Vardy Properties v HMRC

In Vardy Properties v HMRC (and related appeal) (TC02242 – 14 September) a company (VT) entered into an avoidance scheme intended to take advantage of a perceived loophole in FA 2003 s 45 to avoid a charge to stamp duty land tax on the purchase of a property. Under the scheme VT incorporated a new unlimited subsidiary company (VP) which contracted to acquire the property from the vendor. After VP had entered into the contract to purchase the property it reduced its share capital to a nominal amount by a special resolution and declared a final dividend in specie of the property in favour of VT. VP claimed that its acquisition of the property was exempt from SDLT by virtue of FA 2003 s 45(3) while VT claimed that its acquisition of the property from VP was exempt by virtue of FA 2003 Sch...