The Government will increase the inheritance tax relief threshold for farmers from £1m to £2.5m. This decision follows significant protests from the farming community, with concern raised over plans set out in last year’s Budget that would see a 20% tax on inherited agricultural assets worth more than £1m as of April 2026. The decision to increase the threshold comes days after a Government review by Baroness Batters, a former NFU president, found farmers were “bewildered and frightened” by the mooted IHT changes. The Government said it had “carefully considered” feedback on its tax plans, with Environment Secretary Emma Reynolds saying: “We have listened closely to farmers.” She added: “It’s only right that larger estates contribute more, while we back the farms and trading businesses that are the backbone of Britain’s rural communities.” NFU president Tom Bradshaw welcomed the change, calling it a “huge relief” for many family farms. Steve Rigby, chairman of Family Business UK, said raising the cap to £2.5m is “the right thing to do to reinvigorate investment and growth among smaller family businesses and farms,” but warned that retaining the cap for businesses valued higher than this “remains a challenge.”

HMRC has revised late payment interest rates for self assessment tax returns, cutting the charge from 8% to 7.75%. The reduction comes because late payment interest is currently set at base rate plus 4%. A £100 penalty applies for missing the January 31 deadline, with additional fines of £10 per day after three months, up to £900. Further 5% penalties are imposed for payments made 30 days, six months, and 12 months late. HMRC said: “Late payment interest encourages prompt payment and ensures fairness for those who pay their tax on time.”

UK SMEs will face mounting pressure in 2026 to move from ad hoc technology use to more coherent strategies, as AI adoption, cyber risks and skills shortages intensify, according to Converged Solutions Group. The firm warns that while AI tools will be widespread, poor data readiness and weak governance will limit their effectiveness and raise compliance and productivity risks. Cybersecurity and regulatory pressures are also expected to increase, requiring SMEs to treat security as a core operational function rather than an optional extra. Meanwhile, persistent skills gaps and the strain of hybrid working mean businesses will need to invest more in training and modern infrastructure to realise value from new technologies.

Households in the UK will see energy bills increase by £116 annually by 2030 after sector regulator Ofgem approved a £90bn investment plan for the power grid and gas pipelines. The initial £28bn spending will enhance gas and electricity transmission networks over five years. Ofgem claims this investment will lead to lower electricity bills by preventing additional costs from wind farm constraints.

Law firm Freshfields is providing resilience training to Gen Z students at top UK universities. The workshops focus on essential skills for managing stress and receiving feedback in a high-pressure environment. This initiative follows similar programmes from other firms, including Mazars and PwC, which have launched training schemes for young accountants to help boost their workplace skills.

Chetwood Bank has reported a £960m increase in customer deposits, reaching £3.8bn in the year to March. This growth positions Chetwood ahead of rivals like Zopa and Atom. The bank’s lending book also expanded, with gross loans rising 45% to £2.7bn. Chief executive Paul Noble said: “Digital simplification” has been key to attracting customers. Despite a loss of £4.7m, down from £8.9m the previous year, Chetwood raised £47m from its owner, Elliott Investment Management, to support its growth strategy.

The US economy grew by 4.3% in the third quarter, surpassing expectations, according to the Commerce Department. This growth was driven by increased consumer spending, exports, and government expenditure, despite a decline in investment. Official data shows that inflation also rose to 3.4%.

As Christmas approaches, many people look to sell unwanted gifts on platforms like eBay and Vinted. However, HMRC has been working to identify those operating in the hidden economy, raising questions over who may be targeted. Rachel McEleney, director in tax policy at Deloitte UK, clarified that casual sellers are generally not targeted. She said: “HMRC is not interested in those merely decluttering their house.” Most personal sales are exempt from income tax and capital gains tax, especially if items are worth less than £6,000. It is noted that donations to charity can also provide tax benefits.