Tax Bites - March 2026

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

News

HMRC publishes lists of partner jurisdictions and reportable jurisdictions for the Cryptoasset Reporting Framework

HMRC has revised its International Exchange of Information Manual confirming the partner and reportable jurisdictions relevant to the implementation of the OECD’s Cryptoasset Reporting Framework (CARF) in the UK.

The CARF regime has applied since 1 January 2026. It requires UK reporting cryptoasset service providers (RCASPs) to carry out customer due diligence in relation to specified cryptoasset transactions and to submit prescribed information to HMRC.

HMRC will then automatically exchange information about customers resident in a 'reporting jurisdiction' with that jurisdiction. If the RCASP has a closer nexus with a 'partner jurisdiction' than the UK, it only needs to report to the tax authority of that partner jurisdiction.

IEIM8000710 provides a list of partner jurisdictions for the 2026 reporting year and IEIM8000720 provides a list of the reporting jurisdictions for that year.

HMRC updates its guidance to help agents prepare for the launch of "Making Tax Digital for Income Tax" in April 2026

HMRC has updated its guidance for agents to help them prepare for the launch of "Making Tax Digital for Income Tax" in April 2026.

The guidance explains that, from April 2026, landlords and sole traders with an annual turnover of over £50,000 will need to use HMRC-recognised software to keep digital records and submit quarterly updates of income and expenses.

You can read HMRC's guidance here.

HMRC publishes the latest edition of its bi-annual Trusts and Estates Newsletter

HMRC has published the latest edition of its Trusts and Estates Newsletter, providing updates and guidance on inheritance tax and trusts.

The newsletter covers a range of technical and administrative points, including inheritance tax reporting (with specific reference to cryptoassets), Automatic Exchange of Information obligations, changes affecting Employee Ownership Trusts and capital gains tax, and practical service updates from HMRC.

You can read HMRC's newsletter here.

HMRC publishes Loan Charge operational activity briefing paper following the recent review of the Loan Charge

HMRC has published a briefing paper explaining its operational activity following the recent review of the Loan Charge carried out by Ray McCann.

The note sets out HMRC’s approach to implementing the government’s response to the Loan Charge review announced in Budget 2025, including the operational steps it is taking for taxpayers who used disguised remuneration tax avoidance arrangements and how the new settlement opportunity will be rolled out.

You can read HMRC’s briefing paper here.

Case reports

Upper Tribunal dismisses HMRC's appeal and confirms no general principle of reciprocal disclosure

In HMRC v Ducas Ltd [2025] UKUT 362 (TCC), the Upper Tribunal (UT) dismissed HMRC's appeal against certain case management directions issued by the First-tier Tribunal (FTT) and confirmed that there is no general rule that extended disclosure must apply equally to both sides in a tax dispute.

Although the UT’s decision may not be surprising given the high threshold for interfering with case-management decisions of the FTT it is nevertheless significant in confirming that there is no general principle of reciprocity in the disclosure regime before the FTT.  

The UT's decision also serves as a reminder that disclosure applications must be determined on the specific facts and circumstances of the case. HMRC had based its disclosure application almost exclusively on the basis of reciprocity. It had not advanced a broader, fact-specific argument for why extended disclosure from the taxpayer was necessary. If it had done so, it might have been more successful.

You can read our commentary on the decision here.

Upper Tribunal considers 'wholly and exclusively' test in the context of SDLT and ATED

In Investment and Securities Trust Ltd v HMRC [2025] UKUT 00331 (TCC), the UT considered the different 'wholly and exclusively' tests which apply to Stamp Duty Land Tax (SDLT) and Annual Tax on Enveloped Dwellings (ATED). The UT held that a company holding a property option for redevelopment and resale qualified for ATED relief but not relief from the 15% higher rate of SDLT upon acquisition, as the property was not held exclusively for a qualifying trade purpose at that time.

This decision highlights an important distinction between acquisition purpose (for SDLT) and holding purpose (for ATED). It confirms that non-commercial, or shareholder-driven motives at the point of acquisition, can defeat SDLT relief even where the underlying land is intended for development.

By contrast, the UT’s approach to ATED recognises that purposes may change over time and that relief can become available once any non-qualifying acquisition purpose has fallen away. The decision therefore reinforces the need for a temporal and fact-sensitive analysis when advising on ATED liability.

The decision will be of particular interest to property developers using options or other non-standard acquisition structures, especially where connected parties are involved. While such arrangements may be commercially expedient, they may prevent SDLT relief if they serve mixed purposes at acquisition.

You can read our commentary on the decision here.

Court of Appeal confirms that expenses paid by an umbrella company were taxable

In Mainpay Ltd v HMRC [2025] EWCA Civ 1290, the Court of Appeal has confirmed that travel and subsistence expenses paid by an umbrella company to its employees were taxable because there were no single, overarching, employment contracts between the two parties.

The Court of Appeal also confirmed that for HMRC to benefit from the 6 year extended time limit for making a discovery assessment based on a taxpayer's 'careless' conduct, it must establish a causal link between the taxpayer's carelessness and the loss of tax. 

This case illustrates the high level of care that must be taken by advisors and their clients to ensure that they adopt the correct approach when seeking to make payments to employees tax-free. Professional advisors should always give careful consideration to whether they have the necessary expertise to provide specialist tax advice. 

You can read our commentary on the decision here.

And finally …

Adam Craggs and Liam McKay have published an article in Tax Journal focussing on the key developments in the contentious tax arena during 2025. In particular, the tightening of procedural frameworks in tax litigation, clarifying case law on issues such as late and burden-of-proof appeals, and HMRC’s intensified focus on avoidance and criminal compliance activity that is likely to shape the disputes landscape in 2026.

You can read the article here.