MFA submitted a comment letter to His Majesty’s Revenue and Customs (“HMRC” or “HM Revenue & Customs”) on consultation for proposals to modernize the UK’s stamp taxes on shares framework. The letter emphasizes MFA’s support for the modernisation of Stamp Duty and Stamp Duty Reserve Tax (“SDRT”), and in particular, the proposal to implement a single tax on securities rather than maintaining Stamp Duty And SDRT as two separate taxes.
MFA strongly supports the adoption of the single securities tax, that incorporates clearly-defined parameters and provides practical commercial exemptions when applicable. This measure will optimize government resources and improve overall efficiency. Furthermore, the MFA affirms that the implementation of the new single tax would result in simplified administration for taxpayers, serving as a significant step towards modernizing the intricate tax system in the UK pertaining to this field. This change is welcomed by our members as it aligns with their ongoing dedication to investing in and managing assets within the UK.