The charge to SDLT on a land transaction entered into for the purposes of or in connection with the transfer of the undertaking or part is limited to 0.5% under FA 2003, Sch. 7, para. 8. The envisaged circumstances are that a company (‘the acquiring company’) acquires the whole or part of the undertaking of another company (‘the target company’), and the conditions set out below are met.
The first condition
This is that the consideration for the acquisition consists wholly or partly of the issue of non-redeemable shares in the acquiring company to the target company, or all or any of the target company’s shareholders.