UK: Court Of Appeal Decides That Sub-Sale Relief Did Not Apply To The DV3 Scheme

Summary and implications

In HMRC v DV3 RS Limited Partnership [2013] EWCA Civ 907 the Court of Appeal has allowed HMRC's appeal against the Upper Tribunal's decision. The case involves the implementation of a blatant SDLT planning scheme. The key points to note from the Court of Appeal's decision are:

• the Court of Appeal refused to be drawn into a parallel world of SDLT and insisted on having regard to what was happening in the "real world";
• this is the fourth successive victory for HMRC in their continuing battle against SDLT avoidance; and
• the subsequent introduction of anti-avoidance measures means that a similar scheme would not be feasible today.

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