[F175AAnti-avoidanceU.K.
(1)This section applies where—
(a)one person (V) disposes of a chargeable interest and another person (P) acquires either it or a chargeable interest deriving from it,
(b)a number of transactions (including the disposal and acquisition) are involved in connection with the disposal and acquisition (“the scheme transactions”), and
(c)the sum of the amounts of stamp duty land tax payable in respect of the scheme transactions is less than the amount that would be payable on a notional land transaction effecting the acquisition of V's chargeable interest by P on its disposal by V.
(2)In subsection (1) “transaction” includes, in particular—
(a)a non-land transaction,
(b)an agreement, offer or undertaking not to take specified action,
(c)any kind of arrangement whether or not it could otherwise be described as a transaction, and
(d)a transaction which takes place after the acquisition by P of the chargeable interest.
(3)The scheme transactions may include, for example—
(a)the acquisition by P of a lease deriving from a freehold owned or formerly owned by V;
(b)a sub-sale to a third person;
(c)the grant of a lease to a third person subject to a right to terminate;
(d)the exercise of a right to terminate a lease or to take some other action;
(e)an agreement not to exercise a right to terminate a lease or to take some other action;
(f)the variation of a right to terminate a lease or to take some other action.
(4)Where this section applies—
(a)any of the scheme transactions which is a land transaction shall be disregarded for the purposes of this Part, but
(b)there shall be a notional land transaction for the purposes of this Part effecting the acquisition of V's chargeable interest by P on its disposal by V.
(5)The chargeable consideration on the notional transaction mentioned in subsections (1)(c) and (4)(b) is the largest amount (or aggregate amount)—
(a)given by or on behalf of any one person by way of consideration for the scheme transactions, or
(b)received by or on behalf of V (or a person connected with V within the meaning of [F2section 1122 of the Corporation Tax Act 2010]) by way of consideration for the scheme transactions.
(6)The effective date of the notional transaction is—
(a)the last date of completion for the scheme transactions, or
(b)if earlier, the last date on which a contract in respect of the scheme transactions is substantially performed.
(7)This section does not apply where subsection (1)(c) is satisfied only by reason of—
(a)sections 71A to 73, or
(b)a provision of Schedule 9.]
Textual Amendments
F1Ss. 75A-75C inserted (with effect in accordance with s. 71(2) of the amending Act) by Finance Act 2007 (c. 11), s. 71(1) (with s. 71(3))
F2Words in s. 75A(5)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 407 (with Sch. 2)