The CIOT has published its response to HMRC’s consultation on stamp taxes on shares modernisation which had sought views on proposals to modernize and consolidate the existing stamp duty and SDRT legislation. It was proposed that a new single tax that will replace them, that is self-assessed and administered in line with the rest of the UK tax system. It will be subject to clear rules on geographical scope, tax base and calculation of liability.
The CIOT comments are as follows:
The CIOT supports proposals for a new single tax on securities, which will be a welcome simplification and encourages the government to be bold in order to ensure that the opportunity is taken to achieve a clear and modern legislative framework for the taxing of transfers of securities.
The CIOT believes that there are some aspects where the differences between the transactions undertaken through CREST and those that are not, are significant. It would be sensible to recognise these differences and have distinct rules for listed and unlisted transactions, rather than have a single rule to the detriment of one or the other. This is particularly true in relation to the charging point and the accountable date.
The CIOT suggests that simplification and modernisation should be embraced, however, in relation to removing pre-2003 interests in land from charge and the more historic aspects of geographical scope.
The CIOT does not agree with the proposal to remove the de minimis, the threshold of consideration below which transactions are treated as exempt. Removing this would create an additional burden for transactions of very low value. Instead, the CIOT suggests that the de minimis is increased to reflect inflation.
The CIOT has published its response to HMRC’s consultation on stamp taxes on shares modernisation which had sought views on proposals to modernize and consolidate the existing stamp duty and SDRT legislation. It was proposed that a new single tax that will replace them, that is self-assessed and administered in line with the rest of the UK tax system. It will be subject to clear rules on geographical scope, tax base and calculation of liability.
The CIOT comments are as follows:
The CIOT supports proposals for a new single tax on securities, which will be a welcome simplification and encourages the government to be bold in order to ensure that the opportunity is taken to achieve a clear and modern legislative framework for the taxing of transfers of securities.
The CIOT believes that there are some aspects where the differences between the transactions undertaken through CREST and those that are not, are significant. It would be sensible to recognise these differences and have distinct rules for listed and unlisted transactions, rather than have a single rule to the detriment of one or the other. This is particularly true in relation to the charging point and the accountable date.
The CIOT suggests that simplification and modernisation should be embraced, however, in relation to removing pre-2003 interests in land from charge and the more historic aspects of geographical scope.
The CIOT does not agree with the proposal to remove the de minimis, the threshold of consideration below which transactions are treated as exempt. Removing this would create an additional burden for transactions of very low value. Instead, the CIOT suggests that the de minimis is increased to reflect inflation.
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