Stamp Duty Land Tax – avoidance scheme – use of unlimited company to contract for purchase of property, followed by reduction of capital and dividend in specie of the property acquired to its parent company – claim for exemption from SDLT under section 45(3) Finance Act 2003 (sub-sale relief) – whether unlimited company had complied with section 270 Companies Act 1985 requirements for initial accounts in respect of declaration of dividend in specie – held no – whether transactions fell within section 45 – held no (though would have done so if section 270 had been complied with) – intermediate purchaser therefore liable to SDLT on the consideration paid by it – ultimate acquirer exempt from SDLT under para 1, Schedule 3 FA03 (market value substitution in section 53 FA03 being displaced by section 54(3) FA03) – appeal of intermediate purchaser therefore dismissed and appeal of ultimate acquirer allowed – position also considered if the Companies Act point had not arisen – appeal of intermediate purchaser would have been allowed and that of ultimate acquirer dismissed
[2012] UKFTT 564 (TC), [2013] STI 67, [2012] SFTD 1398
Bailii
England and Wales
Stamp Duty
Updated: 23 January 2022; Ref: scu.466188