C1C2C3C4C5C6Part 4Stamp duty land tax
Pt. 4 modified (coming into force at 2 p.m. on 6.12.2006) by The Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2006 (S.I. 2006/3237), regs. 1, 2, Sch.
Pt. 4 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 194(8)-(12)
Pt. 4 applied (17.7.2014) by Finance Act 2014 (c. 26), ss. 223(8)(9)(d)
Pt. 4 modified (temp.) (22.7.2020) by Stamp Duty Land Tax (Temporary Relief) Act 2020 (c. 15), s. 1 (as amended (10.6.2021) by 2021 c. 26, s. 87(2))
Pt. 4 modified (temp.) (10.6.2021) by 2020 c. 15, s. 1A (as inserted by Finance Act 2021 (c. 26), s. 87(3))
F3Anti-avoidance
S. 75ZA and cross-heading inserted (with effect in accordance with Sch. 16 para. 6 of the amending Act) by Finance Act 2021 (c. 26), Sch. 16 para. 2 (with Sch. 16 para. 6)
75AF1Anti-avoidance
1
This section applies where—
a
one person (V) disposes of a chargeable interest and another person (P) acquires either it or a chargeable interest deriving from it,
b
a number of transactions (including the disposal and acquisition) are involved in connection with the disposal and acquisition (“the scheme transactions”), and
c
the sum of the amounts of stamp duty land tax payable in respect of the scheme transactions is less than the amount that would be payable on a notional land transaction effecting the acquisition of V's chargeable interest by P on its disposal by V.
2
In subsection (1) “transaction” includes, in particular—
a
a non-land transaction,
b
an agreement, offer or undertaking not to take specified action,
c
any kind of arrangement whether or not it could otherwise be described as a transaction, and
d
a transaction which takes place after the acquisition by P of the chargeable interest.
3
The scheme transactions may include, for example—
a
the acquisition by P of a lease deriving from a freehold owned or formerly owned by V;
b
a sub-sale to a third person;
c
the grant of a lease to a third person subject to a right to terminate;
d
the exercise of a right to terminate a lease or to take some other action;
e
an agreement not to exercise a right to terminate a lease or to take some other action;
f
the variation of a right to terminate a lease or to take some other action.
4
Where this section applies—
a
any of the scheme transactions which is a land transaction shall be disregarded for the purposes of this Part, but
b
there shall be a notional land transaction for the purposes of this Part effecting the acquisition of V's chargeable interest by P on its disposal by V.
5
The chargeable consideration on the notional transaction mentioned in subsections (1)(c) and (4)(b) is the largest amount (or aggregate amount)—
a
given by or on behalf of any one person by way of consideration for the scheme transactions, or
b
received by or on behalf of V (or a person connected with V within the meaning of F2section 1122 of the Corporation Tax Act 2010) by way of consideration for the scheme transactions.
6
The effective date of the notional transaction is—
a
the last date of completion for the scheme transactions, or
b
if earlier, the last date on which a contract in respect of the scheme transactions is substantially performed.
7
This section does not apply where subsection (1)(c) is satisfied only by reason of—
a
sections 71A to 73, or
b
a provision of Schedule 9.
Pt. 4 construed as one with S.I. 2006/575, reg. 43 (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 43(4)