The government has published the Finance Bill 2003 to modernise the collection of stamp duty and to pave the way for e-conveyancing.
The reforms, which are expected to be implemented on 1 December 2003, have been designed to support the government’s plans to facilitate e-business. Stamp duty is currently recognised by a physical imprint on a document, however the advent of “paperless” transactions means that it will be necessary to change the stamp collection process.
The Bill brings stamp duty in line with other taxes and incorporates appropriate enforcement powers. Unlike more modern taxes, there is presently no provision for stamp duty to be collected directly from taxpayers by assessment. However, once the new system comes into effect, customers will no longer need to submit documents to the Inland Revenue for stamping and will instead be required to notify liability to tax using a new land transaction return.
In the future, customers will receive a stamp duty land tax certificate which they or their agents will need to submit to land registries in order to register ownership of land or to record a deed, as appropriate, and, in the longer term, the introduction of electronic systems for conveyancing and registration should allow stamp duty to be processed simultaneously with registration.
The Bill also builds on measures introduced in the Finance Act 2002 to tackle avoidance of stamp duty on certain property transactions.
References: Propert-e News 25/4/2003
