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Home Forums Patrick Cannon When is market value relevant in SDLT? Reply To: When is market value relevant in SDLT?

#249
Patrick Cannon
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I take the view that the exchange rules override the other rules as to consideration when you have a major interest being exchanged because you are required to ignore any cash passing. This sugests that you would also ignore any other types of consideration such as cash overage for example. However it is possible to imagine a land exchange with an overage element consisting of further land if the planning permission or whatever it is, was forthcoming and here there might be an issue about bringing in the value of the additional land under section 51 or running a Marren v Ingles argument that it was a chose in action and not an interest in land and should be ignored.
The acquisition of an interest in a partnership owning a major interest in land in exchange for a land transaction with an existing partner is treated as if the partnership interest was a major interest in land: para 16 Sch 15 FA 2003. This has the effect of imposing a SDLT charge on the market value on both the partnership interest (without limitation it seems to the value of the land) and the associated land transaction under the SDLT exchange rules in para 5 Sch 4 FA 2003. Each party is liable to SDLT on the market value of what he acquires. The relief for partitions in para 6 Sch 15 FA 2003 is specifically disapplied in this situation. You are correct in that the question of what happens if a new partner contributes land to the partnership and in return takes some land out raises some difficult issues!