Option not acquired for exclusive purpose of a property development trade
In Investment and Securities Trust Ltd v HMRC[2024] UKFTT 230 (TC) (18 March 2024) the FTT held that an option in respect of a residential property was not acquired and held exclusively for the purpose of development and resale in the course of the appellant’s property development trade for the purposes of relief from the 15% rate of SDLT under FA 2003 Sch 4A para 5 and ATED under FA 2013 s 138.
The residential property which was the subject of the option was owned by a director of the appellant (who was also a majority shareholder in the appellant’s parent company). HMRC raised an SDLT assessment and issued closure notices resulting in ATED being payable in respect of the option on the basis that the option had not been acquired and was not held ...
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Option not acquired for exclusive purpose of a property development trade
In Investment and Securities Trust Ltd v HMRC[2024] UKFTT 230 (TC) (18 March 2024) the FTT held that an option in respect of a residential property was not acquired and held exclusively for the purpose of development and resale in the course of the appellant’s property development trade for the purposes of relief from the 15% rate of SDLT under FA 2003 Sch 4A para 5 and ATED under FA 2013 s 138.
The residential property which was the subject of the option was owned by a director of the appellant (who was also a majority shareholder in the appellant’s parent company). HMRC raised an SDLT assessment and issued closure notices resulting in ATED being payable in respect of the option on the basis that the option had not been acquired and was not held ...
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