Land rich duty can apply to relevant acquisitions in entities or groups that have significant land holdings. The duty is imposed at land transfer rates in the relevant jurisdiction by reference to the value of the underlying land, equivalent to the percentage interest acquired.
There are many examples where the PwC Stamp Duty team has assisted clients in addressing land rich issues. Often stamp duty savings to the purchasers have been significant, potentially running into the tens of millions of dollars. For the vendors, the benefits are translated into higher sale prices. Examples of such assistance include:
a) properly characterising the nature of the assets concerned
b) properly drawing on valuation evidence
c) structuring the acquisition appropriately, and
d) successfully negotiating with revenue authorities.
