In April 2025 Accountancy Europe issued its publication “New EU AML rules: advice for accountancy practitioners”. The document “…outlines  concrete steps for accountancy practices, national institutes of accountants, auditors and advisors to take to be ready when the EU anti-money laundering and countering the financing of terrorism (AML/CFT) legislation takes effect in 2027….”   This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.

It’s now less than a year to the first tranche of mandation of MTD for income tax for unincorporated sole trade businesses and landlords with turnover exceeding £50,000. The Institute is inviting those members affected by this change to take a short five question survey which we are using as a temperature check to assess readiness and further discuss the challenges this presents with HMRC. The survey will remain open for the next two weeks and will take less than 5 minutes to complete. A more detailed survey on MTD will be launched before the summer. Take the survey now.  The Northern Ireland Tax Committee met recently with HMRC’s MTD Programme Director who also was in attendance at the February 2025 Practice News webinar. HMRC gave an update on the current status of the MTD project whilst also reflecting on its challenges. HMRC’s ambitions for the next phase of testing in 2025/26 were also discussed. HMRC has recently been writing to agents who are likely to have clients in the first phase of mandation; this is now being followed by letters to taxpayers.   HMRC is also keen to hear about the plans of our member firms to get ready for this major change and specifically why firms are not planning to take part in testing in 2025/26. In particular HMRC would welcome views on what challenges/blockers are getting in the way of participation. Email tax@charteredacocuntants.ie to share your views.  Despite our reservations about MTD, the Institute will continue to work with HMRC on MTD readiness and is developing a cross-department MTD strategy to assist members in their preparations. We will also continue to represent members views as we approach April 2026.  HMRC has also published new guidance for agents about client authorisations and signing clients up for making tax digital for income tax. The step by step guides for agents and individuals and guidance for sole traders and landlords have also been updated. These publications are available as follows:  Add your client authorisations for Making Tax Digital for Income Tax, Sign up your client for Making Tax Digital for Income Tax, Making Tax Digital for Income Tax as an agent: step by step, Making Tax Digital for Income Tax for individuals: step by step, and Sign up for Making Tax Digital for Income Tax. From 7 April 2025 until next April, HMRC will also be contacting users who have signed up to participate in the MTD trial about how the testing of the service is progressing. 

The new tax and financial year always sees a plethora of previously announced tax changes take effect; 6 April 2025 (the 2025/26 tax year) and the start of the new Financial Year 2025 on 1 April 2025 are no different. Tax thresholds also remain frozen again. The key changes to be aware of are set out below. Employer National Insurance Contributions (NICs)   After the National Minimum Wage increased from 1 April, from 6 April 2025, the rate of Employer National Insurance Contributions (NICs) increased from 13.8 percent to 15 percent and the 0 percent Employer NICs threshold reduced from £9,100 to £5,000, although the Employer NICs employment allowance increased from £5,000 to £10,500. These changes take affect after the National Insurance Contributions (Secondary Class 1 Contributions) Bill 2024-25 finally received Royal Assent last week after amendments proposed by the House of Lord were rejected by the House of Commons.  Furnished holiday lets  From 1 April 2025 for corporation tax and 6 April 2025 for income tax, the furnished holiday lets (FHL) regime has been abolished and former FHL properties now form part of the taxpayer’s UK or overseas property business and are therefore subject to the same rules as other let property businesses. If a property was a FHL this previously had beneficial implications for its tax treatment.  Non-domiciled regime abolished  From 6 April 2025, the rules for the taxation of non-UK domiciled individuals, and specifically the remittance basis (RB) for foreign income/gains, came to an end and are replaced by a tax residence based system.   The new regime provides 100 percent relief on foreign income/gains for new arrivals to the UK in their first four years of UK tax residence provided the individual was not resident in any of the 10 prior consecutive years. A new Temporary Repatriation Facility is also available for individuals who previously claimed the RB.  The domicile-based system of IHT has been replaced with a new residence-based system for long-term residents owning non-UK property not previously within the scope of UK IHT.  Capital gains tax (CGT)  As a result of the increased rates of CGT from 30 October 2024, Business Asset Disposal Relief (BADR) and Investors’ Relief (IR) both increased from 10 percent to 14 percent from 6 April 2025 and both will further increase to 18 percent from 6 April 2026.   The lifetime limit (LL) for BADR remains at £1 million. In contrast, the LL for IR reduced from £10 million to £1 million for all qualifying disposals made on or after 30 October 2024.  Double cab pick ups  From 1 April 2025 for corporation tax and 6 April 2025 for income tax and NICs purposes, HMRC treats most double cab pick-ups (DCPUs) as cars, and not vans, for direct tax purposes. Previously HMRC treated a DCPU with a payload of one tonne or more as a van for the purposes of benefit-in-kind calculations, capital allowances, and certain deductions from business profits. From April 2025, a vehicle is only treated as a van if the construction of the vehicle at the time it was made means that it is primarily suited for the conveyance of goods.  Stamp Duty Land Tax  From 1 April 2025, the Stamp Duty Land Tax threshold for residential land and property reduced from £250,000 to £125,000. The threshold for first-time buyers fell from £425,000 to £300,000 and the maximum value of property to benefit from the first-time buyer threshold reduced from £625,000 to £500,000.  Increased interest rate for late payment and increased late payment penalties  As announced at last Autumn’s Budget, from 6 April 2025 the rate of interest HMRC applies to late payments of most taxes and duties increased from 7 percent to 8.5 percent. This is following the introduction of regulations which make amendments to various pieces of legislation to apply the Bank of England (BoE) official rate of interest plus 4 percent going forward, rather than the BoE official rate plus 2.5 percent. Late payment penalties have also increased as announced in the Spring Statement.  Miscellaneous  Electric, zero and low emission cars, vans and motorcycles are now subject to the vehicle tax rates that were introduced on 1 April 2025. This change applies to both new and existing vehicles. The amount due depends on the type of vehicle and when it was registered. The most expensive electric vehicles (EV) costing over £40,000 will be charged £600 per year from the second year, including the £410 expensive car supplement. Non-EV road tax rates generally increased in line with inflation.  Company car tax is also higher in 2025/26. Rates on EVs are 3 percent, gradually rising 1 percent per year to 9 percent by 2030.  Air passenger duty (APD) rates have also increased with domestic flights subject to £8 for a one-way flight for the reduced rate, up to £16 for the standard rate. The APD rates for larger private jets with over 19 seats increases by an additional 50 percent.    

It’s now less than a year to the first tranche of mandation of MTD for income tax for unincorporated sole trade businesses and landlords with turnover exceeding £50,000. The Institute is inviting those members affected by this change to take a short five question survey which we are using as a temperature check to assess readiness and further discuss the challenges this presents with HMRC. The survey will remain open for the next two weeks and will take less than 5 minutes to complete. A more detailed survey on MTD will be launched before the summer. Take the survey now.  The Northern Ireland Tax Committee met recently with HMRC’s MTD Programme Director who also was in attendance at the February 2025 Practice News webinar. HMRC gave an update on the current status of the MTD project whilst also reflecting on its challenges. HMRC’s ambitions for the next phase of testing in 2025/26 were also discussed. HMRC has recently been writing to agents who are likely to have clients in the first phase of mandation; this is now being followed by letters to taxpayers.   HMRC is also keen to hear about the plans of our member firms to get ready for this major change and specifically why firms are not planning to take part in testing in 2025/26. In particular HMRC would welcome views on what challenges/blockers are getting in the way of participation. Email tax@charteredacocuntants.ie to share your views.  Despite our reservations about MTD, the Institute will continue to work with HMRC on MTD readiness and is developing a cross-department MTD strategy to assist members in their preparations. We will also continue to represent members views as we approach April 2026.  HMRC has also published new guidance for agents about client authorisations and signing clients up for making tax digital for income tax. The step by step guides for agents and individuals and guidance for sole traders and landlords have also been updated. These publications are available as follows:  Add your client authorisations for Making Tax Digital for Income Tax, Sign up your client for Making Tax Digital for Income Tax, Making Tax Digital for Income Tax as an agent: step by step, Making Tax Digital for Income Tax for individuals: step by step, and Sign up for Making Tax Digital for Income Tax. From 7 April 2025 until next April, HMRC will also be contacting users who have signed up to participate in the MTD trial about how the testing of the service is progressing.   

In this week’s miscellaneous updates, a range of new tax inquiries have been opened by various Government Committees and the Government has also launched a call for evidence in respect of the independent loan charge review being spearheaded by Ray McCann. The latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place. And finally, check HMRC’s online services availability page for details of planned downtime and the online services affected.   New tax inquiries  A range of new tax inquiries have been opened as follows:  https://committees.parliament.uk/work/9035/spring-statement-2025/, and https://committees.parliament.uk/work/9050/collecting-the-right-tax-from-wealthy-individuals/. The new House of Lords Northern Ireland Scrutiny Committee which replaced the previous Windsor Framework Sub-Committee has reopened the inquiry into Strengthening Northern Ireland’s Voice in the context of the Windsor Framework.  Loan Charge Review Call for Evidence  In January, the Government commissioned a new independent review of the loan charge spearheaded by Ray McCann. Linked to this, a new Call for Evidence has now been opened which is intended to gather information as part of this and which runs to 12 noon on 30 May 2025.  Respondents are asked to consider as many as possible of the questions asked and provide their responses. Where possible, responses should be made using the form in the Call for Evidence. The provision of copies of supporting documentary or other evidence, for example promoter marketing material is encouraged and will be considered by the review.  

As previously advised the Institute will be responding to the following consultations and wants to hear your views: Electronic invoicing: promoting e-invoicing across UK businesses and the public sector and Reforms to Inheritance Tax agricultural property relief and business property relief: application in relation to trusts. This week is your last opportunity to email tax@charteredaccountants.ie and share your views on the inheritance tax consultation.  April 2026 changes to Inheritance Tax (IHT) reliefs - agricultural property relief (APR) and business property relief (BPR)  As many readers will be aware, at Autumn Budget 2024 the Government announced controversial reforms to two key IHT reliefs, APR and BPR, which will commence from April 2026.   In particular:  a new £1 million allowance will apply to the combined value of property that qualifies for 100 percent BPR or APR or both - after the £1 million allowance has been exhausted, relief will apply at a lower rate of 50 percent to the combined value of qualifying agricultural and business property, and the rate of BPR will be reduced from 100 percent to 50 percent in all circumstances for shares admitted to trading on a recognised stock exchange which are not ‘listed’ HMRC has launched a limited technical consultation on this issue. Note that this is not seeking views on the overall policy change but is only examining aspects of the application of the £1 million allowance for property settled into trust qualifying for 100 percent APR or BPR. As this is a technical consultation, it is running for a shorter period of time to Wednesday 23 April 2025.  The Institute is aware of the damaging impact that these reforms will have on businesses and farms in Northern Ireland and in November 2024 flagged these concerns to the Government. We would encourage members to take the opportunity to respond to this limited technical consultation and express their wider views on this damaging policy change. You can respond by using the online form or by email to aprbpr.consult@hmrc.gov.uk.  The Institute again encourages you to share your views on these policy changes as we will again be writing to the Government to highlight the particular damage these changes will cause in Northern Ireland. Please email tax@charteredaccountants.ie by Friday 11 April 2025 with your views.  Electronic invoicing  The purpose of this consultation is to gather views on standardising electronic invoicing (e-invoicing) and how to increase adoption of e-invoicing across UK businesses and the public sector. The consultation explores how different e-invoicing approaches may align with businesses and aims to support the development of a UK approach. The consultation will run to 7 May 2025. Please share your views with us by Friday 18 April 2025.  Should you wish to respond individually, responses are being accepted by submitting a form or by email to einvoicingconsultation@hmrc.gov.uk.   

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. You can also read the Institute’s initial reaction to the US administration’s announcement of new tariffs last week, including commentary on the impact for Northern Ireland. The House of Commons Library has published ‘US tariffs on EU goods: What could it mean for Northern Ireland?’ setting out its view on Northern Ireland in the context of the Windsor Framework. Miscellaneous guidance updates and publications  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service, Simplified Process for Internal Market Movements (SPIMM) and UK Carrier (UKC) Scheme: Procedure Code to Additional Procedure Code correlation matrix, Notices made under The Customs (Import Duty) (EU Exit) Regulations 2018, Maritime ports and wharves location codes for Data Element 5/23 of the Customs Declaration Service, Communications resources to help you move goods from Great Britain to Northern Ireland, and Data Element 2/3: Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS).  

John O'Loughlin examines the global trade crisis sparked by Trump’s “Liberation Day” tariffs and their sweeping impact on EU exports and businesses US President Donald Trump’s “Liberation Day” announcement marked a significant and historic escalation of the US approach to international trade and tariffs. Exports from the European Union (EU) to the US are now in scope of Trump’s tariffs and some businesses will be significantly impacted by this latest round of measures. Immediate changes and impact  On Wednesday 2 April, the Trump Administration announced wide-ranging “reciprocal” tariff measures. President Trump invoked his authority under the International Emergency Economic Powers Act of 1977 (IEEPA) to address the “national emergency” posed by the large and persistent trade deficit. These measures, imposed on all global trading nations, apply a blanket additional tariff rate on all products imported into the US. As expected, the measures were applied on a country-by-country basis with the following key markets impacted by the following additional tariffs: European Union: 20% United Kingdom: 10% China: 34% Japan: 24% Switzerland: 31% Brazil: 10% Australia: 10% India: 26% South Korea: 25% In addition to the above, a further 60 or so countries will have reciprocal tariffs applied at half the rate they charge the US, according to the Trump administration. These measures are due to be implemented on 9 April. Further to these specific tariffs, all other countries not listed will be subject to a baseline rate of 10 percent, which will be imposed from 5 April and will be in addition to the standard rate of duty (most-favoured nation rate).  The Executive Order imposing the “reciprocal” tariff rates have specifically excluded certain product categories which will not be subject to these new measures. These products include: Steel and aluminium articles already subject to additional tariff measures;  Auto and auto parts already subject to tariff measures implemented on 3 April; Copper; Pharmaceuticals; Semiconductors; Lumber articles; and Energy and certain other minerals that are not available in the United States.  Regarding imports from Mexico and Canada, those that meet the US-Mexico-Canada Free Trade Agreement (USMCA) rules will not be subject to additional tariffs. However, goods that do not meet the rules under the USMCA will continue to be subject to the 25 percent tariffs imposed on 4 March. Trump’s tariffs have created a trade crisis on a global scale affecting companies across all sectors. These tariffs will remain in effect until he determines that the threat posed by the trade deficit— and underlying nonreciprocal treatment—is satisfied, resolved or mitigated. Other tariff measures As announced on Wednesday 26 March, 25 percent tariffs on imports of foreign-made cars came into effect on 3 April. The tariffs will impact cars from all countries with a value-based exception for the US value of cars covered by the USMCA. Additionally, on Monday 25 March, Trump also announced the possibility of a 25 percent additional tariff on countries purchasing oil or gas from Venezuela, with an implementation date of 2 April. As of yet, no tariffs under this measure have been imposed. Further to previous Executive Orders regarding tariffs on imports of Chinese goods, President Trump has signed an Executive Order removing the de minimis treatment for goods of Chinese and Hong Kong origin, effective from 2 May. This order imposes duties on goods valued at or under $800 which would otherwise have qualified for an import duty exemption. USTR Foreign Trade Barriers Report On 31 March, the United States Trade Representative (USTR) published its 2025 National Trade Estimate Report on Foreign Trade Barriers – a wide-ranging report highlighting foreign barriers to US exports, US foreign direct investment and US electronic commerce. Ireland is specifically noted within the report, but references are limited to commentary regarding alcohol labelling and reimbursements related to pharmaceutical products. European retaliatory measures On 12 March, the European Commission announced countermeasures in response to the US tariffs on steel and aluminium products, which it deems "unjustified".  Following a period of consultation, the EU has postponed the implementation of these measures until 15 April. These tariffs range from 10 percent to 75 percent with the majority of products falling within the 25 percent category. Additionally, the EU is set to announce further countermeasures on a wider range of goods. EU reaction On Tuesday 1 April, comments by European Commission President Ursula von der Leyen indicated that the EU is prepared to retaliate against the US, if necessary, in response to Trump's tariff hikes. “Europe has not started this confrontation, we do not necessarily want to retaliate but, if it is necessary, we have a strong plan to retaliate and we will use it,” von der Leyen said. She further emphasised the significance of the US-EU trading relationship, noting that their trade volume is $1.5 trillion and that one million American jobs rely on this trade. Von der Leyen reiterated that Europe is open to negotiations, stating, "We will approach these negotiations from a position of strength. Europe holds many cards, from trade to technology to the size of our market. However, this strength is also built on our readiness to take firm countermeasures if necessary. All instruments are on the table.” Actions for businesses In anticipation of these tariffs, companies have placed significant focus on analysing their own data and scenario planning for the impact of tariffs. With Trump’s announcement, businesses should shift their focus to tariff mitigation strategies and options, including customs origin, valuation and tariff classification. Duty relief programs should also be considered. It is expected that the EU will push ahead with its retaliatory measures and other countries may look to introduce similar measures. Trump’s executive orders also contain modification authority allowing him to increase the tariff if trading partners retaliate, or reduce the tariffs if trading partners take significant steps to remedy non-reciprocal trade arrangements and align with the US on economic and national security matters. John O'Loughlin, Partner, Global Trade and Customs, PwC Ireland

Organisations must reimagine their approach to data protection, mitigating risk and adapting to new regulations in a fast-changing environment. David O’Sullivan explains why As we enter the second quarter of 2025, the data privacy landscape is on the cusp of transformative change. Rather than reacting to headlines, organisations are now compelled to reimagine their approach to data protection, blending strategic foresight with a renewed commitment to ethical stewardship. Here, we outline our top 10 data privacy predictions for the remainder of the year, pinpoint in the key trends that will shape how organisations handle compliance, mitigate risks and adapt to regulatory changes. 1. Changing DPO role in AI governance As artificial intelligence (AI) relies heavily on quality data, data protection officers (DPOs) are crucial in helping organisations understand and use their data effectively. Given the overlap between data protection and AI governance, DPOs are increasingly managing AI compliance and governance. Both roles require the ability to coordinate cross-functional teams and adapt to evolving challenges. 2. Privacy by design and privacy-enhancing technologies  With the growing need for data in AI, protecting that data and transforming it into privacy-enhancing or anonymised formats is becoming ever more essential. These tools enable organisations to benefit from their data while maintaining privacy. Privacy by design is a principle-based approach that is set to become increasingly popular, prompting organisations to review their processing activities in depth, reducing risk and improving compliance management. 3. GDPR compliance frameworks Europe's digital regulations are complex and extensive. Privacy frameworks derived from the General Data Protection Regulation (GDPR) provide a solid foundation for building comprehensive compliance frameworks. These frameworks will be updated to accommodate new compliance requirements. 4. Shifting attitudes toward compliance We saw numerous headlines about data-related fines cropping up in 2024. Regulatory bodies, such as the Data Protection Commission, have intensified their efforts to manage complaints and breaches, putting more pressure on organisations. As consumer awareness grows, driven by global discussions on data privacy, we can expect to see more attention to data protection compliance. 5. International transfers under scrutiny International discussions will lead to greater scrutiny of data transfers. Recent findings by the Court of Justice of the European Union could significantly impact international data transfers, prompting organisations to reassess their practices. 6. Consumer awareness of data subject rights In Ireland, damages have already been awarded for GDPR non-compliance. While this hasn't yet led to a surge in claims, increased awareness will empower data subjects to hold controllers accountable. Organisations may shift their focus from regulators to data subjects. 7. Increase in cookie consent enforcement Cookies, often invasive and disruptive, are under scrutiny. The Data Protection Commission’s review of cookie compliance five years ago highlighted widespread non-compliance. Combined with the European Data Protection Board’s (EDPB) Cookie Banner Task Force and increased action by groups such as the European Centre for Digital Rights, we can expect enforcement actions to ramp up as organisations have now had time to implement recommendations.  8. Proactive approach to processor compliance As privacy programmes mature, organisations will focus on the entire data lifecycle, including third-party processors. The EDPB's opinion on data processors and sub-processors highlights the importance of controllers to ensure compliance throughout the data value chain. This will likely lead to more queries and demands from controllers to processors. 9. Board assurance on data protection With GDPR in effect for seven years, boards are increasingly concerned about data protection risks that extend beyond compliance, driving demand for assurance through audits and certifications, which are rapidly maturing.  10. Greater focus on transparency To empower data subjects, organisations must provide clear and practical transparency notices. Moving away from legalistic, lengthy and obscure notices to more informative ones will enhance transparency and build trust with data subjects. David O’Sullivan is Director of Privacy, Digital Trust and Artificial Intelligence Governance at Forvis Mazars

BlackRock’s 2025 Ireland Read on Retirement survey reveals Irish workers’ retirement anxieties. With auto-enrolment imminent, increased pension awareness is crucial, writes Tim Hodgson BlackRock’s 2025 Ireland Read on Retirement survey offers a revealing snapshot of the retirement landscape for Irish workers. The research exposes significant gaps between the recognized importance of pensions and the actual confidence workers have in achieving a comfortable retirement. Despite 81 percent of respondents acknowledging that pensions are the most effective means of securing a reasonable standard of living, just 41 percent feel they are on track to achieve this goal. The disconnect highlights the urgent need for enhanced financial planning and greater awareness of retirement savings. The survey identified a palpable sense of uncertainty among pre-retirees, aged 60–69, with more than a third uncertain whether their current trajectory will be sufficient to secure a comfortable retirement. This reality reflects broader anxieties within the workforce. It is evident that, while pensions are universally accepted as crucial, tangible readiness varies dramatically among workers, particularly between those with and without Defined Contribution (DC) workplace pensions. Workers lacking a DC pension express significantly less confidence in their retirement preparedness—just 26 percent of those without one feel on track, compared to 59 percent of their counterparts who enjoy the benefits of such schemes. Jumpstarting retirement savings As Ireland prepares for the introduction of the Auto-Enrolment Retirement Savings Scheme, called My Future Fund, the survey’s findings assume even greater significance. Scheduled to roll out in September 2025, this initiative aims to integrate as many as 800,000 Irish workers into an occupational pension scheme, jumpstarting retirement savings for many who have been without work or a private pension. The upcoming scheme is viewed as a watershed moment, a once-in-a-generation opportunity to redefine how retirement savings are approached. More than two-thirds of survey participants indicated a willingness to opt into the scheme during its inaugural year, reflecting optimism about the potential of auto-enrolment to reverse current trends. However, the survey also revealed that only half of workers believe that an employee contribution rate of 4.5 percent is affordable, highlighting significant challenges that remain in the broader context of financial readiness. Generational divide Generational differences further complicate the picture. The survey found that saving for retirement ranks among the top three financial priorities for Pre-Retirees and Gen Xers. In contrast, Millennials treat it as the least pressing concern, placing it last among six financial priorities. This divergence suggests that while older generations are grappling with the immediate need to shore up retirement funds, younger workers may be postponing or deprioritising savings amid other financial demands. Additionally, 43 percent of overall respondents admitted that they should be saving more, and 32 percent felt they had started too late. A similar proportion expressed concern that state pension provisions might fall short once they retire. The research highlights that nearly nine in ten pre-retirees and Gen Xers lack a clear strategy to manage their pension pots upon retirement. A striking majority believe that pension schemes should prioritise guidance to help savers manage the transition from accumulation to decumulation. In essence, while saving for retirement remains a top priority for many, there is an urgent need for enhanced financial education and personalised solutions designed to ease the transition from saving during working years to drawing down those funds in later life. Retirement unease Overall, the insights provided by the Ireland Read on Retirement survey reflect a broader international trend of retirement unease. With initiatives such as auto-enrolment on the horizon, it is imperative that policymakers, employers, and financial advisors work together to bridge the gaps in awareness and affordability. Only then can the promise of a secure and comfortable retirement become a reality for all Irish workers. Exploring these themes further reveals the critical importance of informed financial planning, and it invites renewed discussion on how best to support diverse generations in their unique retirement journeys. Tim Hodgson is Head of UK and Ireland Defined Contribution Platforms and Retirement Solutions at BlackRock

Welcome to the latest edition of Technical Roundup. In developments since the last edition, Accountancy Europe has published its 2024 Annual Report which highlights its key achievements, impacts and insights during the year. The International Sustainability Standards Board (ISSB) has released its March 2025 podcast hosted by ISSB Chair Emmanuel Faber and Vice-Chair Sue Lloyd discussing the latest developments around the ISSB. Read more on these and other developments that may be of interest to members below. Financial Reporting The SORP making body responsible for developing the Charity SORP has launched its public consultation on the next update to the Charity SORP. The update included in the Exposure Draft released includes proposed changes to reflect the amendments made in 2024 to FRS 102 as part of the periodic review of that standard. The consultation period will run until 20 June 2025. Carmichael, a specialist training and support body for nonprofits in Ireland, is hosting a webinar on 15 April to discuss the proposed updates to the SORP, including the implications it may have for charities. The International Accounting Standards Board (IASB) has released its March 2025 update and podcast. The IFRS Foundation has released a recording of its recent event “Disclosures about transition plans”. The IFRS Foundation has published its annual report and audited financial statements for 2024. This highlights some of the achievements made by the organisation in 2024. The IFRS Foundation has released a podcast and webcast to help users understand the changes set out in the third edition of the IFRS for SMEs Accounting Standard. It has also released the March 2025 IFRS for SMEs Accounting Standard Update. The Financial Reporting Council (FRC) has issued minor amendments to the FRS 102 and FRS 105 standards. These amendments reflect the recent increase to the UK company size thresholds, which are referred to in both standards. For more information on this please see our recent news item. The European Financial Reporting Advisory Group (EFRAG) has released its February 2025 update and podcast. EFRAG is inviting preparers, users, auditors, regulators and other stakeholders to participate in their upcoming roundtable on 25 April entitled “Practical Considerations of Connecting Financial and Sustainability Reporting”. Accountancy Europe has published its 2024 Annual Report which highlights its key achievements, impacts and insights during the year. The UK Endorsement Board (UKEB) has published its 2025/28 Regulatory Strategy and Feedback Statement. UKEB has published its final comment letter in relation to the IASB Exposure Draft Proposed Amendments to the IFRS Foundation Due Process Handbook. Auditing The Financial Reporting Council (FRC) has published an updated letter regarding its approach to capital restructuring at UK audit firms. Originally issued in September 2024, it provides further clarity on the FRC's position on this area. UKFIU material on anti-money laundering, EU Sanctions Helpdesk The UK FIU has published its 2024 Annual Report. The report covers key statistics around Suspicious Activity Reports (SARs) in the Financial Year 2023 to 2024 and includes £240.1million being denied to suspected criminals because of Defence Against Money Laundering (DAML) requests. Click here to read the Report. As part of sector specific SAR Best Practice Workshops, the UKFIU Engagement Team’s April 2025 workshop webinar will be for the Accountancy sector and is scheduled for 29 April 2025 Register here. It is aimed at Money Laundering Reporting Officers (MLROs), Nominated Officers (NOs) or colleagues who write SAR submissions within organisations with AML compliance teams of 5 or less. Finally in UK FIU news, please click to hear a UKFIU podcast with the issue of professional enablers discussed by panellists. A new service, the EU Sanctions Helpdesk has been set up to support European SMEs in complying with sanctions. The service is funded by the European Union. The Helpdesk offers resources and personalised assistance free of charge to companies performing sanctions due diligence checks. It also manages a dedicated website featuring sanctions-related information, events, tips, lessons learned, and more.  Readers can click to read more about the EU Sanctions Helpdesk, Visit the EU Sanctions Helpdesk website, Submit a request to the EU Sanctions Compliance Support Service & read Frequently asked questions and access the Audiovisual Service. Sustainability European Commission Omnibus proposal: The Minister for Enterprise, Tourism and Employment, Peter Burke, has issued a statement in which he welcomed proposals by the European Commission to introduce significant changes to the requirements for companies to report on corporate sustainability matters. The Institute previously issued a news item outlining the main changes proposed to the regulations. The European Commission and the European Parliament has recently approved the ‘stop the clock’ proposal which postpones the application of all reporting requirements in the CSRD for companies that are due to report in 2026 and 2027 (so-called wave 2 and 3 companies) and which postpones the transposition deadline and the first wave of application of the CSDDD by one year to 2028. This will now be sent for approval by the European Council. In other news on the Omnibus, Maria Luís Albuquerque, the EU Commissioner for Financial Services and Investments, sent a letter to EFRAG asking for updated recommendations to comply with the current proposal. The letter asks EFRAG to initiate the process to develop technical advice for the modification of the ESRS, including substantially reducing the number of mandatory ESRS datapoints.  EFRAG has until April 15th to draft a workplan with a target completion deadline of October 31st 2025. The International Sustainability Standards Board (ISSB) has published the recording of its eighth 'Perspectives on sustainability disclosure' webinar. The webinar is titled 'The future of integrated reporting and integrated thinking'. The International Sustainability Standards Board (ISSB) has released its March 2025 podcast hosted by ISSB Chair Emmanuel Faber and ISSB Vice-Chair Sue Lloyd discussing the latest developments around the ISSB. The IFRS Foundation has published a ‘Roadmap Development Tool’, which is intended to support jurisdictions in the planning and the design of their adoption roadmaps for ISSB standards. The IFRS Foundation has released a series of webcasts to support companies in identifying and disclosing material information about sustainability-related risks and opportunities. Central Bank of Ireland In March 2025 the Central Bank of Ireland (CBI) published its revised Consumer Protection Code. Please click to access the Central Bank’s page on the Consumer Protection Code 2025. The existing Consumer Protection Code of 2012 continues to apply to regulated firms, and the protections that are currently in place remain effective until the revised Code takes effect on 24 March 2026. Please also click to access the Central Bank's Consumer Code feedback document giving its reasons for its approach to the update Code and click here to read the Central Bank Governor’s opening remarks at the new Code’s launch. In other Central Bank news click to read the Central Bank’s Deputy Governor address to the Institute of Bankers in April 2025 entitled “Shocks and shifts – Regulation and Supervision in a changing world“.Topics she spoke about included the Central Bank’s more integrated approach to supervision and the  regulatory simplification agenda. Finally in CBI news, readers interested in the area of cryptoassets will be interested to read the Central Bank’s Director of Capital Markets & Funds remarks at a Markets in Cryptoassets Regulation (MiCAR) Industry Briefing in March 2025. He considers how CBI thinks about MiCAR and cryptoassets and what it is focusing on in implementing MiCAR: governance and culture, consumer interests and crime and fraud. Other news In the height of AGM season 2025 readers may find useful A&L Goodbody LLP solicitors guide to some of the key themes and issues which may be on the agenda for Irish listed companies this year. Click to read the guide “What’s on the agenda? AGM Season 2025”. Readers may be interested in the recent publication by the  Dept. of Enterprise Trade and Employment (DETE) of the Employment (Contractual Retirement Ages) Bill 2025. When enacted it will deliver a new employment right allowing but in no way compelling an employee to stay in employment until the State Pension Age (66). It will allow workers whose contract has a retirement age of 65 or under to work to State Pension Age of 66, if they so wish. Click here for a DETE press release on the draft legislation. The text has been published of the speech the Pensions Regulator gave to the Irish Association of Pension Funds’ Spring Conference in March 2025. Topics he spoke on include the Pensions Authority’ recent supervisory review activities, it’s plans for the rest of 2025 and its longer-term priorities. For further technical information and updates please visit the Technical Hub on the Institute website.      This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.    

If you are finishing your training contract in the months ahead and starting to consider your career path and what direction you want to take your professional qualification there are a number of actions you will need to take. Below is a list you can tick off as complete over the weeks ahead : Action list and Key considerations as a newly qualified ACA Build a top class CV   Start a Career Plan file Watch some career webinars Start market mapping and select my top ten preferred employers – If you need advice on MM contact your Careers Team in the Institute. Get my LinkedIn profile up to speed – Document guide available from dave.riordan@charteredaccountants.ie Treat this as the appendix to your CV – Professional Photo and good bulleted detail. Set up my alerts on jobs boards for a variety of different roles and titles and filter into a folder for review Connect with a few recruiters I trust to understand the career curve of an ACA – Career Pathway Hub here Explore the full spectrum of career paths that I can take post qualification Consider whether a contract might be a good option at this particular crossroads Connect with a few mentors and get their advice formally consider a stint abroad to add real-world experience to my CV Initiate a networking mentality and start speaking to my peer group about what they are doing with their careers in the years ahead examine the LinkedIn profiles of peers several years ahead of me what paths they have taken as they moved out of their training contract. Establish my elevator pitch about where I want my career to go Based on my recent annual reviews in work write an honest SWOT analysis of my personal brand and current profile. Follow companies on LinkedIn that I am very interested Connect with CFO's and divisional heads on linkedIn in organizations that appealed to me using a polite connection message. Start building my Interview narrative – What are my key selling points / key stories and value-add examples? Have I asked the Institute Careers Team or a recruiter for a prep session? Ask for the "Interview Do’s and Don’ts document".  Do some work for Charity. Who are my referees going to be and will they sing my praises. Give them advance notice. If  April 2025 is when you will be leaving your training contract then start the key actions now per the above list and don’t put off contacting your Careers Team until too late.  Get ahead of the curve. The market is very good at the moment but change is the only real constant in the world of business today so take advantage and initiative while you can. Dave Riordan (FCA) Recruitment Specialist & Career Coach | Careers Team Chartered Accountants Ireland. Dave.riordan@charteredaccountants.ie

The Institute of Chartered Accountants Ireland operates a Recruitment Service for clients and members providing specialist and expert advice at all stages of the recruitment process.  CLIENTS - We provide a full-service end to end recruitment partnership to our clients. We manage the entire process from advertising, screening candidates and interview scheduling all the way through to offer management and reference checking. We take the time to understand your specific needs whether you are the client or the candidate. Our aim is to enable and support positive recruitment decisions. CANDIDATES - Similarly on the candidate journey we represent our ACA and FCA members (exclusively) and provide personalised support throughout the interview journey, including the provision of interview preparation sessions and offer negotiation advice. The members of the Careers Team have combined experience in recruitment of over 40 years for you to leverage. CAREER ADVISORY – The Careers Team is essentially your career partner at every stage of your career from qualification to retirement. We are here to provide guidance, support and advice and to act as your independent and confidential sounding board. Our team of experts can help you to successfully navigate your career enabling you to reach your full potential. For more information about the Recruitment and Careers Service in Chartered Accountants Ireland contact Careers@Charteredaccountants.ie    

Commenting on the US administration’s new tariffs, Cróna Clohisey, Director of Members and Advocacy, Chartered Accountants Ireland said: “The announcement of 20% tariffs on imports from the EU by US President Donald Trump last night is a regressive step in transatlantic trade relations and upends the principle of open and fair trade. We urge the Irish government to work with the EU Commission to find a way to engage the US in constructive dialogue which prioritises solutions over a cycle of retaliatory measures. A further escalation in trade tensions will risk jobs, businesses and economies not just on the island of Ireland, but across the world. Without a doubt, these tariffs will cast a shadow of uncertainty over the stability of Ireland’s future corporation tax receipts with the stated aim of the tariff war being to ‘onshore’ many of the US multinationals operating overseas. As an all-island body, it is equally regrettable to see a 10% tariff announced on imports to the US from Northern Ireland, adding an additional pressure to businesses who are still navigating the complex trading landscape post Brexit. For now, we need to focus on what we can control. Prioritising Ireland’s competitiveness on the global stage will require urgently addressing our persistent infrastructural deficits. Our infrastructure is 25% less developed, on average, than other high-income European countries. This is not sustainable, particularly in the face of such protectionist measures. Now is the time to utilise the resources already at our disposal to accelerate investment in housing, water, energy and transport to best position the economy for growth - not only in terms of continued inward investment but also supporting domestic enterprises that comprise 99.8% of businesses in Ireland.”

The Chancellor of the Exchequer Rachel Reeves delivered the Spring Statement last week on Wednesday 26 March. As expected, this was mainly an economic update coupled with further spending and welfare cuts. No tax rises were announced this time around with many commentators saying the Chancellor has ‘kicked the proverbial can down the road’ and that this will not be the case in the Autumn Budget later this year. The measures were focused on driving economic growth, building an NHS fit for the future, and keeping the country safe. However, what is clear is that UK businesses are entering a time of economic slowdown with tax increases looming next month (the key tax changes taking effect from April 2025 will feature in next week’s update). The Chancellor also claimed in her speech that households in the UK will be “over £500 a year better off” even after inflation. For millions still feeling the pinch, it was a surreal moment as fiscal drag is expected to create over 1 million more higher rate taxpayers in 2025/26 due to frozen personal tax thresholds. HMRC has sent several emails summarising the key announcements which you can read here and here, and the Institute for Fiscal Studies has published its reaction to the Spring Statement here.  The Chancellor has left little room for manoeuvre because of her own fiscal rules but has committed an additional £2 billion for social and affordable housing for 2026/27. More broadly, the Office for Budget Responsibility has improved its forecasts for economic growth in 2026 and beyond but halved its growth forecast to 1 percent in 2025. With geopolitical uncertainty continuing, the impact of global trade policies on the UK economy remains to be seen and the wider impact on the UK economy will need to be carefully monitored.   On the tax front, a further package of measures to close the tax gap featured which aim to raise over £1 billion in additional gross tax revenue per year by 2029/30. As part of this, it was announced that Making Tax Digital for income tax is being extended to the £20,000 to £30,000 cohort from April 2028. Late payment penalties for certain taxes will increase from April 2025 and four consultations were launched in this space. A range of additional measured also featured in the Spring Statement publications. 

Building on the package of tax gap measures which were announced at the Autumn Budget, a further series of announcements were made which included the extension of Making Tax Digital for income tax to even smaller businesses which we report on in more detail in a separate news item. Debt management and compliance investment  According to the government, at the end of 2024, the stock of tax debt (unpaid tax liabilities owed to HMRC) was over £44 billion, more than double the level five years ago. In order to reduce this, the government is further investing in HMRC’s debt management capacity which will include ‘an innovative test and learn pilot to collect more aged debts whilst also moving towards more automated debt recovery.  The government is also investing £87 million over the next five years in HMRC’s existing partnerships with private sector debt collection agencies to collect more unpaid tax debts. An additional £114 million will be invested over the next five years to recruit an additional 600 HMRC debt management staff; 500 more HMRC compliance staff will also be recruited via a £100 million investment.  Late payment penalties  Late payment penalties for VAT and income tax self-assessment taxpayers (as they join MTD) will increase from April 2025 onwards. The new rates will be 3 percent of the tax outstanding where tax is overdue by 15 days, plus an additional 3 percent where the tax is overdue by 30 days, plus an additional 10 percent per annum when overdue by 31 days or more. Consultations  The government also published four new consultations to support HMRC’s efforts in closing the tax gap: How HMRC can make better use of third party data to increase automation and close the tax gap – closes 21 May 2025 Proposals to strengthen HMRC’s ability to take action against those tax advisers who facilitate noncompliance from their clients – closes 7 May 2025 Closing in on promoters of marketed tax avoidance, whose contrived schemes leave their clients with unexpected tax bills – closes 18 June 2025, and Options to simplify and strengthen HMRC’s inaccuracy and failure to notify penalties – closes 18 June 2025. Counter-fraud capability and investigations  Additional criminal investigations will focus on delivering a strong deterrent. This will include tackling those who undermine legitimate trade and small business, fraud committed by the wealthy, fraud facilitated by those in large corporations, and by individuals and companies who make it possible for others to hide money offshore. Investigations will also address organised criminal attacks, focusing on illicit finance and complex money laundering schemes.   As part of the overall investment in HMRC resourcing, HMRC is overhauling its approach to offshore tax noncompliance by the wealthy, recruiting experts in private sector wealth management and deploying AI and advanced analytics to help identify and challenge those who try to hide their wealth, wherever they try to hide it.   During the next five years, the government will increase HMRC’s resources assigned to tackling wealthy offshore noncompliance by around 400 people, who are estimated to bring in over £500 million over the forecast period.   New informant reward scheme  A new HMRC reward scheme for informants will be launched later this year, with the aim of targeting serious noncompliance in large corporates, wealthy individuals, offshore and avoidance schemes. The new scheme will take inspiration from the successful US and Canadian models, rewarding informants with compensation linked to a percentage of any tax taken as a result of their actions.  Phoenixism  To tackle ‘phoenixism’, HMRC, Companies House, and the Insolvency Service will deliver a joint plan to tackle those using contrived insolvencies to evade tax and write off debts owed to others. This includes increasing the use of upfront payment demands, making more directors personally liable for company taxes, and increasing the number of enforcement sanctions to double the amount of tax protected to £250 million by 2026/27.   Change at HMRC  The government will also accelerate change at HMRC, including through introducing voice biometrics, using AI in taxpayer services and compliance, and running a customs digitalisation pilot sharing trusted trader credentials with US Customs and Border Protection.   Tax simplification  Further measures will be announced later in the spring to simplify the tax and customs systems, and in the summer, HMRC will publish a transformation roadmap. These measures will aim to collectively reduce administrative burdens so businesses and individual taxpayers spend less time on tax and customs administration.   Direct recovery of tax debts   HMRC will re-start ‘direct recovery’ of tax debts owed by individuals and companies who have the ability to pay but choose not to do so. The government will also explore options to automate the process for collecting lower value tax debts.   

Making Tax Digital (MTD) for income tax is being extended to sole trades and landlords with qualifying income of more than £20,000 from April 2028. The Government also announced further changes to MTD as set out in the technical note “Modernising the tax system through Making Tax Digital”, details of which are provided below. The Institute has been engaging extensively with HMRC, together with the other professional bodies, to raise the impact of this major change to income tax reporting on individuals and their agents and the challenges that this will present.  There is now just over a year to the first tranche of mandation of MTD for income tax which will commence from April 2026 for those with gross income of over £50,000 and from April 2027 for those with gross income over £30,000. Even more worryingly, the government has also said that it will continue to explore ‘how it can best bring the benefits of digitalisation to more of the around four million taxpayers who have income below the £20,000 threshold’.  We will be discussing the MTD for income tax Spring Statement measures and announcements with HMRC via various stakeholder forum meetings in the coming weeks and months. Despite our reservations about MTD, the Institute will continue to work with HMRC on MTD readiness and is developing a cross-department MTD strategy to assist members in their preparations. We will also continue to represent members views as we approach April 2026 and will be conducting a short survey on MTD for income tax in next week’s Tax News.  End-of-year tax reporting for MTD   Some users of MTD for income tax will have other sources of income that need to be reported in Self-Assessment (SA). These additional income sources must be reported at the end of the tax year, alongside any necessary adjustments to their business income and expenses.   Previously, users would have been able to use HMRC’s online filing service to submit their final tax return. HMRC has now announced that its online filing service will not be available to do so and that MTD taxpayers must file their tax return through their MTD software. The government will adopt this change and introduce legislation ahead of April 2026.   One or more MTD-compatible software products will therefore be needed to meet SA filing obligations which makes the choice of software used by the agent/taxpayer of extreme importance.   Exempting/deferring certain groups from MTD  The government believes that some taxpayer groups will face disproportionate barriers to operating MTD and should be exempt. The following groups will therefore not be required to use MTD for income tax, (subject to notifying and satisfying HMRC that they are exempt):   taxpayers who have a power of attorney, ·non-UK tax resident foreign entertainers/sportspeople who have no other income sources that count as qualifying income for MTD, and taxpayers for whom HMRC cannot provide a digital service. The following groups will also not be required to join MTD for income tax over the course of this Parliament:   ministers of religion, Lloyd’s Underwriters, recipients of the married couples’ allowance, and recipients of the blind persons’ allowance. Additionally, individuals will not be required to use MTD until April 2027 if they have information that they would need to submit using the SA109 schedule. HMRC will work with stakeholders to finalise the design of a one-year deferral for these groups to allow time to incorporate into MTD the government’s changes to the taxation of non-UK domiciled individuals.   Legislation will therefore be introduced to defer/exempt these groups and the criteria for deferrals/exemptions will be set out in guidance once the legislation is finalised.   Finalising the policy framework for MTD and penalty reform  The government has announced several further changes to the design of MTD and penalty reform. These include:  changes to enable taxpayers with an accounting date of 31 March to start their MTD obligations on 1 April in the first year of operating MTD which will avoid the need for burdensome manual adjustments at the end of the tax year, and a power for HMRC to cancel/reset late submission penalty points and to cancel associated financial penalties; this enables HMRC to cancel penalty points, for instance, in periods prior to insolvency, so that penalty reform reflects HMRC’s general approach to insolvent taxpayers. HMRC will continue to engage stakeholders on these changes before legislation is introduced ahead of April 2026. 

Within the Spring Statement Green Book were a range of miscellaneous measures worthy of mention including news of a new online service for reporting and paying the high income child benefit charge, the launch of a consultation on advance tax certainty for major projects and a consultation on research and development (R&D) advance clearances.   High income child benefit charge (HICBC)   From summer 2025, employees liable to the HICBC will be able to report their family’s child benefit payments to HMRC via a new digital service and they will also be able to opt to pay the HICBC directly through PAYE, without the need to register for self-assessment (SA) and file SA returns.  Advance tax certainty for major projects consultation   At Autumn Budget 2024, the government announced in its Corporate Tax Roadmap that it would be consulting on a new process to provide increased tax certainty in advance for major projects. A consultation has therefore now been launched seeking views on taxpayers’ priorities which also sets out thinking on how a new process could work to support investment decisions. Responses should be sent to advancetaxcertainty@hmtreasury.gov.uk or advancetaxcertainty@hmrc.gov.uk by 17 June 2025.  As part of this, businesses will also be able to obtain certainty on the transfer pricing treatment of cost contribution arrangements through the UK’s existing advance pricing agreement programme.  R&D reliefs advance clearances consultation   The government has also published a consultation on widening the use of advance clearances in R&D tax credits. The aim of the consultation is to explore options to reduce error and fraud, provide certainty to businesses and improve the taxpayer experience. Views are sought on whether a system of advanced clearances would deliver these aims and the best way to design and operate such a system. This consultation closes on 26 May 2025 with responses to be sent to randd.advance.clearances.consultation@hmrc.gov.uk.   

As we reported earlier in the month, from 31 March 2025, HMRC launched its new email enquiry service for agents to help escalate and resolve individual (and not employer) PAYE and self-assessment queries which are over four weeks old. More details of how the new service should work are set out in an email to agents. For several years, the Institute has been advocating for HMRC to establish an email enquiry service for agents including in last year’s Pre-Budget submission and in a letter at the end of 2024 to HMRC on services. The Institute participates in the new HMRC Stakeholder Forum, the Customer Services for Tax Agents and Representative Bodies Working Group, which aims to assess current agent services and to develop improved services for agents contacting HMRC with client queries. This new email enquiry service is an output from that forum which will continue its work including reviewing the workings of the new service.   

With major tax deadlines ahead, strategic planning is crucial. Suzanne Mcilwaine outlines the changes on the way from 5 April and how to manage them wisely Announcements regarding Inheritance Tax (IHT) in the 2024 Autumn Budget have had a big impact on the business and farming sectors. Similarly, changes affecting individuals who benefit from the UK domicile and residence rules will significantly alter their tax landscape. While these topics warrant separate discussion, it's essential not to overlook several other changes that affect a broader range of taxpayers, as well as the usual considerations for tax year-end planning. To start, maximising annual tax-free reliefs and allowances before the 5 April 2025 deadline is crucial. Individuals have a personal savings allowance of £1,000 or £500, depending on whether they are basic or higher-rate taxpayers (this allowance is not available for additional-rate taxpayers). For those exceeding these thresholds or looking for a tax-efficient approach, the annual individual savings account investment allowance stands at £20,000. Additionally, contributing to retirement savings can yield significant benefits, with effective tax relief of 20, 40 or even 60 percent available on qualifying contributions, depending on individual circumstances. It’s important to review personal allowances and thresholds relevant to pension contributions before taking action. Those uncertain about their state pension position should apply for a state pension forecast and check their National Insurance (NIC) record for any gaps as soon as possible. This is particularly important, as the opportunity to pay voluntary NICs to bridge gaps from April 2006 to April 2016 will expire after 5 April 2025. Key changes to inheritance tax and capital gains tax There are several exemptions to IHT worth noting. An annual gift exemption allows individuals to give away £3,000 per donor, which can be carried forward for one year to a total of £6,000 if not utilised. Additionally, a small gifts exemption of £250 per beneficiary per tax year is also available. Be cautious with gifts of assets, however, as they may have other tax implications, including potential liability for capital gains tax (CGT). As of 30 October 2024, CGT rates rose from 10 to 18 percent for basic rate taxpayers and from 20 to 24 percent for higher rate taxpayers. The annual exemption for taxable gains is £3,000, so it’s important to use it, or you will lose it. Business owners eligible for Business Asset Disposal Relief will also see changes. The CGT rate on the first £1 million of eligible gains will increase from 10 to 14 percent, starting on 6 April 2025, with a further increase to 18 percent beginning on 6 April 2026. If a sale is anticipated, it is advisable to consider timing and pre-sale planning options sooner rather than later. Implications for property owners and investors The special tax treatment provided for Furnished Holiday Lets (FHL) will be eliminated from April 2025, resulting in the loss of favourable CGT treatment, full mortgage interest relief and Capital Allowances (CAs) on qualifying capital expenditures. FHL owners should re-evaluate their rental models; if short-term holiday lets remain a preferred option, they might consider accelerating qualifying capital expenditure to benefit from CAs while they are still available. Finally, for individuals purchasing residential property, the threshold for Stamp Duty Land Tax (SDLT) will reduce from £250,000 to £125,000, effective from 1 April 2025. Additionally, the surcharge on individuals owning multiple residential properties has increased. Therefore, those looking to buy residential property should be clear about their SDLT liabilities and consider whether expediting their purchase could be advantageous. As with all tax planning, it is essential to consider both non-tax and financial implications, rather than focusing solely on the tax landscape. Suzanne Mcilwaine is a Tax Manager at Grant Thornton in Northern Ireland