Exemptions and reliefs: reliefs: company reconstructions and acquisitions - general
Sections 75 and 77 of the Finance Act 1986 provide stamp duty relief for company reconstructions and acquisitions in certain circumstances.
Sections 75 and 77:
- provide relief from stamp duty on a transfer on sale
- relate to transactions by companies
- refer to a ‘target company’ and an ‘acquiring company’
- state that the consideration for the acquiring company’s acquisition must include the issue of shares in the acquiring company
- have no time limit for relief
- make adjudication compulsory to access the relief.
Relief under sections 75 to 77 is not available to Open-Ended Investment Companies (regulation 12 of the Stamp Duty and Stamp Duty Reserve Tax (Open-Ended Investment Companies) Regulations 1997).
The relief provided by sections 75 and 77 is subject to a number of conditions, all of which are strictly enforced (see STSM042370).
Relief under section 77 may not apply in certain circumstances (see STSM042460).