The November 2025 budget set out the government’s plans for significant investment in HMRC resources, aimed at closing the tax gap across a number of key areas.
A central focus is on improving HMRC’s use of third-party information and developing new technology to support data-driven prompts for taxpayers in the self-assessment regime. These changes will make it easier for HMRC to identify discrepancies and follow up on potentially under-reported or mischaracterised income.
The UK also plans to participate in a new international agreement to tackle tax evasion, which will enable the automatic exchange of readily available information on real estate, expected from 2029 or 2030. HMRC already receives data on worldwide financial accounts under a similar arrangement, which is used to target taxpayers via nudge letters and enquiries.
From 1 January 2026, UK reporting Cryptoasset Service Providers will also be required to report on their UK tax resident customers under the Cryptoasset Reporting Framework, with the first reports submitted to HMRC in 2027.
In addition, HMRC has already brought in enhanced reporting requirements for dividends received from close companies from the 2025/26 tax year, primarily affecting directors and shareholders of owner-managed companies. A close company is typically defined as one controlled by its directors or by five or fewer shareholders.
Under the new rules, directors/shareholders must now separately disclose on their Self-Assessment tax returns:
• The name and registration number of each close company of which they are a director.
• The amount of dividend income received from that company in the tax year, reported separately from other dividends.
• The percentage of share capital held during the year (if it changed during the year, the highest percentage held).
Previously, directors only reported a total dividend figure and did not need to distinguish the source of the income.
Taken together, these developments signal a clear shift in HMRC’s approach: they will have greater access to third-party data, better technology to identify anomalies, and enhanced reporting to cross-check taxpayer positions. As a result, taxpayers who claim non-UK residency or seek to treat certain income as exempt or disregarded (such as dividends from close companies) are increasingly likely to come under scrutiny.
It is therefore essential for individuals and directors to maintain comprehensive, accurate records and ensure that all reporting is consistent and fully supported. HMRC’s increased data access and enhanced compliance capabilities mean that small errors or assumptions in self-assessment disclosures could be more readily identified, leading to enquiries, adjustments, or penalties.
In short, the environment for self-assessment is becoming more data-driven and scrutinised - careful record-keeping and accurate reporting have never been more important.
How can Sanctuary help?
At Sanctuary, our specialised tax and private wealth teams provide the clarity and strategic support needed to manage evolving international reporting standards. Whether you need assistance with the new Cryptoasset Reporting Framework, ensuring accurate dividend disclosures for your close company, or verifying your tax residency status, we offer bespoke solutions to protect your interests. Ensure your global tax position remains robust and fully compliant, get in touch today via the contact form or email us at hello@sanctuary.ae.
For UK businesses considering opportunities in Saudi Arabia, the following steps outline the overall process:
1. Business Activity: Determine the appropriate business activity which will aligns with your business and satisfies all undertakings you will engage with in the Kingdom.
2. Local Partnerships: Consider any potential opportunities for collaborations with established local businesses to ease market entry and meet regulatory requirements.
3. Documentation: Gather the required documentation for incorporation in KSA.
4. Company Registration: Work with experts and the relevant governing bodies to assist with the incorporation process, ensuring compliance with local laws and regulations.
5. Other Requirements: Consider any other requirements for establishing in Saudi Arabia such as capital and tax requirements.
Saudi Arabia's Vision 2030 represents a significant opportunity for UK businesses to engage with an expanding market with vast potential. As the Kingdom continues to diversify its economy and expand its global influence, UK companies are well-positioned to support and benefit from this transformation. With the right strategy, partnerships, and local support, there are a wealth of possibilities.
By aligning your business with Saudi Arabia’s Vision 2030, the benefits for UK and international businesses looking to Saudi Arabia have never been greater.
At Sanctuary, we specialise in assisting businesses looking to expand into Saudi Arabia. We help navigate the complexities of the Saudi market, ensuring that you have the expertise needed to best prepare for success, so get in touch today.
Our expert team offers comprehensive support across a range of services, from company registration, advisory services, and more. Explore our services to discover how we can help you.
Vision 2030 is a strategic framework designed to diversify Saudi Arabia’s economy, reduce its dependency on oil, and transform the Kingdom into a global business hub.
Key points include economic diversification, social reforms, investment in technology and infrastructure, sustainability, and creating a competitive workforce.
The main focus of the Saudi Arabian Vision 2030 strategy is to build on key economic sectors such as hospitality, travel and tourism and build economic stability and sustainability.
Saudi Arabia’s Vision 2030 initiative is aimed at diversifying its economy through strategic investments into the non-oil sector and ensuring a more sustainable economic future.
Saudi Arabia has committed over $500 billion to Vision 2030, funding projects that span a variety of sectors, including energy, tourism, and infrastructure.
Yes, with its growing economy, reform initiatives, and investment incentives, Saudi Arabia is a highly attractive destination for foreign businesses seeking growth opportunities.
Key growing industries include renewable energy, tourism, healthcare, technology, and education.
Saudi Arabia permits foreign owned businesses and investment into the Kingdom, which has been elevated by the Vision 2030 initiative. A MISA licence is required for foreign investors or businesses to establish.
As a result of the diversification efforts of Saudi Vision 2030, the non-oil and private sector in the Kingdom have witnessed unprecedented growth in the past few years. The private sector continues to grow each quarter and the non-oil sectors continue to reach record contributions for the Kingdom’s GDP.
