UK: HMRC package of tax and customs measures aimed at simplification, modernization, and fairness
Tax measures to reduce administration and improve certainty, fairness, and the customer experience.
HMRC on June 23, 2026, published a policy paper entitled, Tax update 2026: simplification, modernization, and fairness summary, which brings together a package of tax and customs measures to reduce administrative burdens and improve certainty, fairness, and the customer experience.
Key announcements include:
- Business tax
- Exclude certain research and development (R&D) expenditure credits from corporation tax Quarterly Instalment Payment (QIP) profit thresholds
- Employment tax
- Call for evidence on PAYE Settlement Agreements (PSAs)
- Regularizing certain existing National Insurance contributions (NIC) easements for internationally mobile individuals
- Individual (personal) tax
- Modernizing the taxation of distributions from companies to shareholders who are individuals or trusts
- Capital gains tax relief for gifts of business assets
- Consultation on implementing more timely payments for Income Tax Self-Assessment (ITSA)
- Indirect tax and customs
- Call for evidence on customs modernization
- Digitalization and AI customs pilots
- E-invoicing: core interoperability network
The government also published a summary of responses to the consultation on land remediation relief, which closed in September 2025, and details of a consultation that was launched on June 10, 2026, on proposals to mitigate double taxation for UK resident individuals who are members of reverse hybrids, such as U.S. LLCs.
Read a June 2026 report prepared by the KPMG member firm in the UK
For more information, contact a KPMG tax professional in the UK:
Sharon Baynham | sharon.baynham@kpmg.co.uk
Stefanie Redmond | stefanie.redmond@kpmg.co.uk