Securitisations

FORTHCOMING CHANGE relating to abolition of diverted profits tax (DPT) and introduction of unassessed transfer pricing profits (UTPP) rules: FB 2026 will, when enacted, abolish the DPT regime and replace it with the UTPP rules, with effect for accounting periods beginning on or after 1 January 2026. HMRC has added a new chapter to the International Manual containing guidance on the UTPP rules at INTM489100. The DPT legislation will still have effect in respect of accounting periods beginning on or before 31 December 2025 so there are no apportionment rules for accounting periods which straddle 31 December 2025. For more information, see Practice Note: The Diverted Profits Tax—charge to tax and News Analysis: Budget 2025—Tax analysis—International and Tax—Finance Bill 2026 tracker—progress through Parliament.

FORTHCOMING CHANGE relating to the modernisation of stamp taxes on shares framework: Stamp duty and SDRT will, in 2027, be replaced with a single, self-assessed tax on securities, the securities transfer charge (STC), that will be paid (and reported) through a new online portal. The features of the STC will generally follow the proposals for that tax outlined in a consultation

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Latest Tax News

Tax weekly highlights—29 January 2026

This week's edition of Tax weekly highlights includes: (1) the National Insurance Contributions (Employer Pensions Contributions) Bill being considered by the House of Lords, (2) further government amendments being made to the Finance Bill 2026, (3) the Court of Appeal in FS Commercial agreeing that the FTT only has supervisory jurisdiction where input tax deduction is denied because of failure to provide evidence, (4) the UT in Delphi Derivatives cancelling inaccuracy penalties, and (5) News Analysis articles being published on the advance tax certainty service for major projects, the Court of Appeal decision in MedPro on late appeals, the UT decision on mixed member partnership rules in Holden.

Court of Appeal confirms Martland approach to late appeals (HMRC v MedPro Healthcare)

Tax analysis: In MedPro Healthcare, the Court of Appeal overturned one aspect of the Upper Tribunal (UT) decision, holding that the UT has authority to issue guidance to lower courts giving particular weight to specific issues when exercising statutory powers of discretion. The approach to late appeals given by the UT in Martland, which emphasises adherence to time limits, should be followed, and the First-tier Tax Tribunal (FTT) should only depart from that guidance in special circumstances.

Upper Tribunal cancels inaccuracy penalties (Delphi Derivatives Ltd (in liquidation) v HMRC)

Tax analysis: In Delphi Derivatives Ltd (in liquidation) v HMRC, the Upper Tribunal (UT) allowed the company’s appeals against inaccuracy penalties under Schedule 24 to the Finance Act 2007 (FA 2007). The UT accepted that the inaccuracies were not caused by carelessness, and, in one case, that the inaccuracy was not deliberate.

UT holds payments under LLP ‘capital interests’ were income and that the mixed member partnership rules and extended assessment time limits applied (Holden and others v HMRC)

Tax analysis: In Holden, the UT held that amounts paid to members of a professional LLP under arrangements described as ‘capital interests’ were not capital receipts. The UT further held that, for later years, the mixed member partnership rules (MMRs) applied to reallocate profits from the corporate member to individual members, overturning the contrary conclusion of the FTT. The UT also upheld HMRC’s procedural positions, including that the LLP had acted carelessly and had done so on behalf of individual members, allowing HMRC to raise late assessments.