This is the first in a series of regular updates by HMRC to help licensing bodies prepare for tax conditionality, a new policy that will introduce a tax check into the licencing process for some licence applications in England and Wales from April 2022.

The update provides an overview of HMRC’s progress in developing this new measure and explains how this will work in practice. It is intended to act as a brief guide to the policy. HMRC will provide further updates between now and April 2022, and more detailed guidance on the operation of the tax check for both licensing bodies and applicants.