The company had purchased the site of the former Chelsea barracks. It was in turn owned by the Qatari sovereign wealth fund, which financed the purchase by a Sharia compliant loan scheme, which was implemented creating a lease and buy back arrangement. The company now appealed against a finding that it was liable to stamp duty on the full purchase value.
Held: The taxpayer’s appeal succeeded: ‘the only disposals and acquisitions of chargeable interests were the transfer of the freehold of the site to MAR and the grant of the lease to PBL. As explained earlier, the transfer to PBL from the MoD is disregarded. Since MAR acquired a chargeable interest from the MoD by virtue of the operation of s.45(3) and (on the basis that s.71A applies to exempt the purchase) the s.75A(1)(c) condition is satisfied even taking into account the subsequent lease to PBL as a scheme transaction, then I can see nothing in s.75A which excludes the application of s.75A(5) to the acquisition of the freehold at a price of andpound;1.25bn. The lease to PBL is therefore disregarded under s.75A(4).’
Patten, Lewison, Underhill LJJ
[2016] EWCA Civ 485, [2016] BTC 22, [2016] STC 2168, [2017] 2 All ER 549, [2018] 1 WLR 368, [2016] STI 1795
Bailii
Finance Act 2003 42(1) 43 48 75
England and Wales
Citing:
Cited – HM Revenue and Customs v DV3 RS Ltd Partnership CA 25-Jul-2013
The company appealed against a finding that its stamp duty land tax saving scheme was ineffective. The court was now asked whether a sale on by a company to a newly formed partnership comprising itself and four other partners of a lease which the . .
At FTTTx – Project Blue Ltd v Revenue and Customs FTTTx 5-Jul-2013
FTTTx STAMP DUTY LAND TAX – sale of property with subsequent Shari’a – compliant sub-sale and lease-back – no SDLT paid pursuant to sections 45(3) and 71A Finance Act 2003- application of section 75A Finance Act . .
At UTTC – Project Blue Ltd v Revenue and Customs UTTC 18-Dec-2014
Stamp Duty Land Tax – Sale and sub-sale of large development site – Application of Finance Act 2003, section 45(3), in the form current in 2007 and 2008 – Sub-sale to financial institution – Interpretation and application of Finance Act 2003, . .
Cited by:
Appeal From (CA) – Project Blue Ltd v Revenue and Customs SC 13-Jun-2018
The purchaser of land created a sub-sale and leaseback with bank so as to fund the purchase in a manner which would comply with Islamic finance principles. The Court was now asked whether purchaser or the bank were liable for stamp duty land tax on . .
Lists of cited by and citing cases may be incomplete.
Stamp Duty
Updated: 12 November 2021; Ref: scu.564720