SDLT avoidance: novation and sub-sales — another win for HMRC
In the case of Edward Allchin v HMRC, the First-tier Tribunal has confirmed that the novation of a contract does not fall within the SDLT sub-sale relief provisions. Accordingly: another mass-marketed SDLT planning scheme has failed to achieve the results promised; this is the second success for HMRC in seven months; and the Tribunal emphasised that the onus is on the taxpayer, through the information provided, to alert HMRC of any insufficiency in the SDLT assessment.
This case falls under the current sub-sale rules set out in the Finance Act 2003. The Finance Act 2013 will introduce a new sub-sale regime that, as currently drafted, includes the novation of a contract within the ‘transfer of rights’ provisions…
If you are registered and logged in to the site, click on the link below to read the rest of the Nabarro 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!
Why register to The Lawyer
More relevant to you
News from The Lawyer
Analysis from The Lawyer
Nabarro senior partner and self-confessed “IT geek” Graham Stedman is heralding a major set of investments in technology ahead of the firm’s move to 125 London Wall this year.
Clients are more willing to bring claims against professional service providers but the risk to defendants is not as dramatic as it might seem