BIA submission to HMRC consultation on Stamp Taxes on Shares modernisation
The BIA has responded to HMRCs consultation on Stamp Taxes on Shares modernisation.
Welcoming the consultation, the BIA submission to HMRC has highlighted ongoing issues caused by the current law, and notes that life science companies already have a need to determine the present value of future contingent payments for commercial purposes, by means of discounted cashflow calculations. The BIA proposes that the value of the consideration for stamp duty purposes be determined on the same basis, at the time of sale.
Conversely the current system attempts to charge the sum of all potential milestones in multiple therapeutic applications, for a drug which has not yet been developed.
The consultation closed on 22 June 2023.