Effect of rescission, annulment etc of the original contract on SDLT charged on a notional land transaction under paragraph 5(1)
25.Schedule 2A Paragraph 6 sets out the SDLT position where there is a notional land transaction as a result of the original contract being substantially performed and then the original contract is subsequently rescinded or annulled (in whole or in part). The transferee’s position is covered by the normal provisions in section 44 FA 2003 but paragraph 6 is required to allow the transferor to claim back an appropriate amount of SDLT.
26.Sub-paragraphs (2) and (3) provide that where (to any extent) the original contract is rescinded or not carried into effect for any other reason, any SDLT paid on a related notional land transaction or additional land transaction has to be repaid to an appropriate extent by HMRC. Any repayment must be claimed through an amendment to the land transaction return.
