Q&As

How is SDLT charged in respect of a land swap between parties? Is there any guidance on this?

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Produced in partnership with Sean Randall of Blick Rothenberg
Published on: 17 October 2018
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A Swap applies where a purchaser of a chargeable interest, meets an obligation to give consideration by disposing of a chargeable interest. It engages special Rules that modify the usual rule on what constitutes chargeable consideration.

Where either of the interests swapped is a freehold or leasehold estate (ie, a ‘Major interest’) the rules (contained in paragraph 5 of Schedule 4 to the Finance Act 2003) provide that the ‘chargeable consideration’ (ie the amount or value that is taxed) is the higher of what each party (a) actually gives (including

Sean Randall
Sean Randall

Blick Rothenberg

Sean is a partner at Blick Rothenberg. For five years, he was head of stamp taxes at KPMG UK, finalist in the 2016 Taxation Awards for Best Big Four Tax Group. He has almost 20 years' experience advising, amongst others, developers, investors, occupiers, funds and banks on stamp taxes in connection with real estate transactions, group reorganisations, corporate reconstructions, demergers and placings. He is a barrister by training, a Fellow of the Chartered Institute of Taxation and council member of the Stamp Taxes Practitioners Group. Since 2007 he has been the editor of Sergeant & Sims on Stamp Taxes arguably the most comprehensive, up-to-date and authoritative guide to UK stamp taxes available. He was the Tax Writer of the Year in the 2017 Taxation Awards having ''demonstrated real in-depth expertise in analysing complex legislation'. He has contributed to the development of government policy, tax authority practice and statutes on stamp taxes, and is regularly consulted by tax authorities and government departments. He speaks and writes regularly on UK stamp taxes.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Swap definition
What does Swap mean?

A form of derivative that involves the exchange of income streams between two parties based on, eg interest rates or currencies.

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