Inspired by our ‘State of Business Aviation 2025’ eBook, our team of chartered tax advisers revisited this previously published article to underscore the critical importance of specialist tax advice in an industry which faces growing challenges each year. They were also keen to explore whether any regulatory changes have emerged since the article was first published 12 months ago.
When seeking VAT advice on complex transactions, you might reasonably expect your adviser to have formal qualifications, extensive experience, and professional insurance. Yet, shockingly, no legal requirements exist in the UK – or much of the EU – for individuals offering tax advisory services to hold qualifications or meet minimum competency standards.
Currently, anyone can label themselves as a ‘tax adviser,’ with the only mandatory requirement being Anti-Money Laundering (AML) supervision registration. However, AML supervision does not assess the adviser’s expertise, leaving businesses vulnerable to incompetent or unethical practices. Worse still, those affected by poor advice often have no clear recourse for compensation or support.
The Need for Reliable Advice
Qualified tax advisers bring value through years of experience, professional supervision, and membership in recognised bodies like the CIOT, ACCA, or ICAEW. These organisations enforce ethical standards and require continuous professional development (CPD), ensuring that advisers stay updated on the latest regulations.
However, membership in such professional bodies remains voluntary, and no central register exists to regulate tax practitioners in the UK. This gap enables less scrupulous advisers to operate freely, often promoting questionable tax avoidance schemes – some even marketed on platforms like TikTok. Unfortunately, clients are left to navigate a ‘buyer beware’ environment.
The Regulatory Debate
Concerns about unregulated tax advisers prompted action in 2024, in both the UK and EU. The EU FISC subcommittee has identified a link between tax evasion schemes and advisers operating outside professional bodies.
Their recommendation? Target and sanction this small pool of rogue operators.
Meanwhile, the UK government is exploring potential reforms following its 2024 call for evidence and updates in October 2024. Proposed measures include mandatory membership in professional bodies, shared enforcement by HMRC and the industry, or oversight by a statutory government body. Professional organisations favour the first option, as it integrates existing CPD frameworks and enforces accountability through professional indemnity insurance and disciplinary procedures. It is prudent to note that it may also be too early to expect results from the updates last year.
Our Approach
Tax advice is about context, judgement, accountability and experience earned through years of navigating complexity. We are proud to offer peace of mind. All our tax advisers are Chartered Institute of Taxation (CIOT) qualified and collectively bring over 80 years of expertise to the table. Our commitment is simple: to provide accurate, reliable tax advice that complies with the law, always backed by the highest professional standards.
If you would like to discuss or learn more about the tax considerations related to owning, buying or selling a business aircraft or another high value asset, please contact adrian@martynfiddler.com
