The increased frequency of corporate sales where the companies debt is not refinanced raises new concerns on the stamp duty costs of managing the debt. Simon Yeo reconsiders the basis for these worries
Surely the oldest piece of tax legislation which is routinely encountered by the tax practitioner is that which imposes stamp duty on transfers of property for debt — Stamp Act 1891 s 57. It was originally drafted in 1870 and ever since has been one of the main stamp duty charging provisions. Although now broadly confined to transfers of UK shares it can still present a major worry on corporate acquisitions where the buyer makes direct provision for an acquired company's debts. The technical position in these cases is unclear so some standard practices have evolved to sidestep the question of how s 57 should be interpreted. In the economic climate now with many more...
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The increased frequency of corporate sales where the companies debt is not refinanced raises new concerns on the stamp duty costs of managing the debt. Simon Yeo reconsiders the basis for these worries
Surely the oldest piece of tax legislation which is routinely encountered by the tax practitioner is that which imposes stamp duty on transfers of property for debt — Stamp Act 1891 s 57. It was originally drafted in 1870 and ever since has been one of the main stamp duty charging provisions. Although now broadly confined to transfers of UK shares it can still present a major worry on corporate acquisitions where the buyer makes direct provision for an acquired company's debts. The technical position in these cases is unclear so some standard practices have evolved to sidestep the question of how s 57 should be interpreted. In the economic climate now with many more...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
