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Home Forums Patrick Cannon Does market value for SDLT include VAT? Reply To: Does market value for SDLT include VAT?

#598
Patrick
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I thought that current HMRC policy is that market value does not include VAT. SDLTM 04140 states that: “The market value of an asset does not include VAT even if VAT is chargeable on the transfer of the asset. This is because market value is based on a hypothetical transaction, not on the actual transaction.” I understand that the new exchange rules are in part intended to deal with the perceived abuse of avoiding SDLT on the VAT element of an exchange which previously was taxed only on market value.