SDLT—section 75A: the SDLT GAAR
SDLT—section 75A: the SDLT GAAR

The following Tax practice note provides comprehensive and up to date legal information covering:

  • SDLT—section 75A: the SDLT GAAR
  • Why are the SDLT anti-avoidance provisions important?
  • HMRC guidance
  • Scope and effect of section 75A
  • Transactions, scheme transactions and incidental transactions
  • Transactions
  • Scheme transactions
  • Incidental transactions
  • Exclusions from section 75A
  • Specific exclusions
  • More...

Why are the SDLT anti-avoidance provisions important?

The stamp duty land tax (SDLT) anti-avoidance provisions set out in section 75A of the Finance Act 2003 (FA 2003) were originally introduced in the Pre-Budget Report 2006 and subsequently enacted in primary legislation by the Finance Act 2007 in an extended format comprising FA 2003, ss 75A–75C (referred to collectively throughout this Practice Note as 's 75A'). These provisions were introduced to combat the seemingly large number of SDLT planning structures which were being implemented in relation to both commercial and residential land transactions in the UK. The provisions apply for disposals on or after 6 December 2006, subject to transitional provisions.

Rather than shut down SDLT planning schemes on a structure-by-structure basis by changing specific provisions of the SDLT legislation, the decision was made to introduce a 'mini general anti-avoidance rule' specific to SDLT (the SDLT GAAR). One of the reasons given for taking this approach was to combat not only current SDLT planning structures but also those which may be created in the future.

As discussed in more detail in this Practice Note, s 75A is drafted very broadly and does not require a tax avoidance motive for the provisions to apply. Consequently, if parties enter into a number of related UK property transactions which result in a saving of SDLT, s 75A could apply whether or

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