Last week, the FISC Subcommittee delegation met in Dublin with members of the Oireachtas, representatives from businesses and other stakeholders, including the Institute’s Director of Members and Advocacy, Cróna Clohisey. The areas of discussion included tax policies, the fight against tax avoidance, and tax simplification.

The OECD Council has decided to renew the mandate of OECD Secretary-General Mathias Cormann for a second and final 5-year term from 1 June 2026. 

The Tax Strategy Group (TSG) has published its annual papers in advance of Budget 2026. The TSG is chaired by the Department of Finance and comprises senior officials and advisers from several governmental departments and offices. The TSG is not a decision-making body, rather its purpose is to outline the tax policy considerations for the Government and the options available to it in forming this year’s Budget. The allocation for taxation measures in this year’s Budget is €1.5 billion (out of a total package of €9.4 billion). This is the starting point for making informed predictions of what we could see announced later this year. For example, increasing the standard rate band from €44,000 to €46,000 would cost the Exchequer €505 million (full year cost), with an increase in the primary tax credits (e.g. personal and employee tax credits) of €100 costing the Exchequer €570 million (full year cost). Assuming we will see some increase in the standard rate band and tax credits (as in recent years), it suggests that a substantial portion of the tax budget will need to be deployed toward income tax. This is not informed by anything other than a high-level review of the TSG papers themselves. On the corporation tax side, there is helpful commentary on the position of the OECD Two-Pillar Agreement. Regarding Pillar One, agreement has yet to be found and the path forward remains challenging. In relation to Pillar Two, the coexistence of the Pillar Two rules and US tax system is currently being worked through as the US view their domestic measures as equivalent to the Pillar Two rules. However, there are important distinctions between the two systems with potential for a lower effective rate for US headquartered multinational enterprises. In this year’s papers, the TSG notes that the near-term outlook is clouded in uncertainty due to tariffs and geopolitical shifts. The full list of papers released by the TSG are as follows: Income Tax (TSG 25/01) includes a summary of tax yields, information on the distribution and burden of income tax and USC and vulnerabilities within the personal income tax system. Other items discussed include the rent tax credit, SARP, tax relief for micro-generation of electricity and accelerated allowances for slurry storage. Tax relief for gym membership and a measure regarding farm income volatility were also examined. Social Protection (TSG 25/02) discusses government priorities and costing options for Budget 2026. Corporation Tax (TSG 25/03) provides an overview of corporation tax trends, current status of the OECD BEPS Project (including Pillar One and Pillar Two), EU tax developments, an update the Funds Sector Review 2030 and business support measures. Enterprise Tax Supports (TSG 25/04) examines tax-based enterprise support schemes to benefit the SME sector. Capital Taxes (25/05) contains a review of Capital Acquisitions Tax, OECD recommendations and international comparisons and models costings for possible changes. A Capital Gains Tax review is outlined along with the cost of changes to the headline rate. Stamp Duty Pensions and Property Taxes (TSG 25/06) outlines the current position, latest statistics and developments in Stamp Duty, the pensions landscape, the Residential Zoned Land Tax, the Vacant Homes Tax and Local Property Tax. It also sets out a proposed change to the reporting requirements for Approved Retirement Funds. Value Added Tax (TSG 25/08)  outlines the rates and structures of VAT and recent VAT changes and provides international comparisons with the EU and UK. In addition, it looks at policy changes in VAT and future VAT developments.

The OECD has published a report which provides a comprehensive assessment of Thailand’s social protection system. Social protection financing needs are expected to rise significantly in Thailand due to its rapidly ageing population, and the impacts of climate change, and the report explores potential reforms in areas including VAT, corporate and personal income taxes, with a view to generating additional tax revenue.

In Irish news this week, the Institute has met with the Minister for Enterprise, Tourism and Employment and the Enhanced Reporting Requirements for employers has been identified, in a recent report to Government, as a significant competitive challenge to doing business in Ireland. In UK news, read HM Treasury’s response to the Institute’s April 2025 letter on the Autumn Budget 2024 changes to key inheritance tax reliefs and we are encouraging members to complete the Administrative Burden Advisory Board’s annual survey on HMRC. In International news, the European Commission has launched a Call for Evidence on the General Block Exemption Regulation. Irish The Institute’s Tax and Public Policy team met with the Minister for Enterprise, Tourism and Employment, to discuss current sentiment among SMEs and the challenges they face in terms of labour, operating and regulatory costs. The National Competitiveness and Productivity Council’s recent report highlights the Enhanced Reporting Requirements for employers compliance costs for SMEs as a competitiveness concern. UK Read HM Treasury response to the Institute’s April 2025 letter on the Autumn Budget 2024 changes to key inheritance tax reliefs, which were subsequently confirmed as proceeding earlier this week on L-day. The 2025 ABAB survey on HMRC is open for completion. International The European Commission has launched a Call for Evidence on the General Block Exemption Regulation as it assesses the potential tofurther simplification. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s post EU exit corner here.          

As we predicted earlier this week, following HM Treasury’s response to the Institute’s letter on this issue, on L-day earlier this week the Government published draft finance bill clauses which confirm that the changes to APR and BPR will be proceeding as planned from April 2026. In the draft legislation as it currently stands, none of the recommended mitigations proposed by the Institute have been included. Read the Institute’s Press Release reacting to this in which we are seeking a special derogation from these changes for Northern Ireland, given the disproportionate impact of this in the region on the agricultural sector and family owned businesses. The Institute is currently considering what further action is needed on this important issue and is also seeking to discuss this with local government. A full report on the other key announcements from L-day will feature in Chartered Accountants Tax News on Monday 28 July. However, in the meantime, it is noteworthy that buried amongst the L-day publications is welcome confirmation that the Government has shelved Making Tax Digital for corporation tax.

Northern Ireland should be excluded from UK Government proposals to restrict the benefit of two key Inheritance Tax reliefs; agricultural property relief and business property relief, because of the disproportionate impact this is already having on the region’s agricultural sector and family-owned businesses. Chartered Accountants Ireland, the largest professional body on the island of Ireland, which represents over 5,000 members in Northern Ireland reiterated its position after the Government published draft legislation for the next Finance Bill. As announced last October, from April 2026, 100% relief will be limited to the first £1 million of combined agricultural and business property, with any value above this receiving relief at 50%, effectively resulting in an inheritance tax liability of 20%. Director of Members and Advocacy at Chartered Accountants Ireland, Cróna Clohisey said: “Yesterday on ‘L-day’, the Government published the draft Finance Bill clauses for this policy change which confirms, disappointingly, that they will commence from April 2026 as planned. On behalf of members, this Institute has engaged extensively with Government to emphasise the impact this will have in Northern Ireland. Farming is the biggest industry in NI, and farms and family-owned businesses are the heartbeat of our economy. “We recognise that in the current geopolitical and economic environment, difficult decisions are necessary, however, we feel that the impact of these changes has not been fully considered on a regional basis and will hit Northern Ireland harder. It is already causing forced, premature business sales and the loss of jobs, lives and livelihoods. Although we have some of the highest land prices in the UK, what the government has failed to grasp is that land values here do not correlate to the income generated. Any value is tied up in land and assets, not cash.” Data from the NI Assembly already suggests that by 2026 these changes will affect approximately 75 percent of dairy farms in Northern Ireland, which account for 60 percent of owned land and provide the majority of food production in NI. Clohisey continued: “Ultimately the Government is taking a broad-brush approach to address specific concerns that ‘non-farmers’ are investing in land to avoid inheritance tax. As a result, they are missing the opportunity to reframe this policy and include a range of mitigations to protect genuine farming activity and family-owned businesses.” Chartered Accountants Ireland is urging the Government to find a way to introduce a carve out for agricultural and family-owned business sectors in Northern Ireland. If there is not a willingness to do so, the Institute is calling on the Government to amend the draft legislation to include a range of mitigations. This would enable the Government to target this policy more effectively and reduce its negative impact before the legislation begins its journey through Parliament after the summer recess. ENDS

Revenue has amended its guidance on the provision of services in Irish. The updated manual reflects the most up to date position within Revenue regarding the provision of Irish services under the Official Languages Act, 2003 and the Official Languages Act (Amended) 2020.

Revenue has updated its self-assessment guidance on the consideration of standards of proof when making or amending Revenue assessments. The guidance has been updated throughout to include examples to illustrate how the various sections of Part 41A TCA 1997 apply.

Revenue has updated its guidance on the relevant provisions allowing for the efficient management of Stamp Duty. Stamp Duty Manual Part 11 Management Provisions has been amended as follows: Clarification that the Property Registration Authority was dissolved by the Tailte Éireann Act 2022 and its functions are now under the remit of Tailte Éireann. Clarification that the functions of the Commissioner of Valuationwere transferred to Tailte Éireann by the Tailte Éireann Act 2022. Guidance on sections 159A and 159B has been removed as this is now covered in Stamp Duty Manual Part 11: Stamp Duty repayment provisions, and Guidance on section 159D has been updated to include additional detail on how interest is calculated under this section.

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 most recently published Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows: External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, Short shipments at temporary storage locations, Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS), Submitting an electronic administrative document or an electronic simplified administrative document for excise goods, The Customs (Miscellaneous Amendments) Regulations 2025, Report a problem using the Customs Declaration Service, Make an entry summary declaration using the Import Control System 2, Apply for authorisation for the UK Internal Market Scheme if you bring goods into Northern Ireland, Categorising goods for Internal Market Movements from Great Britain to Northern Ireland, and Declare your goods to authorised use and completing authorised use.

In this week’s detailed miscellaneous updates which you can read more about below, the UK has laid further regulations on the Pillar Two rules which take effect from 24 July 2025 and HMRC is working on a new online form which will allow employers to report disputes on their pay as you earn (PAYE) liabilities. In other news this week: The latest Agent Update: Issue 133 is available; this sets out more information on a range of areas, including the ongoing Class 2 National Insurance Contributions issue which we reported on a few weeks back in miscellaneous updates. HMRC has also asked to share a separate update on this which contains supplementary information, HMRC is holding a webinar later this week on reporting via PAYE real time and how to provide accurate information - book onto the webinar now, The Public Accounts Committee has published a report on collecting tax from wealthy individuals that calls for further action and clarity from HMRC, The National Audit Office has published HMRC’s 2024/25 accounts, and The latest tax publications from the Institute for Fiscal Studies have been published: https://ifs.org.uk/articles/wealth-tax-would-be-poor-substitute-properly-taxing-sources-and-uses-wealth and https://ifs.org.uk/publications/taxing-capital-income-and-wealth-low-and-middle-income-countries-practice-principles. New Pillar Two regulations The Multinational Top-up Tax (Pillar Two Territories, Qualifying Domestic Top-up Taxes and Accredited Qualifying Domestic Top-up Taxes) (Amendment) Regulations 2025 have now been laid, and come into force later this week on 24 July 2025. The regulations enable HMRC to specify additions to the list of Pillar Two territories, qualifying domestic top-up taxes, and accredited qualifying domestic top-up taxes to take effect from a date before the notice is published. According to HMRC, this is a procedural change to ensure the effective date of changes in the UK aligns with the date in the central record of internationally agreed qualifying territories and taxes published by the OECD/G20 Inclusive Framework. It also means that there will be no requirement for individual Statutory Instruments which would otherwise be required due to the retrospective nature of such changes. Employer PAYE liability disputes HMRC is currently developing an online form which will enable employers to report disputes on their pay as you earn (PAYE) liabilities. Currently, employers can either call the Employer Helpline on 0300 200 3200, or write to HMRC at the following address: PT Operations North East England, HM Revenue and Customs, BX9 1BX, United Kingdom. Further information will be provided in due course.