Much is always talked about the fairness of our tax system but most of the discussion is linked to the complexities of our tax system.
So we wanted to point out one idiosyncrasy which could be easily fixed. Did you know that a great number of property transactions in Central London are purchases via offshore companies and trusts? Very often the sale is conducted in the form of a transfer of shares so no stamp duty applies. The majority of these transactions would attract stamp duty of 5% so we’re talking a great deal of money. Surely there must be an easier way for HMRC to classify single property company (i.e. a company set up to hold a specific property) transfers as property transactions and ensure they are subject to stamp duty. This will produce substantial tax revenue and the savings could be reallocated by reducing stamp duty for “low value” properties which affect the majority of the UK population.