SDLTM23280 - Reliefs: Group, reconstruction or
acquisition relief
Reconstruction or acquisition relief: Withdrawal: Recovery from
other persons FA03/SCH7/PARA12 and FA03/SCH7/PARA13
Once the stamp duty land tax due as a result of a withdrawal of
reconstruction or acquisition 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 acquiring
company.
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
- a company which at any relevant time was a
member of the same group as the acquiring company 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 of change
of control by virtue of which tax is chargeable
- 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 acquiring company or of a company
having control of the acquiring company. For these purposes
- any relevant time means any time between the
effective date of the relevant transaction and the date of change
of control by virtue of which tax is chargeable
- 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 requirements are the same
as for group relief. See
SDLTM23100.
