Tax Update - Monday 12 December 2011

1. General news

1.1. Office of Tax Simplification review of reliefs

As announced at Budget 2011, and following consultation over the summer, legislation will be included in Finance Bill 2012 to abolish the following provisions from 6 April 2013 (1 April 2013 for corporation tax elements and harbour reorganisation schemes):

• mineral royalties;
• SDLT disadvantaged areas relief – this currently consists of a relief in respect of residential property purchases of up to £150,000 and a transitional relief in respect of non-residential property purchases made before 17 March 2005 (the relief was abolished from that point for non-residential properties). The conclusion of the consultation is that the relief for residential property purchases will be abolished in its entirety from April 2013, but the transitional relief for non-residential property purchase contracts entered into before 17 March 2005 is retained;