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Tax news in brief

Author: ICAEW Insights

Published: 20 Aug 2024

Highlights from the broader tax news for the two weeks ending 21 August 2024, including updates on: requesting overlap relief information from HMRC; the abolition of land transaction tax multiple dwellings relief; and further changes to the legislation providing for the abolition of the pensions lifetime allowance.

Basis period reform and overlap relief information

Details of overlap relief may be required when completing the self employment or partnership pages of the 2023/24 tax return. This information can be requested from HMRC. HMRC has recently updated its Check when you can expect a reply from HMRC tool to include requests for overlap relief information.

ICAEW’s TAXguide on basis period reform explains why you may need overlap relief information, and how to request and use it. The TAXguide has recently been updated. Basis period reform was also the subject of a recent episode of ICAEW’s The Tax Track podcast.

Update on the abolition of LTT MDR

The Welsh Government has published a response to its consultation on land transaction tax (LTT) reliefs, including the proposed abolition of multiple dwellings relief (MDR). Following the consultation, the Welsh Government will continue to assess the potential impacts, benefits and costs of the options related to LTT reliefs. This may include further discussion with stakeholders.

HMRC update for pension schemes

HMRC has published issue 161 of its pension schemes newsletter. The newsletter:

  • provides an update on legislation intended to address technical inaccuracies identified with the legislation that abolishes the lifetime allowance;
  • warns pension scheme administrators that some annual returns of information foe 2023/24 are still outstanding;
  • includes data relating to pension flexibility and transfers in to qualified recognised overseas pension schemes; and
  • encourages administrators to take action to migrate pension schemes, retirement annuity contracts and deferred annuity contracts to migrate to the managing pension schemes service.

HMRC updates its Pillar Two guidance

HMRC has updated its guidance on preparing for the multinational top-up tax and the domestic top-up tax. This includes details of how to register to report Pillar Two taxes using HMRC’s new online service, and a new section on common misconceptions. This follows the letters sent to businesses in July 2024.

HMRC will be offering a number of webinars in autumn 2024 to help businesses prepare for their Pillar Two obligations. Dates will be announced nearer the time. If there are areas you would like to see covered, email HMRC at pillar2mailbox@hmrc.gov.uk.

Other news from HMRC

HMRC has:

International tax round-up

CFE Tax Advisers Europe (CFE) has published a summary of its top five tax developments for the period to 12 August 2024. This includes a recent judgment of the Court of Justice of the European Union concerning DAC6 and professional privilege, and a consultation on a proposed template and electronic format for country-by-country reporting.

Tax Faculty

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