Within the 2011 Budget, the chancellor, George Osborne, proposed various measures intended to tighten up on Stamp Duty Land Tax (SDLT) avoidance. These proposals form part of the Finance (No 3) Bill which is currently winding its way through Parliament. Due to the complexity of the Bill, whilst some of its clauses were debated by the House, others have been left for discussion by a Public Bill committee.
The Finance (No 3) Bill committee is next due to meet on 17 May and you can follow the progress of the bill on the following website address:
http://services.parliament.uk/bills/2010-11/financeno3.html
As interested parties, the Chartered Institute of Taxation (CIOT), among others, has forwarded a commentary on the proposals to the Committee. The CIOT has raised concerns about some of the proposals including:
• A missed opportunity to clarify “vendor” and “dwelling” in certain transactions
• The effect of introducing the “higher of” test for determining chargeable consideration which as drafted could result in a gifted exchange of properties both being charged at the higher valuation
• The effect on sale and leaseback relief
• A proposed alternative to the multiple dwelling transfer relief
As with most Finance Bills, there are likely to be several amendments prior to the Bill receiving Royal Assent later this summer. In the meantime, those undertaking substantial property transactions should take steps to ensure that they comply with current SDLT regulations. As tax mitigation specialists Newshams are able to give advice on SDLT, how it may affect any private or business transaction and how to put in place an effective mitigation strategy.
Contact us now on 020 7470 8820 and ask to speak to a tax adviser about how we can reduce the tax costs on your corporate transaction or e-mail us at enquiries@newshams.com and we’ll get straight back to you.
http://newshams.com
16th May 2011
