HMRC have recently advised us that they are currently in the process of updating toolkits published for use with 2009–10 tax returns. The updated versions for use with 2010–11 tax returns are expected to be published between now and the end of June.

Therefore it is important to note that if 2009–10 toolkits are used to complete 2010–11 returns, certain legislative changes may apply which will not be reflected in the 2009–10 versions.

HMRC also advise the following for agents already completing 2010–11 Tax Returns:

• the updated MSCR toolkit (Small Profits Rate & Marginal Relief for 2010–11) will be published following Finance Act 2011 to include the revisions to Section 27 Corporation Tax Act 2010 – attribution to persons of rights and powers of their associates – that will affect accounting periods ending on or after 1 April 2011; and
• the current published Expenses & Benefits from Employment toolkit is applicable to 2010–11. The updated version for 2011–12 will be published after the 2010–11 P11D filing date on 6 July 2011.

HMRC have now published 19 toolkits covering a range of tax subjects. The final toolkit Business Profits, which highlights errors that HMRC see within sales, expenses and particular technical areas, is currently in development. It is expected that this toolkit will be published at the end of June.

The toolkits can be accessed from http://www.hmrc.gov.uk/agents/prereturn-support-agents.htm

Stamp Duty Land Tax: relief for transfers involving multiple dwellings – draft guidance published

HMRC have published draft guidance regarding relief for transactions which include the acquisition of interests in more than one dwelling. This was announced at Budget 2011 and applies to transactions where the effective date is on or after the date of Royal Assent to the Finance Bill, currently progressing through Parliament.

The draft guidance provides a number of examples as to how the new legislation will work in practice.

For example the freehold of a new block of 20 flats is purchased for £2.5 million. As part of the transaction, there is no head lease and none of the flats is subject to a long lease.

The transaction is a relevant transaction for the purposes of the new relief as it involves the acquisition of more than one dwelling – i.e. the 20 flats. Therefore the freehold is treated as if it were interests in the individual dwellings and the chargeable consideration is divided by the number of dwellings to give a chargeable consideration of £125,000 per flat.

Whilst this is below the normal 0% SDLT threshold, the minimum rate of tax under the relief is 1%. SDLT due is therefore 1% of £2.5 million = £25,000.

For more information go to http://www.hmrc.gov.uk/so/examples-multi-dwellings.pdf