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Where Taxpayers and Advisers Meet

Linked transaction

CliveT
Posts: 6
Joined: Sat Jul 07, 2018 10:54 am

Linked transaction

Postby CliveT » Thu Sep 20, 2018 5:01 pm

I am currently doing some transfer of equities. 6 properties are held as Tenants in common between my wife and my daughter, and 6 properties are held as Tenants in common between myself and my daughter. There are also 4 properties held as Tenants in common between myself and my son in law and 1 property held as Tenants in common between my wife and my son in law. Due to the fact they are getting divorced all properties are being transferred back to us. For SDLT purposes is this taxed as a linked transaction that is all 17 properties are subject to tax based on the total consideration paid to both my daughter and son in law are are they classed as separate transactions ie. SDLT based on 4 properties and 1 property with the son in law and 6 properties and 6 properties with my daughter or would it be 12 with the daughter and 5 with the son in law. I think you can see where i am going with this. I need to work out whether to pay commercial SDLT or multiple dwelling relief.
Any advice gratefully received because having asked the SDLT office i am none the wiser

AGoodman
Posts: 711
Joined: Fri May 16, 2014 3:47 pm

Re: Linked transaction

Postby AGoodman » Fri Sep 21, 2018 1:35 pm

Given the complexity of the facts and the rules (and the value involved) I would have thought you need to shell out for a proper advisor to look at it properly.

CliveT
Posts: 6
Joined: Sat Jul 07, 2018 10:54 am

Re: Linked transaction

Postby CliveT » Sat Sep 22, 2018 1:31 pm

I thought someone using this forum might know, as it does not seem a particularly challenging question for someone who knows about SDLT

bd6759
Posts: 3010
Joined: Sat Feb 01, 2014 3:26 pm

Re: Linked transaction

Postby bd6759 » Tue Sep 25, 2018 11:12 pm

I find the fact that you are transferring equity in properties that you claim are not owned by you quite interesting, as would HMRC. Seems to me that you are the beneficial owner of all the properties.

It is likely that these will be single transactions for SDLT, but with the limited facts that cannot be confirmed.

Mr Goodman's advice is spot on, but be warned: such advice will not come cheap.

CliveT
Posts: 6
Joined: Sat Jul 07, 2018 10:54 am

Re: Linked transaction

Postby CliveT » Wed Sep 26, 2018 6:55 pm

Quite clearly they are half owned by me as stated in the question, i thought it was fairly self explanatory. I am having the half not owned by me transferred to me. The same with my wife.

bd6759
Posts: 3010
Joined: Sat Feb 01, 2014 3:26 pm

Re: Linked transaction

Postby bd6759 » Wed Sep 26, 2018 11:38 pm

That is not clear at all.


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