This week’s miscellaneous updates – 6 July 2026

In this week’s detailed miscellaneous updates which you can read more about below, HMRC is consulting on a new VAT relief for the sale of land on which social housing will be built, and in the latest HMRC Stakeholder Digest of 2 July 2026, HMRC highlights the recent publication of a progress update against its Transformation Roadmap.  

In addition to the above, readers should also note the following:

• In a new report, the Institute for Fiscal Studies says that higher earners and private sector workers will bear the brunt of the April 2029 planned reforms to the national insurance treatment of salary sacrifice contributions,
• Tax Policy Associates poses the question ‘Has Britain run out of “other people” to tax?’
• The minutes from the most recent meeting of HMRC’s Guidance Strategy Forum, which the Institute’s tax team participates in, have been published,
• In a commitment to transparency, the Royal Household has published for the first time details in the ‘Report of the Royal Trustees on the Sovereign Grant Review 2026’ of the amount of tax payable. The report received a mixed reception; Tax Policy Associates reacted the same day, and
• The temporary cut in the rate of VAT for certain summer attractions to 5 percent over the summer holidays commenced from 25 June 2025 and runs until 1 September 2026.

Consultation on VAT relief for social housing

At the Autumn Budget 2025, the Government committed to consulting on a new VAT relief for the sale of land on which social housing will be built. The consultation aims to ensure that the relief is designed and targeted effectively and accelerates the development of social housing.   

At present a zero rate only applies to the sale of property, including the land, once construction of the property has progressed beyond foundation level, known as ‘the golden brick’.

HMRC and HM Treasury have now jointly launched a consultation seeking views on the introduction of a zero rate of VAT for the sale of land intended for the construction of social housing. The consultation is open for responses until 18 August 2026. Responses to the consultation can be submitted by completing the online survey link or by emailing vatlandforsocialhousingconsultation@hmrc.gov.uk.

HMRC publishes progress update on first year of Transformation Roadmap delivery

HMRC has published a progress report on the first year of delivery against its Transformation Roadmap, which was launched in July 2025. The Transformation Roadmap is an ambitious five-year programme which aims to build a simpler, more efficient tax and customs system. The Exchequer Secretary to the Treasury also delivered a statement to Parliament last week setting out information on the progress report.

The update sets out details on progress across digital services, compliance, and reform and says that 78 percent of taxpayer interactions now take place digitally. In 2025/26 there were 2.8 million new HMRC app users and nearly 20 million people using Personal Tax Accounts. 

The update also covers the introduction of Making Tax Digital for income tax, the recruitment of additional compliance and debt management officers, increased use of artificial intelligence tools, and the actions that HMRC is taking to tackle dishonest tax advisers. The update also reflects on the integration of the Valuation Office into HMRC and sets out HMRC’s priorities for 2026/27.