The Gazette 1992

GAZETTE

JUNE 1992

June, 1992. Any documents stamped after 30 September will be charged interest and penalties from the actual date of execution. Revised Stamp Duty Regime The Finance Act, 1991 substantially amended the collection, enforcement and penalty provisions in stamp duty. As a result stamp duty must be paid within 30 days of the execution of a document. Failure to pay the Commissioners to compel payment. In addition late payment of duty is penalised as follows:- • a fixed sum penalty of £20, plus • interest at 1.25 per cent per month or part of a month from the date of execution, plus • a penalty of 10 per cent of the duty where a document is stamped between 1 and 6 months late; • a penalty of 20 per cent of the duty where a document is stamped between 6 and 12 months late, and • a penalty of 30 per cent of the Application of revised regime to pre-1 November, 1991, documents In general the revised stamp duty regime applies only to documents executed on or after 1 November, 1991. However, in the case of documents executed before that date, the interest and penalties for late payment do apply from 1 November, 1991. The duty payable on these documents, therefore, will be charged interest at 5 per cent per annum up to 31 October, 1991, and the revised provisions will apply thereafter. All of these documents which are now unstamped are already liable to the 10 per cent of duty penalty plus interest charges. After 1 May this penalty will increase to 20 per cent and to 30 per cent on 1 November, 1992. duty within time can lead to proceedings by the Revenue duty where a document is stamped at any later time.

Example of operation of penalties and amnesty This example of a document executed prior to 1 November, 1991 will help to illustrate the effect of these penalty provisions and how the amnesty would apply: Date of execution of document: 1 November, 1990. Duty payable: £3,000 (a) If the document is presented for stamping on 5 May, 1992 the following interest and penalties would be payable:

£ 10.00

Fixed sum penalty

Interest at 5 per cent per annum from 1 November 1990 to 31 October, 1991: Interest at 1.25 per cent per month from 1 November, 1991 to 5 May, 1992: Additional penalty - 10 per cent of duty;

150.00

262.50 300.00 722.50

Total penalties

All penalties would be waived under the amnesty. (b) If the document is presented for stamping on 2 September, 1992 the following interest and penalties would be payable:

£ 10.00

Fixed sum penalty

Interest at 5 per cent per annum from 1 November 1990 to 31 October, 1991: Interest at 1.25 per cent per month from 1 November, 1991 to 2 September, 1992: Additional penalty - 20 per cent of duty:

150.00

412.50 600.00

Total penalties

1,172.50

In this case the amnesty will remit the interest and penalties as follows:

£

Interest from 1 November 1990 to 31 May, 1992 - remitted in full. Interest at 1.25 per cent per month from 1 June, 1992 to 2 September

180.00

- payable: fixed sum penalty

20.00

Additional penalty of 20 per cent of duty remitted to a penalty of 10 per cent of duty:

300.00 500.00

Total penalties

Amount of penalties remitted by amnesty:

£1,172.50 - £500.00

= £672.50. (c) If the document is presented for stamping on 1 November, 1992 the following interest and penalties would be payable:

£ 10.00

Fixed sum penalty

Interest at 5 per cent per annum from 1 November, 1990 to 31 October, 1991: Interest at 1.25 per cent per month from 1 November, 1991 to 1 November, 1992: Additional penalty of 30 per cent of duty:

150.00

487.50 900.00

Total penalties

1,547.50

Amnesty does not apply.

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