Is SDLT payabale on a transfer between two sub-funds of a single settlement?

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This topic contains 1 reply, has 1 voice, and was last updated by Is SDLT payabale on a transfer between two sub-funds of a single settlement? by Patrick Cannon 1 Patrick 22nd May 2009 at 9:32 am.

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    Is SDLT payabale on a transfer between two sub-funds of a single settlement? by Patrick Cannon 2
    Steph Parker

    A single trust has two separate funds, with different beneficiaries for each fund. A property is to be transferred, subject to a loan secured on the property, from one fund to another. Is the value of the loan subject to SDLT as consideration given on a change of beneficial ownership, or does the fact that this all occurs under the banner of a single trust mean that there has in fact been no transfer of a chargeable interest? Any comments would be gratefully received.

    #375 Reply
    Is SDLT payabale on a transfer between two sub-funds of a single settlement? by Patrick Cannon 3
    Patrick

    Assuming that the exemptions in the two (sic) paras 3A in Sch 4 FA 2003 do not apply and there are life interests then SDLT can apply because the beneficiaries of the acquiring fund are purchasing the equitable interests of those in the disponing fund. If there are no life interests it comes down to whether the funds are truly separate settlements eg has a sub-fund election been made under Sch 4ZA TCGA 1992, and if so then the trustees of the acquiring fund wearing that hat are purchasing the property from the trustees of the disponing fund wearing that other other hat.

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