§ Mr. Heathcoat-AmoryTo ask the Chancellor of the Exchequer (1) what evidence his Department has collected concerning the extent to which agreed property prices in London are banded at values just below the stamp duty thresholds; [110639]
(2) what steps he is taking to prevent purchasers of property from avoiding stamp duty by schemes to apportion the purchase price between taxable and non-taxable items; [110640]
(3) what evidence his Department has collected concerning property purchasers avoiding higher rates of stamp duty by apportioning the purchase price between taxable and non-taxable items. [110644]
§ Mr. Timms[holding answer 17 February 2000]: Only a very small proportion of property deals in London are agreed at amounts just below one of the stamp duty thresholds.
Stamp duty is charged on a conveyance for sale of land and buildings. Where the total consideration for a sale includes non-dutiable items, such as chattels, the value of those items can properly be deducted from the total in order to calculate the amount to which ad valorem stamp duty applies. The Stamp Office examines documents presented for stamping as well as the associated Certificates of Value and other legal documentation and makes further inquiries where it is appropriate to do so. Adjustments to the tax charge are made in a handful of cases each year but there is no evidence of widespread overstatement of the value of non-dutiable items. It follows that there is no need for additional steps to counter avoidance or other abuse in relation to the apportionment of purchase prices.