In O Olufote v HMRC [2023] UKFTT 130 (TC) (14 February 2023) the FTT dismissed the taxpayer’s appeal against a closure notice charging SDLT of approximately £10 000 on the purchase of a house. The taxpayer had used a sub-sale scheme intended to exploit perceived loopholes in FA 2003 s 45 as it applied at the time of the transactions.
The scheme involved the purchase of the property and the immediate resale to a trust of which the appellant was the settlor for a nominal sum of £10 000 (which was originally provided by the appellant). The sale to the trust involved the immediate payment of the full price so that the contract was substantially performed for SDLT purposes but completion was deferred for up to 124 years enabling the appellant to live in the property. A further contract was entered into...
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In O Olufote v HMRC [2023] UKFTT 130 (TC) (14 February 2023) the FTT dismissed the taxpayer’s appeal against a closure notice charging SDLT of approximately £10 000 on the purchase of a house. The taxpayer had used a sub-sale scheme intended to exploit perceived loopholes in FA 2003 s 45 as it applied at the time of the transactions.
The scheme involved the purchase of the property and the immediate resale to a trust of which the appellant was the settlor for a nominal sum of £10 000 (which was originally provided by the appellant). The sale to the trust involved the immediate payment of the full price so that the contract was substantially performed for SDLT purposes but completion was deferred for up to 124 years enabling the appellant to live in the property. A further contract was entered into...
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