Spring Statement 2025
Chancellor of the Exchequer, Rachel Reeves, remained true to her word by refraining from announcing any tax changes in the 2025 Spring Statement.
The Spring Statement confirmed that there will be no additional tax increases beyond those previously disclosed. However, new measures aimed at tackling tax avoidance and evasion are set to generate an additional £1 billion in savings.
While the speech itself did not introduce further details, HMRC has since released press statements outlining a series of consultations on various tax-related matters. These initiatives aim to enhance compliance, improve administrative efficiency, and ensure fair tax practices. The key areas under review include:
- Tighter Regulations on Tax Advisers: Proposals are being considered to bolster HMRC’s authority in dealing with professional tax advisers who facilitate non-compliance. The suggested changes would enable swifter and stronger action against those aiding in tax evasion or avoidance.
- Expanding Advance Clearances in R&D Tax Reliefs: HMRC is considering widening the use of advance clearances for R&D tax reliefs. This move seeks to minimise error and fraud while providing greater certainty to businesses and improving the overall customer experience.
- Enhancing Data Quality for Tax Administration: A consultation is being launched to refine the quality of data acquired through HMRC’s bulk data-gathering powers. The goal is to streamline tax administration, ensuring that taxpayers can pay the correct amount more efficiently.
- Strengthening Behavioural Penalties: HMRC is exploring options to simplify and reinforce penalties for inaccuracies and failures to notify. These changes aim to create a fairer and more effective system that encourages compliance.
More details of the specific measures can be found in our Statement Summary.
