Over the last six months, HMRC have regularly updated ‘List 3’, its list of approved professional organisations and learned societies. Several new organisations have been added.
SME Tax News
Shona Robison MSP, Cabinet Secretary for Finance and Local Government, presented her 2026-27 Budget to the Scottish Parliament on Tuesday, 13 January 2026. Key announcements included above-inflation increases to the Basic and Intermediate rate Income Tax thresholds for 2026-27, and new Council Tax bands from 1 April 2028 for residential properties valued at over £1 million.
Hello,
The start of 2026 has proven to be busy in the world of tax. This week, our news includes a significant update on the imminent reform to Inheritance Tax (IHT), the date of the 2026 Spring Forecast, a decrease in HMRC’s late payment interest rates in time for the upcoming self-assessment payment deadline and its December Agent Update.
HMRC have published their Agent Update for December 2025. We have summarised the key content, including an update on the mandatory payrolling of Benefits In Kind (BIKs), important reporting requirements for some trusts under the Automatic Exchange Of Information (AEOI) rules, the key changes agents should be aware of in relation to Making Tax Digital (MTD) for Income Tax and important considerations with regard to filing your clients' Self Assessment tax returns for the 2024-25 tax year.
In The Tower One St George Wharf Limited v HMRC [2025] EWCA Civ 1588, the Court of Appeal (CoA) found that a series of transactions involving the grant and transfer of a property lease amongst group companies triggered Stamp Duty Land Tax (SDLT) anti-avoidance provisions.
Following the Bank of England’s announcement on 18 December 2025 that the base rate would decrease to 3.75%, HMRC's interest rates are also decreasing by 0.25%, to 7.75% for late payment interest and 2.75% for repayment interest, from 9 January 2026.
The OECD has released an updated version of the Model Tax Convention on Income and Capital, with clarification around remote working arrangements. The OECD Model incorporates the latest developments in international taxation and provides guidance on interpreting and applying bilateral tax treaties.
In Timothy Watts v HMRC [2025] EWCA Civ 1615, the Court of Appeal (CoA) found that Income Tax relief for losses on gilt strips was confined to real economic losses, and could not be generated by fragmenting consideration within a pre-planned avoidance scheme.
The government has announced that the proposed cap to the 100% rates of Agricultural Property Relief (APR) and Business Property Relief (BPR), which is due to apply from 6 April 2026, will be increased to £2.5 million from the £1 million previously announced.
The Chancellor, Rachel Reeves, has asked the Office for Budget Responsibility (OBR) to prepare an economic and fiscal forecast for publication on 3 March 2026, the date of the 2026 Spring Forecast.
