stampduty land tax

anew burden on business?

A new property tax onbusiness was criticised today by the Institute of Directors (IoD). The Stamp DutyLand Tax (SDLT) which comes into force on 1 December, replacing Stamp Duty forproperty transactions, could see the tax bill of some businesses risingseven-fold, the IoD claimed.

The IoDs TaxationExecutive, Derek Brownlee, said:

The increase in thetax bill for lease transactions will be a major concern for many businesses anddue to the nature of the market it might take some time for the full effect tobe seen. Some businesses could see a massive increase in their tax bill.

Purchasers will havejust 30 days to complete a 'Land Transaction Return' and pay any tax beforeinterest and penalties arise. The Inland Revenue will be collecting moreinformation about property transactions than in the past, leading to fears thatthis may make the sector the target of further tax increases in the future.

The introduction ofSDLT comes less than five months after the legislation was passed, leading tofears that implementation has been rushed. The IoD had called for a delay inintroduction until April 2004.

The impact of SDLTand other property taxes on business will be the subject of IoD research nextyear.

Ends 27.11.03 No.212

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Noteto editors

TheInstitute of Directors is a non-party political independent organisation witharound 55,000 members. In addition to its wide range of business services, theIoD provides an effective voice to represent the interests of its members togovernment and key opinion-formers. It also brings the experience of businessleaders to bear on the conduct of public affairs