Declaration of trust avoid SDLT on incorporation?

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Sole trader wishes to transfer his business property into his limited company. My understanding is that SDLT is payable on the market value. CGT is based on beneficial ownership. Would SDLT be avoided if sole trader executed a declaration of trust transferring beneficial ownership to the company? My understanding is this would trigger a capital disposal by the sole trader.

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By gbuckell
11th May 2018 12:35

In the old stamp duty days, duty could be avoided by resting in contract. The SDLT rules shot this down. Transfer of beneficial ownership is sufficient to trigger SDLT.

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