Q&As

Where a developer is selling the freehold of a site for a consideration of cash plus a leaseback of part, is the stamp duty land tax (SDLT) exemption on sale and leaseback applicable?

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Published on: 07 July 2020
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Under section 57A of the Finance Act 2003 (FA 2003), the requirements for the sale and leaseback provisions to apply are:

  1. •

    the sale transaction must be entered into wholly or partly in consideration of the leaseback

  2. •

    the interest leased back must be an interest out of the original interest

  3. •

    where the sale transaction is only partly in consideration of the leaseback,

Mary Ashley
Mary Ashley chambers

Old Square Tax Chambers

I have extensive experience advising in all areas of personal taxation. I have recently advised on SDLT, inheritance tax, capital gains tax, domicile, de-enveloping, the variation of trusts and off-shore trusts. I am the co-author of the 11th edition of Taxation of Charities and Non-Profit Organisations.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Stamp duty definition
What does Stamp duty mean?

A transfer tax payable on documents and instruments, rather than in respect of a transaction. It is most commonly encountered on the transfer of UK certificated shares, where the stock transfer form is the instrument that is stamped.

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