Summer 2005 Newsletter Content More of the same? Around the world Hot tips Inside out? Sweet sacrifice Simple trust Done and dusted? Open immediately File under E An Inspector calls CO still OK Open for business High PHI Arctic chills Duty calls Pensions Fuelling around WIP round Win some, lose some Take it and go? Party talk Work less, earn less Making adjustments

Duty calls One of the headline-grabbing measures in the Budget was the increase in the starting point for stamp duty land tax from £60,000 to £120,000. It's important to know that this doesn't help you if you are paying any more than that - if you are over the threshold, you pay on the whole amount. So SDLT on a purchase cost of £119,000 is nil, but on £121,000 it's still £1,210. There's a long-standing plan if your purchase is close to one of the thresholds - the starting point, or at £250,000 and £500,000 where the rate increases. Furniture and moveable items are not charged to SDLT, so if you can reasonably put a value on them, you reduce the amount you pay - and if you can reduce a house price of £251,000 to £249,000 by paying £2,000 for carpets, curtains and so on, then the SDLT falls from £7,530 to £2,490. Of course, the Revenue know this too, and they will look closely at a declaration that's close to the borderlines. You can't put an unrealistic figure on the moveables, and it doesn't work with fixtures like fitted furniture or baths and toilets. So you have to do it properly - we will be happy to advise you. The Chancellor was less keen to emphasise the bad news - the ending of a relief for the purchase of commercial property in 'disadvantaged areas'. They have been exempt from SDLT for two years, but after Budget day the normal rates apply on purchases over £150,000. That makes a big difference if you had been planning a relocation into a high-value property. As always, what the right hand gives, the left hand is busy taking awayÉ