Property Notepad - May 2009

3. Stamp Duty Land Tax – Disclosure of Avoidance Schemes

On Budget Day, 22 April 2009, HMRC issued a consultation document setting out proposals to extend the tax avoidance scheme disclosure rules as they apply to SDLT.  Currently, only SDLT schemes in respect of non-residential property with a value of at least £5 million are required to be disclosed.  It is proposed that the disclosure obligations will be extended so that:

• They will apply to SDLT schemes in respect of residential property with a value of at least £1 million; and
• Arrangements will be introduced to enable HMRC to identify users of all disclosed SDLT schemes for both residential and non-residential property. 

Responses to the consultation document have been requested by 15 July 2009.

Speculation that Budget announcements would include proposals for an indirect SDLT charge on the use of SPVs to mitigate SDLT liability in high value residential transactions has so far proved unfounded.

Read more...

• Dealing with applications for Landlord’s Consent
• Impact of Bank failures on residential service charge funds
• Easements – Can the landowner be compelled to sign a deed?

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