The government published draft Finance Bill 2026-27 clauses on 13 July, known as L-Day, and the measures touch benefits in kind, crypto and multinational reporting all at once. Close behind it, the Summer Savings VAT tool has quietly become something else. It is now a live registry HMRC can use to check compliance later, not just a discount finder for families.
The other two stories are not new. They are becoming clearer. The pension inheritance tax rules now come with firm deadlines attached. Fiscal drag has pushed higher rate taxpayer numbers high enough that clients will start asking about it.
Here is the detail.
Finance Bill 2026-27 Lands on L-Day
On 13 July, known as Legislation Day or L-Day, the government published draft legislation for the Finance Bill 2026-27 Most changes will not take effect for some time. But several are now confirmed, not just under discussion.
Benefits in kind reporting is moving toward mandatory payrolling. Over time, this removes the need for P11D reporting for many employers. Crypto asset treatment is changing too. Eligible stablecoins will be taxed as income rather than under capital gains rules from April 2027. Certain crypto asset loans will be treated as no gain, no loss, which defers CGT rather than triggering it when the loan is made.
Key facts:
- Mandatory payrolling of benefits in kind confirmed
- Stablecoins taxed as income, not capital gains, from April 2027
- Pillar Two rules apply to accounting periods starting on or after 1 January 2026
None of this needs action today. It does need flagging to clients. Anyone holding stablecoins, still running benefits in kind through P11Ds, or sitting inside a multinational group should know the direction is now set in legislation, not just under discussion.
Summer Savings VAT Tool Doubles as a Compliance Checklist for HMRC
The government’s Summer Savings tool went live to help families find venues offering the temporary 5% VAT rate on children’s meals and family attractions. The scheme runs until 1 September 2026. Close to 2,000 businesses have registered so far, including well known names in hospitality and leisure.
The definitions are where clients will get caught out. A children’s meal has to be a specific item on the menu aimed at children. A smaller portion of an adult dish does not qualify, however it is marketed, and must stay at the standard 20% rate.
Admission tickets work the same way. A family ticket covering adults and children can qualify in full. A standard adult ticket, or a group booking that isn’t marketed as family admission, does not.
Key facts:
- Reduced 5% VAT rate runs until 1 September 2026
- Nearly 2,000 businesses registered so far
- Registered venues form a public list HMRC can use for compliance checks after the scheme ends
There is a second layer worth raising directly with clients. By registering, a business now sits on that list as a starting point for future scrutiny. Any client applying the reduced rate needs their menu descriptions and ticket categories documented now, not reconstructed later if HMRC asks.
Pension IHT Rules Gain Firm Mechanics: 28-Day Valuations & 35-Day Joint Liability
From 6 April 2027, unused pension pots come inside the inheritance tax net. The principle has been known for a while. What’s new this week is the detail of how it will actually work for personal representatives, or PRs.
A PR must ask each pension scheme for a valuation as of the date of death. Schemes have 28 days to respond. If the estate needs cash to pay the tax bill, the PR can ask schemes to hold back up to 50% of the funds due to anyone who isn’t a spouse or a charity.
Key facts:
- Schemes have 28 days to provide a notional pension property valuation
- PRs may request up to 50% withholding for non-exempt beneficiaries
- PR and scheme become jointly liable for unpaid tax 35 days after the due date
This joint liability point matters most for estate planning conversations now. A PR waiting on valuations from several schemes, some slower than others, has less time than the six-month IHT payment window suggests once that 35-day clock starts running.
Fiscal Drag Pushes Higher Rate Taxpayers Past 7.7 Million This Year
Tax thresholds are frozen until April 2031. No rate has moved, but more taxpayers are being pulled into higher bands every year simply because the thresholds haven’t kept up. Higher rate taxpayers are projected to reach 7.70 million this year, up 51% since 2023-24. Additional rate payers are expected to rise to 1.29 million by March 2027, as the £125,140 threshold stays fixed.
This doesn’t just affect working-age clients. The personal allowance is frozen at £12,570. The state pension is on track to exceed that amount by 2027. That means pensioners could be pulled into income tax for the first time, not because of anything they’ve done, but simply because their pension has gone up.
Key facts:
- Higher rate taxpayers projected at 7.70 million this year
- Additional rate taxpayers projected at 1.29 million by. March 2027
- Total UK taxpayers on track to reach 40.8 million in 2026-27
Most clients won’t have thought about the pensioner point. Anyone advising clients who are retired, or close to retirement, should raise it now, before the state pension increase does it for them.
Conclusion
This week’s stories split into two groups. HMRC is gaining visibility it didn’t have before, through the VAT registry and the scale of data behind the fiscal drag figures. At the same time, rules that used to be conceptual are becoming fixed. The pension IHT deadlines are firm now, and the Finance Bill has confirmed the direction on benefits in kind and crypto.
The immediate work is narrow. Check menu and ticket documentation against the VAT tool’s definitions now. Flag the pensioner allowance point to any client who is retired or close to it. The Finance Bill and pension IHT changes are worth watching, but most of the dates don’t bite until April 2027.
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