C1C2Part 4Stamp duty land tax
Pt. 4 modified (coming into force at 2 p.m. on 6.12.2006) by The Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2006 (S.I. 2006/3237), regs. 1, 2, Sch.
Chargeable interests, chargeable transactions and chargeable consideration
53I1Deemed market value where transaction involves connected company
F11
This section applies where the purchaser is a company and—
a
the vendor is connected with the purchaser, or
b
some or all of the consideration for the transaction consists of the issue or transfer of shares in a company with which the vendor is connected.
1A
The chargeable consideration for the transaction shall be taken to be not less than—
a
the market value of the subject-matter of the transaction as at the effective date of the transaction, and
b
if the acquisition is the grant of a lease at a rent, that rent.
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Section 839 of the Taxes Act 1988 (connected persons) has effect for the purposes of this section.
3
In this section—
“company” means any body corporate;
“shares” includes stock and the reference to shares in a company includes a reference to securities issued by a company.
4
Where this section applies paragraph 1 of Schedule 3 (exemption of transactions for which there is no chargeable consideration) does not apply.
But this section has effect subject to any other provision affording exemption or relief from stamp duty land tax.
5
This section is subject to the exceptions provided for in section 54.
Pt. 4 construed as one with S.I. 2006/575, reg. 43 (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 43(4)