Section 53 | Deemed market value where transaction involves connected company

(1)This section applies where the purchaser is a company and—^F1

(a)the vendor is connected with the purchaser, or^F1

(b)some or all of the consideration for the transaction consists of the issue or transfer of shares in a company with which the vendor is connected.^F1

(1A)The chargeable consideration for the transaction shall be taken to be not less than—^F1

(a)the market value of the subject-matter of the transaction as at the effective date of the transaction, and^F1

(b)if the acquisition is the grant of a lease at a rent, that rent.^F1

(2)Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this section.^F2

(3)In this section—

(4)Where this section applies paragraph 1 of Schedule 3 (exemption of transactions for which there is no chargeable consideration) does not apply.But this section has effect subject to any other provision affording exemption or relief from stamp duty land tax.

(5)This section is subject to the exceptions provided for in section 54.