HMRC is consulting on broad options to address Stamp Duty Land Tax avoidance using 'transfer of rights' (often known as 'subsale') rules. It is proposed to amend the disclosure regime for SDLT from 24 September 2012. HM Revenue & Customs has published draft legislation setting out the proposed amendments with comments requested by 20 August. Two sets of regulations are involved.
The first set will amend existing regulations in three ways which will:
- remove the transaction-value thresholds
- remove the 'grandfathering' rule for certain arrangements involving the 'transfer of rights' legislation
- update the list of excluded arrangements
The second set of regulations will modify how section 308 of the Finance Act 2004 applies in certain circumstances. This will mean that that if a promoter made a disclosure before April 2010 of certain arrangements involving the 'transfer of rights' legislation, they will have to make one further disclosure if they are still making those arrangements available.
Readers are also reminded that HM Treasury is consulting on package of measures that the Government announced at Budget 2012 to ensure that individuals and companies pay a fair share of tax on residential property transactions and to tackle avoidance, including the wrapping of property in corporate and other “envelopes”. Comments on this are due by 23 August.
More information on both is available here and here.