Hello,
Last Thursday saw the publication of the 2025-26 Finance Bill, which, when passed, will legislate proposals such as the reform of Inheritance Tax and, from next May, the mandatory registration of tax advisers with HMRC.
The Bill extends to some 554 pages, which will make it the longest Finance Act since 2017. You can find a summary of its contents below, and subscribers will see us continue to update our guides over the coming weeks as we drill down on the essential points that tax practitioners need to know.
Looking beyond the next Finance Act, the government has announced that from April 2029, mandatory e-invoicing will apply to VAT invoices for business-to-business and business-to-government transactions. Implementing systems and procedures to facilitate the digital exchange of invoice information directly between supplier and customer accounting systems will be a fundamental change for many businesses and goes much further than keeping digital records, such as under Making Tax Digital, making early preparation important.
The government will publish a detailed roadmap to e-invoicing mandation in next year’s budget, and we take a closer look at the outcome of the recent e-invoicing consultation and the conclusions it reached, below.
Another developing area with a recent consultation outcome is the taxation of Decentralised Finance (DeFi) involving the lending and staking of cryptoassets. While the government has yet to make a final decision on legislative changes, the current direction of travel is the possible introduction of an approach whereby certain disposals are treated as being at no gain/no loss. This is going to be an area to watch as the merits of such an approach continue to be considered by the government.
More news and updates below, including a First Tier Tribunal decision exploring Corporation Tax relief for goodwill amortisation.
The rossmartin.co.uk tax team
Online PRACTICAL tax resources for accountants and tax advisers BY accountants and tax advisers.
Quick News
Finance (No. 2) Bill 2025-26: Contents
The Finance (No. 2) Bill 2025-26 was published on 4 December 2025. This is a summary of its contents, which includes legislation for the new 40% First Year Allowance, the registration of tax advisers, and the reform of Agricultural Property Relief and Business Property Relief.
Employment-Related Securities Bulletin 62 November 2025
HMRC have released Employment-Related Securities (ERS) Bulletin 62. It contains details from Autumn Budget 2025, including on the Private Intermittent Securities and Capital Exchange System (PISCES), Enterprise Management Incentives (EMI) and the published summary of responses to the Share Incentive Plans (SIP) and Save As You Earn (SAYE) 2023 call for evidence.
Response to electronic invoicing consultation
HMRC and the Department for Business and Trade have released their consultation outcome, 'Promoting electronic invoicing across UK businesses and the public sector'. As a result of the consultation, the government is introducing mandatory electronic invoicing for all VAT invoices from 2029.
Consultation outcome on taxation of decentralised finance, lending and staking of cryptoassets
HMRC have released the outcome of their consultation on 'The taxation of decentralised finance (DeFi) involving the lending and staking of cryptoassets'. HMRC are considering deferring gains on certain DeFi lending and staking transactions until an economic disposal of the cryptoasset is made.
Business rates and investment call for evidence
The government has released a call for evidence seeking opinions on reforming business rates and investment. The aim is to explore how moving to a marginal tax rate, where successive bands are taxed at increasing rates, may be beneficial for investment.
Tax Cases
Relief for goodwill amortisation disallowed after incorporation
In County Insurance Services Limited v HMRC [2025] TC09697, the First Tier Tribunal (FTT) found that amortisation relief was not available on goodwill following a partnership's incorporation.
Editor's Choice
Tax Data Card 2026-27
A summary of key tax rates and allowances for 2026-27 and 2025-26.
Annual Investment Allowance (AIA): Related companies
What restrictions to AIA apply to companies? What does common control mean? When are companies related?
Guides & Updates
Self-employed
Motor expenses (self-employed)
What expenses can you claim for motor and travel if you are self-employed? Why are there different versions of the rules? Which method is most beneficial for me?
Averaging claims
When can profits be averaged? What trades do averaging apply to? How are averaging adjustments calculated and made?
Partnerships
Partnerships: Losses
What loss reliefs are available to partners and what restrictions are there? How to calculate a partner's capital contribution? What are the anti-avoidance rules?
Incorporation
Incorporation: Businesses & Trades
How to transfer an existing sole trader's business by incorporation into a company.
Directors & Companies
Creating an office at home or converting part of a home into an office
Many company owners work from home. This guide looks at how you may obtain tax relief on the cost of converting the spare room or building a deluxe summerhouse to serve as an office in the garden.
Settlement anti-avoidance rules
What are the settlement anti-avoidance rules? How do these rules catch some common family tax planning? What are the rules for spouses and other family members?
Employers
Staff parties and annual functions
Are staff parties and annual functions tax-exempt? Are there any limits on the cost? What happens if the cost limit is exceeded? What if there is more than one event per year? How are company away days treated for tax purposes?
Removal and relocation expenses
How much may an employer reimburse for removal and relocation expenses? What are the conditions for tax relief?
Private Client & Estate Planning
CGT: Connected persons
Who is a connected person for Capital Gains Tax (CGT) purposes? Why does this matter?
National Insurance: What's the maximum payable?
How are National Insurance Contributions (NICs) limited? What is the maximum payable? What different rules apply to employment and self-employment income?
Land & Property
Annual Tax on Enveloped Dwellings (ATED)
What is the Annual Tax on Enveloped Dwellings (ATED)? Who does ATED apply to? What relief is available and how is it claimed? What are the ATED return filing dates?
Overseas & Residence
Non-resident Tax Toolkit
This toolkit covers the key UK tax issues for non-UK resident individuals holding UK assets and property and working in the UK.
Penalties & Compliance
Named tax avoidance schemes, promoters, enablers
UPDATE: HMRC publish a list of named tax avoidance schemes, promoters, enablers and suppliers. It is not recommended that taxpayers use any of these schemes, as HMRC do not consider that they work and you may end up with a significant tax liability if you engage with the scheme suppliers.
General Anti-Abuse Rule (GAAR) (subscriber version)
What is the General Anti-Abuse Rule (GAAR)? When does it apply?
VAT
Input VAT claims: Pre-registration
When can pre-registration input VAT be recovered? What are the time limits and restrictions?
Continuing Professional Development (CPD)
Recent and upcoming webinars include:
- Monthly Tax Update - December 2025
- Budget Update
- Practice Insight - December 2025 (free)
- Monthly Tax Update - November 2025
- Practice Insight - November 2025 (free)
- Making Tax Digital for Income Tax - Roadmap to April 2026
Need Tax Support?
Virtual Tax Partner© Support
Have a tax query? Need a second option? Open a ticket and ask a question. A team of tax experts with a wide range of expertise: covering direct and indirect tax, as well as accounting, reorganisations and much more.
Missed the Last Tax Update?
Ross Martin Tax: SME Tax News 4 December 2025
- Agent Update 137: November 2025
- Consultation response: R&D tax relief advance clearances
- Independent Loan Charge review government response
- Call for evidence: Tax support for entrepreneurs
- Non-Discretionary Tax-Advantaged Share Schemes consultation responses
- Response to 'Reform of behavioural penalties' consultation
- One-to-many letters: Tracker
- Tax Data Card 2026-27 NEW
- Autumn Budget 2025
- Interest on re-mortgaged buy-to-let property UPDATE
- Calendar of tax deadlines and new tax measures UPDATE ...More
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