Private Client analysis: How far can HMRC go in checking a taxpayer’s return? Ian Johnson, partner at Johnson Allen Tax, comments on a ruling that confirms the extent of HMRC’s powers to obtain information from taxpayers.

Tax analysis: The Supreme Court has refused the taxpayer’s permission to appeal in Hoey. Keith Gordon of Temple Tax Chambers and a member of the Consulting Editorial Board of Lexis®PSL Tax considers where this leaves HMRC’s discretionary powers, particularly in respect of the recovery of PAYE income tax from employees.

HM Treasury (HMT) has published an action plan, outlining the government's approach to regulation and regulatory bodies, including reforms to environmental and planning regulations. The plan details four key actions and pledges from environmental regulators, such as the Environment Agency (EA) and Ofwat, aiming to establish a regulatory system that protects the UK's natural environment and local communities.

HM Treasury (HMT) has published a summary of responses to the consultation on draft secondary legislation to implement the new Bank of England (BoE) levy, replacing the Cash Ratio Deposit (CRD) scheme. The HMT consultation ran in parallel with the BoE’s consultation paper, Bank of England Levy: Framework Document, feedback on which has also been published in a BoE policy statement. The government has laid the Regulations and, subject to Parliamentary approval, will progress with commencing the levy.

HM Treasury (HMT) and the Bank of England (BoE) have published a joint response to the February 2023 digital pound consultation, summarising the feedback received, and detailing how this will influence their next phase of work. While no final decision has been made to pursue a digital pound—also called a central bank digital currency (CBDC)—work will continue exploring its feasibility and potential design choices. They confirm that if a digital pound went ahead, neither the BoE nor the government would have access to users’ personal data, and they would be committed to maintaining access to cash for those who prefer it. The BoE and HMT say ‘continuing work on digital currency will strengthen the UK’s position as a competitive global leader in finance’.

HM Treasury and the European Commission have issued a joint statement following the tenth meeting of the Specialised Committee on Financial Provisions, held on 25 October 2024. The UK and EU exchanged updates on tasks carried out relating to implementation of financial provisions in Part V of the Withdrawal Agreement, and reviewed the eighth invoice, which will be made in eight monthly instalments, in accordance with terms of the Withdrawal Agreement. The UK and the EU also reaffirmed their commitment to complying with legal obligations under the Withdrawal Agreement.

HM Treasury (HMT) and the Office of Financial Sanctions Implementation (OFSI) have announced that the UK and the G7+ Coalition partners have issued an alert to support governments and industry to ensure oil price cap compliance and tackle evasion by means of enforcement action. The alert includes an overview of key oil price cap evasion methods and provides recommendations to identify methods of evasion and mitigate risks and negative impacts.

HM Treasury (HMT) has announced measures intended to address household pressures and promote economic growth in Wales. The package removes the two-child benefit cap, introduces a £150 average energy bill saving, freezes fuel duty, and raises the national minimum and living wage. Welsh investment includes £500m for Tata Steel’s green transition, £2.5bn for a Small Modular Reactor at Wylfa, funding for semiconductor and artificial intelligence (AI) growth projects. The Welsh Government will receive an extra £505m via the Barnett Formula and greater fiscal flexibility under a revised framework.

HM Treasury (HMT) has announced the launch of an independent review of the Payment and Electronic Money Special Administration Regime (PESAR), introduced by the Payment and Electronic Money Institution Insolvency Regulations 2021. HMT has appointed Adam Plainer to lead the review and published terms of reference setting out its scope. The review will include an assessment of PESAR on individual customers in administration cases where it has been used; the extent to which PESAR would effectively manage the failure of a larger payment firm; the efficacy of cooperation between the HMT, the Financial Conduct Authority (FCA), the Bank of England (BoE), and the Insolvency Service and whether improvements can be made and the effectives of cooperation between UK and overseas jurisdictions. HMT requests that Plainer provide an interim update with initial conclusions by September 2025, with a final report by the end of 2025.

HM Treasury (HMT) has announced a new, more generous tax credit system for film, TV and video game production companies, the Audio-Visual Expenditure Credit and Video Games Expenditure Credit which started from 1 January 2024. The new tax credits will result in an additional £42,500 in relief for children’s TV, animated TV and animated film production with £1m of qualifying expenditure and an additional £5,000 in relief for high-end TV, film or video game production. Credit will be calculated directly from a production or game’s qualifying expenditure and the new system also affords higher credit rates. Productions and games in development on 1 April 2025 may continue to use the previous tax reliefs until they end on until 1 April 2027.

HM Treasury (HMT) has announced reforms to the planning system, aimed at accelerating housing and infrastructure development. Key measures include streamlining national policies to guide local authority planning decisions, introducing a default 'yes' approach for development applications in high-potential areas, particularly near commuter transport hubs, and reforming the statutory consultee system. The government has declared a moratorium on new statutory consultees, with existing arrangements expected to be reviewed in the coming weeks. Additionally, environmental impact assessments will be replaced by environmental outcome reports, with a roadmap for their implementation expected to be published in the coming months.  The government also announced that the new Planning and Infrastructure Bill is set to be introduced in spring 2025.

HM Treasury (HMT) has announced a new taskforce to accelerate the construction of homes on surplus public defence land across England. The taskforce will explore new delivery models and foster collaboration among government bodies, including the Ministry of Defence and Homes England, to identify, develop, and release unused public land for housing development. Additionally, a new property company, formed by Network Rail and London & Continental Railways, is set to become operational in late 2025. The company aims to attract public and private investment to develop brownfield sites, with the potential to deliver up to 40,000 homes over the next decade. The first development sites will be in Newcastle, Cambridge, Manchester, and Nottingham.