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.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
Ofgem and DECC have jointly published an action plan of measures to encourage the growth of independent energy suppliers.
The Finance Act 2014 will change the economics of using tax avoidance schemes by requiring payment of disputed tax upfront in cases involving numerous marketed tax management schemes,
Analysis from The Lawyer
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.
New EU rules and lawyers’ increased comfort with digital formats are sparking a sea-change in the way law firms manage their documents