Subsale scheme was blocked so return was required

The taxpayer implemented a subsale scheme to mitigate stamp duty land tax. The scheme included an agreement for the future grant of an option at the time of completion of the original contract.

However the scheme was blocked as a result of the retrospective effect an amendment to FA 2003 s 45. The amended legislation required purchasers to amend their stamp duty land tax return where one had been filed. If no return had been submitted HMRC could raise an assessment.

The taxpayer filed two returns. The first was a nil return; the second was in respect of the grant of the option on which it paid stamp duty land tax on the option price. 

After an enquiry into the nil return HMRC issued a closure notice requiring stamp duty land tax to be paid on the full purchase price. It also issued a discovery assessment.

The...