| answer text |
<p>In light of evidence that Stamp Duty Land Tax avoidance schemes were being widely
marketed to businesses and to the public, the Government has taken clear and robust
action. This can be seen in a twin approach to driving down SDLT avoidance – legislation
to put beyond doubt that these schemes do not work, and wider measures which remove
the advantage of delaying payment that those who seek to avoid tax gain over the great
majority who pay the right amount at the right time. As a result of this Government’s
intervention, SDLT avoidance schemes have largely disappeared and the number of individuals
using such schemes has reduced by over 90%.</p><p> </p><p> </p><p> </p><p>In 2013,
the Government introduced legislation which makes it clear that the SDLT schemes being
sold did not work. It also passed legislation which worked retrospectively, requiring
users of the most popularly sold schemes to immediately amend their tax returns. This
legislation applied to those who had still chosen to enter into schemes despite the
Chancellor’s warning against the continuing use of SDLT avoidance in his budget speech
of March 2012.</p><p> </p><p> </p><p> </p><p>HMRC has consistently challenged the
use of these schemes and does not believe that any of them actually achieves its aim
of reducing the liability to SDLT. This view has been tested in a number of recent
court hearings and HMRC has been successful in every case so far.</p><p> </p><p> </p><p>
</p><p>To further strengthen the anti-avoidance effort, the Government has introduced
additional measures which make it harder for users of tax avoidance to delay paying
what is due. From 2014, anyone who has used a scheme where a similar case has already
been settled in the courts will be required to accept that ruling or face additional
penalties on top of the tax and interest owing. And users of disclosable schemes where
there is no such court decision will be expected to pay in advance the amount of tax
that they are seeking to avoid while they await a final decision.</p><p> </p>
|
|
