HMRC has confirmed
that partial relief would not be available where the members of an LLP or the
partners in a partnership consist of qualifying and non-qualifying house building
companies. HMRC’s confirmation was in response to a question raised by the CIOT
that, following the logic in the Court of Appeal decision in Pollen Estates
[2013] STC 1479, partial relief might be available.
HMRC considers that the decision in the Pollen case
relates solely to transactions involving a charity as a joint purchaser, based
on the appeal being allowed on a narrow interpretation of FA 2003 Sch 8 para 1
(where the Court of Appeal held that there was no policy reason for denying
relief to a charity to the extent of its beneficial interest where it merely
participated in a purchase with non-charities).
HMRC has confirmed
that partial relief would not be available where the members of an LLP or the
partners in a partnership consist of qualifying and non-qualifying house building
companies. HMRC’s confirmation was in response to a question raised by the CIOT
that, following the logic in the Court of Appeal decision in Pollen Estates
[2013] STC 1479, partial relief might be available.
HMRC considers that the decision in the Pollen case
relates solely to transactions involving a charity as a joint purchaser, based
on the appeal being allowed on a narrow interpretation of FA 2003 Sch 8 para 1
(where the Court of Appeal held that there was no policy reason for denying
relief to a charity to the extent of its beneficial interest where it merely
participated in a purchase with non-charities).
