Upper Tribunal decides that option arrangement qualified for ATED relief but not relief from SDLT higher rate for companies (Investment and Securities Trust Ltd v HMRC)
Tax analysis: In Investment and Securities Trust Ltd v HMRC, the Upper Tribunal (UT) decided that the taxpayer company’s purchase of an option to buy a residential property did not qualify for property development relief from the higher rate of stamp duty land tax (SDLT) for high-value residential property transactions by companies. However, the company’s holding of the option qualified for the equivalent relief from the annual tax on enveloped dwellings (ATED).