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Land transaction tax - precedence

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For LTT (and probably SDLT as well) what takes precedence, linked transactions or group relief?

e.g. three properties are sold to the same company, two by an individual, who is a director and shareholder of the purchasing company, and one by a grouped company, all at the same time.

Section 8 of the Act defines linked transactions as

"(1)    For the purposes of this Act, a land transaction is a linked transaction if it is one of a number of land transactions forming part of a single scheme, arrangement or series of transactions between the same seller and buyer or, in either case, persons connected with them."

Which would be the case here, but group relief would exempt one, so are they all linked, or just two of them?

 

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By The Dullard
10th Apr 2022 10:53

Transactions being linked and group relief applying to just one of the transactions are not things that are mutually exclusive. Linked transactions are capable of each being separately reported; the legislation actually tells you how to work out the tax for each, albeit the first step is to calculate the tax for the whole.

However, just because there are a number of transactions by one "vendor", and/or parties connected with him, to one "purchaser", and/or parties connected with him, doesn't necessarily make them linked transactions. They either form part of a single scheme or arrangement or they don't.

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