SDLTM23100 - Reliefs: Group, reconstruction or
acquisition relief
Group relief: Withdrawal: Recovery from other persons
FA03/SCH7/PARA5 and FA03/SCH7/PARA6
Once the stamp duty land tax due as a result of a withdrawal of
group relief has been determined (whether by passage of time or
closure of an enquiry or otherwise), liability to pay the tax is
the responsibility of the purchaser.
Where such tax (or any part of it) has not been paid within a
period of six months of the date on which it became payable,
recovery of the unpaid amount is possible from other persons.
The persons from whom the stamp duty land tax may be
recovered are
- the vendor
- any company which at any relevant time was
a member of the same group as the purchaser and was above it in the
group structure. For these purposes
- any relevant time means any time between the
effective date of the relevant transaction and the date the
purchaser ceased to be a member of the same group as the
vendor
- for these purposes, a company (A Ltd) is above
another company (B Ltd) in a group structure if B Ltd (or another
company that is above B Ltd in the group structure) is a 75%
subsidiary of A Ltd
- any person who at any relevant time was a
controlling director of the purchaser or of a company having
control of the purchaser. For these purposes
- any relevant time means any time between the
effective date of the relevant transaction and the date the
purchaser ceased to be a member of the same group as the
vendor
- director (in relation to a company) has the
meaning given by ITEPA03/S67(1) and includes any person falling
within ICTA88/S417(5)
- controlling director (in relation to a company)
means a director of the company who has control of the company in
accordance with ICTA88/S416
To enable such a recovery, a notice must be served on the person
from whom the tax is to be recovered. The notice
- requires the unpaid amount of tax to be
paid within 30 days of the service of the notice
- must be served before the end of the
period of three years beginning with the date on which the tax was
finally determined
- must state the amount of tax to be paid by
the person on whom it is served
- is to be treated as if it were an
assessment and the tax was due from the person on whom it was
served
- has effect for recovery of the tax and any
interest on the unpaid tax and also for the purposes of
appeals
When the person on whom a notice was served has paid the tax
(and interest), that person is legally entitled to recover the
amount he paid from the purchaser.
No deduction is allowed in computing any income, profits or
losses for any tax purpose for the amount so paid.
