Upper Tribunal Tax and Chancery Chamber

UT (Tax & Chancery) UT-2024-000024 - [2025] UKUT 00156 (TCC)

Fecha: 18-Mar-2025

This section applies where–

(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.