I wonder if Revenue & Customs has taken note of the Office of Fair Trading's (OFT) recent decision on the subject of penalty charges on credit cards.

In essence, that office has said that default charges should be for no more than reflects the cost to the provider of the credit. They should 'be calculated on the basis of a reasonable pre-estimate of the net limited additional administrative costs which occur'. Any such penalty charge of more than £12 will be presumed to be unfair.


If, on the other hand, delay is made in filing the stamp duty land tax return, the fixed penalty is £100. This is regardless of whether any tax is actually payable. It is true that the relationship between taxpayer and Revenue is rather different, but the OFT said in conclusion that the ruling and the principles involved should be considered by all providers of agreements with consumers, such as for 'mortgages, store cards and bank accounts'. It is hard to see why the stamp duty penalty should escape scrutiny on similar principles.


William Jones, Bevan Jones, Llanarth, Ceredigion