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Statutory Instruments

2026 No. 370 (C. 31)

INCOME TAX

CAPITAL GAINS TAX

The Finance Act 2021 (Income Tax and Capital Gains Tax) (Penalties) (Appointed Day: Digitally Obligated Persons) Regulations 2026

Made

25th March 2026

The Treasury make these Regulations in exercise of the powers conferred by sections 116(3) and (4), 117(2) and (3) and 118(2) and (3) of the Finance Act 2021(1).

Citation

1. These Regulations may be cited as the Finance Act 2021 (Income Tax and Capital Gains Tax) (Penalties) (Appointed Day: Digitally Obligated Persons) Regulations 2026.

Interpretation

1. In these Regulations, “ digitally obligated person ” means a person who, in the tax year 2026-27(2), is subject to a requirement to provide information under regulations made under paragraph 7 of Schedule A1 to the Taxes Management Act 1970(3)(periodic updates), other than a person to whom provision under paragraph 14(1A) or 15(3) of that Schedule applies (prior requirements to be treated as never having been imposed).

Appointed Day

1. —(1) 1st April 2026 is the day appointed for the coming into force of Schedules 24, 25 and 27 to the Finance Act 2021(4) (penalties for failure to make returns or deliberately withholding information and consequential amendments), so far as not already in force, for the purposes of failures by digitally obligated persons in relation to returns(5) which—

(a) are required to be made in respect of persons other than trustees or partnerships in relation to the tax year 2026-27 or any subsequent tax year, and

(b) fall within—

(i) item 1 of the Table in paragraph 2 of Schedule 24, or

(ii) item 1 of the Table in paragraph 1 of Schedule 25.

(2) 1st April 2026 is the day appointed for the coming into force of Schedules 26 and 27 to the Finance Act 2021(6) (penalties for failure to pay tax and consequential amendments), so far as not already in force, for the purposes of failures by digitally obligated persons in relation to payments of the tax due on or before the specified date(7) which—

(a) are payable in respect of persons other than trustees or partnerships in relation to the tax year 2026-27 or any subsequent tax year, and

(b) fall within the table relating to income tax or capital gains tax in paragraph 1 of Schedule 26.

Taiwo Owatemi

Christian Wakeford

Two of the Lords Commissioners of His Majesty’s Treasury

25th March 2026

Explanatory Note

(This note is not part of the Regulations)

These Regulations provide that 1st April 2026 is the appointed day on which Schedules 24 to 27 come into force for income tax and capital gains tax for the purposes of failures by digitally obligated persons in relation to returns required to be made and tax payable by persons other than trustees or partnerships.

Schedules 24 to 27 to the Finance Act 2021 provide for penalties for failures to make returns, pay tax and for withholding information and make consequential amendments.

Regulation 2 defines digitally obligated persons by reference to regulations made under paragraph 7 of Schedule A1 to the Taxes Management Act 1970.

A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to previously announced policy and it is appointed day regulations.

NOTE AS TO EARLIER COMMENCEMENT Regulations

(This note is not part of the Regulations)

Schedules 24 to 27 to the Finance Act 2021 have been brought into force for certain purposes by commencement Regulations made before the date of these Regulations.

| Provision | Date of Commencement | S.I. No. |
| --- | --- | --- |
| Schedules 24, 26 and 27 (for specified VAT purposes) | 1st January 2023 | 2022/1278 |
| Schedules 24 to 27 (for specified Income Tax and Capital Gains Tax purposes) | 6th April 2024 | 2024/440 |
| Schedule 26 (for the purpose of making regulations under paragraph 16(2) of that Schedule) | 12th November 2024 | 2024/1132> |
| Schedule 26 (for the purpose of making regulations under paragraphs 11 and 22(4) of that Schedule) | 28th March 2025 | 2025/399 |
(1) 2021 c. 26.

(2) See sections 989 and 4(2) and (4) of the Income Tax Act 2007 (c. 3) for the meaning of the expressions “tax year” and “ the tax year 2026-27 ” for the purposes of the Income Tax Acts, and section 288(1ZA) of the Taxation of Chargeable Gains Act 1992 (c. 12) for the meaning of those expressions for the purposes of enactments relating to capital gains tax.

(3) 1970 c. 9. Schedule A1 was inserted by section 60(1) and (3) of the Finance (No. 2) Act 2017 (c. 32), and its provisions were amended by paragraph 7(2) of Schedule 6 to the Finance Act 2018 (c. 3), paragraphs 30 and 32 of Schedule 1 to the Finance Act 2022 (c. 3) and sections 256 to 258 of the Finance Act 2026 (c. 11).

(4) Relevant amendments to Schedule 24 were made by sections 259 and 262 of the Finance Act 2026. Relevant amendments to Schedule 25 were made by section 259 of the Finance Act 2026.

(5) See paragraph 3(3) of Schedule 24 and paragraph 2(2) of Schedule 25 to the Finance Act 2021 for the meaning of “return”.

(6) Relevant amendments to Schedule 26 were made by section 335 of the Finance (No. 2) Act 2023 (c. 30), S.I. 2025/589 and sections 263 and 264 of the Finance Act 2026.

(7) See paragraph 1 of Schedule 26 to the Finance Act 2021 for the meaning of “tax due” and “specified date”.

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