.png)
.png)
20 May 2008
Regulations for consultation with key stakeholders will be drafted later this summer
As announced in the 2008 Budget, the disclosure of stamp duty land tax avoidance schemes is to be extended to cover residential property worth £1 million or more.
HMRC wish to discuss how such a scheme might work in advance of drafting regulations for consultation with key stakeholders later this summer and have published a discussion paper looking at the options, which are as follow:
- Option 1: Extend the existing descriptions to residential property.
- Option 2: Retain the existing descriptions for commercial property. Apply different descriptions for residential property.
- Option 3: Devise new description(s) covering residential and non-residential property.
HMRC say that, initially, they prefer option three, provided suitable hallmarks can be worked up.
They list the following points for discussion:
- Is there a significant degree of unintentional failure to disclose commercial property schemes?
- Could a confidentiality hallmark work for SDLT? If so, what features of the main regime hallmark would need amendment for such purposes?
- Could a premium fee hallmark work for SDLT? If so, what features of the main regime hallmark would need amendment for SDLT schemes?
- Are there any other hallmarks that might work for SDLT?
Comments should be sent to Michael Lyttle via a dedicated page on the HMRC website, by 6 June 2008.
