Land Transaction Tax on Business Restructure

Land Transaction Tax on Business Restructure

If you are planning on restructuring your family business, it’s likely you’ve considered the tax and VAT positions. It’s important however not to neglect Land Transaction Tax (LTT), or Stamp Duty Land Tax (SDLT) if in England.

Often overlooked, LTT can arise when an interest in land is transferred.

If you are a sole trader planning on incorporating your business, moving land from one to the other can trigger LLT on the market value. This can prove costly.

An exemption is available for trading partnerships however anti-avoidance legislation means you cannot benefit from this in certain situations. Also, it’s typically advised to seek advance assurance from HMRC.

If you are considering restructuring your business, you should take professional advice well in advance to avoid any unexpected or unnecessary tax liabilities. Please contact us to speak to one of our tax experts.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.







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