If a purchaser, after signing an agreement for sale and purchase with a vendor, enters into a nomination requesting the vendor to assign the property to the nominee stated in the nomination, ad valorem stamp duty will be payable on the nomination as on an agreement for sale and purchase of the property, unless the nominee is a trustee, parent, spouse or child of the purchaser.
Nomination is not uncommon in commercial property because the director(s) sign the S&P first, then he changed his mind to use a limited company to hold the property. The lawyer will help prepare a nomination to request the assignor to transfer the property to the named limited company upon completion.
As regards residential property, it may be viewed as a loophole of tax avoidance and therefore, nomination is also charged with ad val stamp duty.
The above is based on my knowledge and may not be update. Please check with the relevant legislation.
