(1)Section 5 of the [1976 c. 24.] Development Land Tax Act 1976 (relevant base value) shall have effect with the following amendments.
(2)In subsection (1)(c) (base C) after the words "115 per cent." there shall be inserted the words " or in a case in which subsection (5A) below applies 150 per cent. ".
(3)After subsection (5) there shall be inserted—
“(5A)This subsection applies where on or after 10th March 1981 there is a deemed disposal of an interest in land held by the chargeable person as stock in trade and the project of material development which gives rise to the deemed disposal consists wholly or mainly of the construction or adaptation of a building or buildings for use as one or more private dwellings; and for the purposes of this subsection an interest in land is held by a chargeable person as stock in trade if, had he sold that interest on the date of the deemed disposal, the proceeds of the sale would have been taken into account in computing the profits or gains of a trade carried on by him.
(5B)In subsection (5A) above " dwelling" has, in England and Wales and in Northern Ireland, the meaning assigned to it by subsection (1) of section 129 of the Housing Act 1974 and, in Scotland, means a house within the meaning of section 208(1) of the Housing (Scotland) Act 1966.”
(4)For paragraph (ii) of subsection (6) there shall be substituted—
“(ii)for paragraph (c) there were substituted—
‘(c)the aggregate of the cost of the chargeable person's acquisition of the interest and 115 per cent, of any expenditure on improvements’.”.
(5)This section has effect in relation to any disposal after 9th March 1981.
In section 11(1) of the Development Land Tax Act 1976 (bodies totally exempt from development land tax) there shall be inserted after paragraph (g)—
“(gg)an urban development corporation established under section 135 of the Local Government, Planning and Land Act 1980”.
(1)In section 18 of the [1976 c. 24.] Development Land Tax Act 1976 (exemption for projects begun within three years of acquisition of land)—
(a)at the end of paragraph (b) of subsection (2) there shall be inserted the words " assuming that the law at the time of the acquisition of the relevant interest had been the same as it was at the date when the project began "; and
(b)at the end of subsection (3) there shall be inserted the words " ; and for the purposes of this subsection it shall be assumed that there will be no change in the law between the date of the application and the commencement of the project ".
(2)Paragraph (a) of subsection (1) above has effect in relation to any disposal after 9th March 1981 and paragraph (b) in relation to any application made after that date.
(1)After section 19 of the Development Land Tax Act 1976 there shall be inserted—
(1)Subject to section 20 below, where—
(a)realised development value accrues to a chargeable person on the deemed disposal after 9th March 1981 and before 1st April 1984 of an interest in land (in this section referred to as " the relevant interest");
(b)the project of material development which gives rise to the deemed disposal relates to a building or other land to be used and occupied in whole or in part by the chargeable person; and
(c)the development was authorised by planning permission which was in force when the project began,
then, subject to the following provisions of this section, liability for development land tax on such proportion of that realised development value as is properly attributable to property to be so used and occupied shall be deferred until there is a disposal of the relevant interest in that property which does not fall within paragraph (i), (ii) or (iii) of section 19(1) above or subsection (2) below.
(2)A disposal of the relevant interest falls within this subsection if—
(a)it is a part disposal within the meaning of section 3(1)(a) above;
(b)the lease or other interest ends not later than twelve months after the date of the disposal ; and
(c)there is no other such disposal within twelve months after the end of the lease or other interest.
(3)Where on the grant of a lease of any premises the premises become tied premises—
(a)if the grant of the lease would not otherwise be a disposal falling within subsection (2) above, it shall be deemed to be so;
(b)whether or not any other person is actually in occupation of the premises, the lessor shall be treated for the purposes of this section as if he himself occupies the premises during any period during which the premises are tied premises ; and
(c)if at any time during the lease the premises cease to be tied premises and are not from that time occupied by the lessor, the relevant interest, or if subsection (1)(b) above applies to part only of the building or other land so much of the relevant interest as subsists in that part, shall be treated for the purposes only of subsection (1) above and section 27 below as having been disposed of at that time ;
and for the purposes of this section premises subject to a lease are tied premises if they are tied premises within the meaning of section 140(2) of the Taxes Act in relation to the lessor and to a trade carried on by him.
(4)In any case where it appears to the Board or, on an appeal, to the Commissioners concerned that a project of material development falling within subsection (1) above relates exclusively to property to be used and occupied by the chargeable person, the proportion of realised development value referred to in that subsection shall be 100 per cent, but in any other case—
(a)the proportion properly attributable to the property to be so used and occupied, and
(b)the method of apportionment adopted,
shall be such as appears to the Board or, on an appeal, to the Commissioners concerned to be just and reasonable.
(5)In determining for the purposes of subsection (1)(c) above whether the development was authorised by planning permission in force when the project began, only such development as at that time—
(a)was authorised by that permission without any requirement as to subsequent approval, or
(b)was not so authorised but had been approved in a manner applicable to that planning permission,
shall for those purposes be taken to have been authorised by that permission at that time.
(6)Subsections (7), (9) and (10) of section 19 above shall apply for the purposes of this section as they apply for the purposes of that section but with the substitution for the references to subsections (1) and (5) (a) of that section of references to subsections (1) and (2) above respectively.
(7)If after a disposal falling within paragraph (iii) of subsection (1) of section 19 above there is a disposal of the lease referred to in paragraph (c) of subsection (7) of that section, subsection (1) above shall have effect as if at the time of the disposal of the lease there were a disposal of the relevant interest in so much of any building or other land as is the subject-matter of the lease.”.
(2)In section 20 of that Act (groups of companies) after subsection (5) there shall be inserted—
“(6)For the purposes of section 19A above, where the chargeable person is a member of a group of companies subsection (1)(b) of that section shall have effect as if the references to the chargeable person were references to any member of the group.”.
(3)This section has effect in relation to any disposal after 9th March 1981.
(1)In paragraph 5(1)(a) of Schedule 4 to the [1976 c. 24.] Development Land Tax Act 1976 (exclusion from material development of works whereby cubic content of building is not exceeded by more than one-tenth) for " one-tenth " there shall be substituted " one-third ".
(2)In paragraph 6(1) of that Schedule for the words " one-tenth " there shall be substituted the words " one-third or as the case may be one-tenth ".
(3)This section has effect in relation to any disposal after 9th March 1981.