The Law Society and the CIOT have responded to HMRC’s call for evidence on the principles and design of a new framework for stamp duty and stamp duty reserve tax (SDRT).
The Law Society considers that the transaction tax regime on shares and securities should be clear, simple and practicable, highlighting a number of areas that would benefit from modernisation:
stamp duty rules on deferred, uncertain and contingent consideration;
reclaiming tax where both SDRT and stamp duty are charged; and
rules on transfers of partnership interests.
The Society also proposes formalisation of the current temporary digital processes which are in place during the pandemic.
The CIOT suggests that a new framework should be based around a single tax, removing the complexities that can arise from the way in which the two taxes currently interact. The combined tax would operate via CREST for listed securities, with the introduction of a self-assessment system for unlisted securities. The CIOT also notes how a rewrite and consolidation of the existing legislation in one place would bring clarity – moving away from the piecemeal approach which makes the rules difficult to navigate.
Mirroring the Law Society observations, the CIOT also recommends formal adoption of the temporary digital stamping procedures used during the coronavirus pandemic.
The Law Society and the CIOT have responded to HMRC’s call for evidence on the principles and design of a new framework for stamp duty and stamp duty reserve tax (SDRT).
The Law Society considers that the transaction tax regime on shares and securities should be clear, simple and practicable, highlighting a number of areas that would benefit from modernisation:
stamp duty rules on deferred, uncertain and contingent consideration;
reclaiming tax where both SDRT and stamp duty are charged; and
rules on transfers of partnership interests.
The Society also proposes formalisation of the current temporary digital processes which are in place during the pandemic.
The CIOT suggests that a new framework should be based around a single tax, removing the complexities that can arise from the way in which the two taxes currently interact. The combined tax would operate via CREST for listed securities, with the introduction of a self-assessment system for unlisted securities. The CIOT also notes how a rewrite and consolidation of the existing legislation in one place would bring clarity – moving away from the piecemeal approach which makes the rules difficult to navigate.
Mirroring the Law Society observations, the CIOT also recommends formal adoption of the temporary digital stamping procedures used during the coronavirus pandemic.
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