Seven UK professional bodies responsible for the Professional Conduct in Relation to Taxation (PCRT) today announced revisions to align with global ethical standards in tax conduct.
This move, effective from January 1, 2026, marks a significant shift as the PCRT will now reflect wording changes consistent with international codes, particularly those set by the International Ethics Standards Board for Accountants (IESBA), said Association of Chartered Certified Accountants in a report today.
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Originally established in 1995, PCRT outlines essential principles and standards for members and students of the author bodies, emphasizing high ethical conduct in taxation. The UK notably pioneered enhancements to PCRT in 2017 by incorporating five new standards focusing on tax planning. However, the recent global focus on tax avoidance has prompted international standard setters to dictate ethical benchmarks for tax planning, which are now integrated into the PCRT updates.
While the IESBA”s revisions are concentrated on tax planning and related services, PCRT”s scope surpasses these, covering all tax-related activities. This comprehensive approach is reflected in the updated wording, especially concerning tax planning standards, ensuring consistency with IESBA”s guidelines.
Additional modifications in the PCRT address interactions with third parties and strategies for resolving disagreements, further broadening its applicability. Glenn Collins, Head of Policy, Technical and Strategic Engagement at the Association of Chartered Certified Accountants (ACCA), highlighted the unified standard”s significance. “Aligning PCRT with the IESBA”s recent standards ensures that it remains the UK”s definitive reference for tax conduct, providing consistency across different professional affiliations,” Collins remarked.
Despite the adjustments, the fundamental structure of PCRT remains intact, comprising the five Fundamental Principles and five Standards for Tax Planning. The modifications are not anticipated to impose significant additional burdens on professionals offering tax advice, maintaining ease of compliance.
This strategic alignment underscores the UK”s commitment to ethical leadership in tax conduct on the international stage, reinforcing the importance of uniform standards across professional bodies.