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.
Reliefs
57AF1Sale and leaseback arrangements
1
The leaseback element of a sale and leaseback arrangement is exempt from charge if the qualifying conditions specified below are met.
2
A “sale and leaseback”arrangement means an arrangement under which—
a
A transfers or grants to B a major interest in land (the “sale”), and
b
out of that interest B grants a lease to A (the “leaseback”).
3
The qualifying conditions are—
a
that the sale transaction is entered into wholly or partly in consideration of the leaseback transaction being entered into,
F2aa
that the sale transaction is entered into wholly or partly in consideration of the leaseback transaction being entered into,
b
that the only other consideration (if any) for the sale is the payment of money or the assumption, satisfaction or release of a debt (or both),
c
that the sale is not a transfer of rights within the meaning of section 45 (contract and conveyance: effect of transfer of rights) or 45A (contract providing for conveyance to third party: effect of transfer of rights), and
d
where A and B are both bodies corporate at the effective date of the leaseback transaction, that they are not members of the same group for the purposes of group relief (see paragraph 1 of Schedule 7) at that date.
F4e
where A and B are both bodies corporate at the effective date of the leaseback transaction, that they are not members of the same group for the purposes of group relief (see paragraph 1 of Schedule 7) at that date.
F34
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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)