Finance (Local Property Tax) Act 2012 section 125

Meaning of "sale"

Section 125 defines the meaning of "sale" for the purposes of provisions dealing with payment of unpaid local property tax on disposal of a property, charges on property following sale, and confirmation that local property tax has been paid.

• A "sale" covers not only a conventional sale but also a transfer resulting from compulsory acquisition of land or notice of intention to compulsorily acquire land.
• A gift of a residential property — that is, a transfer for no consideration — is treated as a sale for these purposes.
• A transfer at undervalue, where the consideration is significantly less than the chargeable value of the property at the time of transfer, also falls within the definition of a sale.
• This broad definition ensures that local property tax obligations cannot be avoided by transferring a property other than through a standard arm's-length sale.