07 October 2025
Investments & Securities Trust Ltd v HMRC [2025] UKUT 00331 (TCC)
In an appeal concerning the higher rate of SDLT (imposed under Schedule 4A FA 2003) and ATED, the Upper Tribunal has considered the scope of the exemptions for interests acquired exclusively for development and resale in the course of a trade. The interest in question was an option granted to a company by its indirect majority shareholder. The grant price of the option comprised 50% of the property value. The Upper Tribunal has held that:
- The FTT was entitled to conclude that a purpose of acquiring the option was to address the grantor’s pressing need for funds;
- However, the chargeable interest was being held for the purpose of developing and reselling the land in the course of its trade.
The Upper Tribunal has therefore dismissed the appeal in relation to SDLT but allowed the appeal in relation to ATED.
Ben Elliott and Stacey Cranmore appeared for HMRC.
You can read the judgment here.
This content is provided free of charge for information purposes only. It does not constitute legal advice and should not be relied on as such. No responsibility for the accuracy and/or correctness of the information and commentary set out in the article, or for any consequences of relying on it, is assumed or accepted by any member of PCTC or by PCTC as a whole.
