Avoid SDLT schemes
Posted on 22nd June 2023 at 11:10
GAAR is the “General Anti Abuse Regulation”, and it has huge powers to look at an individual case, determine on the facts of that one case if a “scheme” is tax safe, and if it isn’t, then all users of that scheme are deemed captured….and that has been used to make a decision on the “sub-sale and annuity” SDLT scheme.
The recent case was where a couple were persuaded by a scheme enabler that their purchase of a home would avoid SDLT by using a sub-sale and annuity process – they were tempted by the promise of eliminating their stamp duty land tax of over £17,000 – but doesn’t this sound too good to be true?
This is of course, a series of contrived arrangements, which is at the heart of the GAAR regulation, and now, the couple and EVERYONE else that has used this scheme now has to go back and pay their stamp duty.
If you know anyone that has used the “sub-sale and annuity” scheme to avoid (read evade) their SDLT now has to remedy this, and the sooner that’s done, the lower the interest and possibly the penalties. Contact us on firstname.lastname@example.org if you want our active support with this problem.
#SDLT #GAAR #HMRC #stampduty #sdltavoidance #sdltmitigation
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