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 by a LexisNexis Tax expert

Published on: 21 December 2017

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

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Jurisdiction(s):

United Kingdom

Key definition:

Liquidation definition

What does Liquidation mean?

The process by which a company's assets are realised for the benefit of its creditors.

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