The government has withdrawn proposals to introduce stamp duty on agreements for lease, after the plans were labelled unfair and anti-competitive.
Under the terms of the Finance Bill, agreements for lease had to be stamped within six months of being signed or they would attract interest. However, if the lease never went ahead. there was no mechanism for repayment.
After widespread criticism, the government has amended the proposals so that agreements for lease do not attract stamp duty. Instead, leases must be stamped 30 days after signing, and attract interest if they are not stamped in time.
William McKee, of the British Property Federation, which campaigned against the proposals, said: “This proposal would have impeded the drive to improve competitiveness. It would have added to the cost of new buildings resulting in some decisions to move being cancelled, and probably would have militated against the willingness to move into more environmentally friendly buildings.”
He added: “The BPF is delighted that the proposal will not go ahead and that the government has acted wisely and listened to the industry.”
PLS News 18/06/99
