For financial services professionals studying for Chartered Insurance Institute (CII) exams, staying up to date with the latest tax and legislative changes can be challenging.
The past few months have been particularly turbulent, with the Autumn Budget introducing significant financial updates – some have been implemented immediately, while others are being phased in over time.
On top of this, the CII does not incorporate these changes into its exams as soon as they take effect but instead follows its own timeline for updating the syllabus. This has left many candidates uncertain about which rules will be examined and when.
This article highlights the key legislative changes currently being examined, those soon to be examined, and the best ways for candidates to stay informed regarding future changes.
Key changes already tested (pre-1 April 2025)
The following tax and legislative changes have already been incorporated into CII exams:
- Stamp Duty Land Tax (SDLT) surcharge for second homes increased from 3% to 5%.
- Increases to Capital Gains Tax rates from 10% to 18% for all gains falling under the basic rate tax threshold and 20% to 24% for all gains falling above the basic rate tax threshold.
- Adjustments to the Right to Buy scheme.
- Updates to Qualifying Recognised Overseas Pension Schemes (QROPS).
- Changes to the Panel on Takeovers and Mergers (PTM) levy.
Imminent changes to be examined (1 April 2025)
For those sitting exams before 1 April 2025, the following SDLT thresholds apply:
- 0% SDLT threshold.
- Standard: £250,000.
- First-time buyers: £425,000.
However, for exams taken on or after 1 April 2025, the thresholds will revert to:
- 0% SDLT threshold.
- Standard: £125,000.
- First-time buyers: £300,000.
How to turn exam setbacks into success
Key changes for the new examinable tax year (from 1 September 2025)
Tax changes introduced in the Finance Act 2025, applicable to the 2025/2026 tax year, will be examined from 1 September 2025 onwards. Key updates include:
- National Insurance contributions:
o The secondary threshold (the point at which employers start to pay NICs) falls to £5,000 (from £9,100).
o Employers will pay NICs at 15% (up from 13.8%).
o The employment allowance (which allows eligible employers to reduce their NI liability) increases to £10,500 (from £5,000) and the £100,000 threshold is removed. - The new residency-based tax regime.
- Business asset disposal relief: this is available on the disposal of a material interest in business assets. If certain qualifying conditions are met, the first £1m of gains will be taxed at 14% (2025/26). This will rise to 18% from 2026/27.
Key changes post 25/26 examinable tax year
- Changes to agricultural and business relief: from April 2026, estates with qualifying agricultural and business assets valued over £1m will face 20% inheritance tax (IHT) on the amount exceeding the threshold.
- From 6 April 2027 pensions are expected to become liable to IHT.
In summary…
To ensure success in your CII exams:
- Pay close attention to when tax changes take effect and their impact on exams. Use the most up-to-date tax tables on the CII website.
- Ensure you are working from the most up-to-date study text. All qualification updates are available from the CII website on the exam homepage. Regularly check these pages!
By staying proactive and prepared, you can navigate tax changes with confidence and optimise your CII exam performance. Best of luck with your studies and exams!
Catriona Standingford is founder and CEO of Brand Financial Training
