UK Law Society Urges Consultation On Stamp Duty Changes

by Robin Pilgrim, LawAndTax-News.com, London

14 April 2003

Following changes to stamp duty legislation announced in last week's budget, the UK's Law Society has urged the speedy resumption of consultation on the new system of property transaction taxation introduced.

Speaking on Friday, the Society's Chief Executive, Janet Paraskeva observed that:

'Reforming the rules for Stamp Duty and property was never going to be easy. The proposed reform of stamp duty on leases – imposing a one per cent charge on the present value of rentals – is simpler in concept, but will raise some difficult issues about compliance and about the way it is calculated.'

'In December legal practitioners will be faced with a very new system for tax payments on land transactions, as well as new rules for calculating the tax.'

She welcomed the government's decision to drop proposals for an indirect charge on investors in property companies, but observed that there is a great deal of legislation to be agreed upon and implemented before the December 2003 start date for the new system.

'Having lost nearly three months of consultation time, we would urge the government to renew its consultation process as soon as possible to allow the best chance of ensuring this legislation is workable in practice,' Ms Paraskeva concluded.

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