Backwards-looking interpretations of FA 2003, s 75A

The SDLT provisions are sometimes sloppily drafted and difficult to predict – none more so than the broadly drafted s 75A anti-avoidance rule. While s 75A is a versatile tool to prevent tax avoidance it can be interpreted to cover previously legitimate transactions. Following the consultation by HMRC on apportioning SDLT rates between residential and non-residential properties in linked transactions (tinyurl.com/SDLT2022) we may soon be waving goodbye to the mixed-use property rates allowed under s 55. Therefore it now seems to be a good opportunity to examine the application of s 75A to potential tax mitigation activities that may have been possible under the rules. As will be demonstrated even explicitly permitted regimes may be caught by s 75A with new ‘backwards-looking’ interpretations of s 75A – though the likelihood and viability of such interpretations is difficult to predict.

Section 55: mixed-use property rates...