Stamp Duty Land Tax Manual

SDLTM23085 - Reliefs: Group, reconstruction or acquisition relief

Group relief: Withdrawal: Amount of relief withdrawn FA03/SCH7/PARA3(2)

Where it is necessary to withdraw group relief the amount of relief withdrawn depends on

• the chargeable interest obtained by the purchaser on the effective date of the original land transaction
• the chargeable interest held by the purchaser (and any relevant associated company) at the time of the event withdrawing relief

The effect of causing the withdrawal of the relief is to tax the chargeable interest remaining with the purchaser (and any relevant associated company) as if no claim to group relief had been made.

The stamp duty land tax payable is that which would have been payable in respect of the original land transaction for which group relief was claimed. The chargeable consideration for the transaction is calculated as the market value of the chargeable interest transferred by the original land transaction and, if the acquisition was the grant of a lease at a rent, that rent.

This is modified where the chargeable interest held by the purchaser (and any relevant associated company) at the time group relief is withdrawn is not the same as the chargeable interest transferred by the original land transaction.

In this case the stamp duty land tax payable is that which would have been payable in respect of an appropriate proportion of the original land transaction for which relief was claimed.

The appropriate proportion is the fraction of the market values of the chargeable interests held by the purchaser and any relevant associated companies at the time of withdrawal of group relief, calculated by reference to the effective date of the relevant land transaction compared to the market value of the chargeable interest obtained by the purchaser at the effective date of the relevant land transaction.