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SDLTM31760 | Application

From HM Revenue & Customs · Stamp Duty Land Tax Manual

Trusts and powers: Consideration for exercise of power of appointmentor discretion FA03/SCH16/PARA7

FA03/SCH16/PARA7 applies where a chargeable interest is acquired by virtue of

  • the exercise of a power of appointment

  • the exercise of a discretion vested in trustees of a settlement

It provides that any consideration given by the person in whose favour the power ordiscretion is exercised is treated as consideration for the acquisition.

This provision will have no application to normal trust transactions.

It is intended to deal with the unusual case where a person pays trustees, or someoneelse, in order that the power or discretion may be exercised in their favour.