Stamp duty land tax ― corporate transactions

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Corporation Tax

Guidance

Application of basic rules

Where a company acquires the subject matter of a land transaction, it will generally be subject to stamp duty land tax (SDLT) in the same way as other purchasers under FA 2003, s 43, with chargeable consideration being determined by normal SDLT principles including those set out in FA 2003, Sch 4. See the Stamp duty land tax ― basic rules guidance note for further details on the charge to SDLT.

Connected companies

Where the company is connected with the person from whom it acquires its interest in land (whether the vendor is an individual or a company), the consideration is deemed to be no less than the market value of the subject matter of the transaction.

The definition of a connected person for this purpose is provided by CTA 2010, s 1122.

The rule also has effect where a vendor transfers property to a company and some or all of the consideration for that transfer consists of the issue or transfer of shares in a company

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Sean Randall

Partner at Blick Rothenberg , Corporate Tax

20 years’ “Big Four” stamp duty experience, including building and running KPMG’s UK stamp duty team for five years Chair of the professional body for stamp duty advisers, the Stamp Taxes Practitioners Group (over 200 members) Editor and author of Sergeant and Sims on Stamp Taxes since 2008 Former Tax Writer of the Year Author of the Law Society’s SDLT Handbook: A Guide for Residential Conveyancers Fellow of the Chartered Institute of Taxation Barrister (non-practising) Listed in Spear’s 500

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