So long to sub-sale relief?
For years, sub-sale relief has allowed many to minimise double charges to Stamp Duty Land Tax (SDLT), and for others it has offered a convenient way to make substantial SDLT savings on transactions that in all other guises would be tantamount to a tax avoidance scheme. With this latter group in mind, changes have been brought in under the Finance Act 2013 to arm Her Majesty’s Revenue and Customs (HMRC) with a new set of powers to stamp out abuse of the system.
In its simplest form, a sub-sale or a ‘transfer of rights’, as it is termed under the SDLT rules, occurs when A contracts to sell some land to B and before that transaction completes B enters into an arrangement whereby C acquires the land in question.
This outcome can be achieved in a number of ways; for example, B may assign the benefit of its contract to C, or A may transfer the land to B, who immediately transfers it to C. Strictly speaking, each of these transactions could give rise to two SDLT charges. However, this would amount to a double taxation burden and therefore, by virtue of the sub-sale relief rules, B, the middle-man, as it were, is relieved of its obligation to pay SDLT…
If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
Civil litigation in recent years has been dominated by cases and commentary concerned with costs, court fees, procedure and proportionality.
Key points on a clarification of the remedies available for misrepresentation.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.