The Government is set to close some of the loopholes involving Stamp Duty on property deals in the 17 April Budget.
It is estimated the Government lost out on £160m of duty in central London alone last year as a result of avoidance schemes.
However, while the use of special purpose companies to trade in property might be stopped by clawing back Stamp Duty if the company is sold within two years of being formed, avoidance by splitting a property’s title and keeping the beneficial ownership off-shore is almost impossible to stop.
Stamp Duty has increased fourfold since 1997, but the money raised from it has little more than doubled.
The Business 03/03/02 Page 28
