Hello,
In a slightly quieter news week in the tax world, we look at HMRC’s October Agent Update, the Autumn Budget representations made by some of the professional bodies, and where the UK ranks in terms of international tax competitiveness.
The Tax Foundation’s annual report ranks the tax systems of the 38 OECD countries in terms of their competitiveness and neutrality. A competitive tax code keeps marginal tax rates low, and a neutral tax system seeks to raise the most revenue with the fewest economic distortions.
Ultimately, the Tax Foundation says that a tax code that is both competitive and neutral promotes sustainable economic growth and investment, while raising sufficient revenue for Government priorities. The UK sits in 32nd place in the 2025 International Tax Competitiveness Index; something which may be on the Chancellor’s mind as we approach next month’s Budget.
Several professional bodies have made representations to HM Treasury on areas of the UK’s tax system where they believe improvements, often in terms of simplicity and fairness, can be made. Our summary of their suggestions can be found in Quick News.
Our sister service, Virtual Tax Partner (VtaxP), has seen an influx of questions relating to succession, gifting and Inheritance Tax (IHT) planning. No doubt this has been driven, at least in part, by the upcoming fiscal event and changes to IHT proposed over the next 18 months. With that in mind, this week we feature several of our subscriber guides that discuss aspects of these topical tax issues and help with tax planning.
More news and updates below.
The rossmartin.co.uk tax team
Online PRACTICAL tax resources for accountants and tax advisers BY accountants and tax advisers.
Next-Day Budget Analysis PDF
The Autumn Budget 2025 is shaping up to be one of the most consequential in recent memory.
Our Autumn Budget Analysis 2025 is a concise, clear summary, branded and ready for you to send directly to your clients. Compiled by our technical team of Chartered Tax Advisers and accounting specialists, it distils the Budget into:
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Quick News
Agent Update 136: October 2025
HMRC have published their Agent Update for October 2025. We have summarised the key content with links to our detailed guidance on the topics covered, including the introduction of a new student loan plan type, adjustments for calculating Capital Gains Tax (CGT) for the 2024-25 tax year, and updates to various areas of HMRC guidance.
Professional bodies make Budget representations
In September, HM Treasury invited representations from stakeholders ahead of the 2025 Autumn Budget. We take a look at the representations made by some of the professional bodies.
UK's property tax system second-worst in OECD
The International Tax Competitiveness Index 2025, compiled by the Tax Foundation, finds that Estonia has the best tax system in the OECD for the twelfth consecutive year. The United Kingdom languishes at 32 out of 38 nations, with only France and Italy of the G7 states ranking lower.
One-to-many letters: Tracker
HMRC's latest one-to-many 'nudge' letter targets taxpayers under PAYE whose income is over £60,000, and who may be liable for the High-Income Child Benefit Charge (HICBC) for the tax year 2024-25 and/or 2025-26.
What might be announced in Autumn Budget 2025?
With the Chancellor's 2025 Autumn Budget set for 26 November, and an increasingly challenging economic outlook, we consider what tax changes might be announced when Rachel Reeves stands at the Dispatch Box next month.
Editor's Choice
National Insurance contributions for directors
NEW: How do you calculate National Insurance Contributions (NICs) for directors? What special rules apply?
Deferred consideration and earn-outs
How is deferred consideration taxed? What are the tax consequences of an earn-out? Typically, when a business is sold, a buyer may hold back or defer paying the whole of the purchase price until certain agreed conditions are satisfied or profit targets are met.
IHT: Agricultural and Business Property Reliefs, April 2026 changes
Significant changes to Agricultural Property Relief (APR) and Business Property Relief (BPR) were announced in the 2024 Autumn Budget. What is changing? What planning could be considered?
Guides & Updates
Self-employed
Wages: Spouse or family
Can I employ family members? Can I employ my children? Will the costs be allowable? What needs to be considered?
Partnerships
Salaried members: When is a partner taxed as an employee?
In some circumstances, Limited Liability Partnership (LLP) members are taxed as employees under PAYE. What are the Salaried Member rules? When do they apply? What are the conditions?
Incorporation
Incorporation: Businesses & Trades
How to transfer an existing sole trader's business by incorporation into a company.
Transfer of income streams: Anti-avoidance
A guide to the transfer of income streams, anti-avoidance rules, when they apply and when they do not.
Directors & Companies
Employee Ownership Trusts: An exit route for owner-managers
What is an Employee Ownership Trust (EOT)? Are EOTs a good exit route for owner-managers? What are the tax benefits? What are the tax reliefs available? What clearances should be sought? What are the requirements for relief?
Succession planning: Buyouts
What are the options for succession planning and a company buyout? What are the tax implications?
Case Study 6: POS, buyout retiring shareholder
What are the steps for a Purchase of Own Shares (POS)?
Employers
Employee Shares: the Employment-Related Securities rules
What are the tax consequences when a company gives shares to an employee or director? What are employment-related securities? What is best: shares or share options? How do you set up a share scheme?
EMI: Enterprise Management Incentive Scheme
What is the Enterprise Management Incentive (EMI) scheme? What's the difference between EMI and an unapproved share scheme?
Private Client & Estate Planning
CGT: Connected persons
Who is a connected person for Capital Gains Tax (CGT) purposes? Why does this matter?
CGT: Holdover/Gift Relief (s.165/s.260)
Holdover Relief may be available when an individual makes a gift to another person (individual or company). When is the relief available? What are the conditions that apply? What restrictions are there?
Client Briefing: Making gifts & IHT
What gifts can you make without triggering Inheritance Tax (IHT)? What are the rules on making tax-effective gifts for IHT purposes?
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?
Penalties & Compliance
General Anti-Abuse Rule (GAAR) (subscriber version)
What is the General Anti-Abuse Rule (GAAR)? When does it apply?
Named tax avoidance schemes, promoters, enablers
UPDATE: HMRC publish a list of named tax avoidance schemes, promoters, enablers and suppliers. It is not recommended that taxpayers use any of these schemes, as HMRC do not consider that they work and you may end up with a significant tax liability if you engage with the scheme suppliers.
VAT
Transfer Of a Going Concern (TOGC)
Buying a business and VAT, do you take over the old owners' VAT registration? What is a Transfer Of a Going Concern (TOGC)? What conditions must be met? What are the consequences of a TOGC?
Taking over a business (VAT traps)
What do you need to do for VAT purposes if you start to run a similar business to one which operated from the same premises? What if you take over an existing business? What if the business you take over has ceased trading or gone bust?
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
This is a freeview 'At a glance' rolling calendar of common recurring tax deadlines, new tax measures and other tax-significant events.
Continuing Professional Development (CPD)
Recent and upcoming webinars include:
- Monthly Tax Update - October 2025
- Practice Insight - October 2025 (free)
- Monthly Tax Update - September 2025
- Practice Insight - September 2025 (free)
- Making Tax Digital for Income Tax - Roadmap to April 2026
Need Tax Support?
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, reorganisations and much more.
Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 16 October 2025
- Scottish Budget date confirmed
- Wales sets its 2026-27 Budget
- Employer Bulletin: October 2025
- Ramsay principle applied, payments to employees were earnings
- No shelter under umbrella for travel and subsistence payments
- Unsuccessful Court of Appeal gamble for casino
- Capital allowances: On incorporation ...More
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