Tax Bites - June 2026

Welcome to the latest edition of RPC's Tax Bites – providing monthly bite-sized updates from the tax world.

News

HMRC publishes new factsheet for penalties and sanctions arising under the Vaping Duty Stamps Scheme

HMRC has published a new factsheet (CC/FS87) which explains the penalties HMRC may charge if a taxpayer fails to comply with regulations under the Vaping Duty Stamps Scheme.

The new factsheet can be viewed here.

HMRC publishes new Guidance on the consequences of interacting with it if you are an unregistered or suspended tax adviser

HMRC has published new Guidance on the circumstances that may result if you are an unregistered or suspended tax adviser.

HMRC's Guidance can be viewed here.

HMRC updates its Guidance relating to employment intermediaries

HMRC has updated its Guidance entitled "Check if you're an employment intermediary", to include new information about the PAYE rules for labour supply chains that include umbrella companies.

HMRC's updated Guidance can be viewed here.

HMRC publishes new technical note on measures relating to Inheritance Tax on pensions

HMRC has published a technical note which provides further detail on the measures relating to Inheritance Tax on pensions, which were announced at the Autumn Budget 2024 and which come into effect on 6 April 2027.

HMRC's technical note can be viewed here.

HMRC publishes new policy paper on the use of "Bills of Exchange" to pay tax liabilities

HMRC has published a policy paper in which it sets out its position regarding the use of 'Bills of Exchange' to pay tax liabilities. The paper notes that HMRC does not accept Bills of Exchange to pay a tax liability and has become aware of promoters in the recruitment and temporary labour sector marketing their use.

HMRC's policy paper can be viewed here.

Case reports

Tribunal considers scope of 'transactions in securities' anti-avoidance rules

In Oscroft and others v HMRC [2026] UKFTT 251 (TC), the First-tier Tribunal (FTT) held that distributable reserves of a wholly-owned subsidiary should be considered when calculating "relevant consideration", in the context of section 685(2), Income Tax Act 2007.

This case concerned the transactions in securities legislation before it was amended in 2016. The amendments addressed a number of the key issues considered by the FTT in its decision. The amendments expressly clarified that a subsidiary's distributable reserves should be included within "relevant consideration" and changed the wording of the time-limit provisions such that an assessment can now be made by HMRC "at any time", regardless of any time limit that would otherwise apply.

The FTT's decision is a helpful reminder that wider group reserves should be considered when determining the distributable reserves of a parent company.

You can read our commentary on the decision here.

Tribunal bars HMRC from further participation in appeal due to procedural failings

In Carbon Six Engineering Ltd v HMRC [2026] UKFTT 00177 (TC), the FTT upheld a direction barring HMRC from further participation in the proceedings and allowed the taxpayer's appeal.

The FTT was clearly not impressed with HMRC's behaviour in this case, describing HMRC's conduct as "shambolic and haphazard". 

In this instance, due to its failings, HMRC was deprived of the ability to participate further in the appeal proceedings and ultimately the taxpayer's appeal was summarily allowed.

The outcome of the case illustrates the serious and significant consequences of repeated failures to comply with case management directions issued by the FTT and it is to be hoped that HMRC will review its processes to avoid similar failings in the future.

You can read our commentary on the decision here.

Tribunal confirms that a joint and several liability notice is a criminal charge

In James Hall v HMRC [2026] UKFTT 124 (TC), the FTT held that a joint and several liability notice (JSLN) was a criminal charge for the purposes of Article 6 of the European Convention on Human Rights and that the burden of proof was therefore on HMRC. The FTT also confirmed that it has jurisdiction to consider certain public law arguments.

This is an important decision because it is the first time the JSLN provisions have been considered by the FTT and it fundamentally changes how disputes relating to JSLN's should be conducted.

Unless HMRC successfully appeal this decision (it is understood that an appeal is being pursued), taxpayers should be able to rely on appropriate public law arguments in appeals against the issue of JSLNs and put HMRC to proof on the issue of, and continued need for, JSLNs.

You can read our commentary on the decision here.

And finally …

Michelle Sloane and Daniel Williams have published an article explaining how and when a taxpayer should consider making a voluntary disclosure to HMRC. The article was first published on 5 May 2026 in HMRC Enquiries Investigations and Powers and can be viewed here.