Q&As

In a straightforward liquidation, where a company owning a freehold and leasehold property transfers those properties up to its single shareholder, (with no debt being secured on the properties), is SDLT chargeable?

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Published on LexisPSL on 21/12/2017

The following Tax Q&A provides comprehensive and up to date legal information covering:

  • In a straightforward liquidation, where a company owning a freehold and leasehold property transfers those properties up to its single shareholder, (with no debt being secured on the properties), is SDLT chargeable?

In a straightforward liquidation, where a company owning a freehold and leasehold property transfers those properties up to its single shareholder, (with no debt being secured on the properties), is SDLT chargeable?

As a general rule the chargeable consideration for a land transaction determines the amount of SDLT payable. Chargeable consideration has a particular meaning for SDLT purposes and is defined largely in section 50 of the Finance Act 2003 (FA 2003) and FA 2003, Sch 4. Chargeable consideration includes the assumption or discharge of debt. Subject to certain exceptions, where there is no chargeable consideration no SDLT should arise.

One of those exceptions is contained in FA 2003, s 53. This section imposes a market value charge in certain

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