Explanatory note

The information and inspection powers in Schedule 36 to the Finance Act 2008 (c. 9) were extended by section 96 of the Finance Act 2009 (c. 10) to include nine further taxes, including stamp duty reserve tax (“SDRT”) from 1st April 2010. These Regulations amend the Stamp Duty Reserve Tax Regulations 1986 (S.I. 1986/1711) (“SDRT regulations”) to remove the information and inspection powers from those regulations and apply the new powers and time limits to SDRT.

Regulations 2 to 6 make amendments to take effect from 1st April 2010. These amendments revoke the information and inspection powers that currently apply to SDRT and replace the relevant provisions in the Taxes Management Act 1970 (c. 9), as modified, in the Schedule to the SDRT regulations.

Regulations 7 to 11 make amendments to take effect from 1st April 2011. These amendments introduce “careless” and “deliberate” payments or repayments to the SDRT regulations and replace the time limits. These amendments align SDRT with other taxes.

Regulation 12 contains a transitional provision, the effect of which is to ensure that SDRT transactions which took place before 1st April 2011 are not subject to both the old and new time limits.

A full impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is included in the impact assessment for the package containing the provisions commenced by this Order and is available at http://www.hmrc.gov.uk/better-regulation/ia.htm.