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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

Reconstruction and acquisition relief: Withdrawal: Withdrawal of reliefFA03/SCH7/PARA9

Where reconstruction or acquisition relief has been claimed on a land transaction,relief is withdrawn if control of the acquiring company changes

  • before the end of a period of three years beginning with the effective date of the relevant transaction
  • in pursuance of, or in connection with, arrangements made before the end of a period of three years beginning with the effective date of the relevant transaction

Control of a company changes when the company becomes controlled by

  • a different person
  • a different number of persons
  • two or more persons at least one of whom is not the person, or one of the persons, by whom the company was previously controlled

For withdrawal of the relief to be considered at the time control of the acquiringcompany changes, the acquiring company (or a relevant associated company) must hold

  • the chargeable interest that was acquired by the acquiring company under the relevant transaction
  • a chargeable interest derived from the chargeable interest acquired by the acquiring company under the relevant transaction (for example if a headlease was acquired under the relevant land transaction, the reversion of a sublease granted out of that headlease would be a chargeable interest derived from the original chargeable interest)

and

  • the chargeable interest has not subsequently been acquired at market value by means of a chargeable transaction where reconstruction or acquisition relief was available but not claimed