Waterside Escapes Ltd  v HMRC

In Waterside Escapes Ltd  v HMRC [2020] UKFTT 404 (TC) (13 October) the First-tier Tribunal (FTT) held that the 15% rate of SDLT applied to the acquisition of a property by a company but that the amount of chargeable consideration for the acquisition was reduced as the partnership provisions (in FA 2003 Sch 15 para 18) applied.

Waterside Escapes Ltd (the company) operated a holiday property letting business. It acquired a property from a connected LLP for the purposes of its business. The LLP’s members were a married couple each holding a 50% membership interest in the LLP. The wife also held 50% of the shares in the company. The other 50% were held by a trust (the trust). The trust acquired its shares in the company on the same day as the company acquired the property. The trust was a third party that provided funding for...