Market leading insight for tax experts
View online issue

Abolition of MDR in Wales must not have unintended consequences for commercial investment, says CIOT

printer Mail

Responding to the Welsh government’s consultation on the proposed abolition of land transaction tax (LTT) multiple dwellings relief and extension of relief for acquisition of social housing to Welsh local authorities, the Stamp Taxes Practitioners Group and CIOT raise a number of key points:

  • Multiple dwellings relief (MDR) claims should be evaluated to ensure abolition does not lead to unintended consequences for commercial investment in sectors like purpose-built student accommodation, where abolition could significantly increase LTT costs.
  • If, after review, abolition is found to conflict with wider policy, the Welsh government should instead consider reforming MDR to restrict it to commercial acquisitions.
  • Abolishing the six dwellings rule could have unintended effects, including distorting the market given that the equivalent rule in England and Northern Ireland has been retained.
  • Guidance on the proposed extension of social housing relief should be expanded, for example to clarify the de minimis level of public subsidy required, the timing of receipt of subsidy, and treatment of recycled/transferred subsidies.
Issue: 1664
Categories: News
EDITOR'S PICKstar
Top