HMRC compliance: creative industry tax reliefs
In Agent Update 144, HMRC says that it is monitoring “changes in claimant behaviour and growth in the overall value of claims” for the creative industry tax reliefs, and that “this may result in an increase in enquiries… including a small number of random enquiries”.
Consultation: ICTS schedule reporting requirement
The government has published a technical consultation seeking views on the details of a draft international controlled transactions schedule (ICTS) reporting requirement. It is expected that the requirement will take effect for accounting periods beginning on or after 1 January 2027.
The government believes that ICTS “will facilitate automated, data-led risk assessment by HMRC, permitting more accurate identification of transfer pricing risk” and will “increase efficiency by promoting tax compliance at the earliest opportunity and reducing the length of transfer pricing enquiries”.
Old IHT 100 forms to be phased out
HMRC has reminded agents that it will stop processing old inheritance tax (IHT)100 forms after 31 August 2026. HMRC says that agents should switch to the new forms as soon as possible “to help avoid any issues or delays”.
Double taxation forms updated
HMRC has advised that it has updated several double taxation forms (and the associated notes) relating to UK real estate investment trusts (REITs), and that agents should make sure they use the latest version of the forms and notes.
Policy papers: rates and levies
The government has published policy papers for the following measures, both of which were announced in May 2026:
- the increase in the headline authorised mileage rate for approved mileage allowance payments to 55p per business mile from 6 April 2026. More detail is provided in an earlier article; and
- the increase in the rate of the electricity generator levy to 55% from 1 July 2026.
Temporary reduced rate of VAT
As explained in an earlier article, the rate of VAT on children’s meals and certain activities and attractions is reduced from 20% to 5% between 25 June and 1 September 2026. The government has published a digital toolkit, comprising factsheets and marketing materials, to help businesses promote the scheme. Further information is provided in a press release.
HMRC webinars
HMRC is delivering webinars on the following topics:
- HMRC’s new powers to tackle tax advisers who facilitate non-compliance, on 9 July 2026 (learn more); and
- the temporary repatriation facility and trusts, on 30 June and 8 July 2026 (learn more).
Tax Faculty
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