Stamp Duty "schemes"

Stamp Duty schemes under attack (September 2012)

Please find listed an extract from Law Society Gazette.

Schemes designed to dodge stamp duty land tax (SDLT), which cost the public purse £170m a year, will face tough scrutiny from HM Revenue & Customs after a landmark tribunal judgment this week.

Regulations have also been laid that will force users of avoidance schemes to disclose them to the authorities, HM Revenue & Customs said.

A Tribunal ruled against Durham-based Vardy Property Group after it sought to exploit a rule to avoid paying £290,000 of stamp duty on the £7.25m purchase of commercial property in 2006.

Meanwhile, the new regulations on the disclosure of tax avoidance schemes will give HMRC better access to information about them and those who promote and use them, enabling them to be challenged and closed down more quickly, HMRC said.

HMRC's director general of business tax, Jim Harra, said: 'This victory at the ..... Tribunal sends a clear message to tax avoiders that we will challenge avoidance relentlessly.'

Earlier this year, the Solicitors Regulation Authority urged solicitors to think twice before becoming involved in SDLT schemes, and warned the profession to ensure any involvement it has with such schemes complies with the code of conduct.

Richard Collins, executive director of the Solicitors Regulation Authority, said: 'In view of the level of concern on the part of HMRC and the fundamental importance of integrity in the provision of legal advice, we will look very closely at the conduct of any firm actively involved in these schemes. Buyers of property are free to use honest and proper tax planning to mitigate their tax liability, but there are a number of risks and misconceptions surrounding SDLT schemes,' he said.

Ross Legal LLP has never been involved in or advised clients to enter into any such schemes!