Property tax consultants, NBW Crosher & James have issued a warning to buyers and sellers of hotels and public houses concerning the new Stamp Duty Land Tax.

Under the new tax scheme, which comes into effect on 1 December 2003, buyers and sellers could find themselves facing large fines or even imprisonment if they overstate the value of fixtures and fittings in a property.

Previously, fixtures and fittings included items such as heating and electrical installations, but the new tax includes these as part of the property and only ‘loose chattels, such as furniture and equipment, will be exempt’.

Partner of NBW, Tim Beresford, said: “There is obviously a temptation for the buyer in these sorts of transactions to value chattels at their highest value.

“In the future however, greater attention will have to be paid to clarifying what is part of the property and what is not.

“On the other hand,” he added, “Buyers often forget about the tax relief from the capital allowances that can be claimed on the fixtures.”