In this edition the Committee provides an update on recent successes in lobbying work, issues a call to action to prepare for Making Tax Digital for income tax and looks at mandatory tax adviser registration.

Agricultural Property Relief (APR) and Business Property Relief (BPR): update

On 23 December 2025 the UK Government announced that the £1 million allowance for 100 percent APR and BPR for inheritance tax will be increased to £2.5 million from 6 April 2026. Relief will remain limited to 50 percent on the amount of qualifying assets valued above this threshold resulting in an effective IHT charge of 20 percent. Having lobbied heavily on this issue since the 2024 Budget and throughout 2025, the Institute issued a Press Release on 23 December reacting to the announcement which noted this welcome mitigation, including confirmation of its transferability between spouses/civil partners.

When combined with the transferability of any unused amount of the allowance between spouses and civil partners, another of our recommendations that was announced at the 2025 Autumn Budget, this effectively means that a couple will have a combined allowance of £5 million before any unused amount of their transferable nil rate band is taken into account. This could potentially increase the overall 100 percent amount on which no IHT will be payable to £5.65 million should their full £325,000 nil rate band be unused.

A timeline of all formal lobbying and Press Releases on this issue by the Institute since the original policy was announced in the 2024 Autumn Budget is available on our website at https://www.charteredaccountants.ie/News/ lobbying-success-iht-reliefs-allowance-increased-by-uk-government which includes a link to the oral evidence session by the Institute’s UK Tax Manager, Leontia Doran, to the House of Lords Finance Bill Sub-Committee in October 2025.

Making Tax Digital for income tax is coming – now is the time to act

Making Tax Digital (MTD) for income tax commences from 6 April 2026 for sole traders and landlords with gross ‘qualifying income’ (combined income from trading and property before any deductible expenses) above £50,000. Are you ready for this change in UK tax administration? If not, now is the time to act. To assist you in your preparations, visit the Institute’s MTD hub at https://www. charteredaccountants.ie/mtd, a one stop shop of resources developed to assist members and taxpayers in their preparations. The hub also contains the latest news and links to HMRC resources and guidance. HMRC also has a range of useful resources to assist you in your preparations including the new MTD agent toolkit and one to one HMRC specialist MTD support for agents. Visit GOV.UK for more details.

Mandatory tax adviser registration

And last but not least, mandatory tax adviser registration commences from 1 May 2026, subject to a three month transition period. This will require ‘tax advisers’ to register with HMRC and meet ‘minimum standards’. The registration requirement will apply to all firms that interact with HMRC on behalf of their clients, including those which already have an Online Services Account or Agent Services Account. The registration requirement also carries with it new eligibility conditions which relate to the conduct of the firm and those responsible for overseeing the provision of tax advice therein at the highest level. HMRC will also have enforcement and monitoring powers and a range of penalties and sanctions which can be utilised for non-compliance. The draft legislation for this measure features in the current Finance Bill with more detailed guidance expected from HMRC before May 2026. We therefore recommend that advisers take early action and begin preparations as early as possible for the registration process so as to ensure that they are able to continue to interact with HMRC on behalf of their clients.

As a result, many farms and family owned businesses in Northern Ireland will continue to receive 100 percent APR and BPR and not have any IHT liability on these assets, protecting the succession plans of these businesses for the next generation.