20 February 2026
Land transaction tax regulations published
On 11 February 2026, the Welsh Ministers made The Land Transaction Tax (Modification of Relief for Acquisitions Involving Multiple Dwellings) (Wales) Regulations 2026 and The Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Amendments to Schedule 5) Regulations 2026, which came into force on 13 February 2026. The regulations bring the land transaction tax (LTT) changes announced at the Welsh Budget into force, including changes to multiple dwellings relief, and the introduction of a new refund rule for higher residential rates of LTT where a private landlord buys a dwelling and then leases it to a local authority in Wales.
Scottish income tax rates for 2026/27 agreed
On 19 February 2026, the Scottish parliament passed a statutory resolution setting the rates of income tax applicable to the non-savings non-dividend income of Scottish resident individuals for the tax year 2026/27 (6 April 2026 – 5 April 2027). The rates and bands approved by MSPs were those originally proposed by the Scottish government in its Budget of 13 January 2026.
Scottish non-domestic rates relief regulations laid
On 12 February 2026, the Scottish Ministers laid The Non-Domestic Rates (Retail, Hospitality and Leisure Relief) (Scotland) Regulations 2026 before the Scottish Parliament. The regulations provide for temporary non-domestic rates relief for 2026-27 for eligible properties used for retail, hospitality or leisure purposes, capped at £110,000 per business. A 15% relief will be available for eligible properties on the Scottish mainland with a rateable value up to and including £100,000. A 100% relief will be available for eligible properties on the Islands and in specified Remote Areas. The reliefs were announced at the Scottish Budget in January 2026.
EU updates list of non-cooperative jurisdictions
EU finance ministers have confirmed the latest EU list of noncooperative jurisdictions for tax purposes (Annex I) and the ‘state-of-play’ document (Annex II). Jurisdictions are analysed by the European Council twice a year based on certain agreed criteria. Those that fail to meet the criteria are included in Annex I; whilst countries that have made acceptable commitments to modify their tax legislation are included in Annex II.
Compared to the previous version of October 2025, Turks and Caicos Islands and Vietnam have been added to Annex I, and Fiji, Samoa, and Trinidad and Tobago have been removed. The updated Annex I now comprises: American Samoa, Anguilla, Guam, Palau, Panama, Russia, Turks and Caicos Islands, the US Virgin Islands, Vanuatu, and Vietnam. Two jurisdictions, Antigua and Barbuda and Seychelles have been removed from Annex II. The updated Annex II now comprises: Belize, the British Virgin Islands, Brunei Darussalam, Eswatini, Greenland, Jordan, Montenegro, Morocco, and Türkiye.
Lycamobile UK Limited: VAT treatment of plan bundles
Lycamobile UK Limited sold ‘plan bundles’ to UK customers, comprising rights to access telecommunication services, that is, telephone calls, text messages, and data. Lycamobile considered that, for VAT purposes, services within plan bundles were only supplied as and when the services were used. HMRC assessed Lycamobile on the basis that VAT was due when the customer purchased a plan bundle, irrespective of when, if ever, the services were used. In July 2024, the First-tier Tribunal (FTT) agreed with HMRC, subject to a potential adjustment for non-EU roaming charges pre-1 November 2017 (when supplies of business-to-consumer telecommunication services were not subject to UK VAT to the extent they were effectively used and enjoyed outside the EU). The Upper Tribunal (UT) has upheld the FTT decision.
The UT considered the “simple question” at the heart of the appeal was whether Lycamobile was making a supply of services consisting of the allowances included in a bundle when the bundle was sold, or only making supplies when and to the extent those allowances were used. The UT concluded that the FTT correctly applied the law “and reached the right conclusion on this issue”. The UT also upheld the FTT’s finding that plan bundles were not vouchers, so the VAT rules relating to vouchers did not apply. The UT dismissed Lycamobile’s appeal. (Contact: Nicole Brook)
EMEA Dbriefs webcasts
As a reminder, the next EMEA Dbriefs webcast will take place on Monday 23 February at 17.00 GMT/18.00 CET. In Navigating EU Pay Transparency: Essential readiness for US companies with EU operations, hosted by Deepinder Lampa, our panel will discuss the EU Pay Transparency Directive. Our EU Pay Transparency specialists will cover a range of topics to help organisations think through their readiness ahead of June 2026, including the impact of the Directive on US multinationals, key reporting obligations, the transposition status of the Directive, operational impacts, and developing a compliance roadmap.
On Thursday 26 February at 12.00 GMT/13.00 CET, Zoe Hawes will be hosting EU CBAM: key requirements in the definitive period. Our panel will discuss the EU’s December 2025 package of legislative measures relating to the implementation of CBAM, future developments, and implications for EU and non-EU businesses.