Income tax exemption for kinship allowances
Regulations have been made that provide an exemption from income tax for kinship allowances made under the Department for Education’s Kinship Zones pilot scheme. The exemption applies from 1 April 2026.
A policy paper published alongside the regulations states that the measure “will ensure carers receive the full financial benefit of the support offered and simplify the tax affairs of affected kinship carers, as they will not need to complete self assessment returns in respect of this income”. It is estimated that there are approximately 4,500 kinship carers taking part in the scheme.
Global information returns
On 18 May 2026, the Organisation for Economic Cooperation and Development published a paper setting out the approach that some of the jurisdictions that have implemented Pillar 2 for 2024 will take in respect of the central filing and exchange of global information returns. HMRC has published guidance which states that the UK supports this approach and explains how HMRC will act in accordance with it.
Advisory fuel rates
HMRC has published the advisory fuel rates applying from 1 June 2026 for employees using a company car. The rates should be used where the employer reimburses employees for business travel in their company cars or requires employees to repay the cost of fuel used for private travel.
Consultation: high value council tax surcharge
At the Autumn Budget 2025, the government announced that it would introduce a high value council tax surcharge on residential properties in England worth £2m or more with effect from April 2028. The government is now consulting on the design of the surcharge. The consultation closes on 14 July 2026.
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