Section 53 Deemed market value where transaction involves connected companyI2

United Kingdom

F1(1)

This section applies where the purchaser is a company and—

(a)

the vendor is connected with the purchaser, or

(b)

some or all of the consideration for the transaction consists of the issue or transfer of shares in a company with which the vendor is connected.

(1A)

The chargeable consideration for the transaction shall be taken to be not less than—

(a)

the market value of the subject-matter of the transaction as at the effective date of the transaction, and

(b)

if the acquisition is the grant of a lease at a rent, that rent.

I1(2)

F2Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this section.

(3)

In this section—

“company” means any body corporate;
“shares” includes stock and the reference to shares in a company includes a reference to securities issued by a company.

(4)

Where this section applies paragraph 1 of Schedule 3 (exemption of transactions for which there is no chargeable consideration) does not apply.

But this section has effect subject to any other provision affording exemption or relief from stamp duty land tax.

(5)

This section is subject to the exceptions provided for in section 54.

Annotations

F1: S. 53(1)(1A) substituted for s. 53(1) (with effect in accordance with s. 297(9) of the amending Act) by Finance Act 2004 (c. 12), s. 297(4)
F2: Words in s. 53(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), Sch. 1 para. 404 (with Sch. 2)

I1: S. 53(2) has effect as specified by The Stamp Duty Land Tax (Appointment of the Implementation Date) Order 2003 (S.I. 2003/2899), art. 2
I2: Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

C1: Pt. 4 construed as one with S.I. 2006/575, reg. 43 (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 43(4)
C2: Pt. 4 modified (coming into force at 2 p.m. on 6.12.2006) by The Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2006 (S.I. 2006/3237), regs. 1, 2, Sch.
C3: Pt. 4 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 194(8)-(12)
C4: Pt. 4 applied (17.7.2014) by Finance Act 2014 (c. 26), ss. 223(8)(9)(d)
C5: Pt. 4 modified (temp.) (22.7.2020) by Stamp Duty Land Tax (Temporary Relief) Act 2020 (c. 15), s. 1 (as amended (10.6.2021) by 2021 c. 26, s. 87(2))
C6: Pt. 4 modified (temp.) (10.6.2021) by 2020 c. 15, s. 1A (as inserted by Finance Act 2021 (c. 26), s. 87(3))
C7: Pt. 4 applied (19.3.2025) by The Co-ownership Contractual Schemes (Tax) Regulations 2025 (S.I. 2025/200), regs. 1(2), 29(2)(5) (with reg. 63)
C8: Pt. 4 modified (19.3.2025) by The Co-ownership Contractual Schemes (Tax) Regulations 2025 (S.I. 2025/200), regs. 1(2), 28, 30 (with reg. 63)