SDLT: trees and PIPs

We are aware that FA 2003, Sch 15 para 14 now limits a charge to stamp duty land tax on transfers of partnership interests to ‘property investment partnerships’. Our query, however, concerns whether a particular partnership’s activity would cause it to fall within the definition of a ‘property investment partnership’.

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SDLT: which value?

A client is considering leasing a property, which he owns personally, to a company that is connected with him under the provisions of CTA 2010, s 1122. We appreciate, therefore, that FA 2003, s 53 will come into play with regard to the stamp duty land tax charge, but we are having difficulty understanding precisely how the charge, under s 53(1A), will be calculated.

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Deductibility of lease renewal costs

We are increasingly coming across renewal of leases and, in accordance with normal practice, we have claimed the professional fees as allowable although it is noted that HMRC manuals refer to ‘de minimis’ amounts.

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SDLT: partnership dissolution

I am dealing with the dissolution of a family farming partnership of three brothers where one (the continuing farmer) will receive the farmland belonging to the partnership in satisfaction of his partnership capital account. I am aware that, as all the parties are connected, a transfer from a continuing partnership would not result in a stamp duty land tax charge.

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Purchase of own shares: payment in cash or kind?

A client company of ours is looking to purchase its own shares by transferring a property to a retiring shareholder instead of paying cash. At first sight, this would not appear to be legally possible as HMRC guidance in the Company Taxation Manual at CTM17505 states that a payment must be made in cash.

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SDLT: assignment at a loss

Our client, A, agreed to purchase a flat off-plan for £450,000 and entered into an agreement for lease. Unfortunately, having been made redundant, A was unable to complete the purchase, but found a cash purchaser, B, who is prepared to take an assignment of the agreement for lease for no consideration and will complete the purchase.

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