Q&As

If a transaction under a single contract entails the sale of a property which comprises two titles of which one title is in the joint names of the vendors but the other title is in the name of only one of the vendors, is this two transactions for stamp duty land tax purposes?

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Produced in partnership with Sean Randall of Blick Rothenberg
Published on LexisPSL on 17/04/2019

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 transaction under a single contract entails the sale of a property which comprises two titles of which one title is in the joint names of the vendors but the other title is in the name of only one of the vendors, is this two transactions for stamp duty land tax purposes?

The answer affects the amount of stamp duty land tax (SDLT) payable. There are potentially three alternative answers:

  1. there is one transaction (V1 and V2 sell the whole property comprising two titles to P)

  2. there are two transactions (V1 and V2 sell one title to P, and V1 sells the other title to P), or

  3. there are three transactions (V1 sells an undivided share of one title to P, V2 sells an undivided share of the same title to P, and V1 sells the other title to P)

To complicate things further, in the case of the second and third alternatives the transactions may be ‘linked’ depending on whether V1 and V2 are connected for tax purposes: see section 108 of the Finance Act 2003 (FA 2003).

If the first alternative were correct, the total price paid by P would be taxed in accordance with the relevant rates. If the second alternative were correct, the total price paid by P would need to be apportioned

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