Revenue has updated the Tax and Duty Manual on leases of farmland to reflect a Commission Regulation increasing the allowable ceiling of de minimis aid from 16 December 2024. Section 81D of the Stamp Duties Consolidation Act 1999 provides relief from stamp duty for a lease of farmland whose term is not less than six years and does not exceed 35 years. In addition, the lands must be used exclusively for farming carried on by the lessee on a commercial basis and with a view to the realisation of profits. This relief is considered a State Aid therefore the manual has been updated to increase the allowable ceiling from €20,000 to €50,000 with effect from 16 December 2024. The manual has also been revised to note that the ceiling applies to the amount of all de minimis aid that is granted in accordance with the Regulation, whether given by way of tax relief or direct grants.

Revenue’s second newly published Tax and Duty Manual on the RZLT sets out the operational guidelines for the registration of a site for these purposes. These guidelines set out the registration responsibilities of liable persons in relation to the sale of a relevant site which are outlined below. RZLT is an annual tax which commences in 2025 and is calculated at 3 percent of the market value of land within its scope. Returns and payments are due on or before 23 May 2025. The RZLT does not apply to certain properties, such as those already subject to the Local Property Tax (LPT). Local authorities have created and published maps identifying land within the scope of the RZLT and these maps will be revised by 31 January each year. Maps should be reviewed to determine if a property is liable to RZLT. The manual also outlines how to: Register a site for the RZLT Register a site for the RZLT where planning permission was granted on a portion of the site Submit a declaration on the commencement of non-residential development.

Revenue has published a new Tax and Duty Manual containing guidelines on the operation of the RZLT. These guidelines set out the responsibilities of liable persons in relation to the sale of a relevant site. The guidelines specifically outline the relevant process in respect of the following: Submitting a RZLT transfer or sale return Submitting a RZLT transfer or sale return within a group structure How to make a RZLT payment.

Revenue has updated the Tax and Duty Manual on the Digital Games Corporation Tax Credit outlining how the credit is claimed and used where expenditure is incurred in accounting periods commencing on or after 1 January 2024. The main changes are as follows: Claims for an interim digital games corporation tax credit must be made in Form CT1 for the accounting period in which the expenditure was incurred. This claim must be made within 12 months from the end of that period, Claims for the digital games corporation tax credit must be made in Form CT1 for the accounting period in which the last of the expenditure was incurred. This claim must also be made within 12 months from the end of that period, Where the final cultural certificate is issued and the date is less than 3 months prior to the expiry of the 12 month period, the company has an extended period to make a claim. In these cases, a claim must be made three months from the date on which the final cultural certificate was issued, and The company must elect how the credit is to be treated; either as an overpayment of tax, an offset against tax liabilities, or as a repayment to the company by Revenue.

Revenue has updated the Tax and Duty Manual on the surcharge on certain undistributed income of close companies to include new and updated examples illustrating the application of the surcharge. Some sections of the manual have been reorganised and extra clarifications included

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. Readers are again reminded that from 31 January 2025 an entry summary declaration (ENS) must be submitted for goods imported from the EU to Great Britain (GB). Also from the same date, HMRC has issued an email reminder about the new safety and security declarations required for all EU imports into GB. Entry summary declarations required for certain imports from 31 January 2025 HMRC is encouraging businesses involved in importing from the EU into GB to familiarise themselves with the new ENS requirements and has provided a summary of the key information. Detailed guidance is also available on GOV.UK. Miscellaneous guidance updates and publications How to claim a repayment of import duty and VAT if you've overpaid, Check if a business holds Authorised Economic Operator status, Make an entry summary declaration using the Import Control System 2, Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service, and Appendix 1: DE 1/10: Requested and Previous Procedure Codes of the Customs Declaration Service (CDS).

In this week’s miscellaneous updates, a new independent review of the loan charge has been announced by HMRC Treasury to bring the issue to a close. HMRC has issued a clarification about certain company tax returns submitted before 10 September 2024 and the Public Accounts Committee has recently opened an inquiry into the cost of the tax system. 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 loan charge review Last week HM Treasury announced that a new independent review into the loan charge has been launched (23 January) when the Exchequer Secretary to the Treasury (XST) in a Written Ministerial Statement announced that Ray McCann, a former President of the Chartered Institute of Taxation, will lead the review. The review will examine the barriers preventing those who are subject to the loan charge reaching resolution with HMRC where they have not already settled and paid their tax liabilities in full. It will also recommend ways in which they can be encouraged to settle with HMRC. The reviewer is tasked with reporting and presenting their recommendations to the XST by Summer 2025. The terms of reference of the review set out the context, scope, and objectives of the independent review in more detail. The review team can be contacted at contact@lcreview2025.org.uk. The following publications provide more detail on the review: Independent review of the loan charge, and Loan charge review launched. Company tax returns submitted before 10 September 2024 On 10 September 2024, HMRC updated its guidance on how to complete a company tax return for accounting periods straddling 1 April 2023. This required companies to use box 326 (and not box 625) to report the number of related 51 percent group companies. HMRC has now clarified that returns submitted before 10 September 2024 do not need to be amended to reflect the updated guidance. New Public Accounts Committee (PAC) inquiry into the cost of the tax system The PAC is conducting an inquiry into the cost of the tax system. The PAC has recently been scrutinising HMRC’s customer services, underpinned by the National Audit Office (NAO) findings in 2024 that delivering responsive customer service continued to be one of HMRC’s biggest challenges. The NAO is also currently undertaking a project which will report on drivers of cost in the tax system which is expected to be published shortly in winter 2024/25. The study aims to help understand how elements of the tax system drive these costs, while establishing what progress HMRC has made in reducing costs and improving efficiency.  Based on the NAO report, the PAC expects to hear from senior HMRC officials on topics including:  What costs the UK tax system imposes on HMRC taxpayers and their intermediaries, Challenges in tackling the costliest parts of the system, and   How HMRC is taking opportunities to reduce costs.  The PAC has published the requirements for written evidence submissions as part of its inquiry and advises that it is unable to accept material as evidence that is published elsewhere. 

This was the key recommendation of the Institute’s Northern Ireland Tax Committee in its response to the HMRC consultation ‘The Tax Administration Framework Review - new ways to tackle non-compliance’. This consultation proposes several amendments to existing powers/potential new powers for HMRC including partial enquiries, amendments to the conditions for making certain claims, reform of Revenue Correction Notices and a power to require taxpayers to self-correct. The Committee also took the opportunity to highlight the lack of progress being made on tax simplification and made a number of recommendations to reduce tax complexity. The Committee’s key recommendations can be read on page 9 and in summary are as follows: A full review of HMRC’s existing powers, deterrents, and safeguards should be undertaken, and their associated administration processes, before any changes are made to existing powers, or any new powers are introduced, A range of measures should be undertaken to tackle tax complexity, which should as a minimum include the establishment of a Tax Simplification External Forum which reports annually to Parliament, HMRC should consider the possibility of requiring certain large employers to claim flat rate expenses on behalf of their employees via PAYE Real Time, HMRC should consider if a system could be implemented in the UK for claiming relief for employment expenses by enabling supporting evidence to be uploaded to the taxpayer’s Personal Tax Account with services also available to agents, The time limit within which a taxpayer can reject a Revenue Correction Notice should be longer and should not begin until it has been received by the taxpayer, HMRC should not introduce partial enquiries for the reasons cited in the submission. Overall, the Committee concluded that more broad ranging reform of HMRC’s compliance powers appears to be warranted similar to the different levels of compliance interventions in Ireland which include voluntary self-correction powers for non-deliberate errors by taxpayers.

The 2023/24 self-assessment online filing deadline is in just four days’ time on Friday 31 January 2025. The Institute is aware of the impact of Storm Eowyn and its aftermath on the ability of taxpayers and agents to file returns on time and will be flagging this to HMRC to ask it to take a pragmatic approach as the fallout from the storm continues into this week. We will update members in the news section of our website. On Thursday 23 January just the day before the Storm, HMRC was warning that 3.4 million returns remained unfiled. By way of reminder, taxpayers who provide HMRC with a reasonable excuse may avoid a penalty for filing late. However, those without a reasonable excuse will be issued with a penalty including: an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time, after 3 months, additional daily penalties of £10 per day, up to a maximum of £900, after 6 months, a further penalty of 5 percent of the tax due or £300, whichever is greater, and after 12 months, another 5 percent or £300, whichever is greater. 31 January 2025 is also the due date for paying any remaining income tax and Class 4 national insurance contributions for 2023/24 and is also the first self-assessment payment on account deadline for 2024/25.

Mentorship is key for young accountants transitioning to business development, offering guidance on effective networking, client engagement and relationship-building, says Mary Cloonan The challenge can feel significant for young accountants stepping into roles with business development targets for the first time. New responsibilities, particularly those requiring skills like networking and relationship-building, are often far removed from their previous technical focus. This is where mentorship can help, providing guidance and support to help them grow into the demands of their new role. Business development requires more than technical expertise. It involves cultivating relationships, strategic thinking and communicating value—skills not typically part of an accountant’s formal training. A mentor can: Provide practical guidance: Teach the mentee how to approach client engagement, network effectively and communicate persuasively. Build confidence: Support them as they tackle new challenges and unfamiliar scenarios. Set the example: Offer insights through real-world experiences and professional behaviour. Align efforts with strategy: Help them understand how their contributions support the firm’s broader goals. Effective mentoring: seven steps Here are seven steps experienced accountants can take to be a good mentor. 1. Simplify the starting point Break down business development into manageable steps. Help your mentee see this as relationship-building exercise rather than purely sales-focused. Concentrate on: Recognising potential opportunities in their network. Understanding the firm’s unique value proposition. Developing a genuine interest in client needs. 2. Set measurable goals Define clear and realistic targets. For example: Attend one networking event per month. Schedule two introductory meetings with prospective clients. Contribute to a team pitch or proposal. These bite-sized goals can help to build momentum without overwhelming them. 3. Practice through role-play Simulated scenarios are invaluable for building confidence. “Practice” situations with your mentee, such as: Introducing themselves at events. Explaining the firm’s services to a potential client. Handling objections effectively. Role-playing in a safe environment can help to prepare them for real-world challenges. 4. Encourage observation Let your mentee shadow experienced professionals. Whether it’s a client meeting, negotiation or event, watching mentors in action is a powerful learning tool. Follow up with discussions to reinforce key takeaways. 5. Emphasise listening Strong business development is rooted in active listening. Encourage them to: Ask open-ended questions. Pay close attention to what clients are really saying. Build trust by understanding challenges from the client’s perspective. 6. Give constructive feedback Feedback is essential. Review your mentee’s performance after meetings or pitches— highlight strengths and suggest improvements. Recognising small wins can boost confidence and foster growth. 7. Highlight the bigger picture Help your mentee to connect their efforts with your firm’s success. Discuss how building relationships can drive growth, create opportunities for cross-selling and enhance career prospects. Benefits for both mentors and mentees An effective mentorship programme benefits everyone. Firms gain future leaders with technical and business development skills, while clients will likely experience better service through improved relationship management. For young accountants, developing these skills early can boost their confidence and open up potential avenues to career advancement. Mary Cloonan is Founder of Marketing Clever

Amid political pushback and regional divides, investment in ESG remains a long-term bet driven by sustainability, transparency and innovation, writes Dan Byrne Publicly, the battle over Environmental, Social and Governance (ESG) principles is heating up, and 2025 will be a make-or-break year. US President Donald Trump’s 2024 victory, buoyed by agendas dedicated to combatting so-called “woke capitalism”, has thrown a wrench into the ESG movement in the United States. But while some parts of the world are doubling down on anti-ESG sentiment, others—like Europe and Asia—are charging ahead with ambitious sustainability plans, so far unfazed by angry rhetoric elsewhere.  The conundrum surrounding ESG is that, for many people, it is all about politics. Much of the media will reinforce this viewpoint because it provides the juiciest angle, filled with conflict and the makings of a good story.  ESG goes much deeper than politics, however. The real decisions are made at quieter levels, where investment patterns continue and corporate strategies align with investor priorities. Although it may not be as juicy, this is the main factor fuelling success or failure in ESG.  ESG investing in 2025 When it comes to investing, there is one main conclusion: ESG isn’t going anywhere.  You may have read many news articles—particularly over the last 18 months—discussing divestment from ESG assets and the dwindling popularity of ESG among stakeholders. These stories are true, signalling that ESG is taking a beating in some quarters. If we zoom out, however, the numbers tell a different story.  As of late 2024, the global value of ESG assets is still expected to hit somewhere between $35 and $50 trillion by 2030, according to University of Chicago lecturer and Impact Engine Chief Investment Officer Priya Parrish, writing for Fortune last October.  In other words, the recent setbacks for ESG investment are small backflows, but the much more significant wave of overall ESG investment still exists.  Why the continuing surge? Investors are likely convinced that ESG-related investments are smart, long-term bets. Many of today’s ESG pillars involve adaptation, essential in governance thinking and good news for investors who always want clarity on how a company will succeed in five, ten or twenty years.  Even as critics argue that ESG is overhyped, woke or restrictive, a colossal chunk of capital remains, especially in Europe and Asia, where ESG investments are firmly entrenched.  Investors in the US will be much more cautious about ESG under Donal Trump’s presidency, but again, this is on the public political side, which we’ll explain more about below. ESG and politics The other firm conclusion is that the debate over ESG will not simmer down soon. Trump’s return to power in the US means that everything related to ESG will face even more backlash and legal headaches. These can range from limiting ESG considerations in federal contracts to questioning corporate motivations. The critics are loud and emboldened, and they will motivate anti-ESG movements elsewhere.  Will they succeed? It’s very iffy.  You might have heard that the bulk of the world’s population went to the polls in 2024, including the UK, India and the European Union (EU)—as a whole and within certain member states such as France. New governments with fresh mandates now exist in these places. Many will remain until about 2030, and most remain committed to ESG-related principles in some form.  The EU is doubling down, rolling out regulations such as the Corporate Sustainability Reporting Directive (CSRD) that demand greater transparency and accountability than ever before. In Asia, governments are leaning into sustainability to future-proof their economies.  The result? A fragmented world in which ESG is thriving in some places and under siege in others. Five main expectations So, are we likely to see governance professionals making key strategic decisions regarding ESG? Unfortunately, there is no clear answer here because each company’s ESG strategy depends on factors including its goals, industry and national stakeholder mood. However, we can make a few more general predictions right now: Regional divides will deepen. Europe and Asia remain ambitious about ESG and new regulations are coming into force. Meanwhile, the US and some emerging markets are grappling with political resistance. Expect the gap between these regions to widen, which is bad news for the boards of trans-Atlantic companies. Suddenly, they must ensure their business pleases two very different political regimes.  Transparency will require upskilling. Many companies, particularly in Europe and Asia, will realise the need for new expertise on boards and executive teams. This is the only way they can hope to comply with the new reporting regulations they face. Because of this, ESG-related training will become more crucial.  Tech will lead the charge. Artificial intelligence and blockchain are set to revolutionise ESG reporting. Think real-time monitoring of supply chains and automated sustainability audits. The future is digital because digital can make massive tasks more manageable, enabling companies to report with great depth and confidence.  “Hushing” will be the new ESG language in the US. How does a company pursue ESG investment without angering its anti-ESG government? The answer is hushing, which means being quiet on a particular issue, no matter how devoted you are, for fear that being public will attract too much unnecessary criticism. Corporate activism will rise: Whether or not companies and politicians like it, the most polarised attitudes around ESG will mean more activism among investors. Boards must be prepared for this because aggressive activism can sometimes threaten their entire agenda. The story of ESG is being rewritten in real-time. The loud political pushback in the media starkly contrasts with the continuing investment in sustainability, accountability and transparency.  Navigating all this is a considerable challenge for businesses, but there is also an opportunity for those who adapt quickly, embrace innovation and stay ahead of evolving regulations. Dan Byrne is Content Manager at The Corporate Governance Institute

Liam Cotter charts the road ahead and critical importance of data for Irish organisations preparing for the AI revolution Right now, many organisations are experiencing caution, confusion—or both—in relation to artificial intelligence (AI). They are unsure about generative AI (GenAI), how it differs from previous AI iterations, and whether it can add value for them. With the first milestones of the European Union’s AI Act due to come into force in February 2025, focused on prohibiting AI systems posing unacceptable risk, organisations are concerned about falling foul of regulation. They are keen to ensure that any AI model introduced to help their business, undergoes rigorous testing to ensure it is fair and doesn’t have bias baked in. There are also more generalised fears regarding the cost of moving too quickly and developing the wrong solutions, however, as well as the “opportunity cost” of moving too slowly and thus failing to capture the benefits of the right opportunities. Data-based decisions Regardless of what stage an organisation has reached in its adoption of AI and GenAI, one thing holds true: the key to success is data. The only way to ensure quality AI outputs is to provide quality inputs. The way we manage and store data for the AI age differs from how we have done so in the past. Thus, even though the same fundamental rules apply, your data capture and entry systems may not be robust enough to handle AI demands and this could put you at a competitive disadvantage. Part of the problem with readying your data for AI transformation is the sheer amount of hard work involved, which may not appear not to offer a lot of value. This is because this work involves run-of-the-mill data generated from day-to-day operations. The key to the successful adoption of AI tomorrow is ensuring everybody in your organisation is aware of data management today. It is about ensuring everyone is measuring the quality of their data right across the organisation so they can stand over what it presents. For organisations that previously placed little value on the data they generate, this shift will require a culture change. It may also require different parts of the organisation to pool data—such as combining sales and stock databases rather than keeping them siloed, for example. In companies involved in mergers and acquisitions, it means ensuring you fully understand your data's lineage. The time to act is now The past 12 months have seen a growing realisation among organisations of the potential importance of AI as a lever for competitiveness. It is increasingly viewed as a valuable tool to drive digital transformation, enabling them to become more flexible, be faster to market, provide a better customer experience and more. Most of what AI will do has yet to be “dreamed up”. To put its scale in context, somewhere in the world, a data centre—the building block that powers the AI revolution—opens every two days. Organisations need to act to keep up. The first step is understanding the regulations and timeframes that are being rolled out under the EU AI Act. Next, identify use cases and develop them. Experiment—and if you are going to fail, fail fast. Get involved and discover the value in AI. People-powered data Understand the behavioural risks, too.  A lot of the work involved isn’t about technology at all. It’s about people. You can introduce the best technology in the world, but it's useless if staff don’t collect, curate and manage their data correctly. Everyone in your organisation must be able to stand by the accuracy of their data, which means good data practices must be applied to all business processes. In many organisations, this means investing in data capabilities, including staff training, and appointing a Chief Data Officer responsible for driving data literacy and good data management practices throughout the organisation, from the bottom to the top. To succeed, data management must be seen as a core, valuable component of what everyone does, regardless of their role. Break down the barriers Barriers to achieving effective AI readiness include an organisational culture that hasn’t yet caught up with the importance of data, allied to poor systems and processes that ensure people don’t understand the implications of getting it wrong. The real barrier is, however, that all of this takes work. Readying your data systems for AI is a pain, and sometimes, people can see no value in it. Once you can stand over your data, knowing it is of good quality and understanding its lineage, your organisation will likely be in pretty good shape because you can then move on and digitise your key business processes with confidence. The AI revolution starts and ends with data. Don’t underestimate the effort required to get good quality, well-managed data. It is the foundational work that cannot be avoided. Equally, don’t underestimate the impact. Once you have good data systems in place, you can confidently move forward and capture the full breadth of AI benefits that await.  Liam Cotter is Technology Practice Lead at KPMG