Application: Transfer to a connected company: Example 3
Company C transfers freehold residential property to company B for no consideration.
SDLT considerations are:
Is C connected to B in accordance with S1122 CTA 2010?
If so what is the market value of the property transferred?
If C is not connected to B there is no chargeable consideration and no notification is required.
If C is connected to B, S53 applies and the chargeable consideration for the transaction is the market value of the property at the effective date. If this were £275,000 this would be the chargeable amount.