Chelsea Barracks Ruling ‘Another Step Forward In Tax Evasion Battle’ JV Ordered To Pay £50m Over Deal Completed In 2007 15.07.2013 By Rob Dixon A ruling that a joint venture must pay £50 million in stamp duty tax in relation to the purchase of Chelsea Barracks after being found to have used an unlawful scheme to complete is a clear sign of continuing efforts to tackle the issue of tax evasion. Project Blue (Guernsey), established by Qatari Diar and CPC Group, was found to have avoided paying the tax following its transaction to the buy the site in 2007. HM Revenue and Customs (HMRC) challenged the venture’s use of both alternative finance relief and sub-sale relief based on anti-avoidance rules included in the Finance Act 2003. CPC Group no longer has an interest in Chelsea Barracks. According to Irwin Mitchell’s team of real estate experts, the decision in the case was another example of the continuing efforts of authorities to address concerns over the use of tax evasion schemes and to enforce the regulations in the area. Commenting on the case, Alex Barnes, a Partner and specialist in real estate tax issues at Irwin Mitchell, said: “This case is just the latest in a long line brought by the HMRC in its efforts to tackle concerns over allegedly aggressive instances of tax evasion. “The interesting point in this case was that the SDLT levied was not on the amount the MoD actually received – £959m – but on a higher amount – £1.25bn – paid as part of the scheme transactions. “It is an outcome which the HMRC will no doubt be rubbing their hands with glee in relation to, while the case overall is a further ominous warning for taxpayers that have or are seeking to avoid paying SDLT with aggressive schemes that HMRC is not afraid to challenge.” Read more about Irwin Mitchell's expertise in relation to Tax Press contact Dave Grimshaw Press Officer 0114 274 4397 Email Dave Tags Real Estate Alex Barnes London Related articles 20.03.2019Government Issues Recommendation for Leasehold Reform 15.03.2019Irwin Mitchell Recruits Hundreds Of Volunteers For Red Nose Day 2019 15.03.2019Irwin Mitchell Scoops Hat-trick At Birmingham Law Society Legal Awards 13.03.2019Sheffield City Region Launches Global Innovation Corridor At MIPIM 2019 08.03.2019Irwin Mitchell Launches Women in Law Timeline 05.03.2019Does A Rest Break At Work Have To Be Continuous?