HMRC has revised its guidance on capital gains tax (CGT) for cryptoassets, enforceable from 13 January 2025, to provide clarity regarding the use of market value in calculating gains and more particularly for assets transferred between 'connected persons'. The reviewed framework also supplies new material on the records cryptoasset exchanges may retain and establishes the HMRC cryptoasset disclosure service for reporting unsettled tax from previous years.

HM Revenue & Customs (HMRC) has updated two pieces of guidance on information that must be provided to pension scheme members. HMRC updated ‘Information requirements for pension schemes’ and ‘Information pension scheme administrators must give to members’ to reflect that when a pension scheme administrator has paid a lump sum death benefit, within three months they must tell the member’s legal personal representative the amount of the lump sum and death benefit allowance that has been used up and the date of the payment.

HMRC has revised its guidance on making tax digital for income tax, clarifying key aspects of the scheme's implementation; confirming that the assessment tool will not inquire about foreign income and can be utilised by third parties on behalf of taxpayers. The guidance now provides more detailed information about the process leading up to the 6 April 2027 phase of implementation, including how HMRC will review tax returns and notify eligible individuals.

HM Revenue & Customs (HMRC) has published its latest update on businesses failing to comply with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. As of 20 November 2024, HMRC has released a new list covering non-compliant businesses for the period 1 October to 31 December 2023. Additionally, HMRC has revised penalty amounts and removed certain entries from previous lists covering the period 1 April 2023 to 30 September 2023. This update forms part of HMRC's statutory obligation to disclose details of businesses breaching the 2017 regulations, providing crucial information for legal practitioners in the field of financial compliance and anti-money laundering.

HM Revenue and Customs (HMRC) has published comprehensive updates to its Remittance Basis and Domicile Manual and Residence and FIG Regime Manual, reflecting that the remittance basis of taxation is no longer available from the 6 April 2025. The updates incorporate amendments to reflect that domicile is no longer a connecting factor in the tax system and includes new sections covering provisions 809RZA-D and 809VIA. Changes also clarify that while Business Investment Relief investments can be made after 6 April 2025, this relief will not be available from 6 April 2028. The amendments encompass extensive revisions to guidance on claims, quantification, and identification of remittances to reflect these legislative changes.

HMRC has published an updated schedule IHT430 which is used when either claiming or opting out of the reduced rate of inheritance tax when at least 10% of the estate is left to charity. The section on qualifying charities has been updated in light of legislative changes which mean that gifts to charities in the EU no longer qualify for IHT exemption.

HM Revenue and Customs (HMRC) has updated its guidance on disguised remuneration through unfunded pension schemes (Spotlight 58) to include two further opinions of the General Anti-Abuse Rule (GAAR) Advisory Panel, dated 7 August 2024 and 29 October 2024. The updated guidance also now advises taxpayers to contact HMRC before taking any steps to withdraw from such schemes.

Private Client analysis: HMRC recently won the first case against a taxpayer trying to reclaim funds deducted from their Swiss bank account under the UK-Swiss Agreement. Helen Adams, principal in BDO LLP’s tax dispute resolution team discusses the implications of Vrang v HMRC.

Tax analysis: The First-tier Tax Tribunal (FTT) held that HMRC was wrong to de-register the lead appellant companies for VAT, despite evidence for concluding that the VAT numbers were used for fraudulent purposes, because there was an absence of any knowledge by the directors that they were facilitating (enabling) the fraud of another, ie the organisers of that fraud. However, HMRC’s decision to terminate the appellants’ use of the VAT Flat Rate Scheme, having considered it necessary for the protection of the revenue, was reasonable, as were the assessments issued in consequence of that decision. Furthermore, the appellants did not qualify for the National Insurance Employment Allowance once it had been established that the mini-umbrella company (MUC) scheme as a whole was fraudulent. Written by Scott Redpath, barrister at Temple Tax Chambers.

In most circumstances, the pay as you earn (PAYE) rules require an employer to deduct tax and employee National Insurance contributions (NICs) from payments to employees, and those amounts may not be recovered directly from the employee. This Practice Note is about situations in which, exceptionally, PAYE amounts may be recovered from employees. Similar provisions exist in the NICs rules, permitting unpaid NICs to be recovered from the employee rather than the employer in certain circumstances. Employer fails to deduct correct amount of tax If the employer has not deducted the correct amount of tax under PAYE, HMRC can collect the underpayment from the employee in one of two circumstances: • the employer satisfies HMRC that it took reasonable care in applying the PAYE provisions and that the error was made in good faith, or • HMRC considers that the employee has received payments knowing that the employer wilfully failed to deduct the correct amount If either of these circumstances apply, HMRC may direct that the employer is not liable to pay

HMRC has published its August 2025 Trusts and Estates Newsletter, announcing several key developments in inheritance tax (IHT) administration and confirms that starting in April 2027, personal representatives will assume responsibility for IHT reporting on unused pension funds due to death in service benefits becoming IHT-exempt.

Pensions analysis: Details have been provided on the Chancellor’s proposal to make savings that are still in a pension scheme on death subject to inheritance tax from 2027. Some lump sum death benefits and defined benefit pensions are exempt, but otherwise the fund will count towards the estate for inheritance tax purposes, and the scheme administrators will have obligations to provide information to the estate, and in some circumstances to deduct the tax prior to the payment of benefits. Written by Rosalind Connor, Partner at Temple Bright LLP.