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HMRC internal manual

Stamp Duty Land Tax Manual

Section 75A Finance Act 2003, application of s.75A

Following the decision of the Supreme Court in Project Blue in June 2018, the guidance contained in pages SDLTM09050 to SDLTM09275  on S75A is currently under review.

We will update the guidance at the earliest opportunity, meanwhile if you are unclear about whether S75A might apply please contact the  SDLT Technical team for further advice about how to proceed.

There are three steps to consider when contemplating the application of s.75A:

  • firstly identify a disposal and the relevant person who is V
  • secondly identify an acquisition and the relevant person who is P
  • thirdly consider whether a number of transactions are ‘involved in connection with’ the disposal and acquisition

In a complex scenario this process may need to be repeated with different parties being identified as V and P, possibly with different results.

The meaning of the phrase ‘involved in connection with’ has not yet been tested in the courts and, therefore, the dictionary definition of ‘connection’ should be applied. In HMRC’s view to be ‘involved in connection with’ each other the disposal, acquisition and other related transactions would normally involve more than one transaction in sequence relating to the same property. For example, related transactions would be considered to be ‘in connection with’ a disposal and acquisition (‘the composite transaction’) if the intended outcome of the composite transaction cannot be achieved in the form envisaged without those transactions taking place.s.75A will apply whether or not V, P or their associates or advisers have had any involvement with, or knowledge of, each other.