As we step into 2025, a range of transformative new laws and policies are set to come into force across the UK, affecting taxation, housing, workers’ rights, and more. These changes aim to address pressing issues in areas such as fairness in taxation, rental housing standards, and protections for workers.
One of the most significant reforms is the abolition of the controversial “non-domicile” tax status. From April 2025, all UK residents will be taxed on their worldwide income, a move projected to generate £12.7 billion over the next five years. This measure ensures a fairer tax system, alongside a rise in employer National Insurance Contributions from 13.8% to 15%. Additionally, the earnings threshold for contributions will be lowered from £9,100 to £5,000, raising an estimated £19 billion annually. Private schools will also be subject to new rules, with tuition and boarding fees incurring VAT at the standard rate of 20% from January 2025.
Fairer and more secure housing for renters
In the housing sector, renters are set to benefit from a landmark Renters’ Rights Bill, which is poised to create a fairer and more secure rental market. By summer 2025, the introduction of these measures will eliminate no-fault evictions under Section 21 and replace fixed-term leases with flexible periodic tenancies. These changes will allow tenants to move on with just two months’ notice while also preventing landlords from discriminating against renters with children or those on benefits. Furthermore, a new ‘Decent Homes Standard’ will be implemented to ensure higher standards in private rental properties.
Public health and environmental protections
Public health policies are undergoing significant change. A Tobacco and Vapes Bill will gradually phase out tobacco sales, beginning with a ban on sales to individuals born after January 1, 2009. Restrictions on vape advertising and packaging will also be introduced, with disposable vapes set to be banned by June 2025 as part of new environmental legislation. Additionally, new outdoor smoking bans will be implemented in areas such as playgrounds, hospitals, and schools.
Boosting workers’ rights
Workers’ rights will see a substantial boost under new legislation designed to protect employees from exploitative practices. Workers will be granted day-one rights to sick pay, parental leave, and protection from unfair dismissal. Zero-hour contracts and “fire and rehire” practices will be prohibited, ensuring greater job security. Meanwhile, minimum wage increases are on the horizon, with adults earning at least £12.21 per hour, and significant increases for younger workers aged 16 to 20.
Regulating the digital economy
The digital economy is receiving attention through the Digital Markets, Competition & Consumers Act. This legislation empowers the Competition and Markets Authority to regulate digital markets more effectively, providing greater protections for small businesses and consumers alike.
Strengthening online safety
New regulations under the Online Safety Act will hold social media companies accountable for harmful content on their platforms. Starting in March 2025, these companies will face stringent requirements to safeguard users and may incur fines of up to £18 million or 10% of their global revenue for non-compliance.
A focus on sustainability
Other notable policies include environmental initiatives to reduce waste, such as the ban on disposable vapes. While some measures, like the proposed tax on farmers’ inheritance, have been deferred to 2026, the overall direction of these reforms indicates a focus on addressing societal challenges and promoting fairness and sustainability.
These changes mark a significant shift in the UK’s legal and regulatory landscape. As individuals and businesses prepare for the year ahead, understanding these developments will be crucial to adapting and thriving in a rapidly evolving environment.
If you have questions about how these legal changes might affect you or your business, or if you require guidance on any legal matter, Hutchinson Thomas Solicitors is here to help. Our experienced team offers expert advice across a wide range of legal services. Contact us today to find out how we can assist you.