In the second article in the series, Simon Howley considers what can be classed as consideration in kind for stamp duty land tax purposes, in particular where land is exchanged for land.
In the first part of this article, I detailed the stamp duty land tax (SDLT) issues surrounding consideration in kind where there was an exchange of non-land assets for land acquired. The position becomes more complicated where there is an exchange of land for land.
Normally, a ‘major interest’ in land will be transferred in one direction or both directions. Put simply, in England a major interestâ¯means: â¯
- a freehold); or
-
a lease of over 21 years.
The SDLT rules on land for land exchanges require there to be a binding obligation to transfer properties in exchange, or part exchange, for each other. The rules can sometimes work harshly, which is best
