by this section have effect in relation to licences taken out on or after 1 April 2026.

In—for “£1,643” substitute “£1,703”.

The amendments made by this section have effect in relation to licences taken out on or after 1 April 2026.

In paragraph 7(3A) of Schedule 1 to VERA 1994 (which specifies the rate applicable to haulage vehicles other than showman’s vehicles), for £365” substitute “£380”.

The amendment made by this section has effect in relation to licences taken out on or after 1 April 2026.

In paragraph 1GE of Schedule 1 to VERA 1994 (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000)—

The amendments made by this section have effect in relation to any licence where the period for which the licence has effect begins on or after 1 April 2026 (whenever the licence is taken out).

Schedule 1 to the HGV Road User Levy Act 2013 (rates of the levy) is amended as follows.

In paragraph 5, for Table 1 substitute—.

In paragraph 5, for Table 1A substitute—.

The amendments made by this section come into force on 1 April 2026.

Section 30 of FA 1994 (air passenger duty: rates) is amended as follows.

In subsection (1B) (journeys ending in the United Kingdom)—

In subsection (2) (short-haul journeys)—

In subsection (2A) (long-haul journeys)—

In subsection (4A) (ultra-long haul journeys)—

In subsection (4E) (journeys on aircraft equipped to carry fewer than 19 passengers)—

The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2027.

In paragraph 42(1) of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy), for the table substitute—.

The amendment made by this section has effect in relation to supplies treated as taking place on or after 1 April 2027.

Section 42 of FA 1996 (amount of landfill tax) is amended as follows.

In subsection (1)(a) (standard rate), for “£126.15” substitute “£130.75”.

In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—

The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2026.

In section 16(4) of FA 2001 (rate of aggregates levy), for “£2.08” substitute “£2.16”.

The amendment made by this section has effect in relation to aggregate subjected to commercial exploitation on or after 1 April 2026.

In section 45(1) of FA 2021 (rate of plastic packaging tax), for “£223.69” substitute “£228.82”.

The amendment made by this section has effect in relation to packaging components produced in, or imported into, the United Kingdom on or after 1 April 2026.

Part 2 of FA 2021 (plastic packaging tax) is amended as follows.

In section 47(1)(a) (chargeable plastic packaging components)—

In section 49 (meaning of “plastic” and “recycled plastic”)—

After section 49 insert—

In section 83 (interpretation), at the appropriate places insert—;.

In section 84(5)(b) (regulations), for “and “recycled plastic”” substitute “, “recycled plastic” and “attributed recycled plastic””.

The following come into force on the day on which this Act is passed—

The following come into force on 1 April 2027—

In section 36(1) of FA 2017 (rates of soft drinks industry levy)—

The amendments made by this section have effect in relation to chargeable events occurring on or after 1 April 2026.

Section 8 of TCTA 2018 (the customs tariff) is amended as follows.

After subsection (3) insert—

After subsection (8) insert—

Schedule 4 to TCTA 2018 (dumping of goods or foreign subsidies causing injury to UK industry) is amended as follows.

In the italic heading before paragraph 9, after “investigation” insert “: request made to TRA”.

In paragraph 9 (initiation of a dumping or a subsidisation investigation)—

After paragraph 9 insert—

In paragraph 10(2) (conduct of a dumping or a subsidisation investigation), after paragraph (d) insert—.

In paragraph 17(8B) (TRA’s duty to recommend an anti-dumping amount or countervailing amount)—

In paragraph 18 (TRA's recommendations about an anti-dumping amount or a countervailing amount)—

Schedule 5 to TCTA 2018 (increase in imports causing serious injury to UK producers) is amended in accordance with subsections (2) to (5).

In the italic heading before paragraph 7, after “investigation” insert “: request made to TRA”.

In paragraph 7 (initiation of a safeguarding investigation)—

After paragraph 7 insert—

In paragraph 16 (final affirmative determination), for sub-paragraph (6) substitute—

Schedule 5A to TCTA 2018 (increase in imports as a result of free trade agreement causing serious injury to UK producers) is amended in accordance with subsections (7) and (8).

In paragraph 5 (initiation of a bilateral safeguarding investigation), for sub-paragraphs (3) and (4) substitute—

After paragraph 5 insert—

This section and section 110 come into force on such day as the Secretary of State may by regulations made by statutory instrument appoint; and different days may be appointed for different purposes.

Section 20 of CEMA 1979 (approval of wharves) is amended as follows.

In subsection (1A)—

After subsection (1B) insert—

Section 20(A) of CEMA 1979 (approved wharves) is amended as follows.

Renumber that section as section 20A.

In subsection (1)—

In subsection (1A), after “imposed” insert “by or”.

The amendments made by this section come into force on the day on which this Act is passed.

But CEMA 1979 continues to have effect, for any purpose in connection with duty under section 30A(3) or 40A of TCTA 2018, as if the amendments made by this section had not been made.

In section 54 of FA 2022 (charge to the levy)—

In section 55 of FA 2022 (UK revenue: amount), in subsection (1)—

In consequence of the amendments made by the preceding subsections, in section 189 of the Economic Crime and Corporate Transparency Act 2023, in subsections (3)(b)(ii) and (11) (which operate by reference to provisions amended by this section), for “large or very large” substitute “in any of bands B to D”.

The amendments made by this section have effect for the financial year beginning with April 2026 and subsequent financial years.

In section 106 of FA 2013 (adjustment of amount chargeable), omit subsection (6).

The amendment made by this section is treated as always having been in force.

An excise duty is charged on vaping products produced in, or imported into, the United Kingdom.

The duty is charged at a rate of £2.20 per 10 millilitres, rounded down to the nearest penny.

In this Part, “vaping products duty” means excise duty charged under this section.

In this Part, “vaping product” means a liquid that—and is not a medicinal product or a tobacco product.

For the purposes of this Part—

For the purposes of this Part, a vaping product is produced if—

If a liquid that is not duty-paid is packaged, labelled or advertised so as to indicate it is intended to be vaporised by a vape, the act of packaging, labelling or advertising is to be treated, for the purposes of this Part, as producing a vaping product.

In this section, a reference to a substance or liquid that is not duty-paid is a reference to a substance or liquid that—

Vaping products must not be produced except in accordance with regulations under section 45 of TCTA 2018.

The Commissioners are responsible for the collection and management of vaping products duty.

For the purposes of this Part, the Commissioners may by regulations make provision—

A vaping product must be stamped in accordance with regulations made under this Part and section 45 of TCTA 2018.

For the purposes of this Part, a vaping product is stamped if a duty stamp is affixed to—and a reference to a stamp being affixed to a vaping product includes a reference to a stamp being affixed to its retail packaging.

The Commissioners may by regulations make provision—

In this Part, a “duty stamp” means a document issued by the Commissioners that—

The Commissioners must make arrangements for the issue and management of duty stamps.

The Commissioners may by regulations provide for the charging of fees in connection with the issue and management of duty stamps (but such a fee may not offset any liability to vaping products duty).

The Commissioners may by published notice authorise a person to act as a stamp issuer for the purposes of this Part.

In this Part, “stamp issuer” means—

A duty stamp may not be issued to a person who is not approved under this section.

The Commissioners may approve a person if they are satisfied that the person—

An approved stamp holder may not transfer a duty stamp to any person before it has been affixed to, and activated in respect of, a vaping product (in which case it may be transferred as part of the vaping product).

Subsection (3) does not prevent the return of stamps to a stamp issuer.

The Commissioners may by regulations make provision—

The Commissioners may approve an approved stamp holder to represent a person who does not have a fixed place of business in the United Kingdom.

A duty stamp may, at the request of a UK representative, be issued to the UK representative by way of delivery to an overseas person.

A UK representative is responsible for a stamp issued as described in subsection (2) from the point at which it is delivered to the overseas person.

Section 122(3) (restriction on transfer) does not apply in relation to the transfer of a duty stamp between a UK representative and an overseas person.

A UK representative who transfers a duty stamp to an overseas person remains responsible for the stamp after transfer.

For the purposes of subsections (3) and (5), a person who is responsible for a stamp is also liable to penalties arising under this Part or regulations made under this Part in respect of it.

The Commissioners may by regulations make provision about UK representatives, including provision—

In this Part—“overseas person” means, when used in connection with a UK representative, someone in respect of whom the UK representative is approved under subsection (1);“UK representative” means a person approved under subsection (1), and a reference to a stamp being delivered to an approved stamp holder includes, in the case of a UK representative, a reference to a stamp being delivered to an overseas person.

The following things are liable to forfeiture—

In subsection (1)(b), an “invalid duty stamp” means—

For things that are liable to forfeiture only in particular circumstances, see—

A person who sells, offers for sale or otherwise deals in unstamped vaping products packaged for retail sale is liable to a penalty.

The penalty under subsection (1) is the amount indicated in the table, to be determined by cross-referencing—

For the purpose of determining a penalty under subsection (2)—“relevant period” means the period of 24 months ending with the day on which the person becomes liable to the penalty being determined;“unit” means an amount of vaping product packaged for individual retail sale.

An approved stamp holder to whom a duty stamp is issued and delivered is liable to a penalty if—

Subsection (1) does not apply if the stamp was lost in circumstances where the approved stamp holder—

The penalty under subsection (1) is an amount equal to five times the monetary amount specified in section 115 (excise duty: charge).

The following is conduct which attracts a penalty under section 9 of FA 1994—

In this section, an “invalid duty stamp” means—

Failure to comply with a provision or requirement specified in subsection (2) is conduct which attracts a penalty under section 9 of FA 1994.

The following provisions and requirements are specified for the purpose of subsection (1)—

This section applies (in addition to section 124) where a person is liable to a penalty under section 125 or 127(1).

Where a person is liable to a penalty under section 125 (dealing in unstamped vaping products), any stamped vaping product—is liable to forfeiture.

Where a person is liable to a penalty for a failure of a kind described in section 127(1) (failure to comply with this Part etc), the following things are liable to forfeiture—

It is an offence for a person who is not an approved stamp holder to possess a duty stamp that has not been affixed to a vaping product.

It is an offence for a person to transfer a duty stamp that has not been affixed to a vaping product to another person.

It is a defence for a person charged with an offence under this section to prove that they did not know, suspect or have reason to suspect that they were possessing or transferring a duty stamp that had not been affixed to a vaping product.

Subsection (1) and (2) do not apply in relation to—

Subsection (2) does not apply in relation to a transfer to a stamp issuer.

It is an offence to—an unstamped vaping product.

It is an offence for a person who is a manager of premises to cause or permit the premises to be used for the sale of an unstamped vaping product.

It is a defence for a person charged with an offence under this section to prove that they did not know, suspect or have reason to suspect that the product to which the charge relates was an unstamped vaping product.

A manager of premises is a person who—

If a person is convicted of an offence under section 130(2), the court by which the person is convicted of the offence may make an order prohibiting the use of the premises in respect of which the offence was committed for the sale of vaping products.

The term of the order may not exceed twelve months.

It is an offence for a manager of premises to cause or permit the premises to be used in breach of an order under this section.

In this section, “manager of premises” has the meaning given in section 130.

A person who commits an offence under sections 129 to 131 is liable on summary conviction—

A person who commits an offence under sections 129 to 131 is liable, on conviction on indictment, to imprisonment for a term not exceeding 2 years, or a fine, or both.

This section applies (in addition to section 124) where a person has committed an offence under sections 129 to 131.

In the case of an offence under section 129 (dealing in duty stamps), the following things are liable to forfeiture—

In the case of an offence under section 130(1) (dealing in unstamped vaping products), any stamped vaping product—is liable to forfeiture.

In the case of an offence under section 130(2) or 131 (unlawful use of premises), any stamped vaping product—is liable to forfeiture.

The Commissioners may disclose such information as the Commissioners consider appropriate in connection with—

Any person with functions relating to vaping products duty may disclose to HMRC such information as the person considers appropriate in connection with—

A person who receives information from the Commissioners as a result of this section may not—except with the consent of the Commissioners (which may be general or specific).

If—section 19 of CRCA 2005 (offence of wrongful disclosure) applies in relation to that disclosure as it applies in relation to a disclosure of information in contravention of section 20(9) of that Act.

Nothing in this section limits the circumstances in which information may be disclosed under section 18(2) of CRCA 2005 or under any other enactment or rule of law.

In this section, a reference to the Commissioners or HMRC include a reference to anyone acting on their behalf.

A local enforcement authority may investigate compliance with this Part, regulations made under this Part and regulations made under section 45 of TCTA 2018 in relation to vaping products duty, and may carry out inspections of vaping products for that purpose.

In this section, “local enforcement authority” means—

Regulations under this Part may—

A power to make regulations under this Part, or a power to exercise a discretion or publish a notice under regulations made under this Part, may be exercised—

A notice published under this Part may be withdrawn or revised by further published notice.

A power to make regulations under this Part does not restrict any power to make legislation under any other enactment relating to excise duty.

Regulations under this Part must be made by statutory instrument.

A statutory instrument containing regulations under this Part is subject to made affirmative procedure if it contains (whether alone or with other provision) provision that—

Where a statutory instrument is subject to made affirmative procedure—

Where a statutory instrument ceases to have effect as a result of subsection (3), that does not—

In calculating the period of 28 days for the purposes of subsection (3), no account is to be taken of any whole days that fall within a period during which—

A statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of the House of Commons if it does not contain provision of a kind described in subsection (2).

Subsections (2) to (6) do not apply to regulations made under section 141 (commencement and transitional provision).

Section 115 comes into force on 1 October 2026.

Section 115 has effect in relation to vaping products that—as though they were produced in, or imported into, the United Kingdom on 1 October 2026.

Sections 117(4) (production only in accordance with regulations) and 120(1) (duty to stamp in accordance with regulations) come into force on such day as the Treasury may by regulations appoint.

Section 129 comes into force two months after this Act is passed.

Sections 130 and 131 (dealing in unstamped vaping products and sales ban) come into force on 1 April 2027, and have effect in relation to vaping products irrespective of when they were produced or imported.

The Treasury may by regulations provide that, for a specified period, this Part has effect as though—

Regulations under subsection (6) may—

The Treasury may by regulations provide that, for a specified period, this Part has effect as though a reference to an approved stamp holder or UK representative is a reference to a person being approved or treated as an approved stamp holder or UK representative.

Regulations under subsection (8) may make provision about when a person is to be treated as an approved stamp holder or UK representative.

The Treasury may by regulations extend a period specified in regulations under this section.

Regulations under subsection (7)(b) may include provision imposing penalties and for forfeiture.

A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

A tax called the carbon border adjustment mechanism (“CBAM”) is to be charged in accordance with this Part.

In this Part—

CBAM is charged on the emissions embodied in a CBAM good when the good is imported into the United Kingdom.

In this Part, “CBAM good” means a good specified by Schedule 16 (but see section 145(3)).

Schedule 16 specifies the following kinds of goods—

For the purposes of this Part, a reference to a good being imported into the United Kingdom is a reference to—

If a CBAM good is chargeable to import duty under section 1 of TCTA 2018, it is imported when liability to import duty is incurred in respect of the good.

If a CBAM good is chargeable to duty under section 30C of TCTA 2018, it is imported when liability to that duty is incurred in respect of the good.

If a CBAM good is chargeable to duty under section 30A(3) or 40A(1)(a) of TCTA 2018 (or would be so chargeable but for regulations within section 30B(1)(a) or 40B(1)(a) of that Act), it is imported when liability to that duty is incurred in respect of the good (or would be incurred but for the regulations).

If a CBAM good is—it is imported at the time of importation for the purposes of the customs and excise Acts.

If a CBAM good would be chargeable to duty under section 30C of TCTA 2018 but for regulations within subsection (6)(a) of that section, it is imported at the time of entry of the good in Great Britain in the course of the removal of the good to Great Britain from Northern Ireland.

The reference in subsection (4) to when liability to duty under section 30A(3) or 40A(1)(a) of TCTA 2018 is incurred in respect of a good is to when, for the purpose of the duty, a customs debt on import is incurred under UCC 2013.

For the purposes of determining, in accordance with subsection (5), when a CBAM good is imported into the United Kingdom from the Isle of Man, section 8 of the Isle of Man Act 1979 (removal of goods from the Isle of Man) has effect as if, in subsection (2) of that Act, at the end of paragraph (c), there were inserted

Section 5 of CEMA 1979 applies for the purpose of subsection (6) to determine the time of entry of a CBAM good in Great Britain in the course of the removal of the good to Great Britain from Northern Ireland as it applies for the purpose of the customs and excise Acts to determine the time of importation of goods—

Regulations made by the Treasury may exclude from subsection (4) or (6) (as the case may be) goods that would be chargeable to duty under section 30A(3), 30C or 40A(1)(a) of TCTA 2018 but for regulations within section 30B(1)(a), 30C(6)(a) or 40B(1)(a) of that Act.

Subsection (2) applies where—

When the good that is not a CBAM good is first imported as described in section 144, CBAM is charged on so much of the emissions embodied in that good as were embodied in the CBAM good when it was declared for the special customs procedure.

References in this Part to a CBAM good include a reference to a good imported in the circumstances described in subsection (1).

In this section, “special customs procedure” means—

The person liable to CBAM on the emissions embodied in a CBAM good is the importer.

If a CBAM good is imported as described in section 144(2), (3) or (6), the importer is—

If a CBAM good is imported as described in section 144(4), the importer is—

If a CBAM good is imported as described in section 144(5), the importer is the person on whose behalf the good is imported.

In this section—“Customs procedure” means a procedure set out in section 3(3) of TCTA 2018;“declarant”, in relation to a Union customs declaration, has the meaning given by Article 5(15) of UCC 2013;“Union customs declaration” means a customs declaration for the purposes of UCC 2013.

CBAM is not charged on the emissions embodied in a CBAM good if the importer—

CBAM is not charged on the emissions embodied in a CBAM good if—

CBAM is not charged on so much of the emissions embodied in a CBAM good (“the chargeable good”) as are attributable to the production of another CBAM good which—

If, but for this subsection, a liability to duty would have been incurred for the purposes of section 144(2) or (3) in circumstances where—the liability to duty is treated as not having been incurred on that occasion for the purposes of section 144(2) or (3) (and, accordingly, the good is treated as not having been imported as described in section 144(2) or (3) on that occasion).

But subsection (4) does not apply if—

The Treasury may by regulations specify other circumstances in which CBAM is not charged on emissions, or certain emissions, embodied in a CBAM good.

Regulations under subsection (6) may also treat an importation into the United Kingdom, for any purpose of this Part, of a CBAM good in respect of which the regulations apply as not having occurred (including by virtue of provision similar to subsection (4)).

In this section—“customs tariff in its standard form” means the customs tariff, as defined in section 8 of TCTA 2018, as it has effect without regard to any provision made under sections 9 to 15 or section 19(4) of that Act;“returned goods relief” means relief for import duty available—by virtue of the UK Reliefs document, and by reference to the fact the good is being returned to the United Kingdom, or Great Britain, having previously been exported;“temporary admission procedure” has the meaning given by paragraph 15 of Schedule 2 to TCTA 2018;“UK Reliefs document” has the meaning given by regulations under section 19 of TCTA 2018.

In this Part, “emissions embodied in a CBAM good” means emissions that are attributable to the production of a CBAM good.

The Treasury may by regulations make provision about what it means for emissions to be attributable to the production of a CBAM good.

Regulations under subsection (2) may (among other things) make provision about emissions that are emitted in the course of an activity carried out in connection with the production of—

See paragraphs 10 and 11 of Schedule 17 for provision about how to determine and evidence emissions embodied in a CBAM good.

CBAM is charged at an amount equal to the sectoral domestic price applicable in respect of the CBAM good multiplied by the number of tonnes of carbon dioxide equivalent emissions embodied in the CBAM good.

The “sectoral domestic price” applicable in respect of a CBAM good is the price calculated and published by the Treasury for—

The Treasury must calculate and publish the sectoral domestic price for each CBAM sector for each quarter (“quarter Q”) as follows—Step 1 Calculate the average price per tonne of specified emissions under the UK Emissions Trading Scheme in the quarter preceding quarter Q—by reference to auction clearing prices for UK ETS allowances at auctions during the quarter preceding quarter Q, or if no allowances were sold at auction during that quarter, as provided in regulations under subsection (6). Step 2 Reduce that price by a percentage equal to the baseline free allocation percentage for the CBAM sector, as adjusted by a factor specified by regulations under subsection (6)—for the CBAM sector for the year in which quarter Q falls, and in light of reduction factors applicable in determining, under the UK Emissions Trading Scheme, the allocation in that year of free UK ETS allowances in respect of sub-installations that have a process that serves production of goods falling within the CBAM sector.

In this section—“auction” means an auction under the Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021 (S.I. 2021/484);“auction clearing price”, in relation to a UK ETS allowance, has the same meaning as in those Regulations (see regulation 7);“baseline free allocation percentage” means, in relation to a CBAM sector, the average percentage of sectoral emissions that were covered—in the 2019 scheme year, by free EU ETS allowances, and in the 2022 and 2023 scheme years, by free UK ETS allowances, allocated in the scheme years mentioned here in respect of sub-installations that have a process that serves the production of goods falling within the CBAM sector;“CBAM sector” means the commodity codes set out under a single heading in the Table in Schedule 16 other than the commodity codes that the Table indicates are excepted;“the ETS Regulations” means the Greenhouse Gas Emissions Trading Scheme Regulations 2012 (S.I. 2012/3038);“free EU ETS allowance” means an allowance allocated free of charge in accordance with Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emissions allowance trading within the Community and amending Council Directive 96/61/EC;“free UK ETS allowance” means an allowance allocated free of charge under Part 4A of the UK ETS Order;“quarter” means a period of 3 months ending at the end of March, June, September or December;“regulated activity” and “specified emissions” have the meaning given by paragraph 3 of Schedule 2 to the UK ETS Order (or, in relation the 2019 scheme year, given by regulation 3 of the ETS Regulations as it had effect during that year);“scheme year” has the meaning—in relation to the 2019 scheme year, given by regulation 3 of the ETS Regulations; in relation to the 2022 and 2023 scheme years, given by article 4 of the UK ETS order;“sectoral emissions” means, in relation to a CBAM sector, the specified emissions that were emitted in the course of regulated activities carried out at sub-installations in the United Kingdom that have a process that serves the production of goods falling within the CBAM sector;“sub-installation” means each kind of sub-installation defined by Article 2 of Commission Delegated Regulation (EU) 2019/331 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council (or, in relation to the 2019 scheme year, has the meaning given by regulation 3 of the ETS Regulations as it had effect during that year);“UK ETS allowance” means an allowance created under the UK ETS Order (see article 18);“UK ETS Order” means the Greenhouse Gas Emissions Trading Scheme Order 2020 (S.I. 2020/1265).

In determining the “baseline free allocation percentage” in relation to a CBAM sector, ignore any scheme year in which there were no sectoral emissions.

The Treasury may by regulations make further provision about the calculation of the sectoral domestic price.

In this section—

The amount of CBAM charged on emissions may be reduced under this section if another monetary amount is payable in relation to the emissions, whether the amount is—

The Treasury may by regulations make provision about relief under this section, including provision—

In this Part, “carbon price” means a monetary amount of a kind described in regulations under subsection (2)(a).

Regulations under subsection (2) may (among other things) make provision—

In this section, references to an amount being payable in relation to emissions includes a reference to—

In this Part, “emissions” means emissions of greenhouse gases (within the meaning of section 92 of the Climate Change Act 2008) into the atmosphere that are attributable to human activity.

For the purposes of this Part, “emissions” are determined or expressed in tonnes of carbon dioxide equivalent.

In this Part, a “tonne of carbon dioxide equivalent” means one metric tonne of carbon dioxide or an amount of any other greenhouse gas with an equivalent global warming potential.

The Commissioners may by regulations make provision setting, or about the determination of, such amounts.

In this Part—“business” includes any activity of a government department or other public authority, or of a charity, that is carried out for commercial purposes;“CBAM good”: see section 143;“the Commissioners” means the Commissioners for His Majesty’s Revenue and Customs;“the customs and excise Acts” has the meaning given by section 1 of CEMA 1979;“emissions”: see section 154;“HMRC” means His Majesty’s Revenue and Customs;“import”: see section 144;“import duty” has the meaning given by section 1 of TCTA 2018;“importer”: see section 146;“registered person” and “registrable person”: see paragraph 2(10) of Schedule 17;“tonne of carbon dioxide equivalent” see section 154;“UCC 2013” means Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code, as it has effect by virtue of section 7A of the European Union (Withdrawal) Act 2018;“UK Emissions Trading Scheme” has the meaning given in Article 16 of the Greenhouse Gas Emissions Trading Order 2020 (S.I. 2020/1265);“Union good” has the meaning given by Article 5(23) of UCC 2013;“working day” means any day other than—a Saturday or Sunday, or a day that is a bank holiday in any part of the United Kingdom under the Banking and Financial Dealings Act 1971.

In this Part—

The Treasury may by regulations make such amendments to this Part as they consider appropriate in consequence of UCC 2013, or any legislation replacing it, being amended or replaced.

The Treasury may by regulations amend this Part for the purpose of—

In this section, “a country or territory with a linked emissions trading scheme” means—

Regulations under this Part—

Regulations under this Part may make provision by reference to things specified in a notice that is—

Regulations under this Part are to be made by statutory instrument.

A statutory instrument containing regulations under section 156(1) (linked emission trading schemes) is subject to the affirmative procedure.

A statutory instrument containing regulations under any of the following provisions is subject to the made affirmative procedure—

A statutory instrument containing regulations under paragraph 2(3) of Schedule 16 and under section 8 of TCTA 2018 is subject to the procedure under section 32 of TCTA 2018 that applies by virtue of the instrument containing regulations section 8 of TCTA 2018.

A statutory instrument containing regulations under this Part, other than regulations in respect of which subsection (4), (5) or (6) applies, is subject to the negative procedure.

Subsection (7) does not apply to a statutory instrument containing only regulations under section 158 (transitory provision).

Where a statutory instrument is subject to the affirmative procedure, it may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.

Where a statutory instrument is subject to the made affirmative procedure—

Where a statutory instrument is subject to the negative procedure, it is subject to annulment in pursuance of a resolution of the House of Commons.

Where a statutory instrument ceases to have effect as a result of subsection (10), that does not—

In calculating the period of 28 days for the purposes of subsection (10), no account is to be taken of any whole days that fall within a period during which—

Any provision that may be included in regulations in a statutory instrument under this Part subject to the negative procedure may be included in regulations in a statutory instrument subject to the affirmative procedure or the made affirmative procedure.

Any provision that may be included in regulations in a statutory instrument under this Part subject to the made affirmative procedure may be included in regulations in a statutory instrument subject to the affirmative procedure.

A notice published by the Treasury or the Commissioners under this Part—

This Part has effect in relation to goods imported into the United Kingdom on or after 1 January 2027.

The Treasury may by regulations modify the effect of—

Provision included in regulations under this section by virtue of section 157(1)(b) may modify the effect of any enactment.