Seema Malhotra – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Seema Malhotra on 2016-02-03.

To ask Mr Chancellor of the Exchequer, what the (a) primary and (b) secondary policy purposes are of stamp duty exemption for transfers under schemes of company reconstruction and similar arrangements.

Mr David Gauke

Relief from stamp duty is available for company reconstructions where the same people hold the same proportion of shares before and after the reconstruction. The relief ensures that stamp duty does not apply where there is no real change in ownership of a company. The relief also recognises that reconstructions of companies often occur for genuine commercial reasons unrelated to tax, so in strictly defined circumstances should be able to take place in a tax neutral way. All claims are adjudicated by HM Revenue and Customs to ensure the strict conditions for relief are met.