Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Maryland Extends Income and Property Tax Incentives to Include U.S. Space Force Members
Maryland has expanded its income and property tax incentives to include members of the U.S. Space Force, bringing them in line with benefits previously available to other military branches. The extension covers state income tax exemptions and property tax relief for qualifying Space Force guardians stationed in or residing in Maryland. This legislative update reflects growing recognition of Space Force as an established military service branch deserving equal tax treatment under state law. The change ensures Space Force members are not disadvantaged compared to Army, Navy, Air Force, and other military counterparts when it comes to Maryland state tax obligations.
Official Statistics: Scottish Income Tax Outturn Statistics: 2024 to 2025
Announcement of forthcoming official statistics on Scottish Income Tax outturn for the 2024 to 2025 tax year. Scotland has partial income tax devolution, with the Scottish Parliament setting its own rates and bands for non-savings, non-dividend income. These statistics will show actual tax revenues collected, enabling comparison against forecasts made by the Scottish Fiscal Commission. The data is critical for the fiscal framework settlement between the Scottish and UK governments, determining block grant adjustments and the net fiscal transfer between Edinburgh and Westminster.
Official Statistics: Welsh Income Tax Outturn Statistics: 2024 to 2025
Announcement of forthcoming official statistics on Welsh Income Tax outturn for the 2024 to 2025 tax year. Wales has partial income tax devolution, with the Welsh Government able to vary income tax rates. These outturn statistics will reveal actual revenues collected against forecasts, informing the fiscal framework between the Welsh Government and UK Government. The data supports the block grant adjustment mechanism and provides transparency on Welsh taxpayer contributions, helping assess the performance of devolved income tax policy and its impact on Welsh public finances.
U.S. Residential Solar Installations Set to Stall for Years After Tax Credit Sunset
U.S. residential solar installations face a significant slowdown following the sunset of the federal solar Investment Tax Credit (ITC). The expiration of this personal tax credit, which has driven adoption of rooftop solar by making installations financially viable for homeowners, is projected to stall the residential solar market for several years. The loss of the credit removes a key economic incentive, potentially dampening consumer demand and affecting the broader clean energy transition. Industry stakeholders are warning of prolonged market suppression until alternative incentives or market conditions compensate for the credit's removal.
Submit evidence to support your Child Benefit application
HMRC provides guidance for claimants needing to submit supporting evidence when applying for Child Benefit in the UK. The guidance outlines acceptable documentation to verify eligibility, such as proof of the child's birth, adoption, or residency status. Child Benefit is a government payment for individuals responsible for raising a child, and its administration falls under HMRC's remit. While technically a benefit payment, it intersects with the tax system through the High Income Child Benefit Charge, which claws back payments for higher earners. Tax professionals advising individuals or families should be aware of the evidence requirements to ensure smooth claims processing.
Double Taxation Relief Manual
HMRC's Double Taxation Relief Manual provides comprehensive guidance for tax professionals on the UK's framework for relieving double taxation. It covers the mechanisms by which individuals and companies resident in the UK can obtain relief on foreign income and gains taxed both abroad and in the UK. The manual addresses unilateral relief provisions, bilateral tax treaty applications, credit relief calculations, exemption methods, and the interaction between domestic legislation and international agreements. It serves as an authoritative reference for practitioners navigating cross-border taxation issues, treaty interpretation, and the practical application of double tax conventions to which the UK is a signatory.
How domestic properties are assessed for Council Tax bands
UK government guidance explains how domestic properties are assessed and placed into Council Tax bands in England. The Valuation Office Agency assigns bands based on estimated property values as of April 1991, with bands ranging from A to H. The guidance covers the assessment methodology, how new builds and altered properties are valued, and the process for challenging a band. Council Tax is a local property-based tax in England, Wales, and Scotland, making this directly relevant to personal tax obligations for UK residential property owners and occupiers.
Banks must upload account data to FBR Hub under FY27 Bill
Pakistan's FY27 Finance Bill introduces a mandatory requirement for banks to upload customer account data directly to the Federal Board of Revenue (FBR) Hub. This measure aims to enhance tax compliance and broaden the tax base by giving tax authorities real-time or periodic access to financial account information. The provision represents a significant expansion of third-party data reporting obligations for financial institutions, enabling the FBR to cross-reference declared income against actual banking activity. Tax professionals should note the compliance burden this places on banks and the implications for taxpayer privacy, data security, and potential audit triggers for individuals and corporates with undisclosed income.
Traders demand removal of Rs25,000 fixed tax in Finance Bill 2026
Pakistani traders are demanding the removal of a Rs25,000 fixed tax proposed in Finance Bill 2026. The business community has voiced strong opposition to this levy, arguing it places an undue burden on small traders and retailers. The fixed tax imposition is seen as regressive, affecting traders regardless of their income or turnover levels. Representatives from various trade associations have called on the government to reconsider this measure, highlighting concerns about its economic impact on small businesses. The demand reflects broader tensions between the trading community and tax authorities over the scope and design of taxation measures targeting the retail and wholesale sectors in Pakistan.
Are Wealthy Washington Residents Really Mulling Out-of-State Moves Due to New Tax?
Washington State's newly enacted wealth tax is prompting discussions among high-net-worth residents about potential relocation to lower-tax states. The tax, targeting wealthy individuals, has raised concerns about capital flight as affluent taxpayers weigh the financial implications of remaining in Washington versus moving to states with no income or wealth tax, such as Florida or Texas. Tax professionals and economists are debating whether the behavioral response will be significant enough to erode the tax base. The article examines survey data and anecdotal evidence on relocation intentions, while contextualizing Washington's move within broader state-level trends toward taxing accumulated wealth.
Self Assessment Manual
HMRC's Self Assessment Manual provides comprehensive internal guidance for tax professionals and HMRC staff on the administration of the UK's Self Assessment tax system. It covers procedural rules, filing obligations, payment deadlines, penalties, and compliance requirements for individuals and partnerships submitting tax returns. The manual outlines how HMRC processes returns, handles amendments, issues notices to file, and manages enquiries. It serves as an authoritative reference for understanding HMRC's operational approach to personal tax compliance, including the treatment of late filing, surcharges, and interest charges, making it an essential resource for practitioners advising clients on UK Self Assessment obligations.
Check the recognised overseas pension schemes notification list
HMRC maintains a published notification list of Recognised Overseas Pension Schemes (ROPS) — overseas pension schemes that meet UK conditions allowing individuals to transfer UK pension savings abroad without incurring an unauthorised payment charge. Tax professionals should note that inclusion on the list does not constitute HMRC endorsement or guarantee of tax relief eligibility; scheme managers self-certify compliance. The list is updated on the first and fifteenth of each month. Advisers must verify current ROPS status at the time of transfer and consider the Overseas Transfer Charge, which may apply to transfers made after 9 March 2017 depending on the member's residence and scheme location.
ATAF Research Calls for Stronger and Structured Gender-Responsive Tax Systems Across Africa
The African Tax Administration Forum (ATAF) has published research advocating for the development of stronger, structured gender-responsive tax systems across African nations. The research highlights how tax policies disproportionately affect women versus men, calling for reforms that address gender bias embedded in existing tax frameworks. ATAF urges member countries to integrate gender analysis into tax policy design, administration, and revenue collection processes. The findings emphasize that gender-neutral tax systems often inadvertently disadvantage women due to structural inequalities, and recommends targeted approaches including gender audits of tax legislation, disaggregated data collection, and capacity building within tax administrations to ensure equitable fiscal outcomes across Africa.
Senate panel approves abolition of CVT on foreign assets
A Pakistani Senate panel has approved the abolition of Capital Value Tax (CVT) on foreign assets held by Pakistani residents. The CVT on foreign assets was introduced as part of efforts to document offshore holdings, but the Senate committee has now backed its removal. This legislative development is significant for Pakistani taxpayers with foreign asset exposure, as it eliminates an additional tax burden on overseas holdings. Tax professionals advising high-net-worth individuals or businesses with cross-border asset structures in Pakistan should note this regulatory change, which reduces compliance obligations and tax costs associated with foreign asset ownership under Pakistani tax law.
Business leaders seek greater relief for salaried class in budget 2026-27
Business leaders in Pakistan are calling for greater tax relief for salaried individuals in the upcoming federal budget 2026-27. Industry representatives are advocating for revisions to personal income tax slabs, arguing that the current tax burden on salaried employees is disproportionately high compared to other income groups. Proposals include raising exemption thresholds, reducing marginal tax rates across income brackets, and addressing the disparity between salaried and non-salaried taxpayers. Business groups contend that easing the tax load on employees would boost consumer spending, improve living standards, and encourage formal employment. The budget proposals are being submitted ahead of the government's fiscal planning cycle.
Govt proposes 5pc tax on social media earnings in budget 2026-27
The Pakistani government has proposed introducing a 5% tax on earnings generated through social media platforms in its Budget 2026-27. This measure targets individuals and businesses monetising content across social media channels, reflecting a broader effort to bring digital economy participants into the tax net. The proposal signals Pakistan's intent to capture revenue from the growing creator economy and influencer marketing sector. Tax professionals advising clients in Pakistan's digital content space should assess compliance obligations, registration thresholds, and withholding mechanisms that may accompany this new levy as legislative details emerge through the budget process.
How the PARITY Act would affect digital asset tax reporting requirements
The PARITY Act proposes changes to digital asset tax reporting requirements in the United States, aiming to create consistency in how cryptocurrency and other digital assets are treated for tax reporting purposes. The legislation would affect brokers, exchanges, and taxpayers involved in digital asset transactions, aligning reporting obligations with those applicable to traditional financial instruments. Tax professionals should note the potential impact on Form 1099 reporting, cost basis tracking, and information reporting thresholds. The Act seeks to address existing ambiguities in digital asset classification and ensure equitable treatment across different asset classes, with significant compliance implications for both individual and institutional participants in digital asset markets.
Amid ‘Billionaire’ Tax Battles, California ‘Millionaire’ Tax Extension Faces Few Foes
California's millionaire surcharge tax—an additional 1.75% tax on income exceeding $1 million, originally enacted to fund mental health services—faces little opposition as lawmakers consider extending it beyond its current sunset date. Despite broader national debates over wealth and billionaire taxes, California's extension effort has garnered minimal political resistance. The surcharge generates significant revenue for the state, making it fiscally attractive to legislators. This development occurs alongside federal-level discussions about taxing ultra-high-net-worth individuals, but California's measure is notably distinct in its mental health funding mandate and relatively broad acceptance among stakeholders, including some business groups that might typically oppose such measures.
Tax Minister to owners of dodgy shops: “We are coming for you”
The UK Tax Minister has issued a direct warning to owners of non-compliant retail businesses engaged in tax evasion, signalling intensified HMRC enforcement action against 'dodgy shops.' The campaign targets businesses suspected of suppressing sales, operating off-the-books transactions, and failing to properly account for VAT and income taxes. HMRC is deploying compliance teams and data-driven intelligence to identify and investigate suspect retailers. The minister's public statement serves as both a deterrent and an announcement of increased audit activity in the retail sector, emphasising that tax cheats face significant penalties, back-tax demands, and potential criminal prosecution.
Using Form 8821 to Deliver Higher-Value Service Through Proactive Transcript Monitoring
Form 8821 (Tax Information Authorization) allows CPAs and tax professionals to access IRS transcripts on behalf of clients without full power of attorney. This article explores how proactive transcript monitoring via Form 8821 enables practitioners to deliver higher-value advisory services by identifying IRS notices, unfiled returns, balance dues, and account changes before clients are aware. By regularly reviewing client transcripts through the IRS's Tax Pro Account or e-Services, practitioners can anticipate compliance issues, strengthen client relationships, and position themselves as proactive advisors rather than reactive problem-solvers. The approach transforms routine compliance work into strategic client management and early intervention in potential tax controversies.
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