- 1. The Scope of the Book: Estate Planning Introduced
- 1.4.4 The purposive approach
- 1.4.5 Three recent taxpayer successes
- 1.5.7 Transactions in securities
- 1.5.12 The three disclosure regimes
- 1.5.13 Two offshore disclosure regimes: 2007 and 2009
- 1.6.1 ‘Spotlights’ and ‘Signposts’
- 2. Inheritance Tax Mitigation: The Basics
- 3. Making Gifts: Outright or Protected?
- 4. Trusts: Tax-Efficient Management
- 6. The Family Business
- 6.1.3 Capital Gains Tax angles
- 6.3.5 Entrepreneurs’ Relief: Furnished Holiday Lettings
- 6.4.1 Summary principles
- 8. Chattels
- 9. Investments
- 11. Pensions
- 11.2.2 Withdrawing benefits
- 11.2.3 Transitional provisions
- 11.2.4 Unregistered schemes
- 11.3.1 The basic rule
- 11.3.2 Tax relief
- 11.3.3 Scheme input periods
- 11.3.4 Occupational schemes
- 11.4.1 SIPPs and SSASs distinguished
- 11.4.3 Transactions with employers
- 11.5.2 Tax-free cash
- 11.5.5 Death benefits
- 11.5.6 Age 75: ASP or annuity purchase?
- 11.5.7 Maximise or minimise income in retirement?
- 12. Charitable Giving
- 15. Leaving the UK
- 15.2.1 Overview
- 15.2.4 Occasional residence abroad not enough
- 15.2.5 Full-time work abroad
- 15.2.6 Ordinary residence
- 16. Non-UK Domiciliaries Living in the UK
- 17. Offshore Trusts and Companies
- 18. Wills
- 20. Compliance
Chapter: 2 - Inheritance Tax Mitigation: The Basics
Stamp Duty Land Tax
2.14.3
A gift, pure and simple, of land and buildings does not attract SDLT (FA 2003 Sch 3 para 1), just as under Stamp Duty a gift of shares can be certified as attracting no Duty (The Stamp Duty (Exempt Instruments) Regulations 1987 SI 1987/516). But if the land is subject to a mortgage or is transferred in consideration of the removal of a debt, the amount of the mortgage or debt constitutes chargeable consideration for SDLT purposes (FA 2003 Sch 4 para 8). So, with residential land, if the mortgage debt exceeds £125,000 (£175,000 for transfers after 2 September 2008 and before 1 January 2010), the nil-rate threshold, there will be SDLT to pay. And in any case there will be compliance implications for making the transfer for a deemed consideration of £40,000 or more (£1,000 or more before 13 March 2008).
There is a further point. If land is transferred to a company with which the transferor is connected (within the meaning of TA 1988 s839) or in consideration of shares in a company controlled by the transferor, the consideration is deemed to be not less than the market value of the land – ie it could be more if such actual consideration is paid, but cannot be less (FA 2003 s53). A similar rule applied under Stamp Duty prior to 1 December 2003. This may be an unlikely thing to happen, though the point should be borne in mind, eg with the grant of a lease to a family company as part of IHT planning arrangements: see 6.6.1.


