Hannah Hurley (Blick Rothenberg) provides a summary of the market value provisions in the SDLT code.
Whilst it might be appealing to assume that SDLT is due only on the amount or value paid or provided to purchase property (and hardly due at all during the ‘SDLT holiday’) a series of market value rules are scattered across the tax code. These rules require the market value of the property in question to be considered in identifying the ‘chargeable consideration’ given for the transaction and thus calculating the amount of tax payable.
Purpose of the market value rules
Key purposes of the market value rules are:
to prevent specific tax avoidance arrangements;
to impose a value on transactions that but for the rules might not be taxed at the appropriate amount; and
to offer the taxpayer a choice to pay tax on market value upfront...
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Hannah Hurley (Blick Rothenberg) provides a summary of the market value provisions in the SDLT code.
Whilst it might be appealing to assume that SDLT is due only on the amount or value paid or provided to purchase property (and hardly due at all during the ‘SDLT holiday’) a series of market value rules are scattered across the tax code. These rules require the market value of the property in question to be considered in identifying the ‘chargeable consideration’ given for the transaction and thus calculating the amount of tax payable.
Purpose of the market value rules
Key purposes of the market value rules are:
to prevent specific tax avoidance arrangements;
to impose a value on transactions that but for the rules might not be taxed at the appropriate amount; and
to offer the taxpayer a choice to pay tax on market value upfront...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
