Where it is necessary to withdraw reconstruction or acquisition relief, the amount of relief withdrawn depends on
The effect of the withdrawal of relief is to tax the chargeable
interest remaining with the purchaser (and any relevant associated
company) as if no claim to reconstruction or acquisition relief had
been made.
The stamp duty land tax payable is that which would have been
payable in respect of the original land transaction for which
reconstruction or acquisition relief was claimed.
The chargeable consideration for the transaction is
calculated as the market value of the chargeable interest
transferred by the original land transaction.
This is modified where the chargeable interest held by the
purchaser (and any relevant associated company) at the time
reconstruction or acquisition relief is withdrawn is not the same
as the chargeable interest transferred by the original land
transaction.
In this case the stamp duty land tax payable is that which
would have been payable in respect of an appropriate proportion of
the original land transaction for which relief was claimed.
The appropriate proportion is the fraction of the market
values of the chargeable interests held by the purchaser and any
relevant associated companies at the time of withdrawal of
reconstruction or acquisition relief, calculated by reference to
the effective date of the relevant land transaction, compared to
the market value of the chargeable interest obtained by the
purchaser at the effective date of the relevant land
transaction.
