Key takeaways
- Implications of being a PSC: A person who has significant control of a company may have taxable income or gains to include in their tax return as a result of that relationship.
- 2025/26 tax return: HMRC is writing to taxpayers to raise awareness of this and to encourage them to ensure their SA tax return for 2025/26 is correct.
- Earlier tax years: Taxpayers are also asked to correct any errors made in tax returns for earlier years, by 31 January 2027.
The persons with significant control (PSC) rules require a company to identify all of the people who can control it, and to report this information to Companies House.
Broadly, a person is a PSC in respect of a company if they:
- directly or indirectly own more than 25% of the shares or voting rights in the company;
- have the right to appoint or remove the majority of directors of the company; or
- can exercise significant influence over the company.
For further information, see the guidance published by Companies House.
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Tax consequences
A PSC may have taxable income and gains to declare as result of their relationship with the company. Depending on the circumstances, this could be the case where the PSC:
- has the company meet their personal costs;
- has the use of company assets;
- transfers assets to/from the company;
- receives loans from the company;
- takes up an option to buy shares in the company; or
- sells shares in the company.
HMRC campaign
HMRC is writing to PSCs to explain how being a PSC may affect the person's tax return. The letter is not a formal compliance check.
HMRC is asking PSCs to review the information provided in the letter and to ensure that:
- they complete their SA tax return for 2025/26 correctly. The deadline for submitting the return is 31 January 2027; and
- their tax returns for earlier years are correct. Where an error is found the taxpayer should:
- amend their tax return (for 2024/25); or
- inform HMRC using the digital disclosure service (for 2023/24 and earlier).
The taxpayer is asked to do this before 31 January 2027.
HMRC says that, if it later finds an error in the person's tax return related to this issue, it will treat any disclosure made by the taxpayer as prompted. The maximum penalty for a prompted disclosure is higher than that for an unprompted disclosure.
How to get help
The letter provides contact details for HMRC, including a dedicated email address. The email address can be used up to 27 November 2026.
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