14 Autumn Budget | 26 November 2025 Tax penalties and making tax digital (MTD) The penalty for late submissions of corporation tax returns will be doubled from 1 April 2026. Penalties for late submissions and late payments under MTD will apply to all income tax selfassessment (ITSA) taxpayers who are not already due to join the new system from 6 April 2027. Penalties for late payment of ITSA and VAT will rise from 1 April 2027. New powers will be introduced from 1 April 2026 to ensure that MTD and the new penalty reform legislation works as intended. Incorporation relief Taxpayers will have to actively claim incorporation relief for transfers of a business to a company from 6 April 2026. The relief will no longer apply automatically. Cryptoassets UK reporting cryptoasset service providers will be required to report on their UK tax resident customers under the Cryptoasset Reporting Framework. Information for first reports to HMRC will be collected from 1 January 2026 and reported to HMRC in 2027. Tax advisers HMRC will be given enhanced powers and sanctions against tax advisers who facilitate non-compliance from 1 April 2026. HMRC will also work with the sector to raise standards in the tax advice market. Following consultation the government has decided that tax advisers will not be regulated. Share exchanges and reorganisations The capital gains tax anti-avoidance provisions that apply to share for share exchanges and company reorganisations will be changed to make them more effective and they will apply immediately. Think ahead Making tax digital (MTD) for some sole traders and landlords starts from April 2026. You should check now if – and how – the change will affect you as you could incur penalties for non-compliance.
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