Finance Act 2010

Conveyance in consideration of debt.

136.— (1) Section 41 of the Principal Act is amended by substituting the following for section 41:

“41.— (1) Where any property is conveyed to any person in consideration, wholly or in part, of any debt due to such person, or subject either certainly or contingently to the payment or transfer of any money or stock, whether being or constituting a charge or incumbrance on the property or not, the debt, money or stock shall be deemed the whole or part, as the case may be, of the consideration in respect of which the conveyance is charged with ad valorem duty.

(2) Where, in connection with or as part of any arrangement involving any conveyance referred to in subsection (1) of stock of a company, the transferee procures, either directly or indirectly, the discharge of any indebtedness of the company (in this subsection referred to as the ‘first-mentioned company’) or of any other company which is connected with the first-mentioned company within the meaning of section 10 of the Taxes Consolidation Act 1997 , and the main or one of the main purposes of the arrangement is to secure a tax advantage, then the conveyance shall, in addition to any other payment of money or transfer of stock to which it is subject (if any), be deemed to be subject to the payment of an amount equal to the amount of such indebtedness.

(3) In subsection (2)—

‘arrangement’ includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);

‘tax advantage’ means the avoidance or reduction of a charge to stamp duty.”.

(2) This section applies as respects instruments executed on or after 4 February 2010.