Spring Statement 2025
Owner-Managed Businesses
Guidance
The Chancellor delivered the Government鈥檚 Spring Statement on 26 March 2025. Although not a Budget or 鈥榤ajor fiscal event鈥� the statement included a number of tax announcements. Although not billed as a major fiscal event, several important changes were announced and HMRC issued several consultations to accompany the Chancellor鈥檚 Spring Statement 2025. HMRC has published a collection of 鈥榯ax-related documents鈥� alongside the Spring Statement.
Key tax announcements
The key announcements are:
- 鈥�
the Making Tax Digital for income tax self assessment threshold will be reduced to bring sole traders and landlords with income over 拢20,000 into the regime, from April 2028. Previously the Government had committed to including this further group by the end of the current Parliament
- 鈥�
late payment penalties for VAT and Making Tax Digital for income tax self assessment will increase from April 2025 for VAT, and for ITSA taxpayers as they join the regime (including, according to the wording of the Spring Statement 2025 report, those who join on a voluntary basis from April 2025)
- 鈥�
the Government has hinted at potential reform of ISAs,
Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+鈩�Related documents:
Related documents:
Popular Articles
Owner-Managed Businesses
Residential property and capital allowances
Residential property and capital allowancesResidential property 鈥� plant and machinery allowancesOrdinary residential property does not, and never has, qualified for capital allowances. as CAA 2001, s 35 denies plant allowances for expenditure incurred in providing plant or machinery for use in a
Corporation Tax
Research and development expenditure credit (RDEC)
Research and development expenditure credit (RDEC)This guidance note provides information on how research and development expenditure credits (RDEC) are calculated and utilised. The Qualifying expenditure for R&D tax relief guidance note provides information on what expenditure qualifies for
Corporation Tax
Entity classification
Entity classificationImplications of entity classificationIf a subsidiary is established, it is important to determine how it will be treated for UK tax purposes as this will determine the basis on which it is taxed. A subsidiary may either be transparent (like a partnership, where the individual
