Stamp Duty Land Tax (Hansard, 29 January 2004)

§ 9. Mr. Tim Boswell (Daventry) (Con)
What recent discussions he has had with business representatives regarding the potential for reform of stamp duty land tax on leases. [151550]

§ 13. Mr. Julian Brazier (Canterbury) (Con)
What steps he is taking to alleviate the effect of the new stamp duty land tax on leases on businesses. [151554]

§ The Paymaster General (Dawn Primarolo)
Following consultation with representatives of interested parties, substantial changes were made to the stamp duty land tax charge on the rental element of new leases, which will be of special benefit to small and medium-sized businesses. This means that all commercial leases, which would have been liable to stamp duty land tax under the original proposals, have now benefited from a £1,500 reduction.

§ Mr. Boswell
Yes, but independent evidence suggests that the average pub licensee will face a tenfold increase in their tax bill, from £600 to £6,000. How on earth can that be justified?

§ Dawn Primarolo
I do not accept that. In the commercial sector 60 per cent. of all leases will be exempt from stamp duty land tax. That compares with only 9 per cent. of leases that were exempt under the previous stamp duty regime.

§ Mr. Brazier
The professional association suggests that independent children's homes are facing a fourfold increase in stamp duty. When the original provisions were introduced, was it the Minister's intention that a sector so important to the most vulnerable members of our community should be hit in that way?

§ Dawn Primarolo
I know that the hon. Gentleman follows these matters closely, and he has demonstrated his interest in them a number of times in the House. All homes under the threshold are exempt. That has been clearly laid out in the House by my right hon. Friend the Chief Secretary and my hon. Friend the Financial Secretary.

§ Mr. James Gray (North Wiltshire) (Con)
What effect will the charge have on farmers on annual leases?

§ Dawn Primarolo
The Treasury has been discussing with the Department for Environment, Food and Rural Affairs the extent of the changes with regard to the stamp duty land tax. DEFRA is fully aware of the requirements under the proposals in the legislation, and the matter will be taken forward.