INTM917420 - DRAFT: The International Controlled Transaction Reporting Regulations: Regulations Parts 2 and 3
This guidance is in draft. It covers the International Controlled Transaction Reporting Regulations 2026 (‘the Regulations’), which were laid before the House of Commons on 4 November 2026. HMRC aims to publish the ICTS notice on 26 November 2026 (when the Regulations come into force), and detailed guidance on the ICTS notice in this manual by 31 December 2026, prior to the reporting requirement coming into effect from 1 January 2027.
Introduction
Part 2 of the International Controlled Transaction Reporting Regulations 2026 (the ‘Regulations’) covers regulations 4 to 9 that outline the reporting requirement for a specified international controlled transaction (SICT).
This part outlines the requirement to report specified information (regulation 4), exceptions to that requirement (regulation 5), the date by which that requirement must be met (regulation 6), the form and manner in which the information is required to be provided (regulation 7), how a Commissioners’ direction may be used by HMRC (regulation 8) and how HMRC defines 'accuracy' for the purposes of the ICTS (regulation 9).
Part 3 details the requirements of how, and when, there must or may be an amendment to the information submitted (regulation 10), and cases where an amendment is not needed (regulation 11). The Regulations also state the process for amendment (regulation 12), and the date by which an amendment must be made (regulation 13).
Regulation 4: Requirement to provide specified information
Regulation 4 sets out the overarching framework of the reporting requirement.
Firstly, regulation 4 specifies that in order for the reporting requirement to apply to a SICT, the threshold requirement set out in an ICTS notice must be met. Where the threshold requirement is met, the reporting entity (regulations 16 and 17) must provide the specified information (regulation 18) by the submission deadline (regulation 6). Where the threshold requirement is not met, there is no reporting obligation.
Under Regulation 4(3) a managing agent of a Lloyd’s syndicate must provide specified information on a SICT that has been included in a syndicate return where that SICT relates either to the managing agent (regulation 4(3)(a)) or to each member of a syndicate that it manages (regulation 4(3)(b)).
To note: a managing agent of a Lloyd’s syndicate must also provide specified information in relation to a SICT to which it is a party, where that SICT is not related to any syndicate that it manages (regulation 16(1)(a)). Where a member of a Lloyd’s syndicate is party to a SICT that has not been included in a syndicate return, it must provide specified information relating to that SICT (regulation 4(2)) as they are the reporting entity (regulation 16(1)(a).
Where a transaction meets both the transfer pricing condition and the permanent establishment condition, specified information must be reported separately in relation to each condition.
Regulation 5: Exception to regulation 4
The reporting requirement at regulation 4 applies except where any of the following three exceptions apply. That is, there is no reporting requirement in respect of:
- A case specified in the ICTS notice.
- Where specified information on a SICT has already been provided to HMRC for that specific accounting period or underwriting year by a reporting entity.
- For charities, as defined by paragraph 1 of Schedule 6 to the Finance Act 2010, and their wholly owned subsidiaries, as defined by section 200 of the Corporation Tax Act 2010.
For the second exception, the intention is to avoid duplicate reporting of the same SICT by different reporting entities.
Regulation 6: Submission deadline
For most years, deadlines for submission of the ICTS are the same as the submission date for the relevant return. Therefore, the regulations cross refer to those various deadlines under the legislation and so will differ based on the underlying tax return.
- For company tax returns, the relevant legislation is paragraph 14 of Schedule 18 to the Finance Act 1998.
- For partnership returns, the relevant legislation is section 12AA of the Taxes Management Act 1970.
- For Lloyd’s of London syndicates, the relevant legislation is regulation 5 of the Lloyd’s Underwriters (Tax) Regulations 2005 (LUTR05).
Unless otherwise specified in a notice if the accounting period is a short period that ends on or before 30 September 2027, the deadline for submission is the later of 30 September 2028 and a date set out in a notice. This date may apply even where this is more than 12 months from the end of the accounting period and therefore may provide a more generous filing deadline than the relevant return.
For Lloyd's syndicates, the submission deadline follows the deadline for submitting the syndicate return under regulation 4 of LUTR05, unless otherwise specified in the notice. In accordance with regulation 1, this means that the first submission will be for the Year of Account 2027, comprising underwriting years 2027, 2028 and 2029.
Regulation 7: Form and manner
Specified information required under these regulations must be provided in the form and manner described in regulation 7. Details on the form and manner of disclosure for each type of transaction are deferred to the notice, however there are two principles:
- Numerical data must be rounded to the nearest point of reference (regulation 7(2)):
- For percentages, this must be to the nearest decimal place
- Other numerical data must be to the nearest unit of measurement
- Where specified in the ICTS notice, specified information relating to one or more SICTs must be aggregated and provided in a single entry.
Should specified information provided to HMRC not meet the requirements of regulation 7, this is treated as a failure to provide specified information. It is required that the specified information for the SICT would be submitted under regulations 10 to 13 that follows the requisite form and manner. Regulations 19 and 20 outline the penalties which may be assessed for such a failure.
Regulation 8: Commissioners' directions
Where there is reason to believe that the specified information provided to HMRC is incomplete or where HMRC need to determine whether the information is accurate, a Commissioners' direction may be used.
Such a direction would request additional information that an officer of Revenue and Customs believes is reasonably required. The direction would specify what additional information is required, the form and manner in which the information must be provided, and the time by which it must be provided.
Regulation 8(2) reflects the primary legislation (FA26/S48(2)(c)) that a direction can be specific or general. For example, a specific direction could be given to a singular reporting entity, and a general direction given to all, or to a group, of reporting entities.
Regulation 9: Consistency with the relevant return and accuracy
For the purposes of the Regulations, the extent to which the information reported is consistent with the analysis used to complete the relevant return is a key part of an ICTS return’s accuracy. The intention of the ICTS is to support the identification of higher risk transfer pricing and permanent establishment filing positions taken by taxpayers. On that basis, information reported should reflect the matters to which it relates and the basis on which the relevant return has been prepared.
Where reporting of specific data points is required by the Regulations, and the same data point is contained in the relevant return, the information provided must be the same. Where reporting of information is required that is not contained in the relevant return, but uses the same analysis as the relevant return, such as a comparability analysis, the information provided must be consistent with the analysis used to complete the relevant return. This means the information provided must not have any material errors or omissions and must correctly reflect the transfer pricing or permanent establishment position within the relevant return.
For partnerships, accuracy as defined by regulation 9 relates only to the calculation of profits under s1259 of the Corporation Tax Act 2009. Consistent with the identification of “company partnerships” as reporting entities, the practical effect of this is that the specified information to be reported by such partnerships should align with the s1259 CTA 09 calculation of profits or losses of the partnership (hypothesised as a company carrying on the trade of the partnership) per the corporation tax (rather than income tax) acts.
Where specified information provided to HMRC is not accurate, reporting entities may be liable to a penalty under regulation 21 (penalties for inaccurate specified information).
Regulations 10 to 13: Amendment of the specified information
Where information has been provided to HMRC, and it no longer meets the requirements of accuracy at regulation 9, then a reporting entity must amend the specified information.
Where the relevant return is amended, so that the specified information is no longer consistent with the relevant return as required under regulation 9, then the specified information must also be amended so that both filings remain consistent (regulation 10(2)(a)). Regulation10(2)(b) explains that where an exemption given under regulation 15 no longer applies to the SICT, the specified information must be amended. 10(2)(c) provides for an amendment to be required for any other reason where specified information is no longer accurate.
Reporting entities may choose to amend their ICTS under the same principles as a tax return may be amended by a taxpayer. Examples could include when a mistake is identified, such as an omission or a calculation error, or if further information becomes available, but where these do not alter the specified information in a way that means an amendment must be made (regulation 10(3)).
Exceptions to the amendment requirement in regulation 10 are provided in regulation 11. These exceptions reflect the purpose and function of the ICTS as a tool to support identification of higher risk businesses and arrangements. The exceptions therefore reflect cases where HMRC has already considered the risk status and reviewed a transaction in detail.
An amendment to the ICTS is not required in the following cases:
- Where a relevant return has been amended, but the amendment does not relate to a SICT and so does not alter the accuracy of the specified information provided under the reporting requirements.
- Where a relevant return has been amended, and the amendment has been made, either by HMRC or a taxpayer, as part of, or at the conclusion of an enquiry.
- Where there has been an amendment following a discovery assessment or determination by HMRC under FA98/Sch18/Para41, TMA70/S30B or LUTR05/Reg7 (limited to the application of paragraph 41(2)).
For most years, the deadline to amend specified information provided under these Regulations is the same as the amendment deadline for the relevant return. Therefore, the regulations cross refer to those various deadlines under the legislation and so will differ based on the relevant tax return. This applies whether the amendment is required by the Regulations, or whether a reporting entity has chosen to make the amendment.
The deadlines for amendment are in the following legislation:
- For company tax returns the relevant legislation is FA98/Sch18/para15.
- For partnership returns the relevant legislation is TMA70/s12ABA.
- For Lloyd’s syndicates the relevant legislation is LUTR05/Reg5.
As noted above, for the first year the ICTS is required to be submitted, if the accounting period is a short period, and ends before 30 September 2027, regulation 6 sets the deadline for submission of the ICTS as the later of 30 September 2028 or a date specified in the notice. This date may apply even where this is more than 12 months from the end of the accounting period and therefore may provide a more generous filing deadline than the relevant return. In this case, the deadline for amendment of that ICTS submission is the later of 30 September 2029 and a date set out in the notice.
For Lloyd's syndicates, the submission deadline and amendment deadline for the ICTS follow the deadlines for submitting and amending the syndicate return (LUTR/Reg4 and Reg5).