THE Government has been accused of stifling the enterprise culture with tough new stamp duty rules.

Alan McCann, director of tax at Bury accountants DTE, says that the increase in stamp duty is just another example of how the Government is squeezing tax to fund its spending plans.

The new stamp duty, which came into effect on December 1, is now levied on land transactions at higher rates than ever -- in some cases as much as four per cent on the value of the property.

Mr McCann said: "The purchaser is now liable for making the tax returns and stamp duty looks very much like the general tax regime in terms of self-assessment, interest and penalties. The compliance system is far more draconian and businesses should be aware that potentially random inquiries will take place.

"The thresholds before tax applies are low considering the dramatic rise in property prices.

"There are additional new rules on leases that will lead to extra charges calculated around net present value of rent, and the general effect of these changes will be to significantly increase stamp duty on many leases."