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Home Forums Patrick Cannon Is SDLT payable on the value of the property in the sale agreement? Reply To: Is SDLT payable on the value of the property in the sale agreement?

#504
Patrick
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Without knowing more about the background to this change it is difficult to say whether or not the SDLT was underpaid. Assuming that the sale was at arm’s length and based on a genuine and supportable view of the values of the land and goodwill then it could be argued that the subsequent reduction in the value of the goodwill was a separate matter and did not affect the actual apportionment of the price under the sale agreement. Of course HMRC might not agree with this and they have 6 years in which to make a discovery assessment if this comes to their attention. It sounds like the new penalty regime for careless inaccuracy will not apply here if the transaction was before 1 April 2010 but a penalty for becoming aware that the return understated the tax and failing to alert HMRC to this could appy IF the return did indeed understate the tax, were HMRC later to pick this up.