The Scottish Government has published its consultation paper on
the proposed replacement for stamp duty land tax ("SDLT")
The new tax, which will be known as the Land and Buildings
Transaction Tax, will come into force in April 2015, at which time
SDLT will cease to apply to property transactions in Scotland. It
is the Scottish Government's stated intention to create a
fairer tax that sits more comfortably with Scots property law and
practices. The consultation paper sets out the Scottish
Government's proposals on how the tax would operate and invites
comments and suggestions on key areas including the structure of
the tax. The Scottish Government's preferred structure is a
progressive tax, similar to the structure of UK income tax, which
it views as fairer than SDLT's "slab" approach, where
the applicable rate of tax is charged on the whole price paid, not
just the amount above the relevant threshold.
The consultation paper also invites comments and suggestions on
a number of other areas including:
how the tax may be structured to ensure that the calculation of
tax payments due on commercial leases is better aligned with Scots
property law and practices;
whether the tax must be paid as a pre-requisite to registration
whether the legislation should include targeted anti-avoidance
measures similar to those in the SDLT legislation;
whether a general anti-avoidance rule should be put in place
instead of, or in addition to, the proposed targeted anti-avoidance
the reliefs and exemptions that should be available;
the treatment of partnerships and trusts; and
whether the tax should be amended in the future to support key
Scottish Government priorities.
The Scottish Government has confirmed that it will establish a
new tax administration agency for assessing and collecting the Land
and Building Transaction Tax, known as Revenue Scotland. It is
proposed that Revenue Scotland will be established this year and
will work closely with Registers of Scotland to administer the new
Responses to the consultation should be submitted by Thursday 30
August 2012. The consultation document can downloaded from the
Scottish Government's website
The material contained in this article is of the nature of
general comment only and does not give advice on any particular
matter. Recipients should not act on the basis of the information
in this e-update without taking appropriate professional advice
upon their own particular circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
On 18 April 2013 the UK government issued a legal challenge to the decision of the EU Council of 22 January 2013 which authorised a subset of the EU (not including the UK) to introduce a financial transaction tax.
A discussion on the changes brought by the Finance Bill in relation to the commitments to raise the Inheritance Tax and exempt limit on the value of transfers of assets to a non-UK domiciled spouse or civil partners.
The European Court of Justice recently ruled that VAT on investment management fees paid by the trustees of a UK defined benefit pension scheme is irrecoverable under a VAT exemption for special investment contained in two EU Directives.
A summary of the main Budget items affecting farmers and landowners.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”