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Market value applied where an annuity was consideration for a land transaction

By Mark McLaughlin, October 2021

The market value provisions of FA 2003, s 53 applied where the consideration for a land transaction was an annuity. 

The appellant company purchased a residential property (‘ORY’) from a married couple (Mr and Mrs F), who controlled the appellant for stamp duty land tax (SDLT) purposes. There was no written contract for the purchase. However, the Land Registry transfer of title deed (Form TR1) dated 31 March 2016 showed the appellant as transferee and Mr and Mrs F as transferor.  

The box in the Form TR1 for ‘consideration’ showed nil as having been received by the transferor, but other receipts as being “an annuity of £3,000 per annum”. The appellant delivered a land transaction return declaring the effective date of the transaction as 31 March 2016. The consideration payable was stated to be £36,000,

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