Legal News | 27.03.25
Spring Statement 2025
The Chancellor Rachel Reeves delivered her Spring Statement yesterday, 26 March 2025. Whilst the Government has committed to holding only one major fiscal event per annum, the Spring Statement does provide the Chancellor with the opportunity to make further tax announcements. Thankfully, following the major reforms announced in the Autumn Statement 2024 (“the Budget”), no new tax increases were announced. However, a swathe of new tax compliance and administration measures were revealed, including:
- more investment allocated in technology to assist HMRC in combating tax evasion, building on the measures announced in the Budget. We are told this should raise £1bn (an amount verified by the Office for Budget Responsibility (OBR));
- confirmation of the continued rollout of Making Tax Digital (MTD) for income tax Self Assessment (ITSA) (e.g. expanding MTD for Income Tax to sole traders and landlords with income over £20,000 from April 2028);
- increases to late payment penalties for VAT taxpayers and ITSA taxpayers as they join MTD from April 2025 onwards; and
- the release of four new consultations, two of which focus on promoters of tax avoidance. The government is seeking views on a range of new measures to close in on promoters of tax avoidance, including options to tackle legal professionals designing or contributing to the promotion of avoidance schemes. There is also a separate consultation exploring options to enhance HMRC’s power and sanctions to take action against advisers who facilitate non-compliance.
In addition to tax compliance, the Statement also acknowledges that the Government is currently considering options to reform ISAs and will engage with entrepreneurs and venture capital firms to discuss the future of tax relief schemes such as the Enterprise Investment Scheme and Venture Capital Trusts. This will take place before the next Budget, which the Chancellor confirmed would take place this autumn.
View the full Spring Statement.
If you have any queries as to how the Spring Statement could affect you, please get in touch by emailing wealth@wansbroughs.com.
