Finance Act 2003, Schedule 4, paragraph 4

Just and reasonable apportionment

SCHEDULE 4 Stamp duty land tax: chargeable consideration

4 (1) For the purposes of this Part consideration attributable—

(a) to two or more land transactions, or

(b) in part to a land transaction and in part to another matter, or

(c) in part to matters making it chargeable consideration and in part to other matters,

shall be apportioned on a just and reasonable basis.

(2) If the consideration is not so apportioned, this Part has effect as if it had been so apportioned.

(3) For the purposes of this paragraph any consideration given for what is in substance one bargain shall be treated as attributable to all the elements of the bargain, even though—

(a) separate consideration is, or purports to be, given for different elements of the bargain, or

(b) there are, or purport to be, separate transactions in respect of different elements of the bargain.

Cases considering Schedule 4, paragraph 4 3

The Commissioners for HMRC v LG Park HT1 Limited & Ors

[2023] EWCA Civ 1193 · 17 October 2023

Identifies the rule requiring consideration attributable to different transactions or matters to be apportioned on a just and reasonable basis. The relevance of apportionment remained a matter for the FTT. (see paras [9], [17], [53])

LG Park HT1 Limited & Ors. v The Commissioners for HMRC

[2022] UKUT 178 (TCC) · 7 July 2022

The potential just-and-reasonable apportionment of consideration did not justify refusing the mandatory valuation reference. It could sensibly be determined by the Lands Chamber as part of valuing the leases. (see paras [51]-[54]; [68])

Dhaliwal v Hussain & Anor

[2017] EWHC 2655 (Ch) · 31 October 2017Interprets

The court considered whether the provision requires contracting parties to agree a just and reasonable apportionment of consideration. It expressed the view that the provision instead enables HMRC to assess SDLT on that basis, with any return obligation arising separately after the contract. The issue was not determined because the illegality defence failed on the facts. (see paras [112]-[115])

What each judgment says about Schedule 4, paragraph 4 is in the case-law panel in the full Act.