CIOT expresses disappointment that the PBR did not tackle stamp duty: Press release of 30 November 2001 Contacts: John Whiting, President, 07710 027 595 (mobile); 020 7804 4422 (direct)
Vivien Rees or Bianca Marsden, 020 7235 9381
The Chartered Institute of Taxation is disappointed that nothing has been done in the Pre-Budget Review about a fundamental review of stamp duty.
Referring to stamp duty on share transfers which received no mention, John Whiting, President said:
“We urge the Chancellor to make a fundamental reappraisal of this outdated tax in the light of the harmful effects it is having on the market.
“For some time we have been highlighting the increasing problems that the 0.5% stamp duty is causing the London market. It is a potential drag on the City damaging its competitiveness in relation to other markets such as Frankfurt.”
On the Chancellor’s announcement that he would abolish stamp duty in the poorer areas of the country, the Chartered Institute of Taxation sees it only as an early move in the right direction.
“This is a first step, but the Institute really wants a review of the whole basis of the tax which it believes is outdated and in dire need of rethinking,” said John Whiting.
“Stamp duty on domestic dwellings is primarily a charge that hits London and the south-east. On the commercial side it can hold back businesses who are restructuring in the face of a difficult domestic economy and an increasingly competitive international market.
“The planned extension of the stamp duty exemption in disadvantaged areas to many more business transactions points the way. We want a thorough going review of stamp duty.”
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