New PCRT takes effect from 1 January 2026

Susan Cattell highlights the updated Professional Conduct in Relation to Taxation (PCRT) code which will take effect from 1 January 2026.

Professional Conduct in Relation to Taxation (PCRT) 

PCRT is adopted and maintained by seven UK professional bodies and associations:

• Association of Accounting Technicians
• Association of Chartered Certified Accountants
• Association of Taxation Technicians
• Chartered Institute of Taxation
• Institute of Chartered Accountants in England and Wales
• Institute of Chartered Accountants of Scotland
• Society of Trust and Estate Practitioners

Four of the PCRT bodies (ICAEW, ICAS, ACCA and AAT) are members of the International Federation of Accountants (IFAC). The code is also adopted by two other professional bodies, as well as being endorsed by HMRC (it forms the basis for HMRC’s own standard for agents). PCRT has also been recognised by the Solicitors Regulation Authority which has stated that solicitors should be aware of its contents and are expected to abide by it. 

IESBA Code on Tax Planning 

IESBA launched tax planning related revisions to its Code of Ethics in April 2024: IESBA Launches First Global Ethics Standards on Tax Planning. IFAC bodies are expected to adopt the IESBA Code and ICAS will be updating our Code to incorporate these revisions. 

Following the IESBA revisions, the PCRT Group of professional bodies agreed on the importance of preserving the cross-professional body consensus on PCRT as the de facto UK ‘industry standard’ for tax. PCRT already includes standards on tax planning, and its scope is wider than the IESBA code. PCRT applies to all tax work, while the IESBA revisions, which build on what’s already explicit in the PCRT, are limited to tax planning and related services. 

Reconciliation with IESBA 

Work has been undertaken since April 2024 to consider any amendments required to PCRT, to ensure that it’s at least equivalent to the IESBA code (in relation to tax planning). The intention was that members of the UK IFAC bodies that also belong to the PCRT Group should only need to refer to PCRT – and wouldn’t also need to refer to the relevant provisions in the IESBA code.  

A detailed mapping exercise (between PCRT and the IESBA code) was carried out by the PCRT group and a meeting was held with IESBA in November 2024. Amendments to PCRT were identified and agreed by all PCRT group members. The updated version has also been shared with HMRC. 

Updated PCRT

The new version of PCRT will come into effect from 1 January 2026 but is being made available now, so that members can prepare. 

Changes include:

Objectivity: additions have been made to reflect relationships with third parties, and advising on the work of third parties.

Dealing with disagreements: amended and additional wording covering situations where there are disagreements between members and their clients (or an employee and employer) about tax planning arrangements.

However, it's important to note that the structure of PCRT remains unchanged and still consists of the five Fundamental Principles and the five Standards for Tax Planning. Members shouldn't find that the revisions impose significant extra burdens.

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