Finance Bill 2024-25
The Finance Bill 2024-25 completed its remaining stages in the House of Commons on 3 March 2025 and will now proceed to the House of Lords. The government tabled a number of amendments to the Bill ahead of report stage, including to the provisions which replace the current rules for non-UK domiciled individuals with a new residence-based regime.
Impacts of the off-payroll working rules
HMRC has published an update to its December 2022 analysis of the 2021 off-payroll working rules reform in the private and voluntary sectors.
HMRC estimates that:
- around 120,000 workers are likely to have been affected by the reforms, primarily resulting in a change in the way their services are provided;
- around 45,000 fewer new personal service companies (PSCs) were formed up until the end of March 2022 compared to what HMRC would have expected based on historical trends;
- the reforms have generated around £4.2 billion in additional tax, national insurance contributions and apprenticeship levy payments up until the end of March 2023; and
- the average annual tax increase per worker affected is £10,000.
For further information on off-payroll working, see ICAEW's hub page.
MTD for income tax: software
Untied has been added to HMRC’s list of software products currently available for taxpayers who have volunteered to test MTD for income tax. This brings the total number of software products to 17.
To find out more about MTD for income tax, visit ICAEW’s hub.
Reserved Investor Fund (RIF): tax framework
Regulations have been made that set out the tax rules for investors in a new type of investment fund, the RIF. The regulations also make changes to the tax rules for life insurance companies investing in Co-ownership Authorised Contractual Schemes.
The regulations come into force on 19 March 2025.
Further information
The Co-ownership Contractual Schemes (Tax) Regulations 2025 (SI 2025/200)
Policy paper: Co-ownership authorised contractual schemes — changes to the capital gains deemed disposal rules for life insurance companies
Policy paper: Introduction of tax rules for the Reserved Investor Fund
Alcohol duty reforms
HMRC’s new Manage your Alcohol Duty online service went live on 1 March 2025.
Businesses with alcoholic products producer approval (APPA) can enrol to use the service to submit monthly alcohol duty returns and payments. In Agent Update 128, HMRC explained how businesses approved under the previous alcohol production registrations and licenses will be migrated to an APPA.
International tax round-up
CFE Tax Advisers Europe has published its latest collection of tax top 5 developments. It includes updates on:
- the United States's policy on digital services taxes introduced by several countries, including the UK;
- the European Union's adoption of new rules to replace paper VAT exemption certificates with an electronic form; and
- research by the Organisation for Economic Co-operation and Development (OECD) into how OECD countries tax capital gains.
Separately, the CFE has issued an opinion statement on recent decisions of the Court of Justice of the European Union concerning DAC 6. For further information on DAC 6, see ICAEW’s hub page.
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