UK tax adviser registration: New regulations confirm deferral for investment managers

Our recent client alert drew attention to the surprising fact that investment managers (whether based in the UK or elsewhere) could fall within the definition of a “tax adviser” for purposes of the UK’s new mandatory tax adviser registration regime, which would require them to register with HMRC as tax advisers.  We also noted, however, that HM Treasury had indicated that it would delay the introduction of the tax adviser registration regime for “financial services firms” until April 2027, and would use the time before then to consider how (or whether) the regime should apply to such firms on a permanent basis.

Deferral until 1 April 2027

HM Treasury has now made Regulations¹ setting out the dates for the introduction of the UK tax adviser registration regime.  The Regulations confirm that HM Treasury has opted to implement the deferral of the registration deadline for what HMRC previously described as “financial services firms” by applying a later deadline to firms which are carrying on “regulated activities”² as defined in the Financial Services and Markets Act 2000 (FSMA).³ Such firms will now not be required to register before 1 April 2027.

We understand that the deferral will apply to all investment management firms which are carrying on activities which fall within the definition of “regulated activities” in the FSMA, wherever in the world the firm might be carrying on those activities.  In other words, a US or other non-UK firm carrying on activities of a kind that fall within the FSMA definition of “regulated activities” will not be required to register before 1 April 2027, even though it is carrying on those activities entirely outside the UK and so is not required to register with, and is not regulated by, the Financial Conduct Authority.

Might the deferral become permanent?

As indicated in our previous Client Alert, HMRC indicated that it intends to use the period before April 2027 to ensure that the registration regime, so far as it applies to financial services firms, is “proportionate and workable” and applies only where intended.  We still expect – although this is not guaranteed – that this will mean that firms carrying on “regulated activities” will be excluded from the tax adviser registration regime on a permanent basis.

Managers whose activities comprise only the provision of services to clients which are “group undertakings” ⁴ in relation to the firm (which may also mean that the manager is exempt from the requirement to register with the FCA on the basis of a group exemption) are already exempt from the requirement to register with HMRC as tax advisers.⁵  It seems likely that any permanent exclusion of investment managers from the tax adviser registration regime would be implemented by an expansion of this exemption so as to include managers providing services to group-like clients such as funds, joint ventures, securitisation vehicles, etc which, whilst related to the manager, are not within the strict definition of “group undertakings”.⁶

Managers will, however, need to continue to monitor developments closely over the coming few months to confirm that what is now cast as a deferral of the registration requirement does indeed turn into a permanent exclusion.

¹ The Finance Act 2026 (Registration of Tax Advisers) (Appointed Days and Transitional Provision) Regulations 2026 (SI 2026/807)

² “Regulated activities” include, for example, the activities of dealing in investments or arranging deals in investments (otherwise than as principal or on one’s own account), advising on investments and investment management.

3 It is also a requirement that the firm should not have an Agent Services Account with HMRC.

⁴ As defined in section 1161(5) Companies Act 2006.

⁵ Paragraph 1(f) Schedule 20 Finance Act 2026.

⁶ Section 247 of Finance Act gives HM Treasury the power to amend Schedule 20 by statutory instrument so as to add to or amend the categories of entity which are exempt from the requirement to register with HMRC.