M&M Builders (Norfolk) Ltd v HMRC

In M&M Builders (Norfolk) Ltd v HMRC [2021] UKUT 103 (TCC) (5 May 2021) the Upper Tribunal (UT) upheld the decision of the FTT that the market value provisions in FA 2003 s 53 applied to calculate the chargeable consideration for a transfer to a connected company in exchange for the grant of an annuity. FA 2003 s 53 was not prevented from applying because the consideration was an annuity.

M&M Builders (Norfolk) Ltd (M&M) acquired a residential property from two individuals connected with it for an annuity of £3 000 per annum. M&M calculated that the chargeable consideration for SDLT purposes under FA 2003 s 52 (annuities: chargeable consideration limited to 12 years’ payments) was £36 000 being 12 annuity payments. HMRC calculated that the chargeable consideration was the market value of the property under s 53.

The question before the UT was whether the market value...

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