Nicola Westbrooke reviews the Budget 2011 Tax Proposals
Budget 2011 was largely a positive story for property investors and developers. Stamp Duty Land Tax
Anti-avoidance
It is now a tradition that all Budgets should contain some SDLT anti-avoidance measures and this one did not disappoint. The legislation took effect from 24 March 2011 when in the words of HMRC ‘it [was] put beyond doubt that certain SDLT avoidance schemes are ineffective’. The effect is:
Sub-sale relief is amended so that it cannot be combined with the Alternative Finance rules (designed for Sharia compliant transactions) such that no SDLT is payable. The Alternative Finance rules currently provide that some transfers to a ‘financial institution’ are exempt from SDLT to ensure there is no double charge in certain types of Sharia financing. A sub-sale involving a financial institution could previously have been engineered such that no SDLT was payable.
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Nicola Westbrooke reviews the Budget 2011 Tax Proposals
Budget 2011 was largely a positive story for property investors and developers. Stamp Duty Land Tax
Anti-avoidance
It is now a tradition that all Budgets should contain some SDLT anti-avoidance measures and this one did not disappoint. The legislation took effect from 24 March 2011 when in the words of HMRC ‘it [was] put beyond doubt that certain SDLT avoidance schemes are ineffective’. The effect is:
Sub-sale relief is amended so that it cannot be combined with the Alternative Finance rules (designed for Sharia compliant transactions) such that no SDLT is payable. The Alternative Finance rules currently provide that some transfers to a ‘financial institution’ are exempt from SDLT to ensure there is no double charge in certain types of Sharia financing. A sub-sale involving a financial institution could previously have been engineered such that no SDLT was payable.
...
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