Q&As

Would a declaration of trust for a landlord to gift multiple properties into trust for a company owned by him to try and avoid the mortgage interest relief restriction be liable for stamp duty land tax?

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Published on LexisPSL on 05/04/2016

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

  • Would a declaration of trust for a landlord to gift multiple properties into trust for a company owned by him to try and avoid the mortgage interest relief restriction be liable for stamp duty land tax?

Would a declaration of trust for a landlord to gift multiple properties into trust for a company owned by him to try and avoid the mortgage interest relief restriction be liable for stamp duty land tax?

As explained in Practice Note: Land transactions, chargeable interests and chargeable transactions, a land transaction where there is no chargeable consideration (for which, see Practice Note: SDLT chargeable consideration) is exempt from stamp duty land tax (SDLT) (known as an exempt transaction, see Paragraph 1 of Schedule 3 to the Finance Act 2003 (FA 2003)). However, there are several rules that can override that conclusion, including:

  1. the assumption of debt—as further explained in the section titled 'Debt as consideration'

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