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PART 8U.K.Other exemptions

Prospective

Income exemptionU.K.

21.—(1) The digital requirements do not apply to a person for a tax year to which the exemption in this regulation applies.

F1(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F2(3) The exemption applies—

(a)for the tax year 2026-27, if the amount of the person’s qualifying income for the tax year 2024-25 is not more than £50,000, and

(b)for subsequent tax years, if the amount of the person’s qualifying income for the most recent tax year in relation to which the filing deadline fell before the start of the tax year in question is not more than £30,000.]

(4) The filing deadline in relation to a tax year is the date on or before which the person is required to comply with a notice to file under section 8 of TMA 1970.

(5) A person’s qualifying income for a tax year is the sum of the amounts of income F3... which, for each business carried on by the person in that tax year, are included in that person’s return under section 8 of TMA 1970 for that tax year(1).

[F4(5A) But a person’s qualifying income for a tax year does not include any qualifying care receipts for that tax year.

(5B) For the purpose of paragraph (5), the amount of income for each business is—

(a)the amount included in the return before any deductions, or

(b)if a person is not required to include in the return the amount of income before any deductions, the amount included in the return after deductions.

(5C) For the purposes of determining a person’s qualifying income for a tax year, no account will be taken of any amendment to that person’s return for that year if—

(a)it would increase that person’s qualifying income for that year, and

(b)it is made after the start of the tax year to which the exemption under this regulation would apply.]

(6) If a person’s qualifying income for a tax year is in respect of a period of other than 12 months, the qualifying income must be adjusted proportionately on a time basis, or, if it appears that that method would work unreasonably or unjustly, on a just and reasonable basis.

(7) If a person is not carrying on a business in a tax year the qualifying income is treated as nil.

[F5(8) “Qualifying care receipts” has the same meaning as in Chapter 2 of Part 7 of ITTOIA  2005.]

Textual Amendments

Commencement Information

I1Reg. 21 in force at 6.4.2026 (as amended by S.I. 2024/167, reg. 3), see reg. 1

Prospective

Income exemption: persons to whom the digital requirements have applied for three tax yearsU.K.

22.—(1) The digital requirements do not apply to a person for a tax year to which the exemption in this regulation applies.

F6(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The exemption applies if—

(a)the digital requirements applied to the person in respect of each of the three previous tax years; and

(b)the person’s qualifying income for each of those three tax years was not more than [F7£30,000].

(4) A person’s qualifying income for a tax year is—

(a)the sum of the amounts of income, before any deductions, which, for each business carried on by the person in that tax year, are included in that person’s return under section 8 of TMA 1970 for that tax year; or

(b)where the tax year has ended but the filing deadline for the tax year has not passed, so much of the amounts of income, before any deductions, as are included in the quarterly updates for that tax year for each business carried on by the person.

(5) The filing deadline in relation to a tax year is the date on or before which the person is required to comply with a notice to file under section 8 of TMA 1970.

(6) If a person’s qualifying income for a tax year is in respect of a period of other than 12 months, the qualifying income must be adjusted proportionately on a time basis, or, if it appears that that method would work unreasonably or unjustly, on a just and reasonable basis.

Textual Amendments

Commencement Information

I2Reg. 22 in force at 6.4.2026 (as amended by S.I. 2024/167, reg. 3), see reg. 1

Prospective

Election not to be exemptU.K.

F823.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

Prospective

Non-resident company exemptionU.K.

24.  The digital requirements do not apply to a company which is chargeable to tax under Part 3 of ITTOIA 2005.

Commencement Information

I3Reg. 24 in force at 6.4.2026 (as amended by S.I. 2024/167, reg. 3), see reg. 1

Prospective

Trustee exemptionU.K.

25.—(1) The digital requirements do not apply to a person acting as a trustee.

(2) For the purposes of paragraph (1), a trustee includes an executor or administrator who is liable to income tax under section 74(1) of TMA 1970.

Commencement Information

I4Reg. 25 in force at 6.4.2026 (as amended by S.I. 2024/167, reg. 3), see reg. 1

Prospective

Exemption for foreign businesses of non-UK domiciled individualsU.K.

26.—(1) The digital requirements do not apply to a person in respect of that person’s foreign businesses for a tax year in which the person is not domiciled in the United Kingdom.

(2) For the purposes of paragraph (1), a person’s foreign businesses are—

(a)that person’s overseas property business within the meaning of section 265 of ITTOIA 2005; and

(b)any trade, profession or vocation carried on by that person outside the United Kingdom.

(3) Where a person carries on a trade, profession or vocation partly in the United Kingdom and partly outside the United Kingdom, the part carried on outside the United Kingdom is a foreign business for the purposes of paragraph (1), but the part that is carried on in the United Kingdom is not.

(4) Section 835BA (deemed domicile)(2) of ITA 2007(3) applies for the purposes of this regulation.

Commencement Information

I5Reg. 26 in force at 6.4.2026 (as amended by S.I. 2024/167, reg. 3), see reg. 1

[F9Qualifying care exemptionU.K.

26A.—(1) The digital requirements do not apply to a person in respect of that person’s provision of qualifying care.

(2) “Provision of qualifying care” has the same meaning as in Chapter 2 of Part 7 of ITTOIA 2005.]

Textual Amendments

[F9No NINO exemptionU.K.

26B.—(1) The digital requirements do not apply to a person for a tax year if on 31st January before the start of that tax year the person did not have a national insurance number.

(2) “National insurance number” means the national insurance number allocated within the meaning of regulation 9 of the Social Security (Crediting and Treatment of Contributions, and National Insurance Numbers) Regulations 2001.]

Textual Amendments

(1)

References to a return under section 8 of TMA 1970 are defined in subsection (7) of that section; that subsection was inserted by paragraphs 1 and 3 of Schedule 14 to the Finance (No. 2) Act 2017.

(2)

Section 835BA was inserted by section 29(1) of the Finance (No. 2) Act 2017.

(3)

“ITA 2007” is defined in section 118 of TMA 1970. That definition was inserted by paragraphs 242 and 263 of Schedule 1 to the Income Tax Act 2007 (c. 3).