Tax tips newsletter for professionals

HMRC publishes two sets of mileage rates which can be used by employers to make tax-free mileage payments to employees who meet the cost of fuel for business travel. 

The advisory fuel rates can be used for making mileage payments to company car drivers, while the higher approved mileage rates can be used to reimburse employees using their own vehicles for business travel.

Sarah Bradford outlines the rules on mileage payments, highlighting the application of the new advisory rates for electric cars.

The UK’s corporation tax regime for smaller companies has undergone significant changes over time. For many years, a system of marginal relief and small profits rates existed to support and incentivise smaller businesses. However, from April 2015, the UK moved to a single corporation tax rate for all companies and the small profits rate was abolished. 

Richard Curtis offers a reminder that the benefits of the small profits rate and marginal relief should not be overlooked when dealing with smaller companies.

Finance Act 2025 introduced significant changes not only to the inheritance tax (IHT) treatment of reversionary interests but also with respect to the abolition of the now historic domicile-based tax system, introducing in its place a residence-based system.

Malcolm Finney looks at the concept of reversionary interests and their inheritance tax implications.

When a business is sold, price is rarely the only factor that matters, although vendors often have a magic number in mind. Getting to that number may sometimes prove difficult, as timing, structure and uncertainties all play a part in how ‘fair’ the deal feels to both sides. 

From a tax perspective, one of the most important distinctions is whether all proceeds are received immediately or whether part of the consideration will be paid later or depend on future performance. Those conditional elements, often described as deferred consideration or ‘earn-outs’, can have a major impact on the capital gains tax (CGT) position for the vendors.

Sam Hart looks at how different amounts of consideration on a business sale received at different times are treated for tax purposes.

Mark McLaughlin reviews two recent important tax cases:

If a business’s taxable turnover falls below the deregistration threshold (currently £88,000 per annum), it can deregister from VAT and no longer needs to account for VAT on its sales. However, on the downside, it is necessary to account for VAT on a deemed supply of assets on hand at deregistration if the VAT comes to more than £1,000. 

But how does this requirement affect a business that owns a commercial property?

Andrew Needham looks at pitfalls of deregistering a property rental business and how to avoid them.

Since the Renters’ Rights Act 2025 received Royal Assent, private landlords will now need a legitimate reason from 1 May 2026, such as selling the property, to evict a tenant. 

Assured Shorthold Tenancies (ASTs) will become periodic tenancies, which roll on indefinitely until a valid notice is served. So, this change may require landlords to sell and then look for other options for their property investments, such as letting to Serco, other options or letting on ‘excluded tenancies’ as below.

Jon Golding looks at alternative property sources of income to consider now that rental property income will be affected by the Renters’ Rights Act 2025.