SDLTM04020 - Scope: How much is chargeable

Non-cash consideration: Exchanges FA03/SCH4/PARA5

Two parties might enter into two or more land transactions in consideration for each other. One might accept an area of land or a building as all or part of the consideration for disposing of another.

FA03/SCH4/PARA5(3) sets out how the chargeable consideration for each transaction will be calculated.

The amount of the chargeable consideration will depend on whether the subject matter of any of the transactions is a major interest in land as defined in FA03/S117. See SDLTM04130.

If the subject matter of any of the transactions is a major interest in land, then chargeable consideration for each acquisition will be deemed to be the market value of the subject matter of the transaction together with the rent payable if the subject matter is the grant of a new lease.

If the subject matter of all the transactions are minor interests then the values of the interests being exchanged are disregarded but any other chargeable consideration will remain liable to tax.

See SDLTM01410 for further guidance.

See examples.