The taxman is poised to go after around 900 purchasers of residential properties after winning a major case over Stamp Duty avoidance.
HMRC expects to get millions of pounds in dodged tax.
Project Blue – buyers of Chelsea Barracks – will now have to pay more than it would have done had it not tried to get round Stamp Duty by a series of complex transactions involving a sub-sale and lease-back.
It would have originally paid £38m. As a result of the case – the first to test an anti-avoidance rule in Stamp Duty Land Tax legislation – it will now have to hand over £50m.
Project Blue argued that it had carried out the various transactions for commercial reasons and not to avoid tax. However, the tax tribunal said it had failed to establish that tax avoidance was not a factor.
David Gauke, exchequer secretary to the Treasury, said: “The message is clear that entering into a tax avoidance scheme can cost more than paying the original tax bill.
“Avoidance is complex, expensive and self defeating.”
The judgement also affects 24 commercial property transactions.
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