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Tax news in brief

Author: ICAEW

Published: 05 Jun 2024

Highlights from the broader tax news for the week ending 5 June 2024, including: HMRC publishes guidance on the abolition of multiple dwellings relief; an update on the VAT refund scheme for museums and galleries; and the Scottish visitor levy has been passed.

HMRC guidance on abolition of SDLT MDR 

Legislation included in Finance (No. 2) Act 2024 abolishes multiple dwellings relief (MDR) for stamp duty land tax (SDLT).  The measure applies to land transactions where the effective date falls on or after 1 June 2024, subject to transitional arrangements.  HMRC has updated its SDLT Manual to include guidance on the abolition of MDR. The Welsh Government is consulting on the abolition of MDR for land transaction tax (LTT).  

VAT refund scheme for museums and galleries 

The Value Added Tax (Refund of Tax to Museums and Galleries) (Amendment) Order 2024 SI 2024/720 has been made and comes into force on 8 July 2024. The Order adds further museums and galleries that allow free public admission to the VAT refund scheme, and removes those which are no longer eligible. The government has published a policy paper which provides further information. 

Scottish visitor levy passed 

The Visitor Levy (Scotland) Bill has passed stage three in the Scottish Parliament. The new legislation enables local authorities in Scotland to apply a levy on overnight stays, with all money raised to be reinvested in services and facilities largely used by tourists and business visitors. Councils that want to introduce a levy will be able to do so after they have consulted with local communities, businesses and tourism organisations. The earliest a visitor levy could come into force would be spring 2026. 

International tax round-up  

CFE Tax Advisers Europe (CFE) has published a summary of its top five tax developments for the period to 28 May 2024. This includes an update on the European Commission’s proposal on a directive establishing faster withholding tax relief procedures and a common tax residency certificate from 1 January 2030.  

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