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Finance Act 2026

Type Public General Act

Publication 2026-03-18

Last updated 2026-10-01

State In force

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Source legislation.gov.uk

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(2) The “applicable rate” means— (a) £600, or (b) where an order has been made under paragraph 4 or 5 (orders about notifiability) in respect of the arrangements or proposal in relation to which the person fails to comply— (i) £600 for each day falling before the end of the period of eleven days beginning with the day on which the order was made, and (ii) £5,000 for each day falling after the end of that period. (3) This sub-paragraph applies where an authorised officer considers that the amount otherwise specified in relation to the provision is inappropriately low. (4) The amount specified for paragraph 26(1) or regulations under paragraph 26(3) is— (a) £10,000, if the person has failed to comply with the paragraph or regulations on two or more other occasions during the period of 36 months ending with the date of the current failure, (b) £7,500, if the person has failed to comply with the paragraph or regulations on one other occasion during the period of 36 months ending with the date of the current failure, or (c) £5,000, in any other case. (5) In sub-paragraph (1), a reference to a day on which a person fails to comply with a duty is a reference to a day that— (a) begins after the day by which the person was required to comply with the duty, and (b) ends before the earlier of— (i) the day on which the person complies with the duty, (ii) the day on which any reference number is allocated to the arrangements or proposed arrangements concerned in the circumstances described in sub-paragraph (6), and (iii) the day on which a penalty under sub-paragraph (1) is imposed in relation to the failure. (6) The circumstances are— (a) the duty referred to in sub-paragraph (5) is a duty imposed by paragraph 11(1), 12(1), 17(2) or 18(2), and (b) it is a case within paragraph 22(3). (7) In this paragraph “authorised officer” means an officer of Revenue and Customs authorised by HMRC for the purposes of this paragraph. (40) (1) If— (a) a penalty under paragraph 39 is imposed in relation to a person’s failure to comply with a duty, and (b) after the penalty has been imposed, the person continues to fail to comply with the duty, the person is liable to a further penalty not exceeding the applicable rate (as defined in paragraph 39 (2)) for each day on which the failure continues. (2) Sub-paragraph (1) does not apply to a failure to comply with a duty imposed by paragraph 26(1) or regulations under paragraph 26(3). (41) (1) In assessing the amount of a specified penalty (including considering whether an amount is inappropriately low under paragraph 39 (3)), an authorised officer must have regard to all relevant considerations, including— (a) the desirability of the penalty being set at a level which appears appropriate for deterring the person, or other persons, from similar failures to comply on future occasions; (b) the amount of any fees received, or likely to have been received, by the person in connection with the proposal or arrangements concerned; (c) in the case of a person entering into the arrangements, the amount of any advantage gained, or sought to be gained, by that person. (2) In this paragraph— (a) “authorised officer” means an officer of Revenue and Customs authorised by HMRC for the purposes of this paragraph; (b) a “specified penalty” is a penalty under paragraph 39 that is imposed in relation to a person’s failure to comply with a duty imposed by paragraph 11(1), 12(1), 17(2), 18(2), 19 or 22C. (42) (1) The Treasury may by regulations make provision for the purpose of varying any of the amounts specified in paragraph 39 or 40. (2) Regulations under this paragraph may include incidental or transitional provision.

(d) in the italic cross heading before paragraph 46, omit “under paragraph 39(1)(b) or 44”;

(e) in paragraph 46 (1), for “39(1)(b) or 44” substitute “39 or 40”;

(f) in paragraph 49 (2)(a), for “prescribed period mentioned in paragraph 41” substitute “period mentioned in paragraph 39 (2)(b)”.

Removal of time limits on publication by HMRC

217

(1) In Part 7 of FA 2004 (disclosure of tax avoidance schemes), in section 316C (publication by HMRC), omit subsections (6A) and (6B).

(2) In Part 1 of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes), in paragraph 36 (publication by HMRC), omit sub-paragraphs (7) and (8).

Consequential amendments

218

(1) In paragraph 5 of Schedule 34 to FA 2014 (promoters of tax avoidance schemes: threshold conditions)—

(a) in sub-paragraph (3)(a), for “the tribunal” substitute “an authorised officer”;

(b) in sub-paragraph (4)(a)—

(i) at the beginning insert “on appeal,”;

(ii) for “section 118(2) of TMA 1970” substitute “section 315D (1) of FA 2004”;

(6) For the purposes of this paragraph— - “appeal period” means—the period during which an appeal could be brought against the determination of an authorised officer or the tribunal, as applicable, orwhere an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of; - “authorised officer” means an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by HMRC for the purposes of the provision concerned.

(2) In paragraph 5 of Schedule 13 to FA 2020 (joint and several liability of company directors), for sub-paragraph (6)(a) substitute—

(a) sections 315 and 315A of FA 2004 (penalties for non-disclosure of tax avoidance schemes);

(3) In section 132A (2) of the Social Security Administration Act 1992 (disclosure of contributions avoidance arrangements)—

(a) in paragraph (a), at the end insert “or to a penalty under that Part”;

(b) in paragraph (b)—

(i) for “section 98C of the Taxes Management Act 1970 (penalties for failure to comply with Part 7 of the Finance Act 2004) and any other” substitute “any”;

(ii) for “that section” substitute “Part 7 of the Finance Act 2004”.

(4) In FA 2022—

(a) in section 90 (3) (freezing orders: interpretation etc)—

(i) omit paragraph (a);

(ii) omit paragraph (d);

(b) in Schedule 13 (penalties for facilitating avoidance schemes involving non-resident promoters), in paragraph 1 (4), for paragraph (a) substitute—

(a) section 315 or 315A of FA 2004 (disclosure of tax avoidance schemes);

Commencement

219

The amendments made by sections 216 and 218 do not have effect in relation to a penalty for which proceedings have been commenced under section 100C TMA or paragraph 45 of Schedule 17 to F(No.2)A 2017 before sections 216 and 218 come into force.

Construction industry scheme: amendments

220

(1) Chapter 3 of Part 3 of FA 2004 (construction industry scheme) is amended as follows.

(2) After section 62 insert—

(62A) (1) This section applies to a person who— (a) has made a payment under a construction contract, and (b) before making a payment, knew or should have known that a connected party had deliberately failed, or would deliberately fail, to comply with a requirement to— (i) deduct a sum under section 61, (ii) pay a sum to the Commissioners under section 62, or (iii) deduct or pay an amount to His Majesty’s Revenue and Customs under PAYE regulations. (2) If this section applies, an officer of Revenue and Customs may determine that the person is liable to pay to the Commissioners an amount equal to 20% of the payment referred to in subsection (1). (3) In this section, a “connected party” is (a) another party to the construction contract referred to in subsection (1)(a), or (b) a party to another construction contract relating to the same construction operations as the construction contract referred to in subsection (1)(a). (62B) (1) This section applies to a person who— (a) makes a return which treats a sum as deducted and paid on account of the person’s liabilities under section 62(2) or (3), and (b) before doing so, knew or should have known that the sum— (i) had not been deducted, or (ii) had deliberately not been, or would deliberately not be, paid on account of the person’s liabilities. (2) If this section applies, an officer of Revenue and Customs may determine that the person is liable to pay to the Commissioners an amount equal to the sum which the return treats as paid on account of the person’s liabilities. (62C) The Commissioners may make regulations with respect to the determination, collection and recovery of amounts described in sections 62A (2) and 62B (2).

(3) In section 66—

(a) after subsection (3) insert—

(3A) The Commissioners may at any time make a determination cancelling a person’s registration for gross payment if— (a) section 62A (payments made in the knowledge of deliberate failures to comply), or (b) section 62B (returns made in the knowledge of deliberate failures to comply), applies to the person.

(b) in subsection (4)—

(i) for “the Board” substitute “the Commissioners”;

(ii) after “subsection (3)” insert “or subsection (3A)”;

(i) the words from “the person must” to the end become paragraph (a);

(ii) after that paragraph insert

, and (b) the person may not, within the period of one year beginning with the day on which the cancellation takes effect (see subsection (2) and section 67(5)), apply for registration for gross payment.

(d) in subsection (7)—

(i) after “subsection (3)” insert “or subsection (3A)”;

(ii) for the words from “the person may” to the end substitute—

(a) the person may, if the Commissioners think fit, be registered for payment under deduction, and (b) the person may not, within the period of five years beginning with the day on which the cancellation takes effect (see subsection (4)), apply for registration for gross payment.

(e) omit subsection (8).

(4) In section 72, in the heading, at the end insert “: false statements and documentation”.

(5) After section 72 insert—

(72A) (1) A person is liable to a penalty not exceeding 30% of any amount that they are determined to be liable to pay under section 62A (payments made in the knowledge of deliberate failures to comply) or 62B (returns made in the knowledge of deliberate failures to comply). (2) A penalty under this section may not be determined more than three years after the date on which the determination under section 62A or 62B becomes final. (3) For the purposes of subsection (2) and section 72B (3), a determination becomes final at the time when the period for any appeal or further appeal relating to the determination expires or, if later, when any appeal or final appeal relating to the penalty is finally determined. (4) Section 103(4) TMA 1970 (time limits) does not apply to a penalty under this section. (72B) (1) Where— (a) a company is liable to a penalty under section 72A, and (b) the actions of the company which give rise to that liability were attributable to an officer of the company, the officer is liable to pay such portion of the penalty (which may be equal to or less than 100%) as the Commissioners may specify in a notice given to the officer (a “decision notice”). (2) Before giving the officer a decision notice, the Commissioners must— (a) inform the officer that they are considering doing so, and (b) afford the officer the opportunity to make representations about whether a decision notice should be given or the portion that should be specified. (3) A decision notice— (a) may not be given before the amount of the penalty due from the company has been determined (but it may be given immediately after that has happened), and (b) may not be given more than three years after the date on which the determination mentioned in section 72A (1) becomes final. (4) Where the Commissioners have specified a portion of the penalty in a decision notice given to the officer— (a) the officer must pay the specified portion before the end of the period of 30 days beginning with the day on which the notice is given, (b) the specified portion shall be recoverable as if it were tax due from the officer, and (c) a further decision notice may be given in respect of a portion of any additional penalty for which the company is determined to be liable. (5) The Commissioners may not recover more than 100% of the penalty through issuing decision notices in relation to two or more persons. (6) A person is not liable to pay an amount by virtue of this section if the actions of the company concerned are attributable to the person by reference to conduct for which the person has been convicted of an offence. In this subsection “conduct” includes omissions. (7) In this section and section 72C— - “company” means a body corporate or unincorporated association; - “officer” means—in relation to a body corporate other than one whose affairs are managed by its members—a director, manager, secretary or other similar officer of the body, or a person purporting to act in such a capacity, ora shadow director within the meaning of section 251 of the Companies Act 2006;in relation to a limited liability partnership or other body corporate whose affairs are managed by its members—a member who exercises management functions with respect to it, or purports to do so, orin the case of a limited liability partnership, a shadow member;in relation to an unincorporated association, a person who exercises functions of management with respect to it, or purports to do so; - “shadow member” means a person in accordance with whose directions or instructions the members of a limited liability partnership are accustomed to act, save that a person is not a shadow member by reason only of the fact that the members act on advice given by that person in a professional capacity. (72C) (1) An officer may appeal— (a) the decision to give a decision notice under section 72B, including on the grounds that the company is not liable to the penalty under section 72A to which the decision notice relates; (b) the amount of the specified portion. (2) Notice of an appeal must— (a) state the ground of appeal, and (b) be given in writing to HMRC before the end of the period of 30 days beginning with the day on which the decision notice was given to the officer. (3) The provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to appeals under this section as they have effect in relation to an appeal against an assessment to income tax.

(6) In section 75, at the end insert—

(4) In this Chapter “the Commissioners” means the Commissioners for His Majesty’s Revenue and Customs.

Construction industry scheme regulations: amendments

221

(1) The Income Tax (Construction Industry Scheme) Regulations 2005 (S.I. 2005/2045) are amended as follows.

(2) After regulation 13 insert—

(13A) (1) This regulation applies if a determination is made under section 62A (2) (payments made in the knowledge of deliberate failures to comply) or 62B (2) (returns made in the knowledge of deliberate failures to comply) of the Act. (2) An officer of Revenue and Customs must serve notice of the determination on the person to whom it relates. (3) The determination may cover one or more amounts the person is liable to pay under section 62A (2) or 62B (2) of the Act. (4) The determination is subject to Parts 4, 5, 5A and 6 of TMA (assessment, appeals, collection and recovery) as if— (a) the determination were an assessment, and (b) the amount determined were income tax charged on the person, and those Parts of that Act apply accordingly with any necessary modifications, except that the amount determined is due and payable 14 days after the determination is made.

(3) In regulation 16—

(a) in paragraph (1)—

(i) the words from “a contractor” to the end become paragraph (a);

(ii) after that paragraph insert

, or (b) a person is liable to pay under regulation 13A(2).

(b) in paragraph (3), in Table 1, in the first row, for “and 13(2)” substitute “, 13(2) and 13A(2)”.

Commencement

222

(1) Subject to subsection (2), the amendments made by sections 220 and 221 have effect from 6 April 2026.

(2) The amendments made by section 220 (3)(d)(ii) and 220 (3)(e)have effect in relation to a determination under section 66(3) of FA 2004 if the determination is made by reference to behaviour occurring on or after 6 April 2026.

Part 7 — Tax advisers

Chapter 1 — Registration

Prohibition against unregistered tax advisers interacting with HMRC

223

(1) A tax adviser may not interact with HMRC in relation to the tax affairs of a client unless—

(a) the adviser is registered under this Chapter, or

(b) an exception in Schedule 20 (exceptions) applies.

(2) A person interacts with HMRC if the person does or attempts to do any of the following—

(a) contact HMRC by telephone, post or email;

(b) send a message to HMRC through a website or internet portal;

(d) communicate with HMRC in any other way.

(3) Subsection (1) applies even if the tax adviser or the client (or both) are outside the United Kingdom.

(4) Where an individual—

(a) works for a tax adviser, and

(b) interacts with HMRC in the course of a business carried on by that tax adviser,

the interaction is to be regarded as being carried out by that tax adviser.

Meaning of “tax adviser” and “client”

224

(1) In this Chapter “tax adviser” means—

(a) an organisation that, in the course of a business carried on by it, assists other persons with their tax affairs, or

(b) an individual who, in the course of a business carried on by the individual as a sole trader, assists other persons with their tax affairs.

(2) An organisation or individual assists another person with their tax affairs if the organisation or individual does any of the following—

(a) advises the other person in relation to tax;

(b) acts or purports to act as an agent on behalf of the other person in relation to tax;

(c) provides assistance with any document that is likely to be relied on by HMRC to determine the other person’s tax position.

(3) A person can be a tax adviser even if they are appointed indirectly (for example, at the request of someone other than their client).

(4) In this Chapter “client”, in relation to a tax adviser, means a person who the adviser, in the course of a business carried on by the adviser, assists with their tax affairs.

Application process

Application for registration

225

(1) A tax adviser may apply to HMRC to be registered under this Chapter.

(2) An application must be made in the form and manner specified in a notice published by HMRC.

(3) An application must contain the following—

(a) the name and address of the tax adviser;

(b) if the tax adviser is an organisation, the name of each of the tax adviser’s relevant individuals (see section 226 (meaning of “relevant individual” etc));

(i) that the tax adviser meets the registration conditions (see section 227 (registration conditions)), or

(ii) explaining why those conditions are not met;

(d) any other information or evidence relating to the tax adviser or the registration conditions that may be specified in a notice published by HMRC.

(4) A notice under subsection (3)(d) may, in particular, specify different types of information or evidence for different descriptions of tax advisers (for example, for tax advisers who are established in, or who otherwise have a connection with, a territory outside the United Kingdom).

Meaning of “relevant individual” and “officer”

226

(1) For the purposes of this Chapter “relevant individual”, in relation to a tax adviser that is an organisation with fewer than six officers, means—

(a) each individual who works for the tax adviser and who plays a significant role in—

(i) the making of decisions about how the whole or a substantial part of the tax adviser activities of the organisation are to be managed or organised, or

(ii) the actual managing or organising of the whole or a substantial part of those activities, and

(b) each officer of the tax adviser who is not within paragraph (a).

(2) For the purposes of this Chapter “relevant individual”, in relation to a tax adviser that is an organisation with six or more officers, means—

(a) each individual who works for the tax adviser and who plays a significant role in—

(i) the making of decisions about how the whole or a substantial part of the tax adviser activities of the organisation are to be managed or organised, or

(ii) the actual managing or organising of the whole or a substantial part of those activities, and

(b) if the organisation has fewer than five officers within paragraph (a), each officer of the tax adviser nominated by the adviser to be a relevant individual (see section 227(4) (registration conditions)).

(3) In this Chapter “officer” means—

(a) in relation to a company, a director;

(b) in relation to a body corporate whose affairs are managed by its members, a member who exercises functions of management with respect to it;

(c) in relation to a body corporate not within paragraph (a) or (b), an officer of the body whose functions correspond to those of a director of a company;

(d) in relation to a partnership, a partner;

(e) in relation to any other organisation, a person who exercises functions of management with respect to it.

Registration conditions

227

(1) A reference in this Chapter to the registration conditions is to the following three conditions.

(2) The first registration condition is that the tax adviser and, if the adviser is an organisation, each of the adviser’s relevant individuals—

(a) does not have a relevant amount overdue or a relevant return outstanding,

(b) is not subject to a decision by HMRC to refuse to deal with them,

(d) has not, in the previous 12 months, had a relevant anti-avoidance penalty imposed on them,

(e) is not subject to a relevant suspension or a relevant ineligibility order,

(f) is not disqualified under the directors disqualification legislation or subject to a similar disqualification in a territory outside the United Kingdom,

(g) does not have an insolvency practitioner acting in relation to them, and

(h) does not have an unspent conviction for a relevant offence (see section 229 (offences)).

(3) The second registration condition is that the adviser—

(a) is registered with a supervisory authority for the purposes of anti-money laundering supervision, or

(b) meets such conditions about applying to register with a supervisory authority for those purposes as may be specified in a notice published by HMRC.

(4) The third registration condition is that, if the adviser is an organisation within section 226(2)(b) (organisations with six or more officers etc), the adviser has nominated as many officers to be relevant individuals as are necessary to ensure that the adviser has at least five relevant individuals who are officers.

Registration conditions: interpretation

228

(1) In section 227 and this section, “relevant amount”, other than in relation to a person within subsection (2), means an amount of—

(a) tax payable to HMRC;

(b) national insurance contributions;

(d) a civil penalty relating to a tax mentioned in paragraph (a) or (c) or to national insurance contributions;

(e) a civil penalty (not within paragraph (d)) relating to an obligation contained in a provision made by or under any enactment relating to tax;

(f) interest on an amount within paragraphs (a) to (e).

(2) A person is within this subsection if, in the previous 12 months, the person—

(a) was not liable to pay an amount within subsection (1)(a) to (f), and

(b) was liable to pay an amount corresponding to an amount within subsection (1)(a) to (f) under the law of a territory outside the United Kingdom.

(3) In relation to a person within subsection (2), “relevant amount” means an amount corresponding to an amount within subsection (1)(a) to (f) that the person is liable to pay—

(a) under the law of the territory mentioned in subsection (2)(b), or

(b) if the person was, during the 12-month period, liable to pay such an amount under the law of more than one territory outside the United Kingdom, under whichever of those territories the person earned the most income in relation to tax adviser activities during the 12-month period.

(4) For the purposes of section 227(2)(a)—

(a) a relevant amount is overdue if the amount has become due and payable but the amount has not been paid;

(b) a relevant return is outstanding if the return is required to have been made or delivered but it has not been made or delivered.

(5) But a relevant amount is not overdue if it is subject to a time to pay agreement that has not been broken.

(6) For the purposes of section 227(2)(c), a person is subject to a “relevant anti-avoidance measure” if—

(a) the person is subject to a stop notice given under section 236A of FA 2014 (power to give stop notices);

(b) the person is subject to a monitoring notice given under section 244 of FA 2014 (monitoring notices: content and issuing);

(c) information about the person has been published under paragraph 46 of Schedule 16 of F(No.2)A 2017 (penalties for enablers of defeated tax avoidance) and the information has not been withdrawn;

(d) information identifying or about the person has been published under section 86(1) of FA 2022 (publication by HMRC of information about tax avoidance schemes) and the information has not been withdrawn.

(7) In section 227 and this section “relevant anti-avoidance penalty” means a penalty under any of the following—

(a) paragraph 2(1) of Schedule 35 to FA 2014 in respect of a failure to comply with section 236B(1) of that Act (stop notices);

(b) paragraph 1 of Schedule 16 to F(No.2)A 2017 (penalties for enablers of defeated tax avoidance);

(8) For the purposes of section 227(2)(d), if a relevant anti-avoidance penalty is imposed on a person and the penalty is at any time subsequently set aside or otherwise cancelled, the penalty is to be treated from that time as if it was not imposed on the person.

(9) For the purposes of section 227(2)(e), a person is subject to a relevant suspension if the person’s registration under this Chapter is suspended under section 232 (suspension of registration).

(10) In section 227 and this section—

“devolved tax” means a devolved tax within the meaning of the Scotland Act 1998 (see section 80A of that Act) or the Government of Wales Act 2006 (see section 116A of that Act);

“disqualified under the directors disqualification legislation” has the same meaning as in the Companies Act 2006 (see section 159A of that Act);

“insolvency practitioner” means—a person who acts as an insolvency practitioner within the meaning of section 388 of the Insolvency Act 1986 or article 3 of the Insolvency (Northern Ireland) Order 1989, ora person in a territory outside the United Kingdom who exercises functions similar to those of a person mentioned in paragraph (a);

“relevant ineligibility order” means a temporary or permanent ineligibility order issued under section 236 or 237 (ineligibility orders);

“relevant return” means a return relating to a relevant amount;

“supervisory authority” means—a supervisory authority within the meaning given by regulation 3(1) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692), oran authority in a territory outside the United Kingdom which exercises functions similar to those of an authority mentioned in paragraph (a);

“time to pay agreement” means an agreement between HMRC and a person that payment of an amount may, subject to the person complying with any conditions determined by HMRC, be deferred for a period.

Registration conditions: offences

229

(1) The reference in section 227(2)(h) to a relevant offence is to any of the following offences—

(a) an offence under section 20BB of TMA 1970 (falsification of documents);

(b) an offence under CEMA 1979;

(c) an offence under section 112 (false representations for obtaining benefit) or section 114 (offences relating to contributions) of the Social Security Administration Act 1992;

(d) an offence under VATA 1994;

(e) an offence under section 35 of the Tax Credits Act 2002 (offence of fraud);

(f) an offence under CRCA 2005;

(g) an offence under section 45 or 46 of the Criminal Finances Act 2017 (failure to prevent facilitation of tax evasion offences);

(h) an offence at common law of cheating the public revenue;

(i) an offence under the law of any part of the United Kingdom consisting of being knowingly concerned in, or in taking steps with a view to, the fraudulent evasion of tax;

(j) an offence of aiding, abetting, counselling or procuring the commission of an offence mentioned in paragraphs (a) to (i);

(k) an offence under the law of a territory outside the United Kingdom which would be an offence otherwise referred to in this section if the conduct constituting that offence was carried out in any part of the United Kingdom.

(2) For the purposes of subsection (1)(k), an act punishable under the law of a territory outside the United Kingdom constitutes an offence under that law, however it is described in that law.

Registration of tax advisers etc

230

(1) Where a tax adviser applies to be registered under this Chapter in accordance with section 225 (application for registration), an officer of Revenue and Customs must—

(a) decide whether to approve the application;

(b) notify the tax adviser of the decision and—

(i) where the application is approved, of the date from which the registration has effect, and

(ii) where the application is not approved, of the reasons for the decision.

(2) The officer must approve the application if satisfied that the tax adviser meets the registration conditions.

(3) The officer may otherwise approve the application only if—

(a) the tax adviser fails to meet the registration conditions solely by virtue of the adviser, or a relevant individual of the adviser, not meeting the condition in section 227(2)(a) (amount of tax etc overdue), and

(b) having regard to the relevant amount that is overdue or (as the case may be) the circumstances of the outstanding relevant return, the officer considers it appropriate to approve the application.

In this subsection “relevant amount” and “relevant return” have the same meaning as in section 227 (registration conditions).

(4) An officer of Revenue and Customs may cancel the registration of a registered tax adviser if—

(a) the adviser requests the cancellation, or

(b) the tax adviser has been wound up or dissolved or has died.

Monitoring of registration conditions and suspension of registration

Monitoring of registration conditions

231

An officer of Revenue and Customs may by notice require a registered tax adviser to provide such information or evidence as the officer reasonably requires for the purpose of monitoring whether the tax adviser meets the registration conditions.

Suspension of registration

232

(1) An authorised officer of Revenue and Customs may, by notice, suspend the registration of a registered tax adviser if the officer is not satisfied that the adviser meets the registration conditions.

(2) An authorised officer of Revenue and Customs may, by notice, suspend the registration of a registered tax adviser for a period of up to 12 months if the officer considers that the adviser has, in the course of interacting with HMRC, behaved in a manner which falls below the standards that might reasonably be expected of a tax adviser in their interactions with HMRC.

(3) In considering whether a tax adviser has behaved as described in subsection (2), the officer may in particular have regard to any provisions of a relevant HMRC standard that relate to interactions between tax advisers and HMRC.

In this subsection “relevant HMRC standard” means a standard published by HMRC that is specified for the purposes of this section in a notice published by HMRC.

(4) Before suspending the registration of a registered tax adviser under this section, the officer must—

(a) notify the adviser of the fact that the officer considers subsection (1) or (2) to apply, and

(b) allow the adviser a period of—

(i) 30 days, or

(ii) if subsection (5) applies, 60 days,

beginning with the date of the notification, to take action to meet the conditions or to make representations to HMRC.

(5) This subsection applies where—

(a) the tax adviser is an individual and the officer considers subsection (1) to apply solely by virtue of the adviser not meeting the condition in section 227(2)(a) (amount of tax etc overdue), or

(b) the tax adviser is an organisation and the officer considers subsection (1) to apply solely by virtue of a relevant individual of the adviser not meeting the condition in section 227(2)(a) (amount of tax etc overdue).

(6) A notice suspending the registration of a registered tax adviser under this section must state the following—

(a) the date on which it is issued;

(b) the date on which the suspension has effect, which must not be before the end of the period of 30 days beginning with the date mentioned in paragraph (a);

(d) details of—

(i) in a case within subsection (1), which of the registration conditions the officer is not satisfied that the adviser meets;

(ii) in a case within subsection (2), the behaviour mentioned in that subsection;

(e) the period within which an appeal against the decision to suspend the registration of the adviser may be made.

(7) An authorised officer of Revenue and Customs must, by notice, lift a suspension imposed under subsection (1) if satisfied that the adviser meets the registration conditions.

Compliance notice

233

(1) Where a tax adviser contravenes section 223(1) (prohibited interaction with HMRC), an authorised officer of Revenue and Customs may give a notice (a “compliance notice”) to the adviser.

For provision about the effect of a compliance notice, see sections 234(1)(a) and 235(1)(a) (financial penalties for prohibited interaction with HMRC).

(2) A compliance notice must state the following—

(a) the date on which it is issued;

(b) the contravention to which the notice relates;

(3) An authorised officer of Revenue and Customs may withdraw a compliance notice at any time; and if they do so, they must notify the tax adviser.

(4) A compliance notice is to be treated as withdrawn if subsection (5) or (6) applies.

(5) This subsection applies if—

(a) the tax adviser was not registered under this Chapter at the time of the contravention mentioned in subsection (1), and

(b) the tax adviser subsequently registers under this Chapter.

(6) This subsection applies if—

(a) the tax adviser’s registration was suspended under section 232 (suspension of registration) at the time of the contravention mentioned in subsection (1), and

(b) the suspension is subsequently lifted under section 232(7) or expires.

(7) Before giving a compliance notice under this section, the authorised officer must—

(a) notify the adviser of the fact that the officer considers subsection (1) to apply, and

(b) allow the adviser a period of 30 days, beginning with the date of the notification, to make representations to HMRC.

Financial penalties

Financial penalties for prohibited interaction with HMRC

234

(1) This section applies where—

(a) a tax adviser has been given a compliance notice under section 233 that has not been withdrawn,

(b) the tax adviser subsequently contravenes section 223(1) (prohibited interaction with HMRC), and

(c) if the tax adviser is an organisation, an authorised officer of Revenue and Customs does not consider that the contravention is attributable to a relevant individual of the tax adviser (see section 235 (liability of relevant individuals)).

(2) The tax adviser is liable in respect of the contravention to a penalty of—

(a) £5,000, or

(b) if subsection (3) or (4) applies, £10,000.

(3) This subsection applies if—

(a) in the period of two years ending with the date of the contravention, the tax adviser has been assessed to a penalty under this section or section 235 on four or more occasions, and

(b) subsection (4) does not apply.

(4) This subsection applies if the contravention takes place at a time when the tax adviser is subject to—

(a) a temporary ineligibility order issued under this Chapter, or

(b) a permanent ineligibility order issued under this Chapter.

(5) For the purposes of subsection (3)(a), if a tax adviser is assessed to a penalty under this section or section 235 and the penalty is, at any time, subsequently set aside or otherwise cancelled, the penalty is to be treated from that time as if it was not assessed on the adviser.

Financial penalties for prohibited interaction with HMRC: liability of relevant individuals

235

(1) This section applies where—

(a) a tax adviser that is an organisation has been given a compliance notice under section 233 that has not been withdrawn,

(b) the tax adviser subsequently contravenes section 223(1) (prohibited interaction with HMRC), and

(c) an authorised officer of Revenue and Customs considers that the contravention is attributable to a relevant individual of the tax adviser.

(2) The individual is liable in respect of the contravention to a penalty of—

(a) £5,000, or

(b) if subsection (3) or (4) applies, £10,000.

(3) This subsection applies if—

(a) in the period of two years ending with the date of the contravention, the relevant individual has been assessed to a penalty under this section or section 234 on four or more occasions, and

(b) subsection (4) does not apply.

(4) This subsection applies if the contravention takes place at a time when the relevant individual is subject to—

(a) a temporary ineligibility order issued under this Chapter, or

(b) a permanent ineligibility order issued under this Chapter.

(5) For the purposes of subsection (3)(a), if a relevant individual is assessed to a penalty under this section or section 234 and the penalty is, at any time, subsequently set aside or otherwise cancelled, the penalty is to be treated from that time as if it was not assessed on the individual.

(6) In this section references to a relevant individual of a tax adviser include a former relevant individual of the tax adviser.

Ineligibility orders

Tax advisers: ineligibility orders

236

(1) Where an authorised officer of Revenue and Customs assesses a tax adviser to a penalty under section 234(2)(b) (financial penalties for prohibited interaction with HMRC) in a case where section 234(3) applies (repeated contravention), the officer must issue a temporary ineligibility order to the tax adviser.

For provision about the effect of a temporary ineligibility order, see in particular section 227(2)(e) (registration conditions) and sections 234(4) and 235(4) (financial penalties for prohibited interaction with HMRC).

(2) A temporary ineligibility order issued under subsection (1) has effect for a period of 12 months from the end of the period of 30 days beginning with the date on which the order was issued to the person.

(3) Where an authorised officer of Revenue and Customs assesses a tax adviser to a penalty under section 234(2)(b) (financial penalties for prohibited interaction with HMRC) in a case where section 234(4)(a) applies (contravention while subject to temporary ineligibility order), the officer must—

(a) issue a permanent ineligibility order to the tax adviser, and

(b) in a case where the adviser’s registration is suspended under section 232, cancel the adviser’s registration.

For provision about the effect of a permanent ineligibility order, see in particular section 227(2)(e) (registration conditions) and sections 234(4) and 235(4) (financial penalties for prohibited interaction with HMRC).

(4) A permanent ineligibility order issued under subsection (3) has effect indefinitely from the end of the period of 30 days beginning with the date on which the order was issued to the person.

(5) Before issuing an order to a person under subsection (1) or (3), the authorised officer must—

(a) notify the person of the fact that the officer considers subsection (1) or (3) (as the case may be) to apply, and

(b) allow the person a period of 30 days, beginning with the date of the notification, to make representations to HMRC.

(6) An order under subsection (1) or (3) must state—

(a) the date on which it is issued, and

(b) the period within which an appeal against the decision to issue the order may be made.

Relevant individuals: ineligibility orders

237

(1) Where an authorised officer of Revenue and Customs assesses a tax adviser to a penalty under section 234(2)(b)(financial penalties for prohibited interaction with HMRC), the officer may—

(a) in a case where section 234(3) applies (repeated contravention), issue a temporary ineligibility order to any relevant individual of the tax adviser;

(b) in a case where section 234(4) applies (contravention while subject to an ineligibility order), issue a permanent ineligibility order to any relevant individual of the tax adviser.

(2) Where an authorised officer of Revenue and Customs assesses a relevant individual of a tax adviser to a penalty under section 235(2)(b) (liability of relevant individuals) in a case where section 235(3) applies (repeated contravention), the officer must issue a temporary ineligibility order to the individual.

(3) Where an authorised officer of Revenue and Customs assesses a relevant individual of a tax adviser to a penalty under section 235(2)(b) (liability of relevant individuals) in a case where section 235(4)(a) applies (contravention while subject to temporary ineligibility order), the officer must issue a permanent ineligibility order to the individual.

(4) For provision about the effect of a temporary or a permanent ineligibility order, see in particular section 227(2)(e) (registration conditions) and sections 234(4) and 235(4) (financial penalties for prohibited interaction with HMRC).

(5) A temporary ineligibility order issued under subsection (1)(a) or (2) has effect for a period of 12 months from the end of the period of 30 days beginning with the date on which the order was issued to the person.

(6) A permanent ineligibility order issued under subsection (1)(b) or (3) has effect indefinitely from the end of the period of 30 days beginning with the date on which the order was issued to the person.

(7) Before issuing an order to a relevant individual under subsection (1), (2) or (3), the authorised officer must—

(a) notify the relevant individual and the tax adviser of the fact that the officer considers subsection (1), (2) or (3) (as the case may be) to apply, and

(b) allow the relevant individual and the tax adviser a period of 30 days, beginning with the date of the notification, to make representations to HMRC.

(8) An order under subsection (1), (2) or (3) must state—

(a) the date on which it is issued, and

(b) the period within which an appeal against the decision to issue the order may be made.

(9) Where an authorised officer of Revenue and Customs issues an order to a relevant individual under this section, the officer must also notify the tax adviser in question.

(10) In this section references to a relevant individual of a tax adviser include a former relevant individual of the tax adviser.

Requirement for tax adviser to notify clients of suspension or ineligibility orders

238

(1) Where a registered tax adviser’s registration has been suspended under section 232(1) (suspension of registration: registration conditions) for a period of more than 30 days, the adviser must take reasonable steps to notify each of their clients about the suspension within the period of 30 days beginning with the 31st day of the suspension.

(2) Where a registered tax adviser’s registration has been suspended under section 232(2) (suspension of registration: behaviour of adviser), the adviser must take reasonable steps to notify each of their clients about the suspension within the period of 30 days beginning with the day on which the suspension first has effect.

(3) Where a registered tax adviser is issued with a temporary or permanent ineligibility order under this Chapter, the adviser must take reasonable steps to notify each of their clients about the issuing of the order within the period of 30 days beginning with the day on which the order first has effect.

(4) A notification to a client under subsection (1), (2) or (3) must be in the form and manner set out in a notice published by HMRC.

(5) If a tax adviser contravenes subsection (1), (2) or (3) the adviser is liable to a penalty of £5,000.

(6) Where the contravention relates to more than one client, the tax adviser is liable to a penalty under this section in respect of each client.

Reasonable excuse

239

(1) A person is not liable to a penalty under section 234, 235 or 238 if the person satisfies an authorised officer of Revenue and Customs or, on an appeal to the tribunal, the tribunal that there is a reasonable excuse for the contravention.

(2) If a person had a reasonable excuse for a contravention but the excuse has ceased, the person is to be treated as having continued to have the excuse if the contravention is remedied without unreasonable delay after the excuse ceased.

Extension of period for making representations

240

Where a provision of this Chapter requires an authorised officer of Revenue and Customs to allow a specified period of time for a person to make representations, the officer may, by notice to the person, extend that period.

Assessment of financial penalties etc

Assessment of financial penalties

241

(1) Where a person becomes liable to a penalty under section 234, 235 or 238, an authorised officer of Revenue and Customs must—

(a) assess the penalty, and

(b) notify the person.

(2) A notice under subsection (1) may relate to more than one contravention by the person.

(3) A notice under subsection (1) must state—

(a) the date on which it is issued;

(b) each contravention in respect of which the penalty is assessed;

(d) the period within which an appeal against the assessment may be made.

(4) Before assessing a tax adviser to a penalty under section 234, 235 or 238, the authorised officer must—

(a) notify the person of the fact that the officer considers the person is liable to the penalty, and

(b) allow the person a period of 30 days, beginning with the date of the notification, to make representations to HMRC.

Time limits and treatment of financial penalties

242

(1) An assessment of a penalty under section 234 or 235 must be made within the period of 12 months beginning with the day on which the person became liable to the penalty.

(2) An assessment of a penalty under section 238 must be made within the period of 12 months beginning with the day on which the contravention first came to the attention of an officer of Revenue and Customs.

(3) A penalty assessed under section 234, 235 or 238 is due and payable at the end of the period of 30 days beginning with the day on which the notice of assessment of the penalty is issued.

(4) A penalty assessed under section 234, 235 or 238 is, subject to subsection (3), to be treated for all purposes as if it were tax charged in an assessment and due and payable.

Double jeopardy

243

A person is not liable to a financial penalty under this Chapter in respect of anything in respect of which the person has been convicted of an offence.

Reviews and appeals

244

Schedule 21 contains provision about reviews and appeals.

Disclosure of information

245

(1) HMRC may disclose information acquired under, or held in connection with, this Chapter to a person for the purpose of facilitating the exercise by the person of a function relating to the regulation or supervision of—

(a) tax advisers, or

(b) the tax system.

(2) A person to whom HMRC discloses information under this section—

(a) may use it only for the purpose for which it was disclosed, and

(b) may not further disclose it without the consent of HMRC (which may be general or specific).

(3) Where a person contravenes subsection (2)(b) by disclosing information relating to a person whose identity—

(a) is specified in the disclosure, or

(b) can be deduced from it,

section 19 of CRCA 2005 (offence of wrongful disclosure) applies in relation to the disclosure as it applies in relation to a disclosure in contravention of section 20(9) of that Act.

(4) Nothing in this section limits the circumstances in which information may be disclosed under section 18(2) of CRCA 2005 or under any other enactment or rule of law.

Power to publish information

246

(1) An authorised officer of Revenue and Customs may publish information about a person if—

(a) the person is assessed to a financial penalty under this Chapter, or

(b) the person is issued with a relevant ineligibility order.

(2) The information that may be published under this section is—

(a) the person’s name, including any trading name, previous name or pseudonym;

(b) the postcode of any address used by person;

(c) any other information the authorised officer considers appropriate to publish in order to make clear the person's identity;

(d) the amount of the financial penalty or (as the case may be) the type of the relevant ineligibility order issued.

(3) Before publishing information under this section, the authorised officer must—

(a) notify the person that they are considering doing so,

(b) allow the person a period of 30 days, beginning with the date of the notification, to make representations to HMRC, and

(c) after considering any such representations, notify the person of the authorised officer’s decision as to whether to publish the information.

(4) Information may be published under this section in any manner that the authorised officer considers appropriate.

(5) No information may be published under this section before the day on which the financial penalty or relevant ineligibility order becomes final.

(6) No information may be published under this section for the first time after the end of the period of one year beginning with the day on which the penalty or relevant ineligibility order becomes final.

(7) Where—

(a) information has been published under this section on a government website, and

(b) the information remains accessible on the website after the end of the period of one year beginning with the day on which it was first published,

an authorised officer of HMRC must take steps to remove the information from the website.

(8) But subsection (7) does not apply in a case where the information was published under subsection (1)(b) by virtue of the person being issued with a permanent ineligibility order under section 236 or 237 (ineligibility orders).

(9) For the purposes of this section a financial penalty or ineligibility order becomes “final” if—

(a) the time for bringing any appeal or further appeal relating to it expires (ignoring any possibility of an appeal being brought out of time with permission), or

(b) if later, any appeal or final appeal (other than an appeal brought out of time with permission) relating to it is finally determined.

(10) In this section “relevant ineligibility order” means a temporary or permanent ineligibility order issued under section 236 or 237 (ineligibility orders).

Power to amend Schedule 20 (exceptions)

247

(1) The Treasury may by regulations made by statutory instrument amend Schedule 20 (exceptions) to make provision about exceptions for the purposes of section 223(1) (prohibited interaction with HMRC).

(2) Regulations under this section may in particular—

(a) add an exception, or

(b) delete or amend an exception for the time being included in the Schedule.

(3) Regulations under this section may—

(a) make different provision for different purposes;

(b) make transitional or saving provision.

(4) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

Interpretation

Interpretation of Chapter

248

(1) In this Chapter—

“authorised officer” means an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by the Commissioners for the purposes of this Chapter;

“Commissioners” means the Commissioners for His Majesty’s Revenue and Customs;

“HMRC” means His Majesty’s Revenue and Customs;

“organisation” means a body corporate, partnership or other organisation carrying on a business;

“registered tax adviser” means a tax adviser who is registered under this Chapter;

“tribunal” means the First-tier Tribunal or, where determined by or under the Tribunal Procedure Rules, the Upper Tribunal.

(2) A reference in this Chapter to working for an organisation includes being a director, partner or member of an organisation.

Commencement

249

(1) This section comes into force on the day on which this Act is passed.

(2) The rest of this Chapter comes into force on such day as the Treasury may by regulations appoint.

(3) Different days may be appointed for different purposes.

(4) The Treasury may by regulations make transitional or saving provision in connection with the coming into force of any provision of this Chapter.

(5) The power to make regulations under subsection (4) includes power to make different provision for different purposes.

(6) Regulations under this section are to be made by statutory instrument.

Chapter 2 — Conduct etc

Conduct of tax advisers

250

(1) Schedule 22 contains provision about the conduct of tax advisers.

(2) Schedule 22 comes into force on 1 April 2026 and has effect in relation to acts or omissions on or after that date.

(3) The Treasury may by regulations make transitional or saving provision in connection with the coming into force of any provision of Schedule 22.

(4) The power to make regulations under subsection (3) includes power to make different provision for different purposes.

(5) Regulations under this section are to be made by statutory instrument.

Power to publish information about tax advisers etc

Power to publish information

251

(1) An authorised officer may publish information about a tax adviser if—

(a) in consequence of the tax adviser’s behaviour or conduct, HMRC has made a decision to—

(i) refuse to deal with the adviser (whether temporarily or permanently), or

(ii) suspend the adviser’s access to HMRC’s online services for tax agents or tax advisers, and

(b) the officer considers that publication would be in the public interest.

(2) The information that may be published under subsection (1) is—

(a) the tax adviser’s name, including any trading name, previous name or pseudonym;

(b) the postcode of any address used by the tax adviser;

(c) any other information the authorised officer considers appropriate to publish in order to make clear the tax adviser's identity;

(d) details of the decision mentioned in subsection (1)(a) made in respect of the tax adviser, including the reasons why it was made and its effect on the tax adviser.

(3) If, in acting as a tax adviser, an individual works or worked for a person carrying on a business, subsection (2)(c) includes power to publish such information about that person as the authorised officer considers appropriate in order to make clear the individual's identity.

(4) Before publishing information under subsection (1), the authorised officer must—

(a) notify the tax adviser and, in a case within subsection (3), the person mentioned in that subsection that they are considering doing so,

(b) give the tax adviser and (as the case may be) the person a period of at least 30 days, beginning with the date of the notification mentioned in paragraph (a), to make representations about whether the information should be published, and

(c) after considering any such representations, notify the adviser and (as the case may be) the person of the authorised officer’s decision as to whether to publish the information.

(5) Subsection (6) applies if—

(a) information about a tax adviser is published under subsection (1), and

(b) the tax adviser is a body corporate controlled by another person.

(6) An authorised officer may, if they consider that publication would be in the public interest, publish—

(a) the other person’s name, including any trading name, previous name or pseudonym;

(b) the postcode of any address used by the other person;

(c) any other information about the other person that the authorised officer considers appropriate to publish in order to make clear the other person’s identity;

(d) details of the relationship between the tax adviser and the other person.

(7) Before publishing information under subsection (6), the authorised officer must—

(a) notify the tax adviser and the person that they are considering doing so,

(b) give the tax adviser and the person a period of at least 30 days, beginning with the date of the notification mentioned in paragraph (a), to make representations about whether the information should be published, and

(c) after considering any such representations, notify the tax adviser and the person of the authorised officer’s decision as to whether to publish the information.

(8) Information may be published under this section in any manner that the authorised officer considers appropriate.

Power to publish information: change of circumstances

252

(1) Where—

(a) information has been published under section 251 or this section, and

(b) an authorised officer considers that there has been a material change in the circumstances of the tax adviser or (as the case may be) the person mentioned in section 251 (3) or (6),

the authorised officer must publish such information about the change as the authorised officer considers appropriate.

(2) Before publishing information under this section, the authorised officer must, so far as is reasonably practicable, notify the tax adviser and (as the case may be) the person mentioned in section 251 (3) or (6) of the information that is going to be published and of the expected date of publication.

(3) Where—

(a) information has been published under section 251 or this section on a government website,

(b) the information remains accessible on the website, and

an authorised officer of HMRC must take steps to remove the information from the website.

(4) The circumstances are that—

(a) the decision mentioned in section 251 (1)(a) made in respect of the tax adviser in question has expired or been withdrawn by HMRC;

(b) an authorised officer becomes aware that the tax adviser in question—

(i) has ceased to be a tax adviser for a period of at least five years, or

(ii) has died;

(5) Information may be published under this section in any manner that the authorised officer considers appropriate.

Power to publish information: interpretation and commencement

253

(1) In this section and sections 251 and 252—

“authorised officer” means an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by the Commissioners for the purposes of sections 251 and 252;

“Commissioners” means the Commissioners for His Majesty’s Revenue and Customs;

“control” has the same meaning as in the Corporation Tax Acts (see section 1124 of CTA 2010);

“HMRC” means His Majesty’s Revenue and Customs;

“tax adviser” has the same meaning as in Schedule 38 to FA 2012 (see paragraph 2 of that Schedule).

(2) Sections 251 and 252 come into force on 1 April 2026.

Part 8 — Miscellaneous and final

Fiscal mandate assessments by the OBR

Fiscal mandate assessments prepared by the Office for Budget Responsibility

254

(1) In section 4 of the Budget Responsibility and National Audit Act 2011 (main duty of the Office for Budget Responsibility)—

(a) in subsection (3) (matters to be prepared on at least two occasions for each financial year), omit paragraph (b) (assessment of the fiscal mandate) and the “and” before it, and

(b) in subsection (4) (matters to be prepared on at least one occasion for each financial year), before paragraph (a) insert—

(za) an assessment of the extent to which the fiscal mandate has been, or is likely to be, achieved,

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