20190311 (Mon)
What happens when a property is used to settle a debt?
Market Value will be used to charge the Taxes – RPGT or Stamp Duty.
This is provided in Sch 2 Para 9:
Certain transactions deemed to be at MARKET VALUE
The acquisition or disposal of an asset by a person shall be deemed to be for a consideration equal to the market value of the asset-
(c) where he acquires an asset as trustee for the creditors of any person in full or part satisfaction of any debt due from that person or where he transfers an asset as trustee for the creditors of any person to the creditors in full or part satisfaction of any debt due to the creditors;
The party who receives the payment (in the form of property), stamp duty is payable at Market Value. The party who transfer the property is subject to RPGT for the Gains on disposal.
