ICAS publishes revised Code of Ethics effective from 1 July 2026

Ann Buttery CA, Head of Ethics, ICAS Policy Leadership, explains the changes to the ICAS Code of Ethics taking effect from 1 July 2026.

Our Code of Ethics is substantively based on the International Ethics Standards Board for Accountants (IESBA) Code of Ethics. We're bringing in a revised Code of Ethics with effect from 1 July 2026 to incorporate IESBA revisions in relation to tax planning and related services. The Professional Conduct in Relation to Taxation (PCRT) has also been revised in light of the IESBA changes. 

We’re also including new application material in relation to the fundamental ethics principle of Professional Behaviour to strengthen members’ understanding of the importance of ethical conduct in their professional lives.

IESBA revisions to the Code in relation to tax planning and related services

In the context of public scrutiny of tax avoidance schemes which can harm companies’ credibility and corporate reputation, the IESBA has incorporated revisions into its Code in relation to tax planning and related services. Two new sections have been added to the Code: Section 280 (Tax Planning Activities) for Professional Accountants in Business and Section 380 (Tax Planning Services) for Professional Accountants in Public Practice.

The UK’s Professional Conduct in Relation to Taxation (PCRT) consists of the fundamental principles for the provision of tax services and standards for tax planning that all members must follow.  

The new IESBA provisions have been incorporated into the 2026 ICAS Code of Ethics and an exercise has also been undertaken by the PCRT Bodies with revisions being made to PCRT effective from 1 January 2026. 

Members undertaking any UK tax work shall comply with PCRT, irrespective of where they are based.

PCRT (effective from 1 January 2026) has been endorsed by the UK Tax authority and is considered to be no less stringent than the tax planning provisions contained in sections 280 and 380 of the Code. Therefore, compliance with PCRT satisfies a member’s ethical obligations in relation to UK tax planning and related services. 

A member who is based overseas or who is acting for a client that is subject to the tax jurisdiction of another country could be subject to more onerous legal obligations under the tax law and/or general law of that country. Except in that situation, a member must apply PCRT to professional activities with non-UK aspects.

Where a member is providing tax planning and related activities involving multiple jurisdictions, they should also refer to the provisions in Sections 280 and 380 of the Code.

Further information in relation to the changes to the PCRT is provided here.

Professional behaviour principle – additional application material

The 2026 ICAS Code of Ethics has also been revised to incorporate application material which was developed by The Institute of Chartered Accountants in England and Wales (ICAEW) in relation to the professional behaviour principle and adopted into their Code with effect from 1 July 2025. This was following an ICAEW consultation process to which ICAS responded.

In order to assist with consistency between the professional bodies, the following is now included at paragraph 115.1 A2 in the 2026 ICAS Code of Ethics:

115.1 A2 A reasonable and informed third party would expect that a professional accountant, in their professional life, treats others fairly, with respect and dignity and, for example, does not bully, harass, victimise, or unfairly discriminate against others. 

Whilst the new paragraph does not change the substance of the Code, it is being introduced into the Code to strengthen members’ understanding of the importance of ethical conduct in their professional lives.

Further guidance on this paragraph is provided here.

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