Worth recording in this Section , given the farcical goings on at the HM Revenue & Customs.

Article published in Private Eye ( The Eye ) which lays bare the hyprocracy of certain ministries in OUR Government.

A little complicated but ... your patience will be rewarded :


A snippet to savor the flavour ?

AS THE sun sets on its infamous deal to sell its offices to a Bermuda company and rent them back for 20 years (Eyes passim ad nauseam), HM Revenue & Customs is busy signing a series of deals for large regional “hub” offices to replace them. After its excoriating experience with Mapeley Steps and Bermuda, is the department eschewing tax-reducing transactions this time round? It seems not.

Under the first of the three deals – for office blocks in Liverpool, Cardiff and Bristol – HMRC has “pre-let” buildings that are being redeveloped under so-called “forward funding agreements”. These involve developers selling the sites to insurance company Legal & General before they are redeveloped, with an agreement to perform the necessary work and with the tenancy (with HMRC) conditional on its completion.

The advantage of this structure over the more straightforward option of developing the land and then selling it to the new landlord is that stamp duty land tax (SDLT) is charged only on the smaller, pre-development value. With the uplift in most cases likely to be in the tens of millions of pounds, and SDLT levied at 5 percent, the savings are impressive.

Oh dear !

The Chancellor of The Exchequer will be " Pleased " ???