Assignments

I read with interest the stamp duty land tax (SDLT) parts of the replies to the query Assignment at a loss.

I do not disagree with any of the replies (including the one on the website only) to the effect that the ‘sub-sale’ relief in FA 2003 Sch 17A para 12B removes any SDLT liability from the assignor A.

However none of the authors mentioned the general SDLT anti-avoidance provision contained in FA 2003 s 75A.

HMRC are on record as considering s 75A to apply to a ‘sub-sale’ if the amount payable under the assignee B’s secondary contract is less than the amount contracted for by the assignor A under the original contract so that HMRC would expect B to pay SDLT on the full original contract price of £450 000 in this case.

It does not matter that A and B are unconnected...