Shared ownership trust: staircasing transactions
358.Paragraph 14 deals with the treatment of equity-acquisition payments made by the buyer under a shared ownership trust for the purposes of LTT. It provides that where an election under paragraph 12 is made an equity-acquisition payment by the buyer under a shared ownership trust, the increase in the buyer’s beneficial interest is relieved from LTT, provided any tax chargeable in respect of the declaration of trust has been paid. However, if an election under paragraph 12 is not made, then the equity-acquisition payment and corresponding increase in the buyer’s beneficial interest is only relieved from LTT if following the increase the buyer’s beneficial interest does not exceed 80% of the total beneficial interest in the property.
