What's new in 2025?
During 2025, the government will introduce a number of new laws designed to protect consumers, employees, online users and those living in rented homes.
At the same time, there are changes in tax legislation which affect parents of children attending private schools and UK residents with non-dom status.
Employment Rights Bill
The Employment Rights Bill, which is expected to be passed into law in 2025, aims to improve conditions for workers. Under the Bill, employees will have the rights to parental leave, sick pay and protection from unfair dismissal from the first day of their employment, while zero-hour contracts and ‘fire and rehire’ practices will be prohibited. The government has also confirmed its support for miscarriage bereavement leave and is looking to add this to the bill as it moves onto the next stages in the Lords.
Renters Right’s Bill
The Renters' Rights Bill extends the rights of those living in rented accommodation and provides important protections. One of its key provisions is the banning of Section 21 ‘no-fault’ evictions, which allow landlords to evict tenants without having to prove wrongdoing and giving just two months’ notice. The Bill will also improve housing standards, extend notice periods and prevent landlords from excessively increasing rents to force tenants out.
Online Safety Act
New provisions of the Online Safety Act will come into effect this year. Applicable to search engines and websites that allow user content and interaction (e.g. social media, media sharing platforms, messaging services and forums), the act aims to prevent children from accessing harmful and age-inappropriate content while providing easier ways to report issues. There are also measures to protect adults from seeing potentially harmful content without their consent.
Platforms that do not comply with Ofcom's online safety regulations face significant fines of up to £18 million or 10% of global revenue, with senior executives potentially facing criminal action.
Tobacco and Vaping Laws
A legacy of the last government, the Tobacco and Vapes Bill will phase out smoking in the UK by incrementally raising the legal buying age each year. This means anyone born in 2009 or after will never be able to legally purchase cigarettes or tobacco. The Bill will also extend smoking bans to some outdoor spaces, such as near playgrounds, hospitals and schools, a practice increasingly being adopted across Europe.
There will also be new vaping restrictions designed to protect young people. These include a prohibition on advertising, sponsorship, displays and packaging aimed at children, together with bans of certain vape juice flavours and, from June, all disposable vapes.
Private School VAT and Business Rate Relief
Parents of children attending private schools can expect large increases in fees as the government withdraws tax breaks for these institutions. From 1st January, fees for education and boarding became subject to VAT at 20%, and from April, private schools with charity status will lose their 80% charitable relief discount on business rates. The government is to use the revenue generated to increase funding for state schools.
Non-Dom Tax Changes
From April, new rules come into force that will require Non-Doms to pay UK tax on all their global income. A non-domiciled person is someone living in the UK, but who is considered under British law to have their permanent home in another country. These changes are expected to raise £1bn in taxes in the first year.
If any of these changes affect you and you would like to discuss your options, the team at Wilkinson Woodward are here to help.