20 Apr 2018
William Watson and Ed Milliner argue that no SDLT is due where the consideration takes the form of another land interest that is exempt from SDLT
Where VAT arises on the acquisition of a UK real estate interest, the chargeable consideration for the purposes of SDLT will be taken to include that VAT. In the case of cash consideration, the result is simple and unarguable: the VAT is subject to SDLT. Where the consideration takes the form of another land interest that is exempt from SDLT, it seems the Stamp Office expects the same outcome. The authors disagree: assuming the transaction is documented on a 'VAT inclusive' basis, they believe no SDLT is due.
This article was first published in the 20 April 2018 edition of Tax Journal
A tax on a tax: charging SDLT on VAT
This material is provided for general information only. It does not constitute legal or other professional advice.
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