On 23 June 2026, HMRC published the Tax Update 2026: Simplification, Modernisation and Fairness, a package of 40 measures, several of which directly impact VAT, e-invoicing, customs and indirect tax compliance.
Summary
- HMRC will replace the current email-based OTT process (which itself replaced paper VAT1614 forms only in 2023) with a fully digital portal supporting notifications, revocations, deregistration linkages and bulk uploads for property portfolios and advisers.
- The portal should resolve long-standing pain points: lost notifications, the 6-week acknowledgement gap, evidence problems in property transactions (where buyers must verify the seller’s option), and the absence of any central register accessible to taxpayers.
- Targeted go-live before end-2026; advisers and property-owning groups should prepare an internal OTT inventory now so historical options can be uploaded/registered cleanly when the service opens, avoiding disputes on disposals, lettings and TOGC clearance during transactions.
Article A long-awaited reform: the existing OTT notification process — historically prone to delays, lost notifications and difficulties evidencing historic options — will be replaced by a digital service supporting notifications, revocations, deregistrations linked to property transactions and bulk uploads for advisers. Practical impact may be modest in the short term (many advisers already use email), but it is a meaningful step toward making property VAT transactions smoother and more secure.
Primary Sources
- GOV.UK – Tax Update 2026 summary (HMRC policy paper) [gov.uk]
- GOV.UK – Tax Update 2026 collection (all consultations & documents) [gov.uk]
- Written Ministerial Statement HCWS141 – 23 June 2026 [questions-…liament.uk]
- Deloitte – Weekly VAT News, 29 June 2026 [taxscape.d…loitte.com]
- KPMG UK – Tax Update 2026 commentary [kpmg.com]
- Deeks VAT Consultancy – Tax Update 2026 for VAT, indirect tax and customs [deeksvat.co.uk]
- Kreston Reeves – Tax Update June 2026 [krestonreeves.com]
- Chartered Institute of Taxation (CIOT) – HMRC Tax Update June 2026 [tax.org.uk]
