The Government has recently tabled an amendment to Finance Bill 2013 designed to target a particular Stamp Duty Land Tax (SDLT) avoidance scheme which uses the SDLT transfer of rights rules. It should be noted that the proposed amendment will have retrospective effect and, if enacted, will apply from 21 March 2012.

Because of previous SDLT avoidance schemes it was announced at Budget 2012 that the government would consider using retrospective legislation to close down future SDLT avoidance schemes if necessary. Acting on this warning, it was announced at Budget 2013 that legislation would be included in the 2013 Finance Bill to close down two particular schemes.

Since then a further SDLT scheme has been identified which the Government believes does not have the effect intended but to remove any doubt, action is being taken now.

The draft legislation and supporting explanatory notes are available on the Government's website.