Stamp duty changes need work to work
In keeping with the Chancellor’s theme in his Budget of rewarding work, the measures announced around stamp duty are clearly the product of some solid effort by HMRC but will need to be worked on if they are to deliver the rewards anticipated, says the Chartered Institute of Taxation (CIOT).
Measures to tackle stamp duty land tax (SDLT) avoidance have long been expected, given the clear leakage of tax revenues involved.
John Whiting, Tax Policy Director at the CIOT, said:
“Nobody can be surprised at the decision to take action against SDLT avoidance. The targeting of ‘non-natural persons’ for both SDLT and CGT additional charges is an understandable attempt to catch all manner of vehicles but the legislation will need careful drafting to make sure the measures are practical and workable.
“It is also interesting to note the clear warning about retrospective action if people attempt to sidestep these new rules. The Chancellor is building some solid walls around the SDLT system and wants to make sure the foundations are equally watertight.”
21 March 2012