§ Mr. LoughtonTo ask the Chancellor of the Exchequer (1) what estimate he has made of the revenue generation from the proposed increase in the stamp duty charge on all off-market transfers of tradeable securities; and what assessment he has made of the impact on the savings industry and smaller investors of the increase; [R] [79937]
(2) if he will make a statement on the proposed increase in the stamp duty charge on all off-market transfers of tradeable securities; if this includes transfers into nominee registration, from 50p to £5; on what date the increase is planned to take effect; and what estimate his Department has made of the likely number of annual transfers to which this charge (i) would have applied in 1998–99 and (ii) will apply in 1999–2000. [R] [79936]
§ Ms Hewitt[holding answer 13 April 1999]In order to streamline the administration of Stamp Duty, the Budget proposed that current charging provisions be standardised to provide for rounding up to a multiple of £5 in all cases, and that fixed stamp duties be set at £5. These changes will take effect from 1 October 1999. The proposals do not affect the stamp duty reserve tax charges on the bulk of share transactions, which are settled in dematerialised form within CREST.
About 1 million transfers of securities in a full year are expected to be subject to these reforms, yielding about £5 million. Most of these are fixed duty transfers involving nominees.
The impact of the new provision on the savings industry and on small investors is expected to be very small.
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