Month: August 2025

Banks must now give 90 days’ notice before closing accounts, giving customers more time to respond.

Since April 2026, new government rules strengthen protections for individuals and small businesses at risk of unfair bank account closures. Under the legislation, banks and payment service providers are required to give at least 90 days’ written notice before closing an account or terminating a payment service, commonly known as debanking. A significant increase from the previous 2-month limit.

Banks are also required to provide a clear explanation for the closure, allowing customers to challenge the decision including through the Financial Ombudsman Service. These changes are designed to protect customers, particularly small businesses, who have often found their accounts shut down without notice or reason, leaving them unable to operate or seek alternatives.

The new rules form part of the government’s wider Plan for Change, aimed at delivering economic security and supporting growth. The rules came into force for relevant new contracts agreed from 28 April 2026 onwards and also apply to the termination of basic personal bank accounts.

There are exceptions in cases where closure is necessary to comply with financial crime laws. Existing protections which prohibit a bank from discriminating against a UK consumer based on political opinions or beliefs remain in place.

SMI loans can help pay mortgage interest for those on benefits, but repayment is due when the home is sold.

Support for Mortgage Interest (SMI) is a government-backed loan provided by the Department for Work and Pensions (DWP) designed to assist homeowners receiving certain benefits in covering the interest on their mortgage or home loans. The loan is intended solely to help with interest payments on a qualifying mortgage or home loan, and repayment is typically not required until the property is sold, or ownership is transferred.

Interest on the loan is charged monthly using compound interest which means that the total amount owed will increase over time. Despite this, the SMI loan may still be a more affordable alternative compared to borrowing from banks or credit unions.

Before applying, individuals are advised to assess their financial situation. SMI may not cover the full mortgage payment and so applicants may still need to pay the remaining balance. Those who have missed payments, are managing other debts, or share ownership with someone not included in their benefit claim should seek professional advice prior to applying.

Eligible applicants may borrow against up to £200,000 of their mortgage if they receive working-age benefits, or £100,000 if they are on Pension Credit, this can increase to £200,000 in certain transitional cases. For joint mortgages, entitlement may be limited. There is no credit check for the SMI loan, so applying will not affect benefits or credit scores.

To apply, individuals must complete an SMI application form. However, it is recommended that they explore all available options first, including discussions with their mortgage lender and support services such as Citizens Advice.

With the next UK Budget approaching, there is speculation about changes to tax rates, allowances, and reliefs. Acting now can help secure current benefits before any new rules take effect.

Key areas to review:

• Personal allowances – make sure you are using your Personal Allowance, savings allowance, dividend allowance, and Capital Gains Tax (CGT) exemption. Consider transferring assets between spouses or civil partners to maximise allowances.
• Income or gains – if you expect changes to tax rates, you may benefit from bringing forward dividends, bonuses, or planned asset sales into the current tax year.
• Pension contributions – pensions remain highly tax-efficient. Using your current year’s allowance now can lock in today’s tax relief rates.
• Business investment – review any planned purchases of plant or equipment to take advantage of existing capital allowances.
• Inheritance tax – making gifts now can start the seven-year clock and use current IHT exemptions.

The period before the Budget is a valuable opportunity for tax planning. Contact us as soon as possible to discuss your position and take advantage of existing rules before any changes are announced.

If your property has changed or seems mis-banded, you may have the right to request a Council Tax review.

Properties in England and Wales are assigned Council Tax bands based on their value as of 1 April 1991 (England) or 1 April 2003 (Wales). If you believe your property is incorrectly banded, you may challenge this through the Valuation Office Agency (VOA).

You have a legal right (known as ‘making a proposal’) to challenge if:

• You have paid Council Tax for less than 6 months.
• The VOA changed your band in the last 6 months.
• Your property or local area has undergone significant change (e.g. structural alterations, change of use, or redevelopment).

If you don’t have a legal right, you may still request a band review by submitting evidence such as:

• Sale prices of similar properties around the valuation date.
• Up to five comparable properties in lower bands, matching on type, size, age, and location.

Challenges can be made online, by form, phone, or email. Council Tax payments must continue during the review. VOA decisions may take up to 6 months (legal right) or 12 months (band review). Appeals are permitted only where a legal challenge was made.

If you live in Scotland, then you need to use the Scottish Assessors portal website to check your Council Tax band and if necessary, lodge a claim with them (known as a proposal).