SDLTM09260 - What could be incidental: Section 75B

(This page was introduced on 15 January 2020)

Transactions could be categorised as incidental transactions if they are carried out only for a reason relating to:

• the construction of a building on property which is related to the chargeable interest
• the sale or supply of anything other than land
• a loan to P secured by a mortgage enabling P to pay for part of a process or series of transactions which allows the transfer of the chargeable interest from V to P
• any other provision of finance enabling P, or another person, to pay for a process or series of transactions which allows the transfer of the chargeable interest from V to P

If the transactions are only partly incidental, then they should be apportioned on a just and reasonable basis when calculating the chargeable consideration for the notional transaction.

These transactions are also subject to the exclusion rules explained at SDLTM09250.

If a transaction which could otherwise be categorised as incidental is then excluded from being treated as such due to the operation of Section 75B(4), this exclusion will take priority. In these cases, the consideration for the transaction will need to be taken into account when calculating the chargeable consideration for the notional transaction.