PCRT is prepared jointly by seven professional bodies and associations, including ICAEW, whose members work in tax. It consists of the fundamental principles and the standards for tax planning. ICAEW members working in tax must be familiar with and comply with PCRT; failure to do so may result in disciplinary action. 

PCRT has been in existence for over 30 years and is regularly updated. 

Why is PCRT changing? 

In April 2024, the International Ethics Standards Board for Accountants (IESBA) issued Revisions to the Code Addressing Tax Planning and Related Services. Four members of the PCRT group are members of the International Federation of Accountants (IFAC), including ICAEW. Under the IFAC membership rules, members must  adopt revisions published by IESBA into their individual ethical codes. 

To ensure that PCRT retains its pan-professional body standing in the UK, the PCRT group agreed to update PCRT to maintain alignment between the ethical codes of the IFAC bodies and PCRT. 

What’s changing? 

PCRT is wider in scope than the IEBSA revisions as it applies to all tax work. The IESBA revisions are limited to tax planning and related services. 

The primary changes are to ensure that the regulatory (‘R’) paragraphs from the IESBA tax planning revisions are reflected in the PCRT standards for tax planning. However, changes have also been made to reflect updates to the fundamental principles since the last revision to PCRT. 

Otherwise, the latest changes include:  

• explaining the circumstances in which a member should disclose the nature of their relationship with a third-party provider of tax planning services to their client (paragraphs 2.7 and 2.8); 
• clarifying that PCRT applies where a member is engaged to provide a second opinion on a tax planning arrangement (paragraph 2.15); and
• setting out the actions a member should take where they disagree that a tax planning arrangement that a client would like to pursue has a credible basis (paragraphs 3.8-3.10). 

The changes take effect from 1 January 2026. Plans are underway to produce a supporting webinar.  

Practical implications 

Frank Haskew, Head of Taxation Strategy, ICAEW, and chair of the PCRT group, said:  

“These changes are designed to ensure that PCRT is aligned with the recently published IESBA standard on tax planning and related services and will ensure that PCRT remains the go-to standard for tax in the UK and that it is consistent regardless of professional affiliation. While not all of the PCRT bodies are required to meet the IESBA standards, the PCRT group sees there being strength in all the bodies adhering to the same standard especially given a number of individuals belong to more than one body.” 

“The structure of PCRT remains unchanged and still consists of the five Fundamental Principles and the five Standards for Tax Planning. Members following PCRT should not find that the revisions present significant extra burdens when providing tax advice.” 

Future developments 

The PCRT group continues to work on topical guidance on research and development, AI and Making Tax Digital for income tax. Once that work is completed, the group will turn its attention to revising the help sheets that accompany PCRT. 

Further information 

• To learn more about PCRT and to download the version applying from 1 January 2026, visit Professional conduct in relation to taxation (PCRT) | Tax | ICAEW.