188体育

This example covers a number of slightly different scenarios involving a series of assignments of rights. In the first scenario, the final transferee pays an additional amount of consideration.

• A enters into a sale and purchase agreement with B for some land with a consideration of 拢1 million. B pays A a deposit of 拢100,000.
• B assigns its rights to C for 拢100,000 and C assigns its rights to D for 拢150,000.
• D pays A 拢900,000 on completion.

Similarly to C in Example 1 (SDLTM21590), D is chargeable under paragraph 4 as the transferee. The chargeable consideration is 拢900,000 plus 拢150,000 totalling 拢1,050,000.

Paragraph 5 applies in the following way. The acquisition by D is 鈥榯he transferee鈥檚 land transaction鈥� (paragraph 5(1)(a)). The assignment from C to D is 鈥榯he implemented assignment of rights鈥� (paragraph 5(2)). B is the purchaser under a notional land transaction (paragraph 5(1)). C is the purchaser under an additional land transaction (paragraph 5(2)).

The chargeable consideration for B鈥檚 transaction - the notional land transaction - is given by paragraph 5(3). It is the 拢100,000 paid by B to A (amount 鈥楤鈥� in paragraph 5(5)) plus the 拢900,000 paid by D to A on completion (amount 鈥楢鈥� in paragraph 5(5)(b)) totalling 拢1 million. B can claim relief.

The chargeable consideration for C鈥檚 transaction - an additional land transaction - is given by paragraph 5(4). It is the 拢100,000 paid by C to B (amount 鈥楥鈥� in paragraph 5(5) - in calculating amount C, 鈥榯he preceding assignment of rights鈥� was the assignment from B to C (paragraph 5(6)) plus the 拢900,000 paid by D to A on completion (point (b) under amount 鈥楢鈥� in paragraph 5(5)) totalling 拢1 million. C can claim relief.

In the second scenario, D pays less.

• A enters into a sale and purchase agreement with B for some land with a consideration of 拢1 million. B pays A a deposit of 拢100,000.
• B assigns its rights to C for 拢100,000 and C assigns its rights to D for 拢50,000.
• D pays A 拢900,000 on completion.

D is chargeable under paragraph 4 as the transferee. The chargeable consideration is 拢900,000 plus 拢50,000 totalling 拢950,000.

The position of B and C is the same as in the previous scenario.

In the final scenario, there is a series of assignments of rights where D is connected with C. In this example, C gets a good deal from B in an entirely commercial transaction.

• A enters into a sale and purchase agreement with B for some land with a consideration of 拢1 million. B pays A a deposit of 拢100,000.
• B assigns its rights to C for 拢50,000 and C assigns its rights to D for nil. C and D are connected.
• D pays A 拢900,000 on completion.

D is chargeable under paragraph 4 as the transferee. The chargeable consideration is 拢900,000 plus nil totalling 拢900,000. But the minimum consideration rule applies (paragraph 12(2)). Both the first and second minimum amounts are 拢950,000 (see below) so D is chargeable on 拢950,000.

The position of B and C is similar to the earlier examples.

The first minimum amount is given by paragraph 13(2). C is 鈥楾鈥� (鈥楥ondition B鈥� in paragraph 13(3)) and C is also 鈥榯he first T鈥� (paragraph 13(2)). So paragraph 13(2) picks up only the 拢50,000 paid by C to B plus the 拢900,000 payable on completion, and not the full 拢1 million under the contract between A and B.

The second minimum amount is given by paragraph 14. The relevant parties are C and D, not B (paragraph 14(4)). The net amount of consideration given by D is 拢900,000 and the net amount of consideration given by C is 拢50,000 (paragraph 14(2)). So the second minimum amount is 拢950,000.