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Detail of outcome
This consultation has concluded, and we would like to thank those who provided written responses and attended roundtables.
Responses to the consultation indicated that compulsory professional indemnity insurance would not be an effective mechanism to raise standards in the tax advice market, nor would it have a significant impact on consumer protection. Wider difficulties with the market for indemnity insurance highlighted potentially significant feasibility and implementation challenges. The government will therefore not be proceeding with introducing professional indemnity insurance for tax advisers at this time.
Alongside stakeholder feedback, the research report Understanding the characteristics of unaffiliated tax agents informed our conclusion.
The government is committed to raising standards in the tax advice market, and we will conduct a further consultation exploring options to improve the wider regulatory framework around standards in the tax advice market.
This consultation seeks views on:
- proposals to introduce a requirement for tax advisers to hold professional indemnity insurance, including minimum levels of cover, and how the policy could be enforced and implemented
- a definition of tax advice
This will be of most interest to:
- anyone who provides or receives tax advice, or offers services to third parties to assist compliance with HMRC requirements
- the insurance industry
- providers of tax and accounting software