188体育

• A enters into a sale and purchase agreement with B for Plot 1 with a consideration of 拢1 million which reflects the market value of Plot 1. B pays A a deposit of 拢500,000.
• B assigns its interest under the contract to C in return for consideration of Plot 2 from C. Plot 2 is worth 拢400,000. This is acceptable to B because the site of Plot 2 is commercially beneficial to B.
• On completion, C pays A 拢500,000 for Plot 1.

C has entered into one transaction as purchaser (the acquisition of Plot 1 by C) in consideration of entering into another transaction as vendor in another (the acquisition of Plot 2 by B). Section 47 and paragraph 5 of Schedule 4 apply.

B is chargeable on a notional land transaction under paragraph 5 for which relief can be claimed. The chargeable consideration is 拢1 million.

B is chargeable on the acquisition of Plot 2 from C. The chargeable consideration is determined by paragraph 5 of Schedule 4. This is the greater of the market value of Plot 2 (拢400,000) and the amount B gave for it. B gave the value in money鈥檚 worth of the right to complete on Plot 1, that is 拢500,000. That amount cannot be apportioned in any way as it was not given for anything other than as consideration for Plot 2. So the chargeable consideration is 拢500,000.

C is chargeable on the acquisition of Plot 1. The chargeable consideration is given by paragraph 5 of Schedule 4. The market value of Plot 1 is 拢1 million. Paragraph 1 of Schedule 4, read according to paragraph 5 of Schedule 2A, would give chargeable consideration of 拢900,000 - the 拢500,000 given by C to A on completion plus the consideration given for the assignment, namely the 拢400,000 value of Plot 2. So the chargeable consideration would be the larger amount: 拢1 million.