HLAS

Group 1 of Schedule 8 VAT Act 1994 specifically makes ‘food’ zero-rated, although there is a long list of ‘excepted items’ which do not qualify for the zero-rating and are therefore standard-rated. Excepted item No. 2 is “Confectionery, not including cakes or biscuits other than biscuits wholly or partly covered with chocolate or some product similar in taste and appearance”. Note 5 expands on the meaning of ‘confectionery’, saying that it “includes chocolates, sweets and biscuits; drained, glace or crystallised fruits; and any item of sweetened prepared food which is normally eaten with the fingers”. Over the years, there have [...]

The Furnished Holiday Lettings (FHL) regime was abolished with effect from 6 April 2025. So, what does this mean for your holiday let? Your property will now form part of either your main UK or overseas property business. As a result, a number of advantageous tax treatments previously available under the FHL rules will no longer apply. Key changes include: Tax relief for interest on loans related to the dwelling will be limited to the basic rate of 20%. New capital expenditure will typically not qualify for capital allowances. Instead, relief may be available under the replacement of domestic items [...]

From 6 April 2025, a new regime for the taxation of UK-resident non-domiciled individuals came into effect. HMRC has published a brand-new manual on the regime, which can be viewed here. Up to 5 April 2025, special tax rules applied to individuals who were resident in the UK but whose domicile (i.e. their permanent home, usually determined by their father’s permanent home at the time the individual was born) was outside the UK. These individuals could choose either to pay UK tax on their foreign income and gains as they arose, or to claim the remittance basis—meaning only foreign income [...]

Making Tax Digital for Income Tax (MTD for IT) will be introduced from 6 April 2026. Below are some frequently asked questions and answers. Who will be affected by MTD for IT, and when? Individuals with self employment and/or income from property will need to comply with MTD for IT once they are mandated. The commencement date for MTD for IT is 6 April 2026, but a phasing-in program will mean that some individuals are not immediately within the regime. MTD for IT applies from: 6 April 2026 for sole traders and landlords with qualifying income over £50,000 in 2024/25. [...]

From 1 July 2025, UK businesses engaged in cross-border disputes will benefit from a significant change in how their legal judgments are recognised internationally, following the UK's accession to the 2019 Hague Convention. This new development means that when a UK court issues a judgment in a civil or commercial case involving a business in another participating country, the decision will be far easier to enforce overseas. As a result, companies are expected to save both time and money, and face less legal uncertainty when resolving international disputes. Key Changes Under the Hague 2019 Convention At present, even when a [...]

The UK government has published draft legislation that would, for the first time, bring crypto asset services—such as exchanges, brokers, and custody providers—under the umbrella of financial regulation. The announcement was made by the Chancellor during a high-profile summit held in London as part of UK Fintech Week. If enacted, the new rules will apply to any firm providing crypto-related services to UK customers, regardless of whether the business is based domestically or overseas. These firms would be expected to adhere to standards on transparency, consumer protection, and operational resilience—bringing them in line with traditional financial services providers. A Step [...]

From April 2026, banks and payment service providers will be subject to stricter regulations on how and when they can close customer accounts. The new legislation aims to increase transparency and provide individuals and small businesses with greater notice and the ability to challenge decisions. Key Changes Include: Customers must be given a minimum of 90 days’ notice before an account is closed or a payment service is withdrawn—an increase from the current 60-day notice period. A written explanation must be provided, clearly outlining the reasons for the closure. This measure is designed to help customers challenge decisions, including escalating [...]

The government has announced plans to address the growing issue of small, forgotten pension pots - a problem affecting millions of workers who change jobs frequently and accumulate multiple small pensions over time. Currently, there are around 13 million small pension pots in the UK, each worth £1,000 or less. That number is growing by about one million a year. For savers, this means difficulty in keeping track of retirement savings and can mean paying multiple flat rate charges which leads to lower returns. Problems are caused for the pensions industry too; they estimate that the administrative costs of managing [...]

The government has announced a formal review of the UK’s Low Value Imports regime, which currently allows goods valued at £135 or less to enter the country without customs duties. This move follows concerns raised by major UK retailers who argue that the current system gives an unfair edge to overseas sellers. For small businesses involved in cross-border e-commerce, drop-shipping, or using fulfilment centres based outside the UK, the review could result in substantial changes to how low-value goods are taxed at the border. What Is Under Review? The current regime was introduced to simplify international trade and reduce administrative [...]

James Murray, the Exchequer Secretary to the Treasury, made a Written Ministerial Statement last week that included a number of tax simplification, administration and reform measures. In total, 39 measures were announced. Many measures are intended to reduce burdens on employers and small businesses, whereas others are designed to modernise H M Revenue & Customs (HMRC) systems and processes. Here are five highlights included among the measures announced. Delay to payrolling benefits Mandatory payrolling of benefits in kind will now be delayed to April 2027 instead of April 2026. Payrolling benefits is a way to report and tax employee benefits [...]