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Tax news in brief

Author: ICAEW Insights

Published: 27 May 2025

Highlights from the broader tax news for the week ending 27 May 2025, including: new HMRC calculators to help with claiming creative industry tax reliefs; and an update from HMRC on the new independent review of the loan charge.

New tools for creative industry tax reliefs

HMRC has published calculators to help companies to:

Independent loan charge review

HMRC has published a briefing explaining the operational activity that it will undertake during the new independent review of the loan charge.

The briefing includes the template letters sent by HMRC to taxpayers who have used disguised remuneration arrangements. The letters explain:

  • if the disguised remuneration arrangements used by the taxpayer will be considered by the review; and
  • HMRC's operational approach to the taxpayer's case during the review.

New advisory fuel rates

HMRC has published the advisory fuel rates applying from 1 June 2025 for employees using a company car. The rates should be used where the employer reimburses employees for business travel in their company cars or needs employees to repay the cost of fuel used for private travel.

Download the MyICAEW app to view tax tables

Research on employee ownership trusts

HMRC has published research exploring the extent to which tax reliefs incentivise company owners to sell their shares to an employee ownership trust (EOT). The conclusions reached include that:

  • capital gains tax reliefs appear to be “the most positive and influential factor prompting consideration of and affecting decision making related to transitioning to an EOT model”. Company owners are not as familiar with the inheritance tax reliefs and, although tax-free employee bonuses are valued, they are not a primary motivation and are “often perceived as an additional nicety”;
  • the process of transitioning to an EOT model is generally considered to be “smooth”; and
  • for those who have completed the process, transitioning to an EOT model has “largely been a positive experience and one which has resulted in a number of highly valued outcomes”.

Read more about EOTs

MTD income tax: software

CCH iFirm MTD for Income Tax has been added to HMRC’s list of software that is compatible with Making Tax Digital (MTD) for income tax.

VAT deregistration concession made law

Regulations have been made that allow HMRC to extend the time required for a business to submit its final VAT return. HMRC says that the measure is intended to provide “a legislative basis to a current administrative practice that ensures fairness and equity in the VAT de-registration process”. The regulations have effect where the effective date of deregistration is on or after 14 June 2025.
Further information

The Value Added Tax (Amendment) Regulations 2025 (SI 2025/578)

HMRC policy paper

International tax round-up

CFE Tax Advisers Europe has published its latest collection of tax top 5 developments. This includes a report on a workshop and public hearings held by the European parliament’s subcommittee on tax matters to address key developments in tax policy across the EU and internationally.

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