Stamp Duty Land Tax on incorporation of sports club

Stamp Duty Land Tax on incorporation of sports...

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Where a sole trade or partnership is incorporated, the new company pays SDLT on any property transferred.

However, my understanding is that this problem doesn't arise where property is transferred as part of the incorporation of a 'mutual' amateur sports club, where the property is transferred by trustees to the a  new company limited by guarantee. There may, though, be a potential problem where the property is mortgaged and the mortgage also passes over.

Is my understanding correct?

If so, is it because the the trustees are not 'connected' to the new LBG company in the same way that a sole trader is connected to his new personal company?

Thanking you.....

TG

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By Chris Smail
21st Jul 2011 11:31

See RFU guidance

Link from this page  Here

 

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Confused Cat
By TaxGator
21st Jul 2011 15:23

Good old RFU!

Yes, the RFU guidance does seem pretty unequivocal. No SDLT it is then! Thanks Chris.

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