Rather unbelievably, I have a client who still holds an investment property that was acquired in May 2003 under a resting on contract scheme.
They are about to sell and I have been asked about the risk of a stamp duty charge arising when the legal and beneficial title are reunited.
I have a recollection that shortly after the introduction of SDLT HMRC published a view that, provided full SDLT was paid by the purchaser, no stamp duty charge would arise when the title was reunited and the original contract was completed.
Is my recollection accurate, and is that view of HMRC still available in the manual or webarchive?
Hi Sam, your recollection is accurate but I have been unable to find the statement to which you refer in the SDLT manual. The statement is however reproduced in Sergeant and Sims on Stamp Duties at AA1.13 although of course it relates to the old sub sale rules in section 45 which did not contain a tax avoidance filter unlike the current sub-sale rules in Schedule 2A FA 2003, para 18. If your client or their purchasers require certainty then they could always pay the SDLT and also ask that the transfer be adjudicated as not chargeable with stamp duty.