SDLT - company in liquidaton

[beckied]

If a company is in liquidation and is going to distribute a UK property in specie to the shareholder (an individual) is SDLT due on the transaction?

[Sonners]

A dividend in specie is prima facie exempt from SDLT because no chargeable consideration is given for the dividend.

However, you need to be careful about the way in which the company does things. Declaring an interim dividend to distribute the property is usually preferable as there are issues with the declaration of final dividends and whether this constitutes a debt to the shareholders. If the transfer of the property is in satisfication of the debt then it can form part of the consideration on which SDLT may be payable.