The miscellaneous updates for 27 October 2026 compile minor but important UK tax developments. HMRC updated the Employment Related Securities (ERS) manual to clarify the reporting of joint ownership arrangements under Section 431 ITEPA 2003 elections. The Upper Tribunal in Jones v HMRC [2026] UKUT 180 held that non-qualifying shares in an Employee Benefit Trust (EBT) do not trigger the disguised remuneration loan charge. Statutory Instrument 2026/1024 amends the VAT (Place of Supply of Services) Order 2009 to reflect the Windsor Framework’s impact on cross-border B2B services between NI and EU. The Pension Schemes Act 2026 commencement order brings the new Collective Defined Contribution (CDC) scheme authorization regime into force from 1 December 2026.
Key Takeaways
- ERS Manual Update on Section 431 Elections: The clarification confirms that joint ownership of employment-related securities requires a single Section 431 election per arrangement, not per joint holder. This simplifies reporting for employee share schemes with joint ownership structures, such as spouses or civil partners.
- EBT Loan Charge Scope Narrowed: The tribunal decision limits the disguised remuneration loan charge to qualifying shares only. Non-qualifying shares (e.g., preference shares with fixed returns) held in EBTs are outside the charge, providing certainty for historic EBT structures.
- VAT Place of Supply Rules Adapted for Windsor Framework: The SI ensures that B2B services supplied from NI to EU member states continue to be treated as cross-border supplies for VAT purposes, avoiding domestic NI VAT liability. This maintains the status quo for NI service providers trading with the EU.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement