Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
Tax Head
Region
Policy paper: Capital Gains Tax relief on gifts of business assets
The UK government has published a policy paper on Capital Gains Tax (CGT) relief for gifts of business assets, commonly known as holdover relief. This relief allows donors to defer CGT when gifting qualifying business assets, with the gain held over until the recipient disposes of the asset. The paper outlines proposed reforms or clarifications to the relief's scope, eligibility conditions, and interaction with other CGT provisions. The update is part of the broader 2026 tax simplification and modernisation agenda, ensuring the relief operates fairly and as intended for business owners transferring assets.
Modernising the distributions framework
The UK government is consulting on modernising the distributions framework under company law, which governs how companies can lawfully make distributions to shareholders, including dividends. While primarily a corporate law reform, the consultation has direct implications for corporate tax planning, dividend taxation, and the interaction between distributable profits rules and accounting standards. Changes could affect personal income tax on dividends, corporate group structures, and financial reporting requirements. The review aims to clarify and update rules that have remained largely unchanged since the Companies Act 1980.
Guidance: Childcare service: service availability and issues
HMRC provides service availability updates for the Tax-Free Childcare scheme, a UK government benefit allowing eligible working parents to receive government top-ups on childcare costs via an online account. While the scheme is administered by HMRC and has a tax-related name, it is primarily a government childcare subsidy program. Service availability notices relate to IT system uptime rather than tax compliance, reporting, or liability matters. The tax angle is minimal and administrative in nature.
Indicator deep dive: Golden Visas
Tax Justice Network's deep dive into Golden Visa programs examines how citizenship and residency-by-investment schemes enable wealthy individuals to exploit tax advantages across jurisdictions. Golden Visas allow high-net-worth individuals to acquire residency or citizenship in low-tax or secretive jurisdictions, facilitating tax avoidance, capital flight, and obscuring beneficial ownership of assets. The analysis covers how these programs undermine tax transparency, enable high earners to escape personal income tax obligations in their home countries, and complicate enforcement for tax authorities. The piece argues these schemes contribute significantly to global financial secrecy and erode domestic tax bases.
Comedian Carlos Mencia Arrested for Tax Evasion, $8.7M in Unreported Income
Comedian Carlos Mencia has been arrested on tax evasion charges related to approximately $8.7 million in unreported income. The case represents a significant criminal tax controversy involving alleged deliberate failure to report substantial earnings to federal tax authorities. Mencia faces serious criminal penalties under U.S. tax law for the alleged underreporting. The case highlights the IRS's continued enforcement efforts against high-profile individuals who fail to accurately report income, serving as a reminder of the legal obligations and criminal consequences associated with tax evasion in the United States.
Trump Accounts Launch July 4, 2026: Key Timing, Estate, and Gift Tax Implications
Trump Accounts, launching July 4, 2026, are new tax-advantaged savings vehicles with significant implications for estate and gift tax planning. The article examines key timing considerations for contributions and distributions, how these accounts interact with existing gift tax annual exclusions and lifetime exemptions, and their treatment within estate plans. It explores strategies for funding accounts at launch, potential generation-skipping transfer tax considerations, and coordination with existing vehicles like 529 plans. Advisors are encouraged to review client estate plans ahead of the launch date to optimize tax efficiency and ensure compliance with contribution rules.
Official Statistics: Statistical commentary on Non-domiciled taxpayers in the UK
HMRC releases statistical commentary on non-domiciled taxpayers in the UK, providing data on the number of individuals claiming non-domicile status, their income, tax liabilities, and remittance basis claims. This publication is directly relevant to personal income tax policy, particularly given recent UK government reforms to the non-dom regime, including plans to abolish the remittance basis and replace it with a residence-based system. The statistics inform ongoing policy debates about fairness, revenue impact, and the attractiveness of the UK to high-net-worth international residents and investors.
Guidance: Making Tax Digital for Income Tax: service availability and issues
HMRC guidance on Making Tax Digital (MTD) for Income Tax covers service availability and known issues for the UK's digital tax reporting initiative. MTD for Income Tax requires self-employed individuals and landlords to use compatible software to submit quarterly income and expense updates to HMRC. The guidance tracks live service status, planned downtime, and technical issues affecting users and their agents. This is directly relevant to tax technology and personal income tax compliance in the UK, representing a significant digital transformation of how individuals report income tax obligations.
Guidance: Detailed tax guidance for charities
HMRC's detailed tax guidance for charities covers the range of tax reliefs, exemptions, and obligations applicable to charitable organisations in the UK. Topics include Gift Aid, VAT treatment of charitable activities, corporation tax exemptions, payroll giving, and stamp duty reliefs. The guidance helps charities understand qualifying conditions for tax-exempt status and compliance requirements. It is a comprehensive reference for charity finance officers and tax advisers navigating the specific UK tax rules that apply to the charitable sector across multiple tax heads.
Form: Inheritance Tax: gifts and other transfers of value (IHT403)
IHT403 is the HMRC form used to report gifts and other transfers of value made by a deceased person for Inheritance Tax purposes. Executors and personal representatives must complete this form when gifts made within seven years of death may be subject to Inheritance Tax, or where the deceased made regular gifts from income. The form captures details of cash gifts, assets transferred, and exemptions claimed. It forms a critical part of the UK Inheritance Tax compliance process, helping HMRC assess whether additional tax is due on the deceased's estate.
Taxation and Electric Vehicles in South Africa
This article examines the taxation framework surrounding electric vehicles (EVs) in South Africa, exploring how the tax system intersects with the country's EV adoption goals. It likely covers incentives such as tax rebates or deductions available to EV purchasers, import duties on electric vehicles, and potentially VAT implications. South Africa's efforts to encourage cleaner transportation through fiscal policy measures are discussed, alongside any corporate tax considerations for EV manufacturers or fleet operators. The piece reflects broader South African tax policy debates around balancing revenue needs with environmental and economic development objectives in the emerging EV market.
Form: Initial registration as a reporting fund (CISC1)
This UK HMRC form (CISC1) is used by collective investment schemes seeking initial registration as a reporting fund. Reporting fund status determines how UK investors are taxed on their returns — gains are taxed as income rather than capital gains if the fund fails to meet reporting requirements. Registration enables funds to distribute or report income annually, affecting the personal tax treatment of investors. This is relevant to fund managers and investors navigating the UK's offshore fund tax regime, with direct implications for personal income tax liability on fund returns.
Guidance: Child Trust Fund providers guidance
HMRC guidance for Child Trust Fund providers covers the regulatory and tax-advantaged framework governing these savings accounts for children born between 2002 and 2011. Child Trust Funds are tax-exempt savings vehicles, meaning providers must adhere to specific rules regarding contributions, transfers, and withdrawals to maintain their tax-advantaged status. The guidance addresses provider responsibilities including account management, reporting obligations, and compliance requirements. This is relevant to personal savings taxation and the administration of tax-privileged accounts in the UK, making it pertinent to personal income tax policy and financial product regulation.
Tax on inherited property proposed
A proposal has been introduced in Pakistan to levy tax on inherited property, marking a significant shift in the country's personal income and property tax framework. The proposal aims to bring inherited real estate assets into the tax net, addressing wealth concentration and expanding the revenue base. If enacted, heirs receiving property through inheritance would face tax obligations on such transfers. The measure is part of broader fiscal reform discussions in Pakistan, reflecting efforts to enhance tax compliance and equity by taxing wealth transfers that have historically been exempt or under-taxed.
The history of UK capital gains tax in five charts
This article traces the evolution of UK capital gains tax (CGT) through five data visualisations, examining how rates, thresholds, and revenues have changed since CGT was introduced in the United Kingdom. The charts likely cover key reforms across successive governments, illustrating shifts in the tax burden on individuals and businesses disposing of assets. The historical perspective provides context for current policy debates around CGT reform, including rate alignment with income tax and changes to exemptions. Such analysis is relevant for tax professionals, policymakers, and investors assessing the long-term trajectory of UK capital gains taxation.
What exactly is direct tax?
This article provides an educational overview of direct taxes, explaining what they are, how they differ from indirect taxes, and the main types including income tax, corporate tax, and capital gains tax. It covers how direct taxes are levied directly on individuals and businesses based on income or profits, with the taxpayer bearing the full burden rather than passing it on. The piece outlines key characteristics, examples across jurisdictions, and the role direct taxes play in government revenue and fiscal policy, serving as a foundational explainer for those new to tax concepts.
Court Strikes Down Ballot Initiative to Lower Massachusetts Income Tax
A Massachusetts court has struck down a ballot initiative that sought to lower the state's income tax rate. The ruling prevents voters from having the opportunity to vote on reducing the personal income tax burden in Massachusetts. This decision has significant implications for taxpayers and fiscal policy in the state, as proponents of the initiative argued it would provide relief to residents, while opponents contended the revenue reduction would harm public services. The court's intervention highlights the legal complexities surrounding tax-related ballot measures and direct democracy mechanisms in state tax policy.
Trump Accounts Not Subject To ERISA, DOL Says
The U.S. Department of Labor has clarified that 'Trump Accounts' — the proposed tax-advantaged savings accounts for newborns included in recent legislative discussions — would not be subject to ERISA oversight. The DOL's position means these accounts fall outside traditional employer-sponsored retirement plan regulations, giving them a distinct legal structure. This determination has implications for how the accounts will be administered, taxed, and regulated, potentially affecting their attractiveness as savings vehicles and the applicable tax treatment of contributions and withdrawals.
Can’t pay your tax debt right away? We have options to help you – including the Manage balance service
The Canada Revenue Agency (CRA) highlights options available to taxpayers who cannot immediately pay their tax debt. The agency promotes its 'Manage balance' service, which allows individuals to view their balance owing and set up payment arrangements online. The CRA emphasizes that contacting them early can help avoid penalties and interest accumulation. Options include payment plans, pre-authorized debit, and other flexible arrangements. The article encourages taxpayers to use My Account on the CRA portal to manage outstanding balances, underscoring the agency's efforts to make tax debt resolution more accessible and digitally streamlined for Canadian taxpayers.
Controversial California Billionaire Tax Proposal Declared Eligible for the November Ballot
A controversial California ballot proposal targeting billionaires has been declared eligible for the November election. The measure would impose additional taxes on ultra-high-net-worth individuals in California, making it one of the most aggressive state-level wealth tax proposals in the US. The initiative has sparked significant debate among policymakers, business groups, and tax advocates. If passed by voters, it could mark a landmark shift in California's personal income tax landscape and potentially influence similar proposals in other states, though critics warn it could drive wealthy residents to relocate.
Get the Friday Digest
Every Friday, a curated summary of the week's tax news delivered to your inbox. Choose what you want to hear about — no noise, no spam, unsubscribe anytime.
Tax heads you care about(select all that apply)
Regions you care about(select all that apply)
Your email is never shared or sold. You can unsubscribe at any time. Built in compliance with GDPR.