Geoff - Also bad for market transparency
10:17 | 19 Jun 2009
As well as being tax avoidance/evasion, such practices distort the market, as the purchase prices are not recorded at the Land Registry, and are therefore excluded from published information. I have noted that only one sale has been recorded in the last year in the large central London block where I live, and where many flats are owned by people from the Middle-East. I had put this down to the recession, but stamp duty avoidance may also be playing a part.
James Pringle - Once again the government and the banks colluding to rip off everyone
10:31 | 19 Jun 2009
This errs on the side of tax evasion and is government sponsored racial/religious discrimination against locals, at the behest of the banks.
They are all criminals!
It is also much much worse than MPs electing which of two or more houses is their main residence for taxes purposes, which is within tax law.
Exploiting a loophole is, in my opinion evasion.
This scheme was offered to me over a year ago when I was purchasing a residential care home but I did not take it up.
Also, the fees quoted in the article are much higher than the one I was quoted, from which I conclude it is much more prevalent you might think.
John Roberts - Clever lawyers?
10:39 | 19 Jun 2009
Clever? Perhaps, unscrupulous and immoral certainly.
John Halstead - Discrimination
10:48 | 19 Jun 2009
Why should Islamic followers have special deals just because their religion says they can't pay interest? Why should pikeys enjoy priority at the doctors surgery? I'm fed up with discrimination against honest, hard working, taxpaying, family orientated Brits.
I'm not surprised that the BNP are so popular.
I don't agree with the concept of stamp duty, but if it has to be paid it should be paid by everyone, not just the middle classes.
Mind you own Business - Anti White racist laws
11:24 | 19 Jun 2009
Yet more evidence this is fast becoming an Muslim state.
The white people of the UK have generally not been racist, however, with crap like this going on, I can see that changing and fast.
I do not support the BNP, but I can see why they are gaining support.
The government need to adopt the Australian view -- Its our country, your welcome to come here to work and live, but don't try to change our laws or way of life, if you don't like it, you are free to leave.
Its just much easier for this government to roll over and give in.
I don't see myself living here much longer, there is only so much $hit one can take!
Jill Henry - And I am sure the MPs have used this too!
12:04 | 19 Jun 2009
I wonder how many of our MPs have used this scheme - easier to count how many didnt I reckon.
There is racism and discrimination in this country alright, against either white and/or hard working, honest people!
51ck-6-51x - RE - Geoff ( 10:17 | 19 Jun 2009 )
12:11 | 19 Jun 2009
"the purchase prices are not recorded at the Land Registry"
- They are recorded, but not included in the published collations (e.g. average house price). They do not distort the market, only provide a distorted perception to those who do not do their own research. The land registry are supposedly considering changing this. Make your opinion known by emailing Amy.Carton@landregistry.gsi.gov.uk
(James, Exploiting a loophole is arbitrage, not evasion, and cannot be criminal - yes it may be immoral; it just exposes the need to close the loophole!)
Draig Goch - When in Rome......
13:02 | 19 Jun 2009
UK tax laws should apply to everyone regardless of which point of the compass you pray to. This yet another example of this country bending the rules to accomodate Johnny Foreigner whilst screwing the natives.
ronald croft
13:58 | 19 Jun 2009
I concur entirely eith Draige Goch the previous eE.Mail.. good on yer cobber.
Evan Owen - Far easier to scrap it..
15:03 | 19 Jun 2009
What is the point of a tax on a transaction which is paid by the purchaser? All it does is distrort the market as in this case, why should any religion receive preverential tratment? Take the gypsies for example, please!
Terry Nicholas
15:15 | 19 Jun 2009
MP's will not amend a scheme that they benefit from, so don't expect action against this abuse. We desperately need a "Majority Party" before we become the minority. Politicians use "minority legislation" to control the majority, time to act like the majority and hit back hard at the misfits who use the tail to whip the dog. Millions have given up and emigrated, let's make this a country worth coming home to. Get angry.
snoekie - Hypocrisy
15:24 | 19 Jun 2009
Agreed, one law for all buying property in the UK, and that goes for the MPs who have been getting back the duty paid.
And then they exempt, by influence, from prosecutions and also HMRC scrutiny.
Scrap the scheme. If interest is not to be paid, then the additional duty on transfer to the individual, at the full rate must be paid.
It is also a highly discriminatory tax, re-emphasising the 'class' war mentality of this government.
They are envious of those with money, but not above ripping off the tax payer with criminal claims to get what others have got legitimately and then exempting themselves from prosecutions that they insist on for benefit cheats.
One law for all and no exemptions.
Amjad Iqbal - Mind your own business
15:41 | 19 Jun 2009
In response to one of the xenophobic comments by "Mind your own business". there needs to be a clarification....Under Shariah-compliant schemes, Muslims ended up paying the stamp duty twice (as explained in the article). The law was thus changed to make the situation more equitable and was nothing to do with giving special deals to Islamic followers.
It is the law firms that are minting it by finding these loopholes not the Mozlimz.
rex bolland - Its fraud and anti Christian
16:05 | 19 Jun 2009
This is clearly FRAUD and an abuse of Christians.
The government should act to stop it NOW.
I shall demand such of my MP asap.
It is still interest and they are still buying a property so this is utter nonsense and an insult to our Christian Culture.
Whoever in HMG allowed this to happen should be sacked and the loophole closed.
ron
16:57 | 19 Jun 2009
Always pay the 'right' amount of tax..so why pay tax that is avoidable? Until the loophole is closed this is not tax evasion. The truth is that the way in which stamp duty tax is levied i.e. no tax banding application is made is a highly immoral act by the government in itself...it's high time we all revolted againt the govenment on this one. Why should someone pay £15k tax on a home purchase valued at £499.9k and £20k tax on a home purchase valued at £500k?
SOBHAGCHAND SHAH
17:43 | 19 Jun 2009
I am always interested on the subject of Stamp Duty on both share transactions and on properties. On one occassion I was intending to buy a new property to be built by a building firm on the land allocated. They showed houses built previously to confirm the design and quality of the house that would be build. If an early contract is made before the house is built there would be discount. They took Stamp Duty payable in the calculations.
My argument was that there would be no stamp duty payable because what I bought was the land on which the stamp duty would be very nominal. The house was then built by the builder on my behalf. Therefore why should I be liable to pay Stamp Duty, I asked.
The stamp duty is only payable if I bought a ready made property, I believe.
My argument was not accepted by the builder but I think they were wrong.
What I realy meant was to get the builder agreeing to my proposal whereby there would be no need to pay stamp duty.
What do you think ??? Please let me know your comments on this.
ron - comment to SOBHAGCHAND SHAH
17:52 | 19 Jun 2009
Nice idea....question is what are you purchasing from the developer...just the land or the whole package ie the land plus the house to be built, it's just a question of when the second part of the transaction will be delivered?
If you could split purchase into 2 distinct transactions ie one for the land and one for the building then you may be onto something.
However I am not familiar with the detailed tax implications re this and am not sure if anti-avoidance legislation exists re this (probably does). But definately worth exploring.
thomas dayes - "RENT"
18:25 | 19 Jun 2009
does the fact that they pay "rent" not morgage mean an entitlement to houseing benefit who is buying these house's the british tax paying natives of this fair equal oppertunity for all country WOT A JOKE
colin
21:20 | 19 Jun 2009
We don't live in the UK anymore but it is galling reading about the discrimination being dished out to the English public who pay all of their taxes which supports the country but are being increasingly marginalised in favour of all these damn minority groups. If these people want to live in the UK let them pay their way and take their turn, if not ship them back where they came from.
Craig - Rip Off Britain
21:58 | 20 Jun 2009
It seems that the comments here are fairly unanimous.
Presumably there is a reason why these minority populations came to live in the UK, was it our lifestyle, was it our freedom, was it our legal system.
It is all becoming a little blurred recently as it seems that the laws of the land are becoming more and more against the indigenous population and in favour of the minority.
I watched with interest an article on the telly the other day that suggested that when in a foreign country us Brits should be a little more respectful of the society that we are visiting, whilst I totally agree with this, we should, I am wondering how that respect manifests itself with the visitors to our own land.
Like the other correspondents, I am no tin favour of the BNP, but I can see why people are turning in that direction.
Smi - stamp duty...loophole
21:37 | 21 Jun 2009
We all feel like shouting...''not fair...not fair..''
Now that we are aware of this loophole..we can protest loudly...someone will have to listen to the masses!
But please do not blame the Muslim community for this!..
Where is the British fairness in all this?
Brian Meek - Muslim Finance
09:26 | 22 Jun 2009
What I fail to understand, and always will, is the attitude of these religious groups. They set themselves rules and then try to find ways to circumvent them. The same is true of Jews who cannot work on the sabbath unless, of course, they stretch wire between posts in an area, when they can. When will they all wake up to the fact that rules set centuries ago to counter abuses at that time do not work today. Get real. Join the 21st century. If you are not willing to do this why should everyone else have to take your antiquated views into account and cause difficulties for everyone else?
Gary Wilson - PC gone mad
11:09 | 23 Jun 2009
The allowance of Shariah compliant finance within the UK, has obviously opened the door to this tax avoidence scheme.
HMRC should ensure that any corrective legislation includes that caviat that only financial institutions that can prove they do not charge interest on any product whereever they or their direct subsidiaries operate in the world, may utilise such a scheme. Also the 'renter' should have to pay rent for the length of their stay, at market rates, and no transfer of title should be allowed without a payment to the financial institution at market rate. (To include up to 50% of any rental paid for the life of the lease to the date of the transfer). Why is it the poor keep getting poorer and the rich getting richer? The rich and their lawyers all went to the same schools as the law makers!!
Nizam Patel - Anti White Laws?
16:16 | 25 Jun 2009
I think some readers have totally misunderstood the article. The law/loophole wasn't there to protect Muslims as such. When the banks introduced the buy and lease models to avoid interest and instead charge rent and make a profit that way, anyone, Muslim or not, who took up such finance found themselves paying Stamp Duty twice. First when the bank purchased (and they wouldn't pay the duty themselves as they were only buying to then ultimately sell to the client; so the cost was also passed to the client. Then when paid off, the client was purchasing the property from the bank which triggered a second stamp duty).
The laws were changed to make all property purchase transactions on a level playing field where 'buyers' who had to finance a property in alternative ways to avoid paying interest - an issue apparently found in all 3 major monotheistic religions, Judaism, Christianity and Islam. The difference is only in how much each faith chooses to hold on to original scriptures, some more than others; so, this fairer practice where everyone only pays stamp duty once.
The question now is, who is exploiting any loop holes that might have come about in the process? Are the majority of those promoting or taking advantage of such loopholes Muslim? I think not... Lets not be racist and face the fact that lawyers, tax consultants and large property investors will continue looking for loopholes - it shouldnt be an opportunity for the rest of us to stoop low and start pointing fingers at a particular race/religion.
Last point, some one mentioned something about ancient laws... the recent credit crunch is proof that in a world of usury and artificial money, someone has to lose somewhere. There is a cycle which everyones ignores that hits us every few decades and countries start declaring recessions... and then a boom: obviously, everyone is starting at the bottom again so course there will be a boom. Islamic Finance is all about avoiding usury, and the creation of artificial money which fuels inflation and stick to system where wealth is equally distributed... everyone shares in profits, everyone shares in losses... the times online explains: http://www.timesonline.co.uk/tol/comment/faith/article4834546.ece
http://www.findmeasolicitor.com
sm
17:21 | 27 Jun 2009
An appropriately drafted general anti-avoidance principle or rule properly drafted which would allow the tax avoided to be recovered from the scheme promoters and or the clients contracting.
This would need interpreting by the courts but would im sure would reduce the number of loopholes exploited for the tax benefit only, except where it was specifically decided by parliament.
Our MP's would have to draft law much better.
Peter Bennell Smith
10:52 | 10 Jul 2009
The rich get richer. Ho hum. Greedy bastards.
david mudge
12:47 | 14 Jan 2010
absolutely a shambolic practice,having seen that idiot choudray on the tv in last few minutes,we may all join there 'club'