A technical measure that re-enacts and updates an existing stamp duty land tax (SDLT) relief for acquisitions of interests in land by certain NHS bodies. It updates the list of bodies to which the relief applies and repeals the existing SDLT relief and its equivalent stamp duty relief, which is obsolete.
Baker Tilly analysis
The stated policy objective (to re-enact the relief in a simplified and robust form) is to be applauded. It will simplify the tax system as the existing relief is not in the tax legislation. Too often changes to tax legislation are made some time after they are needed. This measure re-enacts the relief that is available in a simplified and more robust form and takes into account forthcoming changes in the pattern of NHS service provision with the introduction of NHS Commissioning Board and clinical commissioning groups, and the abolition of NHS trusts in England and Primary Care Trusts, under provisions of the Health and Social Care Act 2011.
The stated policy objective (to re-enact the relief in a simplified and robust form) is to be applauded. It will simplify the tax system as the existing relief is not in the tax legislation. Too often changes to tax legislation are made some time after they are needed. This measure re-enacts the relief that is available in a simplified and more robust form and takes into account forthcoming changes in the pattern of NHS service provision with the introduction of NHS Commissioning Board and clinical commissioning groups, and the abolition of NHS trusts in England and Primary Care Trusts, under provisions of the Health and Social Care Act 2011.
In detail
The SDLT and stamp duty reliefs are currently contained in the National Health Service and Community Care Act 1990, as amended by the SDLT Regulations. The National Health Service Act 2006 extends the reliefs to NHS Foundation Trusts.
Legislation will be introduced in the Finance Bill 2012 to repeal the above legislation (and an equivalent stamp duty relief, which is obsolete, and to re-enact the SDLT relief in the SDLT legislation. This will provide relief for acquisitions by the NHS Commissioning Board and clinical commissioning groups provided for by the Health and Social Care Act 2011, NHS foundation trusts, NHS trusts and Local Health Boards in Wales, and Health and Social Services trusts in Northern Ireland.
Pending abolition of the bodies concerned under the Health and Social Care Act 2011, the new legislation will provide relief for acquisitions by NHS trusts in England and by Primary Care Trusts.