Borderline Wealthy - June 2026

The rules just changed. Again.

The UK, Canada, and the US continue to implement major international tax reforms affecting expats, globally mobile professionals, and multinational groups.

Here's what happened and what it means for you.

UNITED KINGDOM

The FIG Regime Is Fully Operational
The UK abolished the remittance basis and introduced the 4-year Foreign Income and Gains (FIG) regime from 6 April 2025. Eligible individuals are UK tax residents in their first four tax years of UK residence after at least 10 consecutive years of non-UK tax residence. The regime can exempt qualifying foreign income and gains from UK tax, but claims are not automatic and must be made through Self Assessment. Foreign employment income generally falls outside FIG and may instead qualify for Overseas Workday Relief.

Mandatory Tax Adviser Registration
HMRC opened tax adviser registration on 18 May 2026 and will phase in requirements through March 2027. Individuals using tax agents should confirm their adviser is registered and compliant with the new rules.

Making Tax Digital & Pension Changes
Making Tax Digital for Income Tax begins its first live phase from the 2026/27 tax year, requiring digital record-keeping and quarterly submissions for affected sole traders and landlords. Separately, unused pension funds and certain death benefits are expected to fall within Inheritance Tax from 6 April 2027, making estate-planning reviews increasingly important.

What UK Taxpayers Should Do Now

• Confirm eligibility for the FIG regime and ensure claims are made correctly.

• Prepare for Making Tax Digital if you're a landlord or sole trader.

• Review pension and estate-planning arrangements ahead of the proposed 2027 changes.

• Confirm your tax adviser is compliant with HMRC's new registration framework.

CANADA

Hybrid Mismatch Rules Expand
Canada continues implementing OECD BEPS Action 2 measures. Businesses with cross-border financing or hybrid entity structures should review arrangements before the expanded rules take effect, as deductions may be denied and additional income inclusions may arise.

Pillar Two Developments
Canada has proposed further amendments to its Global Minimum Tax Act, including UTPR timing adjustments and transitional safe-harbour provisions. US-parented multinational groups with Canadian operations should monitor developments closely.

What Canadian Businesses Should Do Now

• Review financing and holding structures for hybrid mismatch exposure.

• Assess whether existing arrangements could trigger denied deductions or additional income.

• Monitor Pillar Two developments and safe-harbour provisions.

• Evaluate compliance impacts for Canadian subsidiaries within US-parented groups.

UNITED STATES

Foreign Earned Income Exclusion
The FEIE for tax year 2025 is $130,000 per qualifying taxpayer, with the 2026 amount expected to rise to approximately $132,900. Taxpayers must meet either the Physical Presence Test or Bona Fide Residence Test to qualify.

Increased Digital Enforcement
The IRS continues expanding its use of data analytics, information-sharing agreements, and automated matching tools for offshore compliance. Taxpayers should ensure FBAR and FATCA filings are accurate, complete, and consistent with reported foreign income. FBAR filing applies where foreign accounts exceed $10,000 in aggregate at any point during the year.

What US Taxpayers Should Do Now

• Confirm FEIE eligibility if you live and work abroad.

• Review FBAR and FATCA obligations before filing deadlines.

• Maintain documentation supporting foreign income, residency status, and offshore account disclosures.

THE PATTERN

Across major jurisdictions, the direction of travel is clear:

• More digital compliance requirements

• Increased information sharing

• Greater scrutiny of cross-border structures

• Continued implementation of OECD-led reforms

Cross-border tax risk is increasingly becoming a compliance and reporting issue rather than simply a tax-rate issue.

WHAT WE SHIPPED IN MAY

A Cleaner, Faster Aequify
We've been quietly rebuilding how Aequify feels to use. Fewer clicks. Clearer flows. Less friction between you and what you need to get done. The first round of improvements is live now. Log in and you'll notice the difference. We're carrying this work into June, so expect it to keep getting better.

Tax Data Packs — Because Tax Season Is Stressful Enough

This filing season, we moved fast to solve one of the most common complaints we hear: pulling together financial data for your tax advisor takes forever. So we built Tax Data Packs — clean, organized, ready-to-share summaries of exactly what your advisor needs.

We now support:

• FBAR

• FATCA

• Schedule B

• Schedule C

• Schedule D

• Schedule E

• Modelo 720 (Spain)

Customer highlight: 

James, a US expat in the UK who runs his own business, put it well: "It typically took hours to identify hundreds of business expense transactions and share them with my advisor. This year I finished my Schedule C in under 15 minutes using Aequify's data packs." That's the point. Tax reporting shouldn't be an event.

Head to the Compliance page on aequify.com, find your relevant data pack, and share it securely with your advisor in a few clicks. More packs for the UK and Spain are coming in the next few weeks.

Your Advisor Just Got a Better Tool Too

Getting your finances in order is only half the picture. Your tax advisor or CPA still has to work with what you give them, and that process has historically been slow and manual. We've rebuilt the advisor portal from the ground up, making it easier for advisors to gather what they need from clients and spend more time actually advising. Better tools for your advisor means better service for you.

Fixed Annuity Tracking (Closed Beta)
If you hold a fixed annuity tied to the S&P, you can now track it inside Aequify alongside your other assets, including multi-year performance and its contribution to your net worth. Everything in one place. We're opening this to everyone in the next few weeks. If you'd like early access, email support@aequify.com.

WHAT'S COMING NEXT

FEIE vs FTC — We'll Help You Choose
For US expats, choosing between the Foreign Tax Credit and the Foreign Earned Income Exclusion can save — or cost — thousands. We're building a tax optimization tool that compares both options for your specific situation. This is the first of several optimization features we'll be rolling out.

UK Tax Changes — We're On It
The UK has made sweeping changes to expat taxation. Handled correctly, these changes can create meaningful tax savings. Missed or misunderstood, they can create significant financial and compliance risk. We're building dedicated features to help you and your advisor navigate them confidently. More details next month.

Scenario Planner — See Your Future Clearly
Moving abroad. Returning home. Getting married. Selling a property. Having a child. Life events have long-term financial consequences that are difficult to see in advance. The Scenario Planner will help you model these events and understand their financial impact before they happen. Better decisions start with better visibility. Coming soon.