Stamp Duty- new reporting requirements

[Ian McTernan CTA]

Not so much a question as a general comment on the new rules coming into force in December.

Under the new rules, Returns will be required for all stampable transactions. In fact, I think the new rules state that until the return is delivered title will not pass. This means all this data will be captured by the authorities and eventually they will have an easily accessable database of who owns properties, making it a lot easier for them to notice when someone who owns more than one property disposes of one of them or fails to report any rental income from the second, etc. properties.

Now am I just being cynical or is this new system designed to catch the tiny minority (!) who 'forget' to report rental income and capital gains on second properties?

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com

[paulc]

Interesting point. It is right that, in addition to being under a duty to file the form under self assessment, title to the property cannot be registered at the Land Registry unless the form has been filed. The forms are quite clearly designed to be computer read, so if the Revenue want to do what you are suggesting, I suspect it will be technically quite easy.

Paul

[TSL]

Ian

I think this is a general move by the ravenous to boost the UK plc coffers re money laundering regulations on advisors etc etc.

My understanding is that the SDLT1 form needs to be filed within 30 days of the transaction and you then receive a certificate which you need for land registry purposes. Another reason for solicitors to charge more money as an extra 12 page form to complete!!! Perhaps a business opportunity here (if advisors fancy it!!) contact your local solicitor and offer to fill in the forms for a fixed fee, saves them the hassle? Need to be confident of the rules etc though!!

Jason Sharp
Taxation Solutions Limited