Q&As

If a buyer purchases two properties at an auction from the same seller, will the two purchases be linked transactions for stamp duty land tax purposes?

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Produced in partnership with Sean Randall of Blick Rothenberg
Published on LexisPSL on 21/09/2018

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

  • If a buyer purchases two properties at an auction from the same seller, will the two purchases be linked transactions for stamp duty land tax purposes?

If a buyer purchases two properties at an auction from the same seller, will the two purchases be linked transactions for stamp duty land tax purposes?

Not necessarily. Transactions are ‘linked’ if ‘they form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser or, in either case, persons connected with them’. It is understood that:

  1. a single scheme exists where the transactions form part of some pre-agreed plan or larger transaction

  2. there is a series of transactions where the transactions are entered into sequentially and there is some degree of integral connection or interdependence, and

  3. an arrangement exists when parties reach a common understanding to save the purchaser stamp duty land tax (SDLT) and act in a coordinated way to implement it

Applying this to the facts, part of the test would be met—the transactions would be between the same persons.

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