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Fifteen per cent rate of SDLT and partnership provisions applied to acquisition of a dwelling (Waterside Escapes v HMRC)

Published on: 16 October 2020
Published by: LexisPSL
  • Fifteen per cent rate of SDLT and partnership provisions applied to acquisition of a dwelling (Waterside Escapes v HMRC)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • The occupation issue
  • The SLP issue
  • Case details

Article summary

Tax analysis: In Waterside Escapes Ltd  v HMRC, the First-tier Tribunal (FTT) (Tax Chamber) held that the 15% rate of stamp duty land tax (SDLT) applied to the acquisition of a property by a company but that the amount of chargeable consideration for the acquisition was reduced as the partnership provisions contained in paragraph 18 of Schedule 15 to the Finance Act 2003 (FA 2003) applied. Relief from the 15% rate was not available to the company as it was intended that a non-qualifying individual would be permitted to occupy the dwelling. This case looks at the meaning of occupation for the purposes of relief from the 15% rate of SDLT, the calculation of the sum of the lower proportions under FA 2003, Sch 15 Pt 3, para 18 and in particular the meaning of ‘connected’ for those purposes. or take a trial to read the full analysis.

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