CheckLists.Tax (beta)
J2. Purchase of land
SDLT
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Acquisition by connected company
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- Purchase for an annuity
- Annuity rule does not override the connected company market value rule (M&M Builders).
Legislation: FA 2003, s.52 and s.53.
Cases: M&M Builders (Norfolk) Ltd v. HMRC [2021] UKUT 103 (TCC);
HMRC manuals:
Commentary:
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Multiple dwellings relief
- Suitable for use as a single dwelling implies that it is currently suitable, not that it would be if adapted or altered other than minor repair or renovation (Fiander, §48(1), §64)
- A dwelling is a place suitable for residential accommodation that can provide the occupant with basic domestic living needs (degree of privacy, self-sufficiency and security) (Fiander, §48(2))
- Must be suitable generally, not just for the occupation of a particular type of occupant, e.g. a relative (Fiander, §48(5))
- Test is objective (Fiander, §48).
Legislation: FA 2003, Sch 6B.
Cases: Fiander v. HMRC [2021] UKUT 156 (TCC);
HMRC manuals:
Commentary:
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Assignment of purchase contract
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- Potential for two SDLT charges unless relief claimed
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- Where there is an assignment of rights, there can be two SDLT transactions.
- "[95] This means that schedule 2A imposes a double charge to tax: once on the Company by reference to the actual purchase and a further charge on Mr Goldsmith by reference to the notional land transaction. The SDLT would be the same on each transaction and the EDT is also the same." (G Goldsmith Limited)
- Relief can be claimed, but it must be claimed (Sch 2A, para 15).
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Legislation:
Cases: G Goldsmith Limited v. HMRC [2024] UKFTT 927 (TC);
HMRC manuals:
Commentary:
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IHT
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XX
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XX
Legislation:
Cases:
HMRC manuals:
Commentary:
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