»Ê¹ÚÌåÓýapp

(Extract from SDLT Technical News issue 5 (August 2007))

Transfer of property on winding up - loan from shareowners

We would not seek to argue that the dividend in specie should bear SDLT in a situation for example where A owns the shares of B Ltd. A lends money to the company to buy property, the loan being secured by mortgage on the property.

Later B Ltd is wound up and there is a transfer to A as beneficial owner of the equity. That is the reason for the Transfer. »Ê¹ÚÌåÓýapp loan is not released etc, but obviously the mortgage will be taken off as the lender also owns the property because of the liquidation.

Clearly in this scenario A has not assumed any liability or given any other form of consideration