UK - Plans to broaden the scope of taxes on property investments will be another "damaging blow" for pension schemes, the Association of Chartered Certified Accountants warns.
The Inland Revenue is proposing to extend stamp duty rates payable on land and property transactions to those made on shares in property companies.
Stamp duty rates on such transactions stands at a flat rate of 0.5%. But the proposed changes would boost rates to 3% on transactions above £250,000 and 4% above £500,000 transactions.
ACCA head of taxation Chas Roy-Chowdhury said this would be likely to seriously damage property share values.
He warned: “Any legislation must be specifically targeted at only the special purpose vehicles. Otherwise the desire to glean more tax could be another damaging blow to pension funds which are reliant on investments in property companies’ shares.”
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