Draft legislation: Better use of new and improved third-party data

This technical consultation proposes ways to improve the quality and consistency of data HM Revenue and Customs (HMRC) receives on interest income (consisting of bank and building society interest and interest from other sources) and card sales (data shared by providers of card acquiring services, such as merchant acquirers). The proposals are intended to help customers get their tax right first time through improving HMRC’s ability to match third party data to taxpayer records, supporting digital prompts and nudges, and improving compliance through better targeted interventions. We expect banks, building societies and other financial institutions, merchant acquirers and payment facilitators, industry bodies and other stakeholders with an interest in the proposed changes to be interested in this technical consultation.

The government will require certain organisations to collect, verify and report data to HMRC under Schedule 23 Finance Act 2026. This includes financial institutions such as banks and building societies and merchant acquirers and payment facilitators.

This consultation covers:

• draft secondary legislation made under Schedule 23 Finance Act 2026
• draft schema for interest income data and card sales data (this is due to replace the BBSI and OI data schema)
• draft notice and guidance for due diligence
• draft notice and guidance on how and when to notify HMRC if you are a relevant data-holder, see  notification to HMRC 

From April 2028 in scope data-holders will:

• provide data on an ongoing basis without issuance of a notice from HMRC
• report data to a set frequency and submit this data to HMRC by a set timeframe
• collect specific tax references from customers and verify this information before submitting it to HMRC
• data-holders must make reasonable efforts to obtain any missing data required to be collected
• data-holders must register with HMRC before reporting

The measure will come into force on 6 April 2028.

Consultation responses should be sent by 20 August 2026, by email to thirdpartydata@hmrc.gov.uk.

When responding please say if you are a business, individual or representative body. In the case of representative bodies please provide information on the number and nature of people you represent.

Please do not send consultation responses to the Consultation Coordinator. Paper copies of this document in Welsh may be obtained free of charge from the above address.