Measure
The government is introducing an anti-avoidance measure which will affect intra-group transfers of property where SDLT group relief is claimed. The measure concerns whether a clawback may apply where the parties cease to be grouped because of an event affecting the vendor. It will mean that a change of control of the purchasing company within a three-year period may cause a clawback where the vendor company has been liquidated, and not only where it has been disposed of.
Groups undertaking intra-group property transfers on which SDLT group relief is claimed, particularly where the transferring company is expected to be liquidated as part of a reorganisation. The change will be relevant where a subsequent change of control of the purchasing company within the three-year clawback period could trigger a withdrawal of relief.
The change will apply to transactions taking place on or after 29 October 2026, subject to certain transitional arrangements for contracts entered into before 29 October 2026.
The government said that the measure is intended to ensure that group relief is withdrawn "as intended where the purchaser leaves a corporate group”. In fact, however, it may apply more widely, since it looks at any change of control, not degrouping. That could, for example, include a situation where the group of which the purchaser is a member is taken over.