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HMRC internal manual

Stamp Duty Land Tax Manual

From
HM Revenue & Customs
Updated
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Reliefs: Group, reconstruction or acquisition relief

Group relief: Withdrawal: Amount of relief withdrawn FA03/SCH7/PARA3(2)

Where it is necessary to withdraw group relief the amount of relief withdrawn dependson

  • the chargeable interest obtained by the purchaser on the effective date of the original land transaction
  • the chargeable interest held by the purchaser (and any relevant associated company) at the time of the event withdrawing relief

The effect of causing the withdrawal of the relief is to tax the chargeable interestremaining with the purchaser (and any relevant associated company) as if no claim to grouprelief had been made.

The stamp duty land tax payable is that which would have been payable in respect of theoriginal land transaction for which group relief was claimed. The chargeable considerationfor the transaction is calculated as the market value of the chargeable interesttransferred by the original land transaction.

This is modified where the chargeable interest held by the purchaser (and any relevantassociated company) at the time group relief is withdrawn is not the same as thechargeable interest transferred by the original land transaction.

In this case the stamp duty land tax payable is that which would have been payable inrespect of an appropriate proportion of the original land transaction for which relief wasclaimed.

The appropriate proportion is the fraction of the market values of the chargeableinterests held by the purchaser and any relevant associated companies at the time ofwithdrawal of group relief, calculated by reference to the effective date of the relevantland transaction compared to the market value of the chargeable interest obtained by thepurchaser at the effective date of the relevant land transaction.