Users of Companies House, holiday let owners, and non-domiciled individuals must act now to stay ahead of key changes.

Major tax and compliance changes – act now to stay compliant

This month, at TAG Accountants Group, we are turning our attention to several significant changes affecting the way filings must be made to Companies House, the conclusion of the previous tax regime for holiday let owners, and important amendments to the tax treatment of non-domiciled individuals.

Introduction of new identification checks by Companies House

On 8 April 2025, Companies House launched a new identity verification system as part of changes under the Economic Crime and Corporate Transparency Act 2023. This will impact you if you are a director, a person with significant control (PSC), or someone who files with Companies House on behalf of a company.

The new system means everyone involved in setting up or running a UK company will soon need to verify their identity, either through their GOV.UK One Login, or via a registered Authorised Corporate Service Provider (ACSP), which TAG Accountants are applying to become.

Verification is currently voluntary, but it will become a legal requirement later in the year. For existing companies, it will be implemented through the confirmation statement process.

As we will be an approved ACSP, we will be able to manage the identity verification on your behalf, if required. This means you will not need to manage GOV.UK logins yourself. You can rely on us to complete the checks, ensure they are properly recorded, and guarantee your compliance ahead of the deadline.

If we currently manage your company’s filings with Companies House, please be aware that we will be incorporating identification checks into our processes over the coming months. If we do not presently provide this service for you but you would like our support moving forward, we invite you to contact us to discuss how we can assist you in remaining fully compliant.

Tax rules for Holiday Letting Properties have changed

The longstanding Furnished Holiday Lettings (FHL) regime was abolished on 6 April 2025, bringing with it several far-reaching implications for holiday let properties.

The changes mean that the property will become part of either your main UK or overseas property business, and so some of the beneficial tax rules that previously applied to the property will no longer apply, such as:

• Tax relief for loan interest related to financing the property will be restricted to the basic rate (20%).
• Any new capital expenditure is unlikely to qualify for capital allowances, and you will now fall under the replacement of domestic items relief rules instead.
• Capital Gains Tax reliefs for trading business assets (such as Business Asset Disposal Relief, Gift Relief and Rollover Relief) will no longer be available.
• Income from the property will no longer be included in ‘relevant UK earnings’ for the purpose of calculating maximum pension relief.

This is not good news, but there are some transitional measures you should consider:

• It will be possible to carry forward losses that were generated by an FHL business prior to 6 April 2025.
• These losses may be carried forward and set against future profits from either the UK or overseas property business, as applicable.
• Where an FHL business had a capital allowances pool on 5 April 2025, the pool can be carried forward within the general property business. Going forward, it will be possible to claim writing-down allowances on the pool.
• For Business Asset Disposal Relief (BADR), where the FHL conditions were satisfied in relation to a business that ceased prior to 6 April 2025, relief may continue to apply to a disposal that occurs within the normal 3-year period following cessation.

If your property previously qualified as a FHL and you are unsure how the recent changes may have affected you, or what steps you could take in response—then we encourage you to book an appointment with us for tailored advice and support.

Changes to taxation for non-domiciled individuals

From 6 April 2025, the taxation of UK resident non-domiciled individuals came under a new regime.

Before that, there were special tax rules applied to individuals who were resident in the UK but whose domicile (i.e., meaning their permanent home – usually determined by their father’s permanent home at the time the individual was born) was outside the UK. Under these rules, individuals could choose to either pay UK tax on their foreign income and gains as they arose or use what was known as the remittance basis (meaning only foreign income and gains that were remitted to the UK were taxed).

Now, all UK residents will be taxed on the arising basis of assessment as the remittance basis no longer exists. There are new rules for Foreign Income & Gains (FIG) in the first four years of UK tax residence after a period of 10 years non-residence. If you claim to use the new 4-year FIG regime, you will not pay tax on FIG arising in those four years. If you previously used the remittance basis, you would continue to pay tax on FIG that arose before 6 April 2025 if it is remitted to the UK.

There are also new rules affecting Inheritance Tax (IHT). There is a new test to ascertain whether non-UK assets are in scope for IHT. This depends on whether an individual has been resident in the UK for at least ten of the twenty tax years immediately preceding the tax year in which the chargeable event (including death) occurs. If so, they are deemed to be a long-term UK resident. Where a long-term UK resident becomes a non-UK resident, they will remain in scope for IHT for a minimum of 3 years and a maximum of 10 years, depending on the amount of time they resided in the UK.

If you are non-domiciled and are feeling uncertain about how the newly introduced rules may impact your circumstances, we strongly encourage you to book a meeting with us to gain a clear and comprehensive understanding of your current tax position.

Receive the guidance you need – the TAG tax team is always here to support you

We firmly believe that effective tax planning has the potential to deliver substantial savings for both you and your business.

If any of the three matters outlined above are relevant to your circumstances, our approachable and knowledgeable team is ready to offer you all the assistance and guidance you require.

With that in mind, should you wish to arrange a confidential consultation with one of the experienced tax specialists here at TAG Accountants Group, please do not hesitate to call us on 01902 783172. Alternatively, you can get in touch through our website by clicking HERE, and a member of our team will respond promptly.

We look forward to speaking with you.