Reform of the ACT regime
Secondary legislation has been made that repeals the shadow ACT rules. In a policy document published alongside the regulations, the government says that the measure “allows companies to utilise remaining surplus ACT balances at a faster rate than previously possible and simplifies the tax code by removing complex legislation”. The measure was first announced at the Autumn Budget 2025.
The regulations have effect for accounting periods ending on or after 1 April 2026.
Commonwealth Games tax exemption
An exemption from income tax on income earned in the UK by certain non-UK resident individuals in connection with the Glasgow 2026 Commonwealth Games is provided by draft secondary legislation. The measure is explained in a policy paper published by the government. Once made, the regulations will come into force on 15 July 2026.
Form P11D and P11D(b) process
The government has put the exemption from electronic filing of expenses and benefits forms for employers who cease to trade during the tax year (or insolvency practitioners who act on their behalf) on a statutory footing with effect from 6 April 2026. The policy paper explains that the measure allows employers who have ceased to trade during the tax year (or insolvency practitioners who act on their behalf) to submit paper P11D and P11D(b) returns to HMRC for the year of cessation mid-year.
MTD income tax: availability
HMRC has advised that the Making Tax Digital (MTD) for income tax service will be unavailable between 5pm on Friday, 20 March 2026 and 1pm on Tuesday, 24 March 2026. Agents will not be able to sign up clients for MTD income tax during that time.
Non-UK domiciles: HMRC campaign
HMRC is writing to unrepresented taxpayers it believes may be affected by the removal of the concept of domicile and the introduction of the foreign income and gains (FIG) regime. The letter provides a summary of the changes and explains that the taxpayer may find it helpful to discuss the matter with a professional adviser.
Tax Confident campaign
HMRC has launched the Tax Confident campaign to help people understand the basics of tax – “what tax is, how it works, and why it matters”. An accompanying toolkit includes website and newsletter copy and social media posts for use by stakeholders interested in supporting the campaign.
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