Part 4Stamp duty and stamp duty reserve tax
Stamp duty
110Land in disadvantaged areas
1
In subsection (1) of section 92 of the Finance Act 2001 (c. 9) (stamp duty: exemption for land in disadvantaged areas), for the words before paragraph (a) substitute “No ad valorem stamp duty shall be chargeable on—”.
2
After subsection (6) of that section insert—
6A
This section and Schedule 30 to this Act have effect subject to section 92A.
3
After that section insert—
92ARestriction of exemption in the case of residential property etc
1
Regulations may provide for an exemption conferred by section 92 or by Schedule 30 to this Act not to apply in cases specified by reference to either or both of the following—
a
whether the land in question is residential property;
b
the amount or value of the consideration.
2
Regulations may contain provision corresponding to or modifying that made by Schedule 30 to this Act in the case of—
a
a building or land only part of which falls within subsection (1)(a) or (b) of section 92B (meaning of “residential property”), or
b
an interest in or right over land that subsists only partly as mentioned in subsection (1)(c) of that section.
3
Where by virtue of regulations under this section the availability of an exemption depends on the land in question not being, or not being entirely, residential property, the certification under section 92(2) must include a statement that the land is not residential property or, as the case may be, that it is not residential property to the extent stated.
4
Where by virtue of regulations under this section the availability of an exemption depends on the amount or value of the consideration not exceeding a specified amount, the instrument in question must be certified at that amount (or at a lower amount).
The reference here to an instrument being certified at an amount shall be construed in accordance with paragraph 6 of Schedule 13 to the Finance Act 1999 (as if the reference were contained in paragraph 4 of that Schedule).
5
The power to make regulations under this section is exercisable by the Treasury.
6
Regulations under this section—
a
may make different provision for different cases, and
b
may contain such incidental, supplementary, consequential or transitional provision as appears to the Treasury to be necessary or expedient.
7
Regulations under this section must be made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of the House of Commons.
92BMeaning of “residential property”
1
In section 92A “residential property” means—
a
a building that is used or suitable for use as a dwelling, or is in the process of being constructed or adapted for such use;
b
land that is or forms part of the garden or grounds of a building within paragraph (a) (including any building or structure on such land);
c
an interest in or right over land that subsists for the benefit of a building within paragraph (a) or of land within paragraph (b).
2
For the purposes of subsection (1) use of a building as—
a
residential accommodation for school pupils,
b
residential accommodation for students, other than accommodation falling within subsection (3)(b),
c
residential accommodation for members of any of the armed forces, or
d
an institution that is the sole or main residence of at least 90% of its residents and does not fall within any of paragraphs (a) to (f) of subsection (3),
is use of a building as a dwelling.
3
For the purposes of subsection (1) use of a building as—
a
a home or other institution providing residential accommodation for children,
b
a hall of residence for students in further or higher education,
c
a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder,
d
a hospital or hospice,
e
a prison or similar establishment, or
f
a hotel or inn or similar establishment,
is not use of a building as a dwelling.
4
Where a building is used in a manner specified in subsection (3), no account shall be taken for the purposes of subsection (1)(a) of its suitability for any other use.
5
Where a building that is not in use is suitable for at least one of the uses specified in subsection (2) and at least one of those specified in subsection (3)—
a
if there is one such use for which it is most suitable, or if the uses for which it is most suitable are all specified in the same subsection, no account shall be taken for the purposes of subsection (1)(a) of its suitability for any other use;
b
otherwise, the building shall be treated for those purposes as suitable for use as a dwelling.
6
Regulations under section 92A may provide that, where there is a single contract for the conveyance, transfer or lease of land comprising or including six or more separate dwellings, none of that land counts as residential property for the purposes of the regulations.
7
The Treasury may by order amend this section so as to change or clarify the cases where use of a building is, or is not, use of a building as a dwelling for the purposes of subsection (1).
8
An order under subsection (7) may contain such incidental, supplementary, consequential or transitional provision as appears to the Treasury to be necessary or expedient.
9
An order under subsection (7) must be made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of the House of Commons.
10
In this section “building” includes part of a building.
4
In paragraph 1(1) of Schedule 30 to the Finance Act 2001 (c. 9) (stamp duty reduced for land partly in a disadvantaged area), for the words from “stamp duty” to “1999” substitute “ad valorem stamp duty”.
5
In sub-paragraph (1) of paragraph 3 of that Schedule (certification of instruments for stamp duty purposes)—
a
for the words from “a transaction” to “shall be disregarded” substitute “a conveyance, transfer or lease is exempted from stamp duty by section 92(1) or paragraph 1 above (read with section 92A) the transaction in question shall be disregarded”;
b
at the end of the sub-paragraph insert—
This is without prejudice to section 92A(4) (instrument must be certified where exemption depends on amount or value of consideration).
6
Regulations under section 92A of the Finance Act 2001 (inserted by subsection (3) above) may contain provision revoking the Variation of Stamp Duties Regulations 2001 (S.I. 2001/3746) (which provide for section 92(1) of, and paragraph 1 of Schedule 30 to, that Act not to apply in cases where the consideration for the conveyance etc exceeds £150,000).