Tax E-News - May 2025

From Tax E-News bulletin, provides updates on several significant tax changes. It outlines the phased introduction of Making Tax Digital for Income Tax (MTD for IT), clarifying who will be affected and when, defining qualifying income, and detailing the requirements for digital record keeping and quarterly reporting, while noting there are no immediate plans for quarterly payments. The bulletin also covers changes to the taxation of non-UK domiciled individuals, introducing a new four-year Foreign Income & Gains (FIG) regime and altering the criteria for Inheritance Tax on non-UK assets. Furthermore, it discusses the abolition of the Furnished Holiday Lettings (FHLs) regime, explaining the resulting changes in tax treatment and outlining some transitional measures. Finally, it touches on the ongoing legal debate regarding the VAT classification of 'food' versus 'confectionery', referencing a recent case concerning marshmallows.

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