Finance Bill 2026-27: timing and what will be in it

Finance Bill 2026-27 is the Bill that puts most of the tax changes announced in Budget 2026 on 28 October 2026 into law. The House of Commons Library reports that it was read a first time in the Commons after MPs approved the Budget resolutions on 3 November 2026. If it follows last year’s pattern, it should receive Royal Assent in March 2027, before most of its measures start on 6 April 2027.

What is the Finance Bill?

The Finance Bill is the annual law that gives effect to the Chancellor’s tax decisions. Chancellor John Healey’s Budget announced the measures; the Bill makes them legally binding once it receives Royal Assent and becomes the Finance Act 2027.

Not every Budget measure is in the Bill. The government’s overview of tax legislation and rates (OOTLAR), first published on 28 October 2026 and updated on 5 November 2026, splits them into measures in Finance Bill 2026-27 (chapter 1) and measures delivered another way (chapter 2).

The timetable so far

The Bill has moved through these stages.

HMRC’s draft legislation collection holds the July draft clauses, explanatory notes and tax information and impact notes. Budget-day additions were published on 28 October.

When will the Finance Bill become law?

No date has been announced for Royal Assent. The best guide is last year’s Bill:

1. Budget: 26 November 2025
2. Bill published: 4 December 2025
3. Royal Assent: 18 March 2026, as Finance Act 2026

On that pattern, expect second reading in the next few weeks, committee stage over the winter, and Royal Assent around March 2027. Some measures already apply from Budget day, such as the inheritance tax trust changes for deaths and events from 28 October 2026, so they will take effect from that date once the Bill passes.

What is in Finance Bill 2026-27?

The main measures listed in chapter 1 of the OOTLAR are below.

Income tax and employment

• Savings and property income rates of 24% basic, 44% higher and 49% additional from 6 April 2027 (see savings and property income tax)
• A new Pension Tax Allowance for pensioners
• Trading allowance up from £1,000 to £3,000 (see the £3,000 trading allowance)
• CSOP individual limit up to £120,000, with a 15-year exercise period
• Mandatory payrolling of company cars, vans, fuel and medical benefits from April 2027, and most other benefits from April 2028

Business and capital taxes

• Corporation tax main rate kept at 25% and small profits rate at 19% for financial year 2028
• Main-rate first-year allowance of 50% and a main-rate writing-down allowance of 12%
• Business Asset Disposal Relief lifetime limit cut from £1,000,000 to £500,000 for disposals from 6 April 2027 (see the BADR limit)
• A new Founders’ Relief, to be added by amendment after a consultation closing 30 November 2026

VAT, duties and administration

• Online marketplaces liable for VAT on UK sellers’ sales, with a £90,000 per-platform threshold, from October 2027
• Machine Games Duty up from 20% to 25% for higher-stake machines from 1 April 2027
• A High Value Council Tax Surcharge on properties worth £2 million or more from April 2028
• E-invoicing requirements from April 2029
• Reformed correction of errors, including Customer Correction Notices, from April 2028
• Changes to HMRC information powers and the promoters of tax avoidance regime from Royal Assent

What is not in the Bill?

Several Budget measures are made by statutory instrument or other laws instead. The OOTLAR lists:

• Rates and allowances, including NICs regulations expected in early 2027
• The cash ISA limit kept at £20,000
• The Lifetime ISA withdrawal charge cut from 25% to 20% for over-cap properties
• The 0% VAT rate on domestic electricity, extended to 30 June 2027
• Later Finance Bills for distributions reform and Advance Corporation Tax repeal

Unused pensions coming into inheritance tax from 6 April 2027 were already legislated in Finance Act 2026.

Can the Bill change before it is passed?

Yes. The government can add or amend clauses during the Bill’s passage, and Founders’ Relief is already planned as an amendment. MPs can propose changes, although government Finance Bills rarely change much. Advise on the published text, but check the final Act before relying on detailed wording.

What advisers should do

1. Read the clauses that affect your clients, not just the Budget summaries.
2. Note the 6 April 2027 start dates for property, savings and BADR changes, and plan disposals and profit extraction now.
3. Watch for amendments, especially Founders’ Relief after 30 November 2026.
4. Use our Budget 2026 checklist for accountants to work through client actions.

Frequently asked questions

When was Finance Bill 2026-27 introduced?

The House of Commons Library reports that it was read a first time after MPs agreed the Budget resolutions on 3 November 2026, following the Budget on 28 October.

When will Finance Bill 2026-27 receive Royal Assent?

No date has been set. Last year’s Bill received Royal Assent on 18 March 2026, so March 2027 is a reasonable expectation.

Does the Finance Bill include the cash ISA limit?

No. The £20,000 cash ISA limit is set by secondary legislation, which the OOTLAR says was to be laid in November 2026.

Will Finance Bill 2026-27 become the Finance Act 2027?

Yes. Once it receives Royal Assent, the Bill becomes an Act named for the year in which it is passed, so it is expected to be the Finance Act 2027.

Where can I read the draft Finance Bill clauses?

HMRC’s draft legislation collection on GOV.UK holds the draft clauses, explanatory notes and impact notes. The Bill as introduced is on the UK Parliament bills website.