Major reforms of stamp duty are underway
Royal Assent to the Finance Bill is expected to be given on 10 July. The new legislation will usher in “stamp duty land tax”, which is a tax on transactions rather than documents. It is likely that the changes will come into effect on
1 December. Those dealing with property will need to complete a fairly substantial form giving details of their deals to the Inland Revenue. Whether all this will exhaust the ingenuity of accountants and tax lawyers remains to be seen.
Tax relief
While many in the property industry will welcome the introduction of disadvantaged areas relief, there are just as many who are in near despair over the prospect of getting a straight answer to the straightest question of all – is the property in a disadvantaged area? You have to wonder whether the Inland Revenue is fighting a rather cunning rearguard action. Can the equipping of the tax authorities with a database of disadvantaged areas known to be inaccurate and the use of ward boundaries from 1998 (something of interest only to political historians) really have happened in a country with a government that has run a “modernising government” agenda for over six years?
Nicholas Redman, professional support lawyer at DLA
Related items:
New duty raises concerns Estates Gazette 31 May 2003: stamp duty and electronic conveyancingFinance Bill seeks regime change Estates Gazette 10 May 2003: discuss of stamp duty land taxBrown’s stamp on duty Estates Gazette 19 April 2003: brief review of key provisions in the 2003 Budget- Customer newsletter from the Inland Revenue providing information about the exemption
