Smart Insights with A Human Touch by Financial Angels | 03rd April 2025 |7 min read
As another tax year rolls in, so does a wave of new rules, rates, and reforms. Some are subtle; others are seismic. At Financial Angels, we believe tax shouldn't be terrifying—or boring. Whether you're a business owner, property investor, or just trying to plan ahead, we've broken it all down in a way that's easy to digest and genuinely useful.
Let's take a calm stroll (not a panic dash) through what's changing from April 2025.
1. Farewell to the Non-Dom Regime
From April 2025, the UK's long-standing “non-domiciled” tax status will be replaced by a residence-based system.
If you're moving to the UK after 10 years abroad, you'll enjoy a four-year tax break on foreign income and gains—even if you bring the money to the UK. After that, worldwide income becomes taxable.
There are also:
Transitional reliefs, like a 50% discount on foreign income tax for 2025/26
A chance to rebase overseas assets to 2019 values
A temporary 12% rate for foreign income brought to the UK in 2025/26 and 2026/27
Why it matters: If you're an international client or expat, this changes everything. The Financial Angels team can help you reassess your strategy, calmly and clearly.
2. Changes to Capital Gains Tax on Property
Selling a second home or rental property? Good news: the higher CGT rate is dropping from 28% to 24%.
This reduction is aimed at encouraging sales—but it's still worth checking timing and structure to maximise your return.
3. End of the Furnished Holiday Let (FHL) Regime
From April 2025, tax benefits for short-term holiday lets are being scrapped. This includes:
Loss of mortgage interest relief
No more Business Asset Disposal Relief
Profits now taxed like regular residential income
What to do: It may be time to review your property portfolio. We'll help you evaluate options, including switching to long-term rentals or restructuring into a company.
4. Employer NICs: Slightly Less Angelic
Employers face an increase in secondary NICs from 13.8% to 15%, and the threshold for when this kicks in is dropping to £5,000.
But there's relief: the Employment Allowance has risen to £10,500, easing the pressure for smaller businesses.
5. Say Goodbye to Multiple Dwellings Relief (MDR)
From 1 June 2024, this SDLT relief will be abolished. Buying two or more residential properties at once will now come at full stamp duty cost.
Landlords and developers should act quickly if planning a purchase—and talk to us about any future structuring.
6. Real-Time Benefits Reporting Is Coming
From April 2026, all benefits-in-kind (like company cars or health insurance) must be reported through payroll in real-time, not via end-of-year forms.
This will affect how tax is collected—and means employers need to get their payroll software ready now.
7. Making Tax Digital (MTD): The Rollout Begins
From April 2026:
Anyone with self-employment or property income over £50,000 must submit quarterly digital updates to HMRC.
From April 2027, the threshold drops to £30,000.
Now is the time to move to MTD-compliant software (don't worry—we're experts at making this smooth and stress-free).
8. Vehicle Tax Changes Ahead
Electric cars will start paying Vehicle Excise Duty (VED) from April 2025, and cars over £40,000 will face a “luxury car tax.”
If you're reviewing your company car policy or looking at EV options, speak to us about tax-friendly choices.
9. Inheritance Tax (IHT) and Pensions: Looking Further Ahead
From April 2027, pensions may form part of your estate for IHT purposes.
And for those who were previously non-doms, the government is considering new rules where your worldwide assets could fall under IHT after 10 years of UK residence.
Estate planning is no longer just for the ultra-wealthy—it's becoming essential for more people.
10. The Bigger Picture
These changes may feel like a lot—but they also open up opportunities for smarter planning.
At Financial Angels, our role is to help you:
- Anticipate change
- Make confident decisions
- And keep your finances aligned with your bigger life goals
If any of the above applies to you, or you just want a second opinion on your current setup, we're just a call (or calm cup of tea) away.
Your Trusted Team, Every Step of the Way
We're not just number crunchers—we're planners, problem-solvers, and yes, Financial Angels by name and nature.
The tax world may shift, but with the right advice, you don't need to.
Let's get the 2025/26 tax year off to a strong start—together.