Section 75A — Finance Act 2003: Anti-avoidance

Anti-avoidance 75A 1 This section applies where—

a one person (V) disposes of a chargeable interest and another person (P) acquires either it or a chargeable interest deriving from it, b a number of transactions (including the disposal and acquisition) are involved in connection with the disposal and acquisition (“the scheme transactions”),

and c the sum of the amounts of stamp duty land tax payable in respect of the scheme transactions is less than the amount that would be payable on a notional land transaction effecting the acquisition of V's chargeable interest by P on its disposal by V.

2 In subsection (1) “ transaction ” includes, in particular—

a a non-land transaction, b an agreement, offer or undertaking not to take specified action, c any kind of arrangement whether or not it could otherwise be described as a transaction, and d a transaction which takes place after the acquisition by P of the chargeable interest.

3 The scheme transactions may include, for example—

a the acquisition by P of a lease deriving from a freehold owned or formerly owned by V;

b a sub-sale to a third person;

c the grant of a lease to a third person subject to a right to terminate;

d the exercise of a right to terminate a lease or to take some other action;

e an agreement not to exercise a right to terminate a lease or to take some other action;

f the variation of a right to terminate a lease or to take some other action.

4 Where this section applies—

a any of the scheme transactions which is a land transaction shall be disregarded for the purposes of this Part, but b there shall be a notional land transaction for the purposes of this Part effecting the acquisition of V's chargeable interest by P on its disposal by V.

5 The chargeable consideration on the notional transaction mentioned in subsections (1)(c) and (4)(b) is the largest amount (or aggregate amount)—

a given by or on behalf of any one person by way of consideration for the scheme transactions, or b received by or on behalf of V (or a person connected with V within the meaning of section 1122 of the Corporation Tax Act 2010 ) by way of consideration for the scheme transactions.

6 The effective date of the notional transaction is—

a the last date of completion for the scheme transactions, or b if earlier, the last date on which a contract in respect of the scheme transactions is substantially performed.

7 This section does not apply where subsection (1)(c) is satisfied only by reason of—

a sections 71A to 73, or b a provision of Schedule 9.