The following Corporation Tax guidance note Produced by Tolley in association with Grant Thornton's stamp taxes team provides comprehensive and up to date tax information covering:
Where a company acquires the subject matter of a land transaction, it will generally be subject to stamp duty land tax (SDLT) in the same way as other purchasers under FA 2003, s 43, with chargeable consideration being determined by normal SDLT principles including those set out in FA 2003, Sch 4. See the Stamp duty land tax ― basic rules guidance note for further details on the charge to SDLT.
Where the company is connected with the person from whom it acquires its interest in land (whether the vendor is an individual ora company), the consideration is deemed to be no less than the market value of the subject matter.
The definition of a connected person for this purpose is provided by CTA 2010, s 1122.
The rule also has effect where a vendor transfers property to a company and some orall of the consideration for that transfer consists of the issue ortransfer of shares in a company with which the vendor is connected.
See Example 1.
Certain exclusions from the deemed market value rule are provided by FA 2003, s 54 and other reliefs and exemptions may apply depending on the specific circumstances. In particular, where the transaction is, oris part of, a distribution of assets of the vendor (whether on liquidation orotherwise such as a dividend in specie) the deemed market value rule may not apply. Care is required here as this exclusion does not apply where the subject matter of the transaction had been the subject of a group relief claim within the previous three years.
Group relief is available under FA 2003, Sch 7, para 1 where the vendor (V) and the purchaser (P) are both companies that are members of the same group. A transaction is exempt from charge to SDLT provided certain conditions are satisfied. For these purposes, a 75% parent / subsidiary relationship is
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
OutlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease. In the absence of specific legislation to the contrary, such premiums would all
Class 2 and Class 4 NIC are payable by self-employed earners and partners in a partnership. This guidance note considers Class 2 contributions. For Class 4 contributions, see the Class 4 national insurance contributions guidance note.Class 2 NIC arise where a self-employed individual has income
IntroductionThe CFC rules as outlined in this note apply to accounting periods beginning on or after 1 January 2013, the date upon which significant changes made by Finance Act 2012 became effective.From this date, the CFC rules also apply to foreign branches in respect of which an exemption
Close companies ― overviewMeaning of close companyThe tax rules for close companies are intended to address those companies that are closely controlled (ie by the owners and their families) and therefore could be used to manipulate the tax position of its activities and its investors. Therefore,