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 LexisPSL on 17/10/2018

The following Tax Q&A produced in partnership with Sean Randall of Blick Rothenberg provides comprehensive and up to date legal information covering:

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

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 any VAT chargeable on their purchase) and (b) gets (calculated by reference to the market value of the property acquired ignoring any VAT chargeable on their pu

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