Government: light touch fears The government's decision to end its light touch regime for filing Stamp Duty Land Tax Returns has come too early, as no effective protocol or electronic filing system for solicitors has yet been agreed, lawyers said this week.

Under special arrangements introduced late last year with the new tax, the Inland Revenue processed and issued certificates when returns were filed with omissions, and penalties for late filing were foregone for returns submitted within 40 days after transactions. These arrangements will now be ended from 19 July.


Denis Cameron, a partner with Blackpool firm Cameron & Ball and the chairman of the Law Society's conveyancing and land law committee, said difficulties remain with the method by which returns are filed.


Solicitors are currently required to sign the returns after their clients - who are ultimately responsible for the returns under the new system.


He said: 'The issue of solicitors signing is not yet fully resolved.'


In addition, attempts to create an electronic filing system for returns or a CD-ROM for solicitors to use, are not yet finalised.


Mr Cameron said: 'It is important that an effective electronic system is implemented as soon as possible. In the meantime, solicitors should try to implement case management software for filing their returns. We'll continue working with the Revenue to get [the CD-ROM] up and running and to agree a protocol which reflects that the new returns are effectively tax returns by the client, and not by the solicitor.'


Diane Latter, the secretary to the Law Society's conveyancing and land law committee, said: 'It would have been more appropriate for the government to have extended the period of the light touch until there were more effective systems of lodging in place.'