HM Revenue and Customs (HMRC) has launched a consultation to expand the existing ‘tax conditionality’ approach, which addresses the hidden economy, to new sectors, particularly the waste, animal welfare, and transport sectors across the UK.  This would require licence holders in these sectors to undergo checks to confirm they are appropriately registered for tax. In the context of the waste sector, it would change the tax check process for applicants seeking waste licences, including waste carriers, brokers and dealers, and those applying for waste exemptions. The consultation closes on 31 January 2025.

HM Revenue & Customs (HMRC) has announced the launch of its second insolvency practitioner survey for 2025, focusing on practitioners' experiences with repayment and refund processes. The survey, running from 28 May 2025–20 June 2025, comprises 14 questions and follows HMRC's earlier survey on VAT helpline experiences. HMRC reports that internal monitoring has identified difficulties and delays in the repayment and refund process for some practitioners. The anonymous survey aims to gather data to support process improvements for the insolvency sector.

HM Revenue & Customs (HMRC) has launched a technical consultation on draft secondary legislation amending the Finance Act 2004 (FA 2004) in connection with guaranteed minimum pension (GMP) conversion. Under current rules, when pension schemes equalise GMPs using the Department for Work and Pensions' statutory conversion method, certain protections can be lost, meaning deferred members may lose their Deferred Member Carve-Out (DMCO) protection and thus face unexpected annual allowance tax charges. The draft Finance Act 2004 (Registered Pension Scheme and Annual Allowance Charge) Order 2026, made under section 238A of FA 2004, seeks to address this by amending sections 230 and 234 of FA 2004 to ensure that DMCO protection is maintained following GMP conversion, regardless of the equalisation method used. This ensures that members do not face a worse tax outcome simply because of the method chosen to equalise benefits. The consultation closes on 13 July 2026.

HM Revenue & Customs (HMRC) has launched a technical consultation on draft secondary legislation on changes to the information sharing regulations in connection with inheritance tax (IHT) on pensions. The technical consultation seeks comments on the Registered Pension Schemes (Provision of Information) (Amendment) Regulations 2026 which amend the Registered Pension Schemes (Provision of Information) Regulations 2006. The draft regulations have been published following the changes made by Finance Act 2026 which introduce measures where unused pension benefits and death benefits form part of a deceased person’s estate for IHT purposes. Under the proposed amendments, scheme administrators, insurance companies, personal representatives and beneficiaries are required to provide and exchange detailed information regarding a deceased person’s pension arrangements, including information to HMRC. The technical consultation closes on 11 June 2026.

Law360, London: HMRC on 14 April 2025 established the penalty structure for financial institutions that fail to comply with the UK's regulations on automatic exchange of information (AEOI), including monetary penalties for late filing and inaccurate reports.

Petrofac Facilities Management Limited (PFML) has become the first company to be publicly named by HMRC after accepting a compound settlement for breaches of Russia sanctions. PFML agreed to pay £569,157 after admitting offences committed in 2022 and 2023. The breaches involved supplying sanctioned industrial goods to individuals connected with Russia and providing related technical assistance while the company was winding down its Russian operations. HMRC also confirmed that, where appropriate, public naming will now form part of compound settlements for strategic export control and sanctions offences, bringing its approach into line with that of the Office of Financial Sanctions Implementation (OFSI).

HM Revenue & Customs (HMRC) has announced in Newsletter 169 that application deadlines for fixed protection 2016, individual protection 2016, and pension credit enhancements have now passed, as detailed in Finance Act 2024. From 6 April 2025, European Economic Area (EEA) pension schemes must meet the same overseas pension schemes (OPS) and recognised overseas pension schemes (ROPS) conditions as non-EEA schemes. EEA qualifying recognised overseas pension schemes (QROPS) must confirm compliance by 7 May 2025 or lose their status. The newsletter also confirms the pension scheme return is now available on the Managing pension schemes service for the 2024-25 tax year.

HM Revenue & Customs (HMRC) has opened a technical consultation on draft secondary legislation for the Carbon Border Adjustment Mechanism (CBAM), which will come into effect on 1 January 2027. The consultation, published on 10 February 2026 and closing on 24 March 2026, covers four draft regulations addressing administrative provisions, rate calculations, carbon price relief determinations, and transitory provisions. The draft legislation establishes requirements for registration, tax returns, reimbursement arrangements, weight determination of CBAM goods, and record keeping. CBAM will place a carbon price on specified goods imported to the UK from sectors at risk of carbon leakage, including aluminium, cement, fertilisers, hydrogen, and iron and steel. The mechanism affects UK importers of these goods and downstream producers using them in supply chains. The government confirmed the UK CBAM introduction on 30 October 2024 and included primary legislation in Finance Bill 2025 to 2026.

HMRC has launched a technical consultation on draft primary legislation for the carbon border adjustment mechanism (CBAM), which will be implemented from 1 January 2027. The consultation, running until 3 July 2025, focuses on technical implementation rather than policy design. The legislation aims to place a carbon price on specified imports from the aluminium, cement, fertilisers, hydrogen, and iron and steel sectors at risk of carbon leakage. The draft includes provisions for registration requirements, tax point determination, compliance mechanisms, and carbon price relief calculations. HMRC has also published accompanying explanatory notes, a tax information impact note, and a policy update to provide clarity for affected businesses.

HM Revenue & Customs (HMRC) has detailed the Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2025, which came into force on 24 April 2025. The regulations establish joint liability between scheme administrators and members for unauthorised payments charges, extend the deadline for fixed/individual protection 2016 applications to 6 April 2027 for members with remediable service, and modify the treatment of top-up payments of defined benefits lump sum death benefits from 6 April 2024. The regulations also introduce new reporting requirements for scheme administrators and revise split schemes administration responsibilities. These changes complement previous regulations implemented in 2023.

HMRC has published Pension schemes newsletter 173 (September 2025) to update stakeholders on the latest news for pension schemes. In particular, the newsletter provides an update on (i) the abolition of the lifetime allowance (LTA), and (ii) tax-free pension lump sums and cancellation rights. As part of its ongoing commitment to ensuring that legislation continues to function as effectively as intended, HMRC is preparing some further minor technical amendments to the LTA legislation. The changes are designed to clarify certain provisions, correct minor drafting inconsistencies and support smoother implementation without affecting the vast majority of pension savers. The regulations will be made in early 2026 to have retrospective effect from 6 April 2024. There may also be further minor changes following consultation with industry, which will take place later in 2025. Following requests for further detail, and in parallel with a separate statement by the Financial Conduct Authority (FCA), HMRC has also issued a statement setting out its position on the interactions between FCA cancellation rights and the tax treatment of tax-free lump sums paid back into a registered pension scheme.

In HMRC’s Pension schemes newsletter 185 for September 2026 plans were announced to legislate on how certain lump sum death benefits are treated when they exceed the available lump sum and death benefit allowance. The amount above the allowance will still be taxed at the beneficiary’s marginal rate of Income Tax but under the proposed change it will no longer count as pension income for other tax purposes. HMRC says this change will make the rules clearer for beneficiaries and easier to administer. However, it has not said when the draft legislation will be published or when the change will take effect.