Budget 2011 – Preventing Avoidance: SDLT
The Budget contained several new provisions to clamp down on tax avoidance. One of these provisions related to the introduction of new legislation effective on or after 24 March 2011 to prevent stamp duty land tax (SDLT) being avoided on the purchase of an interest in land.
The legislation will be introduced in Finance Bill 2011 to make three changes to ensure or put beyond doubt that certain SDLT avoidance schemes exploiting three areas do not work.
The changes affect:
- The relationship between the rules on sub-sales and the Alternative Finance reliefs;
- The definition of a ‘financial institution’ for the purposes of the SDLT Alternative Finance reliefs; and
- The way the consideration is determined where land is exchanged.