SDLT sub-sale distribution in specie avoidance scheme fails (First-tier Tribunal) | Practical Law

SDLT sub-sale distribution in specie avoidance scheme fails (First-tier Tribunal) | Practical Law

The First-tier Tribunal has struck down a scheme under which the ultimate acquirer of a property interposed an unlimited liability company to acquire the property and distribute it in specie in order to engage the SDLT transfer of rights provisions and avoid paying SDLT altogether (Vardy Properties Ltd and Vardy Properties (Teesside) Ltd v HMRC [2012] UKFTT 564(TC)).     

SDLT sub-sale distribution in specie avoidance scheme fails (First-tier Tribunal)

Practical Law UK Legal Update Case Report 1-521-4156 (Approx. 10 pages)

SDLT sub-sale distribution in specie avoidance scheme fails (First-tier Tribunal)

by PLC Tax
Published on 18 Sep 2012 • United Kingdom
The First-tier Tribunal has struck down a scheme under which the ultimate acquirer of a property interposed an unlimited liability company to acquire the property and distribute it in specie in order to engage the SDLT transfer of rights provisions and avoid paying SDLT altogether (Vardy Properties Ltd and Vardy Properties (Teesside) Ltd v HMRC [2012] UKFTT 564(TC)).