XN000022-1991-11-06 — Page 16

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WEDNESDAY, NOVEMBER 6, 1991

MR MACLEOD SAID THE MOST EFFECTIVE WEAPON TO DO THIS WAS A CHANGE IN THE WAY STAMP DUTY WAS CHARGED.

AT PRESENT, STAMP DUTY WAS PAYABLE ON ASSIGNMENT OF A PROPERTY; IN OTHER WORDS, ON COMPLETION OF THE DOCUMENT BY WHICH THE PROPERTY WAS LEGALLY TRANSFERRED TO THE PURCHASER.

BUT IT WAS NOT PAYABLE ON SALE AND PURCHASE ARRANGEMENTS ENTERED INTO BEFORE THE ASSIGNMENT.

"WE HAVE NOW DECIDED THAT ALL SUCH ARRANGEMENTS MUST BE COVERED BY SALE AND PURCHASE AGREEMENTS, AND TO CHARGE STAMP DUTY ON SUCH AGREEMENTS, THE FINANCIAL SECRETARY SAID.

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HE SAID AN ASSIGNMENT WOULD THEN ONLY ATTRACT NOMINAL DUTY.

THE DUTY ON THE ASSIGNMENT WOULD BE NOMINAL BECAUSE DUTY WOULD ALREADY HAVE BEEN PAID ON THE RELEVANT SALE AND PURCHASE AGREEMENT.

HE STRESSED THAT THE RATE OF STAMP DUTY WAS NOT BEING CHANGED WHILE AN EXCEPTION WOULD BE MADE FOR THE HOME OWNERSHIP SCHEME, WHERE THERE WAS LITTLE OR NO SCOPE FOR SPECULATIVE BUYING AND SELLING.

HE EMPHASISED THAT WHERE NO INTERMEDIARIES INTERVENE, THE STAMP DUTY PAYABLE BY A GENUINE HOME BUYER WOULD BE THE SAME AS AT PRESENT,

"THE IMPOSITION OF STAMP DUTY ON EACH AND EVERY SALE AND PURCHASE AGREEMENT WILL GREATLY ERODE THE PROFITS FROM SPECULATIVE TRANSACTIONS, HE SAID.

THE LARGER THE NUMBER OF TRANSACTIONS, THE GREATER THE EROSION OF SPECULATIVE PROFITS.

MR MACLEOD BELIEVED THAT THIS DISINCENTIVE SHOULD THEREFORE SPECULATIVE ACTIVITIES AND REDUCE THE SCOPE FOR THE ARTIFICIAL INFLATION OF PRICES.

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THE RESULT, HE ENVISAGED, SHOULD BE MORE STABLE PRICES, WHICH WOULD BENEFIT GENUINE HOME BUYERS.

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NOTING THAT HE WOULD BE ACCUSED OF INTRODUCING THIS CHANGE ORDER TO INCREASE REVENUE, HE SAID THIS WAS MOST DEFINITELY NOT THE CASE.

"BUT IT IS AN ACCUSATION I AM PREPARED TO FACE TO HELP GENUINE HOME BUYERS AND TO RESTORE REALISM TO THE MARKET, HE SAID.

TO STRENGTHEN THE LEGAL MUSCLE OF THE CONSUMER COUNCIL TO HELP PROTECT CONSUMERS AT TIMES OF INFLATION, MR MACLEOD SAID A CONSUMER COUNCIL (AMENDMENT) BILL WOULD BE PUT BEFORE THE LEGCO LATER THIS MONTH.

THE BILL WOULD PUT IT BEYOND DOUBT THAT PROPERTY, ALONG WITH GOODS AND SERVICES, IS WITHIN THE PURVIEW OF THE COUNCIL.

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