Tax News Daily
The latest tax news from around the world, summarised and tagged for tax professionals. Updated twice daily.
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Even a 2-Day Delay Can Kill a Reassessment: Delhi High Court Draws a Strict Line on Section 148 Timelines
The Delhi High Court has ruled strictly on procedural timelines under Section 148 of the Income Tax Act, holding that even a two-day delay in issuing reassessment notices can invalidate the entire reassessment proceedings. The court emphasized that statutory deadlines are mandatory and not merely directory, leaving no room for condonation of delay in such matters. This ruling reinforces taxpayer protections against reassessment and signals that tax authorities must adhere precisely to prescribed timelines or risk their proceedings being struck down entirely.
Is Delay the End of a Tax Case? ITAT Says Justice Must Prevail Over Technicalities
India's Income Tax Appellate Tribunal (ITAT) has ruled that procedural delays should not automatically defeat a taxpayer's case when substantive justice is at stake. The tribunal held that technicalities and limitation periods must be balanced against the principles of natural justice and equity, allowing delayed appeals in appropriate circumstances. The decision reflects a judicial philosophy prioritizing merit-based adjudication over rigid procedural bars, offering relief to taxpayers who may have missed filing deadlines due to genuine hardship or oversight.
What if Andy Burnham lowered the mansion tax threshold to £1.5m?
An analysis exploring the potential revenue and distributional impacts of lowering Andy Burnham's proposed mansion tax threshold from £2 million to £1.5 million. The piece examines how a reduced threshold would broaden the tax base, capturing more high-value properties in Greater Manchester and potentially across England. It considers the number of additional properties that would fall within scope, estimated revenue implications, and political feasibility. The analysis likely draws on property price data and compares outcomes at different threshold levels, contributing to the broader debate on wealth taxation and property levies in the UK.
Guidance: CWG2: further guide to PAYE and National Insurance contributions
CWG2 is HMRC's comprehensive technical guide for employers on operating PAYE and calculating National Insurance contributions in the UK. It covers complex payroll scenarios including benefits in kind, irregular payments, termination payments, directors' NI, and special employment arrangements. The guide is an authoritative reference for payroll professionals, HR teams, and software developers ensuring accurate tax and NI deductions. Regular updates reflect legislative changes, making it essential for ongoing payroll compliance. It directly addresses both income tax withholding under PAYE and employer/employee National Insurance contribution obligations.
Employees working abroad
UK government guidance on tax and payroll obligations for employers with staff working abroad. Covers PAYE responsibilities, National Insurance contributions, and the implications of employees being based overseas. Addresses when UK payroll tax rules apply, potential double taxation issues, and employer compliance requirements when workers relocate internationally. Relevant for UK businesses managing cross-border workforces and needing to understand their obligations regarding income tax withholding and social security contributions for expatriate or remote employees working outside the United Kingdom.
42 States Don’t Tax Social Security. Here Are the 8 That Do
A breakdown of U.S. state-level taxation of Social Security benefits reveals that 42 states exempt such income from state personal income tax, while 8 states continue to tax it. The article is relevant for retirees and CPAs advising clients on retirement income planning, highlighting geographic tax differences that can significantly affect after-tax retirement income. The states that tax Social Security benefits vary in their approaches, with some offering partial exemptions based on income thresholds, making state residency a meaningful factor in personal income tax planning for retirees.
The Structured Installment Sale: What CPAs Should Be Telling Business and Real Estate Clients Before They Close
This article advises CPAs on structured installment sales as a tax-efficient strategy for business and real estate clients prior to closing a transaction. Unlike traditional installment sales, structured installment sales involve assigning future payment rights to a third-party assignee, potentially deferring capital gains tax obligations over an extended period. The piece outlines key benefits including tax deferral, income smoothing, and estate planning advantages. CPAs are encouraged to introduce this option early in deal negotiations to maximize client outcomes, particularly for high-value transactions where immediate capital gains recognition could result in significant tax liability.
Form: Tell HMRC that Inheritance Tax is due on the 10 year anniversary of a trust — IHT100d
HMRC form IHT100d used to report Inheritance Tax due on the ten-year anniversary charge of a non-interest-in-possession trust (also known as a discretionary or relevant property trust). Under UK Inheritance Tax rules, such trusts are subject to a periodic charge of up to 6% on the value of trust assets every decade. This form enables trustees to calculate and declare the charge to HMRC, ensuring compliance with the relevant property regime under the Inheritance Tax Act 1984.
Trump Accounts Risk Missing Low-Income Families Buying In
Trump Accounts, proposed savings vehicles in recent U.S. tax legislation, risk failing to reach low-income families who may lack the financial resources or awareness to participate. The accounts offer tax-advantaged savings opportunities, but critics argue the structure and access barriers mean benefits will disproportionately flow to higher-income households. Without targeted outreach, matching contributions, or simplified enrollment mechanisms, the policy goal of broad-based wealth-building could fall short, echoing concerns raised about similar past initiatives like Health Savings Accounts that skewed toward wealthier participants.
Guidance: Agent update: Making Tax Digital for Income Tax
HMRC's agent update on Making Tax Digital for Income Tax (MTD IT) provides tax agents with guidance on preparing their clients for the upcoming MTD IT mandation. It covers key implementation dates, the qualifying income thresholds triggering MTD obligations, how agents can sign up clients, compatible software requirements, and the quarterly reporting process. The update addresses transitional arrangements and highlights HMRC support resources available to agents. This is directly relevant to UK personal income tax compliance digitalisation, impacting self-employed individuals and landlords above the income threshold from April 2026.
Get ready for MTD: an agent toolkit
HMRC's MTD agent toolkit provides a structured resource to help tax agents prepare their clients for Making Tax Digital for Income Tax. It includes step-by-step guidance on identifying affected clients, assessing software compatibility, managing client sign-ups, and understanding quarterly obligation reporting cycles. The toolkit outlines key deadlines, income thresholds, and transitional relief provisions. It also offers communication templates and checklists agents can use with clients. The resource reflects the UK government's continued push to digitalise income tax compliance for self-employed individuals and landlords, with mandation beginning April 2026.
Trusts, Settlements and Estates Manual
HMRC's Trusts, Settlements and Estates Manual is an official internal guidance resource covering the tax treatment of trusts, settlements, and estates in the UK. It addresses income tax, capital gains tax, and inheritance tax rules applicable to these legal arrangements, providing detailed technical guidance for tax professionals and HMRC staff. Topics include how income and gains are assessed within trusts, trustee obligations, beneficiary taxation, and estate administration. This manual serves as a authoritative reference for understanding complex UK tax rules governing wealth held in trust structures and upon death.
How your State Pension is taxed
This UK government guidance explains how State Pension payments are subject to income tax. While the State Pension itself is paid without tax deducted at source, it counts as taxable income and may push recipients into a tax-paying position when combined with other income. HMRC typically collects any tax owed through PAYE adjustments on other income sources or via Self Assessment. The guidance clarifies thresholds, how tax codes are adjusted, and what pensioners need to do if they receive only the State Pension. It is directly relevant to UK retirees managing their personal income tax obligations.
Should Britain tax its citizens abroad?
This article examines the debate over whether the United Kingdom should adopt citizenship-based taxation (CBT), similar to the US model, which would require British citizens living abroad to pay UK taxes regardless of residency. The discussion covers the policy rationale, potential revenue implications, administrative challenges, and comparisons with the current residency-based system. It considers arguments for and against CBT, including fairness concerns, the risk of driving away high earners, and the complexities of enforcement and double taxation treaty interactions for British expats worldwide.
Employee Tax Advantaged Share Scheme User Manual
HMRC's internal manual covering employee tax-advantaged share schemes in the UK. The manual provides detailed guidance on the tax treatment of various approved share schemes including Save As You Earn (SAYE), Share Incentive Plans (SIPs), Company Share Option Plans (CSOPs), and Enterprise Management Incentives (EMIs). It outlines eligibility conditions, tax relief available to employees and employers, compliance requirements, and administrative procedures. The manual serves as a reference for HMRC officers and taxpayers navigating the rules governing tax-advantaged employee share ownership arrangements under UK law.
IRS adds online option, details for Kwong-related refund claims
The IRS has introduced an online filing option and additional procedural details for taxpayers seeking refund claims related to the Kwong case. This development provides taxpayers and practitioners with a more accessible method to submit claims, streamlining the process for those affected by the relevant court ruling. The Kwong decision has implications for specific tax refund eligibility, and the IRS guidance clarifies the steps claimants must follow, including documentation requirements and deadlines. The new online option reduces administrative burden and improves efficiency for affected filers navigating the refund claim process.
IRS adds online option, details for Kwong-related refund claims
The IRS has introduced an online option and additional procedural details for taxpayers filing refund claims related to the Kwong case. This development streamlines the process for affected individuals seeking to recover taxes, providing clearer guidance on eligibility and submission requirements. The Kwong case involves specific tax refund entitlements, and the IRS update aims to reduce administrative burden by enabling digital filing. Taxpayers and practitioners can now access the online portal to submit claims more efficiently, reflecting the IRS's broader effort to modernize taxpayer services and improve accessibility for controversy-related refund procedures.
NY Tax on Remote Work Again Withstands Professor’s Challenge
A New York court has again upheld the state's 'convenience of the employer' rule, rejecting a professor's challenge to New York's taxation of remote work income. Under this rule, New York taxes income earned by nonresidents working remotely for New York employers unless the remote arrangement is necessitated by the employer. The ruling reinforces New York's aggressive stance on taxing out-of-state remote workers, a contentious issue that has grown significantly post-pandemic and continues to raise questions about the constitutionality of such tax regimes.
Short-Term Accommodation in a Residential Unit – VAT and PIT Treatment
This article explores the tax treatment of short-term accommodation rentals within residential units, covering both VAT and personal income tax (PIT) implications. It examines when such rentals qualify as VAT-exempt residential letting versus taxable short-term accommodation services, the role of ancillary services in determining VAT status, and applicable thresholds. On the PIT side, it addresses how rental income is classified, what deductions are available, and how platforms such as Airbnb affect reporting obligations. The analysis provides guidance for individual landlords navigating dual tax obligations across these rental arrangements.
TIGTA Made 91 Surprise Visits to IRS Taxpayer Assistance Centers. Here’s What Happened
The Treasury Inspector General for Tax Administration (TIGTA) conducted 91 unannounced inspections of IRS Taxpayer Assistance Centers (TACs) to evaluate service quality and compliance. The visits assessed whether centers were properly staffed, accessible to taxpayers, and meeting service standards. Findings highlighted operational issues and areas needing improvement in how the IRS delivers in-person taxpayer support. The report underscores ongoing scrutiny of IRS administrative performance and accountability, with implications for how the agency allocates resources and serves individuals seeking face-to-face assistance with tax matters.
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