Commentary

36.6 Stamp duty land tax on transfer of entitlements

AGRICULTURE vol 2(2)
| Commentary

36.6 Stamp duty land tax on transfer of entitlements

| Commentary

36.6 Stamp duty land tax on transfer of entitlements

Stamp duty land tax (SDLT) is not payable on the transfer of entitlements. The permanent transfer of entitlements does not qualify as a ‘land transaction’, since there is no transfer of a ‘chargeable interest1’. Prudent purchasers will therefore seek to apportion the price paid for land so as to reduce their overall SDLT bill. Similarly, a tenant paying a premium for the grant of a farm business tenancy would normally seek to separate the premium paid for the transfer of entitlements from that paid for the lease of land.

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