Acquiring UK commercial property in 2011

SDLT mitigation still driving structures

The desire to mitigate SDLT continues to influence the structures used to acquire commercial property.

Despite further SDLT anti-avoidance measures being introduced in the 2011 Budget to stop schemes using alternative finance relief or exchanges to mitigate SDLT there remain structures which enable direct property acquisitions to be structured SDLT efficiently.

HMRC are making a concerted effort to dissuade the use of SDLT planning structures. In June last year HMRC published Spotlight 10 on SDLT avoidance.

In it HMRC assert that the general SDLT anti-avoidance rule in FA 2003 s 75A counters any arrangements which seek to depress or avoid SDLT on the full amount paid for the property including those seeking to...