SME Tax News

'Legislation Day' (L-Day) was on Monday, 21 July 2025. The Government published draft clauses for Finance Bill 2025-26, along with accompanying explanatory notes, tax information, impact notes, responses to consultations and other supporting documents. This is our freeview summary of the announcements and publications. 

SUBSCRIBERS: see Legislation Day 2025 (subscribers) for your detailed version of this summary.

HMRC have published their Transformation Roadmap for the future tax and customs system. The aim is to create a modern tax system that supports public finances while reducing the administrative burden on taxpayers.

HMRC have published the outcome of the consultation, 'Better use of new and improved third-party data'. The reform of HMRC’s bulk-data gathering powers will lead to closer scrutiny of smaller businesses that account for around 60% of the nation's overall tax gap. 

HMRC have published the outcome of the consultation, 'Closing in on promoters of marketed tax avoidance — summary of responses'. The primary conclusion was that there is a case for introducing a criminal offence for non-compliance with DOTAS obligations.

HM Treasury has published 'Consultation on Land Remediation Relief', which seeks to review the effectiveness of Land Remediation Relief (LRR), determine whether it is still meeting its objective of boosting development of brownfield land, and obtain a greater understanding of how robust LRR is against abuse. 

HMRC have published 'Enhancing HMRC's ability to tackle tax advisers facilitating non-compliance — Summary of responses', which found most respondents agreed that HMRC’s powers to tackle non-compliance could be more effective and supported enhancing existing powers.

The Government has published a response to its call for evidence 'Personal Tax: Offshore Anti-Avoidance legislation'. It was clear from the responses that further consultation will be needed.

The Government has published a response to its consultation 'Reforms to Inheritance Tax agricultural property relief and business property relief: application in relation to trusts'. A £1m cap on 100% Agricultural Property Relief (APR) and Business Property Relief (BPR) will be introduced from 6 April 2026, with few changes from the original announcements.

The Government has published a response to its consultation 'Inheritance Tax on pensions: liability, reporting and payment'. From 6 April 2027, unused pension funds will form part of an individual's estate for Inheritance Tax (IHT) purposes, with the Personal Representatives (PRs) becoming liable for the reporting and payment of IHT.