Does section 45 FA 2003 require there to be two contracts?

[Patrick]

Julia, a sub-sale of part is within the sub-sale rules (see s45(5) FA 2003) and this can be in one document if you wish but do ensure that as a matter of drafting the two sale contracts are distinct from one another.

[Julia]

Thanks Patrick. The contract currently has a clause x.1 which says A will sell whole to B and clause x.2 which says B will sell part to C. Both are conditional upon the same conditions being satisfied. In principle, does this sound like a scenario that would qualify for relief under s.45? Many thanks

[Patrick]

Yes it does. To state the obvious it would be prudent to ensure that the flow of funds through the solicitor’s accounts reflects the payment from C to B and then from B to A ie separate accounts and avoid C paying A direct to preserve the integrity of the sale of whole from A to B and observe the accounts rules.

[Author]

Posts