I started my career in tax in the Inland Revenue having been recruited whilst doing a PhD at Nottingham University (in Pharmacology but let’s ignore that slight swerve in career!). I had a varied experience in different areas including Large Business Office and the local network. I then left to work for a consultancy firm before setting up my own business doing both consultancy and lecturing. I have always covered all areas of tax, except VAT, and continue to do so. However, when Stamp Duty Land Tax was introduced in 2003, I decided to assume that as a specialism and have immersed myself in the topic in the twenty years since.
I have worked in tax for 35 years and I think it is almost impossible to summarise the changes in that time. The Inland Revenue has become HMRC and the whole system has become much more adversarial. My feeling is that the real problem is that there appears to be a real lack of training within HMRC particularly in specialist areas. It is much easier to have an argument with someone who knows what they are talking about than someone who doesn’t! Clients always know someone who is paying less tax than them too which means that dealing with their expectations can be difficult. I don’t remember it being quite as hard when I first left the department.
There are a couple of current areas for Stamp Duty Land Tax: the definition of residential property and the claiming of multiple dwellings relief. HMRC are opening lots of enquiries on these points because there are firms who are cold-calling to encourage purchasers of property to amend returns. However, HMRC have taken a number of cases to the FTT so I think that activity in this area will diminish as people start to realise it is not that easy! Incorporation of property businesses to avoid the interest restriction on individuals is another area where careful planning needs to be done to avoid the potential SDLT cost although it is another area where there are many ideas of who this can be done which I am not convinced are always very robust.
In many ways SDLT has remained quite static over the last few years, other than changes in rates. As noted above, there is lots of compliance being done by HMRC and they have successfully defeated most of the aggressive SDLT avoidance schemes which existed in the past. One of the big issues in my view currently is the reluctance on the part of some solicitors to give substantive advice on SDLT which means people find it difficult to get the advice they need. Accountants have not traditionally dealt with this area and so may not feel they have the confidence to give advice.
I think the complexity of all areas of tax gives the profession a huge challenge. It is impossible to keep up to date with everything that is happening. Practitioners need to know what they don’t know and where they can find help if they need it which is not always easy. The lack of face to face training during Covid and beyond has left gaps in knowledge – it is so easy to switch on a webinar and then get distracted so that you are not really listening to what is being said.
