SDLTM30220 - Application

Companies: Deemed market value FA03/S53

FA03/S53 provides for stamp duty land tax to be charged on the market value of the property where

• a company purchases land from a person with whom it is connected
• some or all of the consideration consists of the issue or transfer of shares in any company with which the vendor is connected

In which case the exemption at FA03/SCH3/PARA1 for transactions where there is no chargeable consideration does not apply and the market value will be used.

However FA03/S53 is subject to any other provision affording exemption or relief from stamp duty land tax.

FA03/S54 provides that market value will not be imposed in any of the following circumstances where

• immediately after the transaction the company holds the property as a trustee in the course of the business of trust management
• immediately after the transaction the company holds the property as trustee and the vendor is only connected with the company by virtue of ICTA88/S839(3) in his capacity as settlor
• the vendor is a company and the transaction is, or is part of, a distribution of assets, whether or not on the winding up of a company

This is provided that the subject matter of the transaction, or an interest from which that interest is derived, has not within the preceding three years been the subject of a transaction in respect of which a claim to group relief was made by the vendor.

It is not HM Revenue & Customs intention that FA03/S54(4) should be prevented from applying where a group relief claim was made by the vendor but recovered under FA03/SCH7/PARA3 either at the time of or before the effective date of the transaction

If any of these exceptions apply stamp duty land tax will only be charged on the chargeable consideration paid.

Connected persons has the same meaning as in ICTA88/S839.

Company means any body corporate.

Shares includes stock and the reference to shares in a company includes a reference to securities issued by a company.