HM Revenue and Customs (HMRC) have released new guidance on the stamp duty land tax rules for pre-completion transactions.
Their guidance explains how the new rules work and provides examples of how they apply to various scenarios.
The rules are set out in Schedule 2A of the Finance Act 2003, and will apply to pre-completion transactions entered into on or after the day on which the Finance Act 2013 is passed.
This guidance will eventually be incorporated into HMRC’s Stamp Duty Land Tax Manual.
Earlier this week a landmark tax tribunal ruled that the buyers of the Chelsea Barracks would have hand over £50m in stamp duty.
Project Blue had tried to get round Stamp Duty by a series of complex transactions involving a sub-sale and lease-back.
The case was the first to test an anti-avoidance rule in Stamp Duty Land Tax legislation.
If the purchasers had not attempted to get round the rules they have had £38m to pay.
