Stamp Duty Land Tax Book Review from TaxationWeb

Reviewed by Jeremy de Souza, Solicitor, TEP, Consultant to White & Bowker

An e-book for which a subscription can be purchased on www.mckieandco.com

The massive reformulation of the SDLT rental charge on 20 November gave a book in this format the edge over conventionally printed publications because a major part of the content of the latter was found to have been superceded on the publication dates.

Conveyancers faced with SDLT have to address two problems:

1. How much does the client have to pay?
2. How to get the paperwork both:
   (a) completed at reasonable cost; and
   (b) submitted within the 30 day time limit, in order to avoid a �100 fine.

As, in most cases, the tax bill will be unchanged, solicitors have been giving priority to the second issue. And it is here where this book is a real winner. Chapter 7 on reliefs and exemptions is not only clearly written, but also tells one the code number to insert in SDLT 1, thereby saving a further delve into SDLT 6. Even more important in the real world is finding out whether one needs to submit a second SDLT 1 after the normal accounting date and event has been accelerated by, for instance, early entry. In this respect the examples given in the Notification section, Chapter 9.1, are excellent.

Turning, then, to the law, it has to be said that a great deal of it is far from clear. The reason for this is not to be found in any shortcomings of the authors, so much (especially in respect of the amendments made by Statutory Instrument in November) as apparent lack of clarity as to the intentions of those instructing the Parliamentary draftsman. At the root of this problem is the core replacement of the concept of stamping a particular document by that of assessing an overall transaction. The Chief Secretary to the Treasury alluded to this in the House of Commons when he said that it was necessary to look at substance rather than form. While it is doubtful whether the Courts will approach the issue of construction in exactly that way, it is generally agreed that a purposive approach is likely to be adopted to this legislation and that, in particular, there is no longer likely to be a reluctance to invoking the Ramsay doctrine. As the authors put it in para 2.1.4, the key is to identify the transaction first and then apply the rules to it.

However, there do appear to be cases in which the Revenue' Manual proposes an interpretation which cannot possibly have been arrived at as a result of construing the legislation. The obvious case in point is how the additional tax which falls to be collected when an option is exercised is to be accounted for. As the authors point out in para 4.4.9, the official method, although understandable, is clearly wrong. What the correct method should be is very far from clear, but the authors' commentary on the problem in paras 4.4.11-17 indicates the nature of the problem.

But in most cases, the rules are similar to, even if not identically worded, to those which applied for stamp duty. It is therefore reasonable for the authors, first, to have had recourse to the effect of case law in relation to the old provisions. They do this when remarking on what appears to have been an oversight, reliance on Schedule 3, paragraph 1 to encompass the whole of category D to the Stamp Duty (Exempt Instruments) Regulations 1987. As is pointed out in para 3.3.3, the satisfaction of rights under an intestacy in specie may now involve a tax charge.

Finally, there are no tables or index to the e-edition of this book (although there will be to the printed version). Is this a disadvantage? No, use of the search engine is more than an adequate replacement.

This is, therefore, a publication which can definitely be recommended to practitioners.

Jeremy de Souza
January 2004

Article Added Thursday, 09 October 2008

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