Pre-Budget Report – Stamp Duty Land Tax Avoidance
The disclosure rules for Stamp Duty Land Tax (SDLT) avoidance schemes were extended in the Pre-Budget Report.
The Stamp Duty Land Tax Avoidance Schemes Regulations will be amended so that the following schemes will become disclosable:
- Non-residential property with an aggregate value of at least £5 million or
- Residential property with an aggregate value of at least £1 million will be disclosable.
The rules will also apply to schemes that concern mixed non-residential and residential property where either:
- The value of the residential property is at least £1 million or
- The value of all the property is at least £5 million.
The amended regulations will contain a “grandfathering” rule that will exempt from disclosure any scheme of the same, or substantially the same, description as a scheme that was first made available for implementation by any person before the date the changes come into force.
The necessary Regulations will be made and laid before Parliament in the New Year and will come into effect no later than 1 April 2010.