This section provides relief from Stamp Duty Land Tax where a land transaction takesplace in connection with the transfer of the business of a mutual insurance company to alimited company. It extends the relief from stamp duty in FA97/S96 to Stamp Duty Land Tax.
Demutualisations of mutual insurance companies occur for many reasons. The rights of theowners of the mutual company are given up in return for shares in a company that acquiresthe business of the mutual or that is a wholly owned subsidiary of the mutual.
The definitions of terms used in this guidance that apply to this relief are as follows