HM Treasury

The government believes that the safe adoption of artificial intelligence (AI) by the financial services sector is a major strategic opportunity, with the potential to power growth across the UK. As part of the government’s Financial Services Growth and Competitiveness Strategy, the government is in the process of appointing Financial Services AI Champions to act as a catalyst for AI adoption and innovation in the sector. The government has also commissioned the Financial Services Skills Commission to produce a UK-wide report on how the skills system can drive growth and productivity in the financial services sector, by supporting adoption and innovation of disruptive technologies.

The government welcomes the work of industry bodies including UK Finance, and firms across the sector given their central role in supporting the ongoing transition to harness and adopt AI technologies, including generative AI.

The government also welcomes the technology positive approach of the FCA and the Bank of England to regulation, including through launching the AI Consortium and the FCA commitment to avoid additional requirements on firms when using AI, as outlined in Nikhil Rathi’s letter to the Prime Minister last year.

The government will continue to work closely with industry and consider research such as the report produced by UK Finance to inform our approach.

Setting the UK’s financial services sector up with the skills and talent it needs is an important pillar of the Government’s Financial Services Growth and Competitiveness Strategy.

This is why the Economic Secretary commissioned the Financial Services Skills Commission (FSSC) to produce a report on how the skills system can drive growth and productivity by supporting more effective adoption and innovation of AI and other disruptive technologies. The FSSC have committed to reporting back by the end of the year.

The Government also committed to support the development of a sector Skills Compact for financial services and aim to launch it in summer 2026. This will accelerate progress and ensure the sector have the skills to thrive in the future. It will set out targeted, meaningful and ambitious actions for signatories to address skills gaps.

As set out in the Government’s Financial Services Growth and Competitiveness Strategy (“the Strategy”), the UK aims to be the world’s most technologically advanced global financial centre, and to remain a leading jurisdiction for Fintech firms to start-up, scale and list.

The UK has a long history as a powerhouse of financial services innovation. The Strategy set out a comprehensive package of reforms to maintain the UK’s global leadership in Fintech, and the sector attracted $3.6 billion of investment in 2025 - second only to the US. This drive to deliver innovation also includes the safe adoption of artificial intelligence (AI) by the financial services sector, which the Government believes is a major strategic opportunity, with the potential to power growth across the UK.

As part of the Strategy, the Government is in the process of appointing Financial Services AI Champions to act as a catalyst for AI adoption and innovation in the sector. The Government has also commissioned the Financial Services Skills Commission to produce a UK-wide report on how the skills system can drive growth and productivity in FS by supporting adoption and innovation of disruptive technologies.

The Government welcomes the technology positive approach both the Financial Conduct Authority (FCA) and the Bank of England take to regulation, including through launching the AI Consortium and the FCA’s commitment to avoid additional requirements on firms when using AI, as outlined in the letter from Nikhil Rathi, CEO of the FCA, to the Prime Minister last year.[1] Their pro-innovation stance will help to support the UK’s Fintechs in these fast-moving markets.

[1]This letter is available at the following link: https://www.fca.org.uk/publication/correspondence/fca-letter-new-approach-support-growth.pdf

At the Budget, the Valuation Office Agency (VOA) announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties.

To support with bill increases, at the Budget in November 2025, the Government introduced a support package worth £4.3 billion, including to protect ratepayers seeing their bills increase. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down next year. This also means most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, while ensuring that warehouses used by online giants will pay more.

The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely. However, Government understands the importance of face-to-face banking to communities and is committed to supporting sufficient access for customers.

The Financial Services and Markets Act 2023 provides the Financial Conduct Authority (FCA) with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities, including free facilities for personal current accounts. It also requires HMT to produce a Cash Access Policy Statement concerning cash deposit and withdrawal services, which the FCA must have regard to when designing its rules for access to cash. In line with its legal obligation to do so, HMT keeps the Cash Access policy statement under review.

Under the FCA’s rules, an assessment is triggered upon the closure or material alteration of a cash access facility or upon a community request. When carrying out a cash access assessment, LINK, the operator of the UK’s largest ATM network and designated operator of cash access co-ordination arrangements, takes into consideration a wide range of criteria, including those unique to each location. These include whether a bank branch remains, existing cash access points, population size and vulnerability, the number of shops in the area, and the practicality of travelling to nearby facilities, including public transport links, travel times, and local demographics. Where LINK determines that a community requires additional cash services, Cash Access UK (CAUK) will provide the appropriate shared solution, such as a deposit service or a banking hub, for cash users in that community.

In addition to traditional bank branches, the financial services industry is committed to rolling out 350 banking hubs across the UK by the end of this Parliament. Over 240 hubs have been announced so far, and more than 200 are already open. Government is working closely with industry on this commitment, including through regular ministerial engagement.

Banking hubs offer everyday counter services provided by Post Office staff, enabling people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services.

The Government continues to work with the banking industry to improve the breadth and availability of services available in banking hubs and I recently chaired a roundtable with banks, CAUK and UK Finance to discuss services provided in banking hubs. CAUK member banks have already made significant progress in bringing the services offered by community bankers in hubs closer to those available in a traditional bank branch. For example, over the past year, all original CAUK member banks have ensured that customers can use hub services even if they do not have access to a personal digital device, such as a mobile phone or tablet. A full list of services provided by each bank for both personal and business customers is publicly available to view via CAUK’s website.

The Government keeps the effectiveness of these arrangements under review through regular engagement with industry, LINK and the FCA to ensure they meet the needs of local communities.

Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely. However, Government understands the importance of face-to-face banking to communities and is committed to supporting sufficient access for customers.

The Financial Services and Markets Act 2023 provides the Financial Conduct Authority (FCA) with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities, including free facilities for personal current accounts. It also requires HMT to produce a Cash Access Policy Statement concerning cash deposit and withdrawal services, which the FCA must have regard to when designing its rules for access to cash. In line with its legal obligation to do so, HMT keeps the Cash Access policy statement under review.

Under the FCA’s rules, an assessment is triggered upon the closure or material alteration of a cash access facility or upon a community request. When carrying out a cash access assessment, LINK, the operator of the UK’s largest ATM network and designated operator of cash access co-ordination arrangements, takes into consideration a wide range of criteria, including those unique to each location. These include whether a bank branch remains, existing cash access points, population size and vulnerability, the number of shops in the area, and the practicality of travelling to nearby facilities, including public transport links, travel times, and local demographics. Where LINK determines that a community requires additional cash services, Cash Access UK (CAUK) will provide the appropriate shared solution, such as a deposit service or a banking hub, for cash users in that community.

In addition to traditional bank branches, the financial services industry is committed to rolling out 350 banking hubs across the UK by the end of this Parliament. Over 240 hubs have been announced so far, and more than 200 are already open. Government is working closely with industry on this commitment, including through regular ministerial engagement.

Banking hubs offer everyday counter services provided by Post Office staff, enabling people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services.

The Government continues to work with the banking industry to improve the breadth and availability of services available in banking hubs and I recently chaired a roundtable with banks, CAUK and UK Finance to discuss services provided in banking hubs. CAUK member banks have already made significant progress in bringing the services offered by community bankers in hubs closer to those available in a traditional bank branch. For example, over the past year, all original CAUK member banks have ensured that customers can use hub services even if they do not have access to a personal digital device, such as a mobile phone or tablet. A full list of services provided by each bank for both personal and business customers is publicly available to view via CAUK’s website.

The Government keeps the effectiveness of these arrangements under review through regular engagement with industry, LINK and the FCA to ensure they meet the needs of local communities.

Banking is changing, with many customers benefitting from the convenience and flexibility of managing their finances remotely. However, Government understands the importance of face-to-face banking to communities and is committed to supporting sufficient access for customers.

The Financial Services and Markets Act 2023 provides the Financial Conduct Authority (FCA) with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities, including free facilities for personal current accounts. It also requires HMT to produce a Cash Access Policy Statement concerning cash deposit and withdrawal services, which the FCA must have regard to when designing its rules for access to cash. In line with its legal obligation to do so, HMT keeps the Cash Access policy statement under review.

Under the FCA’s rules, an assessment is triggered upon the closure or material alteration of a cash access facility or upon a community request. When carrying out a cash access assessment, LINK, the operator of the UK’s largest ATM network and designated operator of cash access co-ordination arrangements, takes into consideration a wide range of criteria, including those unique to each location. These include whether a bank branch remains, existing cash access points, population size and vulnerability, the number of shops in the area, and the practicality of travelling to nearby facilities, including public transport links, travel times, and local demographics. Where LINK determines that a community requires additional cash services, Cash Access UK (CAUK) will provide the appropriate shared solution, such as a deposit service or a banking hub, for cash users in that community.

In addition to traditional bank branches, the financial services industry is committed to rolling out 350 banking hubs across the UK by the end of this Parliament. Over 240 hubs have been announced so far, and more than 200 are already open. Government is working closely with industry on this commitment, including through regular ministerial engagement.

Banking hubs offer everyday counter services provided by Post Office staff, enabling people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank to carry out wider banking services.

The Government continues to work with the banking industry to improve the breadth and availability of services available in banking hubs and I recently chaired a roundtable with banks, CAUK and UK Finance to discuss services provided in banking hubs. CAUK member banks have already made significant progress in bringing the services offered by community bankers in hubs closer to those available in a traditional bank branch. For example, over the past year, all original CAUK member banks have ensured that customers can use hub services even if they do not have access to a personal digital device, such as a mobile phone or tablet. A full list of services provided by each bank for both personal and business customers is publicly available to view via CAUK’s website.

The Government keeps the effectiveness of these arrangements under review through regular engagement with industry, LINK and the FCA to ensure they meet the needs of local communities.

Every year, HMRC answers millions of calls. HMRC has published monthly telephony performance data which covers the requested time period. It can be found here: https://www.gov.uk/government/collections/hmrc-monthly-performance-reports

This data includes information about the number of calls received, the number of customers who wanted to speak to an adviser and the proportion of callers that got through to an adviser (adviser attempts handled – AAH).

There are several reasons why somebody calling HMRC may not speak to an adviser – the customer may have had their query answered by HMRC’s recorded messages, they may have found the information they require online or they may have decided to call back another time.

Improving day-to-day performance is a key priority for HMRC.

HMRC are taking steps to make sure more of their services are digital. HMRC online services and the HMRC app are convenient to access and receive high customer satisfaction ratings. As more people use HMRC online services, advisers are freed up to support those with more complex queries and those who are digitally excluded.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.

Everyone using salary sacrifice will still benefit from the tax advantages available up to the £2,000 cap. The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.

Of employees making pension contributions through salary sacrifice, those under the age of 30 are far more likely to be protected by the £2,000 cap than those above the age of 30.

The Conservative and Liberal Democrat Coalition Government allocated £1.5 billion to the Equitable Life Payment Scheme. Before it ceased operations in 2016, the Scheme had issued £1.12 billion in tax-free payments to nearly 933,000 policyholders. The remainder of the £1.5 billion has been set aside for future payments to the With-Profits Annuitants. Further information is available in the Final Report on the Scheme. (https://www.gov.uk/government/publications/equitable-life-payment-scheme-final-report).

The total value of payments made by the Scheme stood at £1.35 bn as of 30 May 2025, and the Scheme is on track to pay out the remainder. Annual annuity payments to the over 17,000 eligible WPAs amounted to £20m in 2025.

HMRC’s Chief Executive wrote to the Treasury Select Committee on 14 November 2025 about this matter including the corrective action that HMRC has taken and its approach to redress. This letter was subsequently published by the Committee on 18 November 2025.

For the number of Child Benefit claims I refer the Honourable Member to the answer I gave to Question 104272 on 14 January 2026.

Written questions and answers - Written questions, answers and statements - UK Parliament

Childminders play a vital role in childcare. The Government has eased rules on working from schools and community centres and increased early years funding rates above 2023 average fees. These increases reflect increased costs, and from April 2026, local authorities must pass at least 97 per cent of funding to providers.

Childminders can continue to claim tax relief for wear and tear by deducting the actual cost of buying, repairing or replacing items. They can also deduct the cost of business expenses such as utilities, cleaning and equipment. This ensures childminders receive tax relief for all of the costs that they incur in relation to their childminding business.

The government will monitor the impact of Making Tax Digital (MTD) for Income tax on childminder and other home-based childcare providers in the same way as it will for all sole traders moving to MTD for Income Tax.

Legislation sets the route for ratepayers to notify the Valuation Office Agency of changes, including renovations, through the Check Challenge Appeal service. The timeframe for the VOA to complete reviews is also set out in legislation; for Check cases it is up to 12 months and Challenges up to 18 months, although the VOA aims to respond sooner.

Late payment interest is charged whenever tax is paid late or paid where amounts have been overpaid.

The interest charged ensures people aren’t encouraged to overpay their tax to secure a higher interest rate than available commercially. It also ensures those paying late don’t get an unfair advantage over those paying on time.

The rates operated by HMRC are linked to the Bank of England Base Rate, with late payment interest set at Base Rate +4% and repayment interest set at Base Rate – 1%.

The rates of interest operated by HMRC are set in legislation following consultation with stakeholders. HMRC does not charge or pay interest for a commercial purpose.

As HMRC’s First Permanent Secretary explained to the Treasury Select Committee on 13 January, the PAYE check was removed to streamline the process at an operational level, with a view to employment status being tested as part of any subsequent customer enquiry.

The Department has apologised for removing the PAYE check and the impact on some of its customers of this change.

HMRC has taken swift action to reinstate the check, put things right for affected customers and make further improvements to the process. Lessons learned for the future include strengthening the governance from pilots to business as usual activities.

In October 2024, the Government laid a statutory instrument defining the retail, hospitality and leisure (RHL) properties that will be eligible for new, lower business rates multipliers from April 2026.

Since they were announced at Budget 2024, the Government has been clear that scope of the RHL multipliers would broadly reflect the scope of the current RHL relief. The previous Government made the decision to exclude betting shops from the relief. This Government considered the issue in the round, and decided to continue the treatment the previous Government chose to ensure the tax cut is appropriately targeted.

The classification of betting shops as financial and professional services is a planning use class and is not assigned by the Valuation Office Agency (VOA) for business rates purposes. The VOA values land and buildings based on physical features and how the property is occupied. Planning use classes do not affect how the VOA value betting shops.

In October 2024, the Government laid a statutory instrument defining the retail, hospitality and leisure (RHL) properties that will be eligible for new, lower business rates multipliers from April 2026.

Since they were announced at Budget 2024, the Government has been clear that scope of the RHL multipliers would broadly reflect the scope of the current RHL relief. The previous Government made the decision to exclude betting shops from the relief. This Government considered the issue in the round, and decided to continue the treatment the previous Government chose to ensure the tax cut is appropriately targeted.

The classification of betting shops as financial and professional services is a planning use class and is not assigned by the Valuation Office Agency (VOA) for business rates purposes. The VOA values land and buildings based on physical features and how the property is occupied. Planning use classes do not affect how the VOA value betting shops.

In October 2024, the Government laid a statutory instrument defining the retail, hospitality and leisure (RHL) properties that will be eligible for new, lower business rates multipliers from April 2026.

Since they were announced at Budget 2024, the Government has been clear that scope of the RHL multipliers would broadly reflect the scope of the current RHL relief. The previous Government made the decision to exclude betting shops from the relief. This Government considered the issue in the round, and decided to continue the treatment the previous Government chose to ensure the tax cut is appropriately targeted.

The classification of betting shops as financial and professional services is a planning use class and is not assigned by the Valuation Office Agency (VOA) for business rates purposes. The VOA values land and buildings based on physical features and how the property is occupied. Planning use classes do not affect how the VOA value betting shops.

In October 2024, the Government laid a statutory instrument defining the retail, hospitality and leisure (RHL) properties that will be eligible for new, lower business rates multipliers from April 2026.

Since they were announced at Budget 2024, the Government has been clear that scope of the RHL multipliers would broadly reflect the scope of the current RHL relief. The previous Government made the decision to exclude betting shops from the relief. This Government considered the issue in the round, and decided to continue the treatment the previous Government chose to ensure the tax cut is appropriately targeted.

The classification of betting shops as financial and professional services is a planning use class and is not assigned by the Valuation Office Agency (VOA) for business rates purposes. The VOA values land and buildings based on physical features and how the property is occupied. Planning use classes do not affect how the VOA value betting shops.

In October 2024, the Government laid a statutory instrument defining the retail, hospitality and leisure (RHL) properties that will be eligible for new, lower business rates multipliers from April 2026.

Since they were announced at Budget 2024, the Government has been clear that scope of the RHL multipliers would broadly reflect the scope of the current RHL relief. The previous Government made the decision to exclude betting shops from the relief. This Government considered the issue in the round, and decided to continue the treatment the previous Government chose to ensure the tax cut is appropriately targeted.

The classification of betting shops as financial and professional services is a planning use class and is not assigned by the Valuation Office Agency (VOA) for business rates purposes. The VOA values land and buildings based on physical features and how the property is occupied. Planning use classes do not affect how the VOA value betting shops.

In October 2024, the Government laid a statutory instrument defining the retail, hospitality and leisure (RHL) properties that will be eligible for new, lower business rates multipliers from April 2026.

Since they were announced at Budget 2024, the Government has been clear that scope of the RHL multipliers would broadly reflect the scope of the current RHL relief. The previous Government made the decision to exclude betting shops from the relief. This Government considered the issue in the round, and decided to continue the treatment the previous Government chose to ensure the tax cut is appropriately targeted.

The classification of betting shops as financial and professional services is a planning use class and is not assigned by the Valuation Office Agency (VOA) for business rates purposes. The VOA values land and buildings based on physical features and how the property is occupied. Planning use classes do not affect how the VOA value betting shops.

The Government is introducing new permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties. These new tax rates are worth nearly £900 million per year and will benefit over 750,000 properties.

The new RHL tax rates replace the temporary RHL relief that has been winding down since COVID. Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The Ministry of Housing, Communities & Local Government publishes data on the cost of, and number of properties receiving, business rates relief. This data can be found at the following link:

https://www.gov.uk/government/statistics/national-non-domestic-rates-collected-by-councils-in-england-forecast-2025-to-2026

Information relating to your request can be found here.

The Treasury does not hold this information. This is a matter for the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), which are operationally independent from government and responsible for authorising firms seeking to offer banking services. These organisations will each respond to the Honourable Member by letter, and a copy of the letters will be placed in the Library of the House of Commons.

Illegal money lenders, commonly known as loan sharks, are dangerous criminals who inflict serious harm on their victims. The Government funds specialist Illegal Money Lending Teams (IMLTs) operating across the UK to tackle their crimes. These teams investigate and prosecute illegal lenders while providing crucial support to victims. Details of the teams’ work and case studies are available at the Stop Loan Sharks website: https://www.stoploansharks.co.uk/.

HMRC’s role in the honours system is advisory and not decision making – it provides an advisory low, medium or high risk rating which is considered by the Honours Committees, alongside information from other departments, in their decision making.

The probity risk rating is based on information held at the time of the check. HMRC does not disclose taxpayer details. The legal basis for disclosure of the rating is set out in published Memoranda of Understanding (MOU) with other government departments (see https://www.gov.uk/government/collections/hmrc-awards-and-appointments) and the criteria for determining ratings are set out at Annex C of the MOUs. Senior HMRC officials receive reports of nominee’s tax behaviour and apply the published Risk Rating Matrix in the MoU to arrive at a rating. HMRC has been providing advisory risk ratings under this framework since 2023.

The Government’s ambition is to make the UK a global leader in AI, leveraging our dual strength in financial services and AI to drive growth, productivity, and consumer benefits. Encouraging safe adoption is an essential part of realising that ambition.

The treatment of customers by UK banks and building societies is governed by the Financial Conduct Authority (FCA), whose independent regulatory powers ensure consumer protection in the financial services sector. The FCA’s Principles for Businesses require firms to provide prompt, efficient, and fair service to all their customers. The FCA’s Consumer Duty requires firms to act in good faith, prevent foreseeable harm, and act in the best interests of consumers.

UK banks are required to comply with relevant laws and regulations that are fundamental to consumer protection, including in any use of customer-facing agentic AI. In April 2024, the FCA published an update on its regulatory approach to AI, making it clear that where firms use AI as part of their business operations, they remain responsible for meeting FCA rules. Firms remain fully accountable for outcomes delivered by AI systems.

The Bank of England’s Financial Policy Committee (FPC) is responsible for identifying and monitoring risks to UK financial stability. In their April 2025 Financial Stability in Focus publication, they set out the potential benefits and risks to financial stability that could result from AI use in the financial system, including in relation to agentic AI. HM Treasury continues to work closely with the FPC and UK financial regulators to assess risks to financial stability.

The Government will continue to work with regulators and industry to ensure innovation proceeds safely and responsibly.

Stamp Duty Land Tax (SDLT) is an important source of government revenue, raising around £12 billion each year to help pay for essential public services. The Office for Budget Responsibility (OBR) sets out some of the interactions between SDLT, house prices and the volume of transactions as part of its Housing Market Forecasts, available on the OBR website.

https://obr.uk/forecasts-in-depth/the-economy-forecast/housing-market/

New forms of digital money and payments present potential benefits for both users and providers of payment services, offering faster, cheaper payments with better functionalities and greater security.

The government, alongside regulators, is considering the innovation opportunities that blockchain-based payments instruments, including tokenised deposits, could present the UK financial services sector.

We are working with regulators and industry to design the next generation of retail payments infrastructure, overseen by the Payments Vision Delivery Committee.

Steps have already been taken to set up the right regulatory conditions for firms to safely innovate and experiment with this technology, specifically through the Bank of England and Financial Conduct Authority’s (FCA) work on the Digital Securities Sandbox.

Furthermore, the government recently laid legislation to regulate cryptoassets and stablecoins. This regime will raise standards, strengthen consumer protection, help tackle market abuse, and support the responsible growth of the UK’s cryptoasset sector by providing clear and consistent rules.

The Office of Financial Sanctions Implementation (OFSI), part of HM Treasury, has released the value of frozen funds from its Annual Frozen Asset Review exercise in each OFSI Annual Review since 2017.

OFSI published in its 2024-2025 Annual Review that £19.3 million in assets across multiple sanctions regimes have been reported as frozen as of September 2024.

This is an aggregated total of all entities and individuals listed on the Consolidated List of Financial Sanctions Targets under non specified regimes including the ISIL (Da’esh) and Al-Qaida regime.

The estimated amount of tax in 2026/27 that will be raised from double cab pick-up vehicles being treated as cars, comprised of increased Company Car Tax revenue and reduced Capital Allowances, has been estimated as follows:

This figure is based on Autumn Budget 2024 basis and is subject to uncertainty typically around the behavioural response.

The Government is committed to ensuring the smooth flow of goods within the UK internal market. On 1 May, the Government introduced important new arrangements for freight and parcels movements to ensure that goods can continue to move smoothly from Great Britain to Northern Ireland, and ahead of these new arrangements, HMRC had an extensive readiness programme to support businesses.

These new arrangements ensure that parcels sent to or from consumers will not be subject to customs declarations or duty.

Guidance for businesses sending parcels from Great Britain to Northern Ireland is available at: www.gov.uk/guidance/how-to-send-parcels-from-a-business-in-great-britain-to-a-private-individual-or-a-business-in-northern-ireland

Parcels that move from Northern Ireland to Great Britain continue to be able to benefit from unfettered access.

The sources used to calculate the number of properties impacted are set out in the published costings document: https://assets.publishing.service.gov.uk/media/692872fd2a37784b16ecf676/Budget_2025-Policy_Costings.pdf

Fewer than 1% of properties are expected to be above the £2 million threshold. The Valuation Office Agency is developing its approach and will set out more information alongside the government’s consultation.

Decisions on the use of tokenised deposits and smart contracts in the mortgage market are independent commercial matters for lenders and property firms, within the regulatory framework overseen by the Financial Conduct Authority, including the Consumer Duty and relevant mortgage conduct rules. However, the Government is regularly in contact with mortgage lenders on all aspects of their business, including the evolution and integration of new technologies and their potential impact on the industry.

The Ministry of Housing, Communities and Local Government is currently undertaking a review of home buying and selling, which will consider how digital tools and emerging technologies could be used to improve property transaction processes. The Government has made clear its objectives that reform should support faster, more reliable transactions and reduced fall throughs and risks.

HMRC uses a range of approaches to manage tax compliance, helping taxpayers get their tax right whilst tackling those who avoid or evade paying the taxes that are due.

Current and planned tax compliance measures are detailed below:

• HMRC has obtained historical data from cryptoasset entities using statutory information-gathering powers and undertaken communications with customers to encourage self-correction and disclosure.
• A dedicated cryptoasset section was added to Self Assessment forms for 2024–25 returns.
• Implementation of the OECD Cryptoasset Reporting Framework (CARF) from 1 January 2026, requiring service providers to collect and report user information. This new framework is expected to lead to additional tax being collected of £535 million (across 2026-2031).
• HMRC has updated GOV.UK guidance and published a YouTube video (‘Cryptoassets and paying tax’) to improve customer understanding paying taxes.
• HMRC has established a dedicated Crypto Sector team to co-ordinate cryptoasset compliance activities. This team will expand in the Summer of 2026 in preparation of the data arriving from CARF to help promote compliance through education and tackle those who do not pay the tax that they owe.
• The government has introduced legislation to establish a new financial services regulatory regime for cryptoassets. Subject to Parliamentary approval, this will ensure consumers are protected and firms have the certainty needed to invest and grow in the UK.

The correction exercise opened to claims for both Child Benefit and Child Tax Credit on 1 October 2025.

As affected individuals may not have had an active claim, HMRC is unable to identify affected individuals from its records and is reliant on them contacting HMRC. Prior to the launch, HMRC provided messaging directly to third-party welfare rights stakeholders to advertise the exercise and encourage claimants to self-identify. HMRC officials worked with the Department for Education and the Department for Work and Pensions to amplify this messaging through homeschooling networks and local authorities, respectively. The exercise also received national press coverage.

The communications campaign is expected to run until October 2026. HMRC will continue to publicise through stakeholders, and consider further press releases or targeted social media.

The Government recognises the significant contribution made by small businesses to economic growth and life in the UK. Tax rates and thresholds are one of a range of factors that affect small businesses’ decisions on growth and recruitment, alongside wider economic conditions, demand and market considerations.

There is a range of views on the VAT registration threshold. Any consideration of changes to the threshold would have to carefully balance potential impacts on small businesses, the economy as a whole, and tax revenues. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.

The Government recognises the significant contribution made by small businesses to economic growth and life in the UK. Tax rates and thresholds are one of a range of factors that affect small businesses’ decisions on growth and recruitment, alongside wider economic conditions, demand and market considerations.

There is a range of views on the VAT registration threshold. Any consideration of changes to the threshold would have to carefully balance potential impacts on small businesses, the economy as a whole, and tax revenues. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.

The Government recognises the significant contribution made by small businesses to economic growth and life in the UK. Tax rates and thresholds are one of a range of factors that affect small businesses’ decisions on growth and recruitment, alongside wider economic conditions, demand and market considerations.

There is a range of views on the VAT registration threshold. Any consideration of changes to the threshold would have to carefully balance potential impacts on small businesses, the economy as a whole, and tax revenues. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.

The Government recognises the significant contribution made by small businesses to economic growth and life in the UK. Tax rates and thresholds are one of a range of factors that affect small businesses’ decisions on growth and recruitment, alongside wider economic conditions, demand and market considerations.

There is a range of views on the VAT registration threshold. Any consideration of changes to the threshold would have to carefully balance potential impacts on small businesses, the economy as a whole, and tax revenues. The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties. To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Government support also means that most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including grassroots music venues, while ensuring that warehouses used by online giants will pay more. The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid.

Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The support package includes a redesigned transitional relief scheme which caps bill increases. The Transitional Relief caps will be as follows for properties with a rateable value of:

- Up to £20,000 (£28,000 in London): in 2026-27 – 5%, in 2027-28 – 10% (plus inflation), in 2028-29 – 25% (plus inflation).

- £20,001 (£28,001 in London) to £100,000: in 2026-27 – 15%, in 2027-28 – 25% (plus inflation), in 2028-29 – 40% (plus inflation).

- Over £100,000: in 2026-27 – 30%, in 2027-28 – 25% (plus inflation), in 2028-29 – 25% (plus inflation).

The Government is also proceeding with a supporting small business scheme (SSB) capping bill increases for the smallest businesses losing some or all of their small business rates relief or rural rate relief. For any business whose value has increased so that they are no longer eligible for small business rates relief – which provides up to 100% relief from business rates for small businesses – we are capping their increase at the higher of £800 or the relevant Transitional Relief percentage cap for a property of their value, before changes in other reliefs and local supplements.

SSB eligibility and thresholds can be found at: Business rates relief: Small business rate relief - GOV.UK. Transitional Relief eligibility and thresholds can be found at: Business rates relief: Transitional relief - GOV.UK

The amount of business rates paid on each property is based on the rateable value of the property, assessed by the Valuation Office Agency (VOA), and the multiplier values, which are set by the Government. Rateable values are re-assessed every three years. Revaluations ensure that the rateable values of properties (i.e. the tax base) remain in line with market changes, and that the tax rates adjust to reflect changes in the tax base.

At the Budget, the VOA announced updated property values from the 2026 revaluation. This revaluation is the first since Covid, which has led to significant increases in rateable values for some properties. To support with bill increases, at the Budget, the Government introduced a support package worth £4.3 billion over the next three years to protect ratepayers seeing their bills increase because of the revaluation. As a result, over half of ratepayers will see no bill increases, including 23% seeing their bills go down. Government support also means that most properties seeing increases will see them capped at 15% or less next year, or £800 for the smallest.

More broadly, the Government is delivering a long overdue reform to rebalance the business rates system and support the high street, as promised in our manifesto. The Government is doing this by introducing permanently lower tax rates for eligible retail, hospitality and leisure (RHL) properties, including grassroots music venues, while ensuring that warehouses used by online giants will pay more. The new RHL tax rates replace the temporary RHL relief that has been winding down since Covid.

Unlike RHL relief, the new rates are permanent, giving businesses certainty and stability, and there will be no cap, meaning all qualifying properties on high streets across England will benefit.

The support package includes a redesigned transitional relief scheme which caps bill increases. The Transitional Relief caps will be as follows for properties with a rateable value of:

- Up to £20,000 (£28,000 in London): in 2026-27 – 5%, in 2027-28 – 10% (plus inflation), in 2028-29 – 25% (plus inflation).

- £20,001 (£28,001 in London) to £100,000: in 2026-27 – 15%, in 2027-28 – 25% (plus inflation), in 2028-29 – 40% (plus inflation).

- Over £100,000: in 2026-27 – 30%, in 2027-28 – 25% (plus inflation), in 2028-29 – 25% (plus inflation).

The Government is also proceeding with a supporting small business scheme (SSB) capping bill increases for the smallest businesses losing some or all of their small business rates relief or rural rate relief. For any business whose value has increased so that they are no longer eligible for small business rates relief – which provides up to 100% relief from business rates for small businesses – we are capping their increase at the higher of £800 or the relevant Transitional Relief percentage cap for a property of their value, before changes in other reliefs and local supplements.

SSB eligibility and thresholds can be found at: Business rates relief: Small business rate relief - GOV.UK. Transitional Relief eligibility and thresholds can be found at: Business rates relief: Transitional relief - GOV.UK

On 6 April 2025 the outdated concept of domicile was removed from the tax system and replaced with a new residence-based regime, including a four-year foreign income and gains regime. The new regime includes the temporary repatriation facility (TRF) for individuals who have previously used the remittance basis to designate and pay tax at a reduced rate on foreign income and gains that arose prior April 2025.

The reforms to the tax treatment of non-domiciled individuals have been specifically designed to make the UK competitive, with a modern, simple tax regime that is also fair.

At Budget 2025, the government announced that it is introducing a cap on Inheritance Tax charges on trusts settled by former non-doms prior to Autumn Budget 2024. This reflects the significant amount of tax impacted individuals are expected to pay by remaining in the UK, as well as their wider economic contribution. This cap will apply to trust charges arising from April 2025.

At Budget 2025, the government also published the Finance Bill, which includes technical amendments to the legislation for the TRF. These include amendments to remove specific barriers to using the facility.