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Changes to the stamp duty payment window
The government has confirmed its plans to reduce the time limit for filing Stamp Duty Land Tax (SDLT) returns and
paying any tax due.
First announced in 2015, the measure was due to come into effect
in 2017/18, but was subject to a delay. The publication of the
draft Finance Bill 2018-19 in the summer has confirmed the plans.
The new timescales
SDLT is payable on the purchase of land and buildings in England
and Northern Ireland. Under the existing rules, purchasers currently
have 30 days from the effective date of the transaction (usually the
completion date) to file an SDLT return and pay the tax due.
Following the changes, for transactions with an effective date on
or after 1 March 2019, the time period for filing and paying tax will
be reduced to 14 days.
Separate rules apply in Scotland and Wales, where the Land
and Buildings Transaction Tax (LBTT) and Land Transaction Tax
(LTT) apply respectively. LBTT and LTT returns must currently be
made, and tax paid, within 30 days of the effective date of the
transaction.
Other considerations
The amount of duty payable depends on factors such as whether
the land or property is residential, non-residential, or of mixed
use. Non-residential property includes commercial property (such
as shops and offices); agricultural land; or six or more residential
properties bought in a single transaction. The current starting
thresholds for SDLT, LBTT and LTT are as follows:
Residential
Non-residential
SDLT
£125,000
£150,000
LBTT
£145,000
£150,000
LTT
£180,000
£150,000
First-time buyers in England and Northern Ireland can benefit from
a new relief on the first £300,000 of residential purchases up to
£500,000, while a similar first-time buyer exemption can apply to
the first £175,000 of residential purchases in Scotland.
Across the UK, residential rates may be increased by 3% on the
purchase of additional residential properties. Although these are
targeted at second home owners and buy-to-let landlords, the
higher rates can also impact other purchasers. Care is therefore
needed if an individual owns or partly owns a property, and has
not disposed of the first before transacting to purchase a second.
This scenario may arise where, for example, there is a delay in
selling the main residence and a new purchase has completed.
We can advise on all areas of tax and property. Please
contact us for further assistance.
Data protection self-assessment: are you up-to-date?
25 May 2018 saw the introduction of a new data protection regime in the UK. As part of the changes, a new data
protection fee structure now applies, which replaces the previous requirement to register with the Information
Commissioner’s Office (ICO). Here, we consider the rules in more detail.
The regulations: an overview
On 25 May 2018, the Data Protection
(Charges and Information) Regulations 2018
came into effect, alongside the General Data
Protection Regulation (GDPR).
The GDPR has strengthened the obligations
on all organisations that deal with individuals
living in an EU member state to safeguard
the personal information belonging to those
individuals, and to retain verified proof of this
protection.
As part of the Data Protection (Charges and
Information) Regulations 2018, businesses
and individuals which process sensitive
information – regardless of their compliance
with the GDPR – must pay an annual data
protection fee to the ICO, unless they are
exempt. Exempt organisations are generally
those which:
y
y
manually process data
y
y
process data for personal, household or
family purposes
y
y
process data for the purpose of
maintaining a public register
y
y
handle data for staff administration
purposes
y
y
utilise data in order to advertise or market
the controller’s own activities
y
y
perform judicial functions
y
y
operate as a not-for-profit body, and
process data for specific purposes.
An exemption also exists for the purpose of
keeping accounts and records and making
financial forecasts, except where the data in
question was obtained from a credit reference
agency.
The new fee structure
Organisations and individuals which handle
personal information are termed ‘data
controllers’. It is data controllers who are
responsible for paying fees to the ICO.
A new fee structure has been introduced,
which replaces the previous requirement
to ‘notify’ (or register) under the Data
Protection Act 1998:
y
y
a Tier 1 fee of £40 is payable by micro
organisations with a maximum turnover of
£632,000, or no more than ten members
of staff
y
y
a Tier 2 fee of £60 is payable by small
and medium-sized organisations with a
maximum turnover of £36 million, or no
more than 250 employees
y
y
if you do not meet the criteria for Tier 1 or
Tier 2, the Tier 3 fee of £2,900 applies.
Controllers who have a current registration
under the 1998 Act do not need to pay the
new fee until their existing registration has
expired.
Any data controller who processes personal
data, or is responsible for the processing of
personal data, and either fails to pay a fee,
or fails to pay the correct fee, is breaking
the law and could be subject to significant
penalties. The maximum penalty is £4,350,
which equates to 150% of the top tier fee.
Ensuring you are compliant
The ICO provides a free self-assessment
tool:
https://bit.ly/2HFyNMM. It has also
developed a data protection self-assessment
toolkit specifically for small and medium-sized
enterprises, which contains assurance
checklists, alongside support in regard to the
security of information, direct marketing, the
management of records, data sharing, and
the data protection rules relating to CCTV.
Staying up-to-date with the data
protection regulations could help
you to avoid significant penalties.
FOR ELECTRONIC USE ONLY