HMRC announced in January that it was “challenging all schemes which we have identified as being in use. These include where…it is claimed that combining a sub-sale with a transaction involving a partnership reduces the consideration chargeable to SDLT by virtue of the special partnership computational rules…” It seems to have lost the first battle in this challenge. The First-Tier Tribunal (Tax Chamber) decision in DV3 RS Limited Partnership v HMRC [2011] UKFTT 138 (TC) has resulted in a victory for the (non) taxpayer. This is a case in which an acquisition of property in Regent Street, London for £65,100,00 is determined to incur no liability to SDLT because of a combination of the SDLT rules relating to sub-sales and partnerships, where a transfer of land is made into a partnership by a sub-seller who is connected with the partners in the partnership.
Property PSL