Tax news in brief

Second batch of MTD letters

In Agent Update 139, HMRC has confirmed that, in February and March 2026, it will write to taxpayers who submitted their 2024/25 tax return in recent months and are expected to be within scope of MTD for income tax from April 2026. This follows an earlier batch of letters sent in November 2025 to taxpayers who submitted their 2024/25 tax return by the end of August 2025, as explained in an earlier article.

Updated HMRC guidance: remittance basis

HMRC has updated its guidance on the use of foreign income and gains (FIG) as collateral for loans in response to technical questions it received. The updated guidance is:

• RDRM33040: use of FIG as collateral;
• RDRM33170: relevant debts and collateral;
• RDRM35050: mixed funds and collateral; and
• RDRD35270: examples of collateral use.

HMRC says the the "updated guidance does not reflect any change in the underlying legislation".

Further information

Agent Update 139

HMRC extra support team

HMRC has updated the list of areas covered by its Extra Support team to include corporation tax. For guidance on the circumstances in which HMRC will provide extra support to a taxpayer, see GOV.UK.

IFS report on tax and disability

The Tax Law Review Committee of the Institute of Fiscal Studies (IFS) has published the report Tax and disability in the UK: review of trusts and other savings options. The report examines the existing disability trust regime in the UK for putting aside savings in respect of eligible disabled people. It makes the following recommendations:

• maintaining the existing regime subject to the consideration of legislative amendments proposed in the report;
• the publication by HMRC of a “Model Trust Deed in order to streamline set-up time and costs; and
• the introduction of an additional simplified savings vehicle to enable savings to be made by people for whom the complexity and cost of trusts may discourage their use.