Flat value

A company owns the common parts and ten store cupboards within a block of ten flats. The flats themselves are freehold owned by the individual occupants who are also the shareholders of the company. The residents want to convert their tenure to long leaseholds and therefore the proposal is to transfer the freeholds to the company which would simultaneously issue the long leases at peppercorn rent.

For stamp duty land tax purposes I understand this transaction would be covered by FA 2003 s 57A and the lease back element of the sale would be exempt from charge. However there is a question whether the consideration of the transfer into the company would be the full value of the flats.

I understand that the chargeable consideration needs to represent the market value of the interest acquired but since the flat owners are not...