The Main Changes in the 2025-26 CII R06 Study Text
In this article, we take a look at the main changes that you’ll come across in the CII’s R06 2025/26 study text. As there have been no significant syllabus changes, the majority of the amends stem from the Autumn Statement 2024, the Spring Budget 2025 and the turning of the tax year.
This article is correct as at 26 August 2025 and is relevant to the 2025/26 examinable tax year.
R06, Chapter 1
FCA’s review of Consumer Duty Board reports
In December 2024, the FCA published its first review of Consumer Duty Board reports. It highlighted five strengths commonly seen in good reports—such as clear outcomes focus and strong data use—and identified five key areas needing improvement, including better data quality, stronger board challenge, and more effective action.
An update on the use of Artificial Intelligence in financial services
A major challenge under the Consumer Duty is delivering clear, client-friendly communication. AI can help meet this by improving efficiency, personalisation, and accuracy in financial services. Key applications include tailored client communications, automated meeting reviews, enhanced fraud detection, AI-managed portfolios, and virtual assistants. Overall, AI supports better client outcomes while helping firms meet their Consumer Duty obligations more effectively and at lower cost.
R06, Chapter 2
Sequencing and greenwashing risk
Two additional risks have been added to the list of investment risks in Chapter 2.
Sequencing risk is the danger that poor early investment returns, especially during withdrawal periods like retirement, can significantly reduce long-term portfolio value—even if average returns are strong.
Greenwashing risk involves the misrepresentation of investments as environmentally or socially responsible. This can mislead investors and result in funds being directed toward products that don’t genuinely support sustainability goals.
R06, Chapter 3
Residence and long-term residence
On 6 April 2025, a residence-based regime was introduced, effectively replacing the previous remittance basis regime:
- There is a four-year foreign income and gains (FIG) relief for new arrivals into the UK, providing they have not been a UK resident for tax purposes in the last ten years. During this period, overseas income and gains will be exempt from UK tax, even if they are brought into the UK.
- Anyone who has been a UK resident for tax purposes for more than four years will then start to pay UK tax on their worldwide income and gains. Their domicile status is no longer relevant.
Transitional arrangements for those already eligible for or claiming the remittance basis have been put in place.
Inheritance Tax (IHT) may apply to worldwide assets of long-term UK residents (those resident for at least 10 of the past 20 tax years). UK assets are subject to IHT regardless of an individual’s residence status.
Capital Gains Tax (CGT)
The rate for business asset disposal relief has increased to 14%.
R06, Chapter 4
Pensions
In the 2024 Autumn Budget, Chancellor Rachel Reeves announced that from 6 April 2027, unused pension savings may be included in a deceased person’s estate for Inheritance Tax (IHT) purposes—unless inherited by a spouse or civil partner.
This change may prompt more focus on lifetime IHT planning, such as:
- Using pension funds to improve retirement lifestyle,
- Making use of the £3,000 annual gift allowance,
- Giving regular gifts from surplus income (which are IHT-exempt), and
- Taking out a whole-of-life insurance policy in trust to cover potential IHT liabilities.
Grab the resources you need!
If you’re studying for your CII R06 exam, and you nervous at the thought of exam day, grab our free taster to try out one of Brand Financial Training’s resources for yourself. Click the link to download the R06 analysis taster now!
