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Decision Number: |
TC 02242 |
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Appellant:
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Vardy Proprties (1) Vardy Properties (Teeside) Limited (2) |
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Respondent:
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The Commissioners for Her Majesty's Revenue & Customs |
Chairmen / Special
Commissioners: |
Kevin POOLE
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Date Of Decision:
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06/09/2012 |
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Main Category:
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STAMP DUTY |
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Main Subcategory:
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Land tax |
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Notes:
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Stamp Duty Land Tax – avoidance scheme – use of unlimited company to contract for
purchase of property, followed by reduction of capital and dividend in specie of the property
acquired to its parent company – claim for exemption from SDLT under section 45(3)
Finance Act 2003 (sub-sale relief) – whether unlimited company had complied with section
270 Companies Act 1985 requirements for initial accounts in respect of declaration of
dividend in specie – held no – whether transactions fell within section 45 – held no (though
would have done so if section 270 had been complied with) – intermediate purchaser
therefore liable to SDLT on the consideration paid by it – ultimate acquirer exempt from
SDLT under para 1, Schedule 3 FA03 (market value substitution in section 53 FA03 being
displaced by section 54(3) FA03) – appeal of intermediate purchaser therefore dismissed and
appeal of ultimate acquirer allowed – position also considered if the Companies Act point
had not arisen – appeal of intermediate purchaser would have been allowed and that of
ultimate acquirer dismissed |
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Decision(s) to Download:
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TC02242.pdf 
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