re: Not for profits SDLT

[saharwood]

Thanks section44 for your continuing efforts with my probing.

Many apologies if i didn't make it wholly clear before. the parties are arguably connected in the sense that the N4P is wholly funded by the transfer of the property (a statutory body) who in provides services in return. My concern is a clever spark at HMRC may come up with a 'deemed' reduction in their funding as in lieu of monies owing (or something just a vague). Failing that, they may argue they're 'connected' due to the funding arrangement.

So to re-clarify the question:

+ What HMRC would regard as 'connected parties' for a company-2-company transfer - is there any guidance that defines 'connected' (HMRC cite very few examples)?
+ What does HMRC regard as charitable (non business) use - i.e. would a N4P be eligible or not (and would this supercede the above)?

This is not a hypothetical question and involves substantial property values hence I can not make assumptions. Happy to pay for advice if it's underwritten.

thanks again.

[section 44]

is there any guidance that defines 'connected'

Connection for these pruposes is as per section 1122 CTA 2010.

[saharwood]

The definition as supplied in The Corporation Tax Act 2010 s1120 applies to SDLT? if that's right then that is very useful, thank you.

on my second point (as my my original post) I noted that the transfer(s) may be at net book value - hence pertinent to know if a N4P would hold an eligible charitable purpose (for SDLT purposes).

regards

[saharwood]

not to worry, found in the CTA 2010 as well.

many thanks again.