Blog

The Chartered Institute of Taxation (CIOT) gave evidence last week (10 February) to the Scottish Parliament’s Finance and Public Administration Committee, which is preparing its legacy report ahead of May’s elections.

The National Insurance Contributions (Employer Pensions Contributions) Bill, which places a £2,000 cap on salary sacrifice pension contributions, passed its second reading in the House of Lords on 4 February 2026. While the government presented the Bill as a necessary reform to ensure sustainability and ‘fairness’ in the tax system, many peers voiced concern that the cap would penalise responsible savers, increase costs for employers, and undermine long-term pension outcomes.

Parliament’s Business and Trade Committee is calling for the government to act to cut the costs of tax compliance for small businesses, including changes to Making Tax Digital. The committee is also encouraging the government to consider significant reforms of VAT and business rates, and greater funding for HMRC customer service.

This page includes notes, resources and links about Finance Bill 2025-26, and will be updated as the Bill progresses through its parliamentary stages. 

The fifth and sixth sittings of the Finance (No.2) Bill Public Bill Committee took place on the morning and afternoon of 3 February. During these sessions, the committee considered and passed all clauses from 112 to 279, as well as debating some new clauses that were tabled by the opposition.

On 27 January, the Senedd approved the Welsh government’s final Budget for 2026–27. Plaid Cymru facilitated the passage of the Budget but said they do not ‘endorse’ it, while the Conservatives called it a “roll-over” Budget.

The third and fourth sittings of the Finance (No.2) Bill Public Bill Committee took place on Thursday 29 January, agreeing clauses 55 to 111.

The first two sittings of the Finance (No.2) Bill Public Bill Committee took place on the morning and afternoon of Tuesday 27 January. During these sessions, the committee considered and passed all clauses up to clause 54.

The House of Lords Finance Bill Sub-Committee has published its report on the government’s inheritance tax (IHT) changes, recommending the extension of the six-month IHT payment deadline to 12 months for estates with pension assets or eligible for agricultural and business property reliefs.

The Welsh final Budget 2026-27, published on 20 January, keeps most tax rates unchanged except for a higher Landfill Disposals Tax and a lower standard multiplier for business rates.