Hello,
This week, the Chancellor presented her Spring Statement to Parliament. We bring you our summary of the key tax announcements and wider tax news, including the enactment of the Finance Act 2025 and HMRC's latest Agent Update.
In the run-up to the Spring Statement, HM Treasury confirmed that the Chancellor remained committed to one major fiscal event a year. That proved to be true, with the Chancellor making relatively few tax announcements and reaffirming that there will be a Budget in the Autumn.
The Government outlined their plans for the continued rollout of Making Tax Digitial for Income Tax, most notably bringing forward an extension, from April 2028, to sole traders and landlords with qualifying income over £20,000.
The Chancellor outlined that a key part of restoring economic stability and fiscal responsibility is to close the tax gap. The majority of tax-related announcements made in the Spring Statement fell in this area, with several associated consultations being launched, the aim being to raise over £1 billion in additional gross tax revenue per year by 2029-30.
You can find our coverage of the Chancellor's Statement in the dedicated Spring Statement section below and we will continue to provide our usual detailed analysis over the coming days.
In other news, Finance Act 2025 received Royal Assent last week. This brings several significant measures announced at previous fiscal events into law, including the abolition of the non-domicile and Furnished Holiday Letting regimes from April 2025.
We feature three cases this week. These include the Timothy Bunting decision, in which the Upper Tribunal (UT) considered the availability of capital loss relief on an irrecoverable loan to a trader, where the loan had been converted into worthless shares before the capital loss relief claim was made.
More news, cases and updates below, including HMRC's Agent Update for March 2025.
The Ross Martin Tax Team
Your Virtual Tax Partner®: online PRACTICAL support for accountants, tax advisers BY accountants and tax advisers.
Spring Statement 2025
Spring Statement 2025: At a glance
The Chancellor, Rachel Reeves, presented her Spring Statement on 26 March 2025. It walked the tightrope of keeping to the Government's fiscal rules and not increasing taxes while addressing a £14bn deficit in public finances. The Chancellor confirmed that the Office of Budget Responsibility (OBR) had cut its growth forecast for the coming year in half from 2% to 1%.
More taxpayers into MTD by 2028
Changes to Making Tax Digital (MTD) were announced in the Spring Statement on 26 March 2025, including bringing forward the introduction of MTD for Income Tax for sole traders and landlords with income over £20,000.
R&D consultation on advance clearance procedure
HMRC has launched a new consultation 'Research and Development tax relief advance clearances' which invites views on widening the use of clearances to avoid error and fraud.
Consultation on closing in on promoters of tax avoidance
HMRC have launched a consultation on ‘Closing in on promoters of tax avoidance’. Proposals include giving HMRC additional powers and stronger sanctions to tackle closing the tax gap attributable to marketed tax avoidance.
Consultation: Reform of Behavioural Penalties
The Government has published a new consultation, 'Reform of behavioural penalties', seeking views on options to improve the current penalty regime in respect of taxpayers who have submitted inaccurate returns or failed to notify chargeability.
Consultation on tackling tax advisers facilitating non-compliance
HMRC has launched a consultation on 'Enhancing HMRC's ability to tackle tax advisers facilitating non-compliance'. Views are sought on whether HMRC’s current powers are effective in dealing with non-compliance facilitated by tax advisers.
Consultation on tax certainty for major projects
HM Treasury has launched a consultation, 'Advance tax certainty for major projects', which explores a possible new process to give major projects increased certainty in advance about the tax that applies.
Better use of new and improved third-party data
HMRC have launched a consultation, 'Better use of new and improved third-party data' seeking views on how to improve the quality of data acquired under HMRC's bulk data gathering powers for tax administration.
More Spring Statement resources...
If you'd like a technical analysis of the statement, produced as a PDF in your practice branding, then 20:20 Innovation offer a Spring Statement PDF product from just £215. In addition, any Spring Statement purchasers get free access to an exclusive 'Spring Statement Special' webinar worth £99. Here, you can enjoy an in-depth analysis from Sharon Cooke and Emma Gilbert-Smith. Don't miss out.
Quick News
Finance Act 2025 receives Royal Assent
Finance Bill 2024-25 received Royal Assent on 20 March 2025 to become Finance Act 2025. It contains a number of key measures, including the abolition of the Furnished Holiday Letting and non-domicile tax regimes.
Agent Update: March 2025
HMRC have published their Agent Update for March 2025. We have summarised the key content with links to our detailed guidance on the topics covered, including changes to company size thresholds for off-payroll working, reporting payrolled benefits for self-assessment and student loan purposes, and changes to the claims process for Creative Industries Tax Reliefs.
Tax Cases
Capital loss denied on loan converted to shares
In HMRC v Timothy Bunting [2025] UKUT 00096, the Upper Tribunal (UT) found that relief for a capital loss on a loan to a sports memorabilia trader was not available as the loan had been satisfied by conversion into shares before the loss relief claim was made.
Personal Liability Notice validly issued
In John Strange v HMRC [2025] TC09448, the First Tier Tribunal (FTT) upheld a Personal Liability Notice (PLN) issued to a company’s sole director. The company’s failure to pay National Insurance (NI) over a 22-month period was attributable to neglect on the director's part.
Editor's Choice
Tax Planning for the 2024/25 year-end: Private Clients
This is our 2024-25 year-end and new tax year checklist and toolkit for private clients.
Tax Planning for the 2024/25 year-end: Business Owners
A checklist of key deadlines and topical issues to consider for SMEs and their owners when planning around the end of the 2024-25 tax year. What returns and claims are due before the end of the tax year?
Tax Data Card 2025-26
NEW: A summary of key tax rates and allowances for 2025-26 and 2024-25.
Guides & Updates
Self-employed
Cash or accruals accounting toolkit
Unincorporated businesses can elect to use one of two different methods of accounting for tax: simpler accounting (cash basis) or accruals basis accounting.
Repairs and renewals
What expenses can you claim for tax? In what situations are repairs disallowed and treated as capital expenditure?
Partnerships
Partnerships: Losses
What loss reliefs are available to partners and what restrictions are there? How to calculate a partner's capital contribution? What are the anti-avoidance rules?
Directors & Companies
Salary 2025/26 (interaction with NICs)
Is it still tax-efficient to pay a very low salary? Is it beneficial to pay a slightly higher salary to claim the Employment Allowance? What if the Employment Allowance is not available?
Employers
Employers' NICs relief for veterans
Since April 2021, a relief from Class 1 National Insurance has been available for employers who hire veterans within their first 12 consecutive months of civilian employment.
Private Client & Estate Planning
IHT: Normal Expenditure Out of Income (gifts)
When is normal expenditure out of income exempt for Inheritance Tax (IHT)? How do you claim the exemption?
UK Trusts
What is a trust? What types of trust are there? How are UK trusts taxed?
Making Tax Digital
Making Tax Digital: Client letter
NEW: A template letter for accountants to use to communicate with clients about the introduction of Making Tax Digital for Income Tax from 6 April 2026.
Making Tax Digital: MTD Roadmap Infographic
NEW: A downloadable Making Tax Digital for Income Tax Roadmap Infographic which sets out the new rules in a graphical format, ideal for ‘visual learners’ and those who don’t like reading! This infographic is designed to allow you to add your firm’s branding.
VAT News & Cases
HMRC delay to VAT registration causes confusion
In Sammy Garden Ltd v HMRC [2025] TC09443, the First Tier Tribunal (FTT) found that a company was liable to account for output VAT from its effective date of registration, not the date that it learned of its VAT registration which was nearly four months later.
Energy-Saving Materials
The supply and fitting of energy-saving materials in residential accommodation attracts the zero rate of VAT. What does it apply to? What are the qualifying conditions? What case law is there on this topic?
Tax Tools & Calculators
Tax tools & calculators
We have a suite of useful tax tools that help agents, business owners and sole traders calculate their taxes.
Calendar of tax deadlines and new tax measures
UPDATE: This is a freeview 'At a glance' rolling calendar of common recurring tax deadlines, new tax measures and other tax-significant events.
CPD
CPD for lunch: Byte-sized chunks of lunchtime CPD (free for our Subscribers)
- How to run the most tax-efficient business 2024/25.
- Purchase of Own Shares: all the details.
- Anti-money Laundering Update and Firm-Wide Risk Assessment ...More...
Tax Queries?
UK Agent for registration of Overseas Entities
Do you require assistance in the registration and verification of an overseas entity that owns UK land or property?
Virtual Tax Partner© Support
Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a wide range of expertise: covering direct and indirect tax, as well as accounting, R&D claims, reorganisations and much more.
Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 20 March 2025
- HMRC's new 2024-25 CGT 'adjustment' calculator
- Online filing exclusions for 2024-25 tax returns
- Update on refunds for Tax Credits Ltd customers
- Wind farm study costs qualified for CAs
- No BPR for FHL business
- Sky presenter loses IR35 appeal
- Tax Data Card 2025-26 NEW
- Making Tax Digital: Client letter NEW
- Making Tax Digital: MTD Roadmap Infographic NEW
- Tax-efficient extraction of profits: toolkit (2025/26) NEW
- Furnished Holiday Letting (FHL): Abolition of the regime: Briefing UPDATE ...More
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