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Lawyers slate Revenue over land tax errors

Failing scanner blamed for registration delays

The Law Society and a group of 30 law firms have attacked Inland Revenue over its poor administration of stamp duty land tax, which they claim is pushing the costs of compliance onto solicitors and their clients.

They allege a catalogue of Revenue errors, which have led to delays of weeks, even months, before certificates are issued. This “can prejudice property ownership and management”, said Nabarro Nathanson partner John Samson.

Most of the problems arise from a failure to invest in effective technology and administrative systems, according to letters sent to the Revenue by the Law Society and by a group of firms including Nabarro Nathanson, Denton Wilde Sapte, Linklaters, Wragge & Co, Allen & Overy and SJ Berwin.

Their difficulties escalated following the introduction by the Revenue of a scanner, which has misinterpreted the complex SDLT forms. This has led to the Revenue demanding information already supplied and raising £100 penalties.

Other errors include the Revenue contending that SDLT has not been paid when it has and issuing certificates with incorrect information.

Edward Nally, president of the Law Society, said: “Our clients should not be facing fines because the Revenue’s scanner is not operating effectively.

“Stamp duty land tax provides the Treasury with around £7bn every year. There is no excuse for failing to invest… when by doing so the costs of compliance are pushed onto solicitors and their clients.”

Solicitors and clients also cite long delays in getting through to the Revenue’s helpline. The Revenue could not comment prior to the general election.

Practice and law, p139

References: EGi Legal News 22/04/05

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