Monthly Tax Update - July 2025

Objectives

To update delegates on recent and proposed changes in taxation that are relevant to their clients.

Key topics

FINANCE BILL 2025-26 – DRAFT CLAUSES

• Legislation Day 21 July 2025
• Closing the tax gap
• Modernising and mandating tax adviser registration
• Enhancing HMRC's powers - tackling tax advisers facilitating non-compliance
• Tackling tax non-compliance in the umbrella company market
• Making Tax Digital (MTD)
• Closing in on promoters of marketed tax avoidance
• Charity compliance measures
• Better use of new and improved third-party data to make it easier to pay tax right first time
• Personal Tax Offshore Anti-Avoidance
• Putting the tax system on a fairer and more sustainable footing
• Inheritance Tax - Agricultural Property Relief and Business Relief
• Inheritance Tax - Unused Pension Funds and Death Benefits
• Technical amendments to residence-based tax regime
• Changes to employee car ownership schemes
• The tax treatment of carried interest
• Maintaining the tax system
• Benefit in Kind tax for Plug-in Hybrid Electric Vehicles (PHEVs)
• Private Intermittent Securities and Capital Exchange System (PISCES)
• Inland Border Facilities
• Land Remediation Relief
• Technical fixes
• Technical updates to Pillar 2 rules
• Application of overseas restriction for Research & Development Expenditure Credit

HMRC UPDATES

• HMRC Transformation Roadmap – Plan for Change
• Agent online services
• Closing the tax gap
• Reform and modernisation of the tax and customs system
• New PAYE Service
• MTD for Income Tax – HMRC’s User guidance updated
• What are the key changes to the tax return filing process?
• Agent Update 133 – 17 July 2025
• Class 2 NICs – 2024/25 issue
• Creating stronger passwords – a guide for tax agents
• HMRC get social

INHERITANCE TAX

• Agricultural and Business property relief
• Business property relief – a reminder
• Agricultural property relief – a reminder
• What’s changing in April 2026?
• Business relief reduction for AIM shares and similar
• The £1million allowance
• Lifetime transfers prior to 6 April 2026
• Payment
• Unused pension funds and death benefits
• APR and BR reforms for Trusts
• What should I do now?

Who should attend

Accountants in general practice who advise on tax planning and compliance.