Stamp duty tax relief on joint purchases

Charities which have jointly purchased a property with an organisation which is not a charity, such as a trading arm, can now claim for overpaid stamp duty land tax, following a Court of Appeal ruling.

In June, the Court of Appeal overruled a decision by the Upper-Tier Tax Tribunal in the case of The Pollen Estate Trustee Company Limited and Kings College London v HMRC.

The Tribunal had ruled that a stamp duty land tax relief on the charity’s share of a property purchase should not be allowed, because purchasers had a joint obligation to file a single land transaction return.

But the Court of Appeal overturned this decision and decided relief is limited to where a charity uses the greater part of its share of the property for a charitable purpose. The portion of stamp duty land tax to be paid by a non-charity partner will still be based on a percentage of the total cost of the property acquired.

For further information on how to make any claims visit www.hmrc.gov.uk/news/pollen-estate-trustee.htm.