The Chancellor, Philip Hammond, has written to the Office of Tax Simplification responding to its recent publications on simplifying the computation of corporation tax and stamp duty on paper documents and setting out the government’s requests for new work in these areas.
In relation to the OTS review on simplifying the corporation tax computation
Work will continue to investigate the possibilities arising from the remaining proposals in the OTS report.
The response to the recommendations on the OTS review of stamp duty on paper documents seems rather more likely to lead to change in the shorter term. Retiring the stamping machines and adopting a digital approach was welcomed by the government as being sensible.
Providing taxpayers with a unique reference, amending company registrars’ legal obligations in respect of share transfer registrations, making stamp duty assessable and aligning the scope of stamp duty with stamp duty reserve tax, will all be considered carefully. We may also see group relief and reconstruction relief being introduced directly into the stamp duty reserve tax rules, so reducing the tax administrative burden of these activities.