Britain’s Foreign Office has blocked a plan that would have led to Iran’s Islamic Revolutionary Guard Corps (IRGC) proscribed as a terrorist organisation, according to a report.
The government department cited the need to keep communication channels with Tehran open as relations between the two countries continue on a downward spiral.
Foreign Secretary James Cleverly was told by MPs in the House of Commons this week there had been a “major groundswell” in requests for the Sunak government to designate the IRGC as a terrorist organisation. Mr Cleverly said the Revolutionary Guard’s “malign impact” was felt across the region and the world, but stopped short of saying a proscription was in the pipeline.
Campaigners, analysts and politicians from across the political spectrum have urged the Conservative government to place the IRGC in the same category as Al Qaeda and ISIS. MI5, the UK’s security service, has accused Tehran of plotting to assassinate or abduct British residents on several occasions.
Journalists in London have been given round-the-clock police protection after being sent death threats.
Iran’s execution of British-Iranian citizen Ali Reza Akbari on spying charges last month further soured diplomatic relations.
Under the Terrorism Act 2000, the home secretary has the authority to place a group on the UK’s terrorist list if they believe it is concerned in terrorism, and it is proportionate to do so.
Suella Braverman, the home secretary, and Tom Tugendhat, the security minister, are understood to be in favour of a proscription for the IRGC.
But the Foreign Office is said to have halted the plan, citing the need to retain a communication channel with Iran.
The Times quoted a Whitehall source as saying officials in the Foreign Office “have real concerns about proscription because they want to maintain access”.
“The Home Office, and the government more broadly, supports the move,” the insider added. “The IRGC should have been proscribed by now but the whole process is on ice.”
Officials in the Foreign Office, which is led by Mr Cleverly, reportedly questioned how the IRGC would be defined as a terrorist organisation given the fact it is a government agency, unlike most other groups on the list.
The Foreign Office declined to comment.
The Foreign Secretary has repeatedly declined to say whether the government has plans to proscribe the IRGC, but said ministers would not limit themselves to current sanctions options against Iran.
David Lammy, Labour’s shadow foreign secretary, earlier this week questioned Mr Cleverly about such a move.
“The Islamic Revolutionary Guard Corps is responsible for 10 kidnap and death plots on British soil, the execution of Ali Reza Akbari, the unjust imprisonment of British nationals, supports violent militia across the Middle East, and a brutal crackdown on courageous Iranian protesters,” Mr Lammy said in parliament.
“Labour has been clear, and I wonder if we might get clarity from the Foreign Secretary, we would proscribe the IRGC either using existing terrorism legislation or by creating a new process of proscription for hostile state actors. When is the Foreign Secretary going to act?”
Mr Cleverly replied that the government had “already sanctioned over 300 individuals and entities because of the crackdown on protesters”, as well as individuals and organisations involved in supplying drones to Russia.
The UK has also imposed sanctions on the prosecutor general responsible for passing the death penalty on Mr Akbari, he said, “and we will continue to take actions which will curtail the ability of the IRGC to do these things”.
Mr Cleverly said that ministers “always keep our future options under review”.
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UAE%20ILT20
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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