HM Revenue & Customs (HMRC) has initiated a public consultation regarding proposed new reporting requirements for transactions between close companies and their participators. The consultation document, published on March 19, 2026, seeks input on how these transactions are currently managed and aims to ensure that any future reporting obligations are proportionate and well-supported for affected entities and their advisors. This initiative is particularly relevant to close companies, their participators, tax advisors, and tax software developers.

Regulated entities, including close companies and their participators, along with their advisors and tax software developers, are encouraged to submit their views by the deadline of 9:30 am on June 10, 2026. The consultation seeks to understand the practicalities of current reporting practices to inform the design of future requirements, ensuring a modernized and proportionate reporting framework. Failure to respond may result in the implementation of reporting requirements without consideration of specific industry concerns.