Finance Act 2025 becomes law
Finance Bill 2024/2025 received Royal Assent on 20 March 2025, becoming Finance Act 2025 (FA 2025). Royal Assent is the final stage of a bill's passage through Parliament. At that point, the bill becomes law.
For further information, including a link to FA 2025, see ICAEW’s dedicated webpage.
Requirement for advanced electronic signatures
From 6 April 2025, agents who use nominations for the P87 (tax relief for job expenses), R40 (tax paid on savings and investments), or MATCF (marriage allowance) print and post forms to claim repayments on behalf of a taxpayer must use an advanced electronic signature service.
HMRC has published guidance that explains the new requirements, including what an advanced electronic signature is and the exceptional circumstances in which HMRC will accept handwritten (wet) signatures.
Lifetime allowance abolition and lump sum reporting
In 2023, HMRC published guidance on how to report a pension commencement excess lump sum (PCELS) and a stand-alone lump sum (SALS). HMRC has now published additional guidance, having received a number of queries about the requirement to provide the customer with a P45 when reporting a PCELS or SALS.
HMRC guidance on Windsor Framework arrangements
New arrangements for the movement of goods from Great Britain to Northern Ireland by parcels or freight, as set out in the Windsor Framework, are planned to take effect from 1 May 2025.
Ahead of the start date, HMRC has issued a communication intended to help traders prepare. The communication sets out the minimum level of information or data that will be required before the goods move into Northern Ireland and encourages traders to speak to their haulier or logistics partner to ensure that their goods are transported as smoothly and efficiently as possible.
International tax round-up
CFE Tax Advisers Europe has published its latest collection of tax top 5 developments. It includes a summary of the meeting of the European Union’s Economic and Financial Affairs Council on 11 March 2025. At the meeting, the Council reached political agreement on:
- the Directive Directive on Administrative Cooperation in the Field of Taxation (DAC9); and
- the VAT in the Digital Age (ViDA) package.
CFE’s newsletter includes a summary of the timeline for implementing ViDA.
Tax Faculty
This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.