UT denies SDLT group relief because of tax avoidance main purpose.
In The Tower One St George Wharf Ltd v HMRC [2024] UKUT 373 (TCC) (20 November) the Upper Tribunal (UT) dismissed the taxpayer’s appeal finding that the First-tier Tribunal (FTT) had not erred in law in concluding that SDLT group relief was not available on an intra-group transfer because that transfer formed part of arrangements of which one of the main purposes was the avoidance of a liability to corporation tax (CT).
A group of companies was developing a site as residential property which included a tower block. The group identified various commercial advantages to transferring that development (in the form of a 999-year lease) to a special purpose vehicle (the appellant). Following discussions with the group’s tax advisers this transfer was then carried out in an indirect manner. The intention was that the relevant series of...
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UT denies SDLT group relief because of tax avoidance main purpose.
In The Tower One St George Wharf Ltd v HMRC [2024] UKUT 373 (TCC) (20 November) the Upper Tribunal (UT) dismissed the taxpayer’s appeal finding that the First-tier Tribunal (FTT) had not erred in law in concluding that SDLT group relief was not available on an intra-group transfer because that transfer formed part of arrangements of which one of the main purposes was the avoidance of a liability to corporation tax (CT).
A group of companies was developing a site as residential property which included a tower block. The group identified various commercial advantages to transferring that development (in the form of a 999-year lease) to a special purpose vehicle (the appellant). Following discussions with the group’s tax advisers this transfer was then carried out in an indirect manner. The intention was that the relevant series of...
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