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Finance Act 2003

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SCHEDULES

Section 19

SCHEDULE 1E+W+S+N.I.VAT: face-value vouchers

1In Part 3 of the Value Added Tax Act 1994 (c. 23) (application of Act in particular cases) insert after section 51A—

51BFace-value vouchers

Schedule 10A shall have effect with respect to face-value vouchers..

2After Schedule 10 to that Act insert—

SCHEDULE 10AE+W+S+N.I.Face-value vouchers

Meaning of “face-value voucher” etcE+W+S+N.I.

1(1)In this Schedule “face-value voucher” means a token, stamp or voucher (whether in physical or electronic form) that represents a right to receive goods or services to the value of an amount stated on it or recorded in it.

(2)References in this Schedule to the “face value” of a voucher are to the amount referred to in sub-paragraph (1) above.

Nature of supplyE+W+S+N.I.

2The issue of a face-value voucher, or any subsequent supply of it, is a supply of services for the purposes of this Act.

Treatment of credit vouchersE+W+S+N.I.

3(1)This paragraph applies to a face-value voucher issued by a person who—

(a)is not a person from whom goods or services may be obtained by the use of the voucher, and

(b)undertakes to give complete or partial reimbursement to any such person from whom goods or services are so obtained.

Such a voucher is referred to in this Schedule as a “credit voucher”.

(2)The consideration for any supply of a credit voucher shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds the face value of the voucher.

(3)Sub-paragraph (2) above does not apply if any of the persons from whom goods or services are obtained by the use of the voucher fails to account for any of the VAT due on the supply of those goods or services to the person using the voucher to obtain them.

Treatment of retailer vouchersE+W+S+N.I.

4(1)This paragraph applies to a face-value voucher issued by a person who—

(a)is a person from whom goods or services may be obtained by the use of the voucher, and

(b)if there are other such persons, undertakes to give complete or partial reimbursement to those from whom goods or services are so obtained.

Such a voucher is referred to in this Schedule as a “retailer voucher”.

(2)The consideration for the issue of a retailer voucher shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds the face value of the voucher.

(3)Sub-paragraph (2) above does not apply if—

(a)the voucher is used to obtain goods or services from a person other than the issuer, and

(b)that person fails to account for any of the VAT due on the supply of those goods or services to the person using the voucher to obtain them.

(4)Any supply of a retailer voucher subsequent to the issue of it shall be treated in the same way as the supply of a voucher to which paragraph 6 below applies.

Treatment of postage stampsE+W+S+N.I.

5The consideration for the supply of a face-value voucher that is a postage stamp shall be disregarded for the purposes of this Act except to the extent (if any) that it exceeds the face value of the stamp.

Treatment of other kinds of face-value voucherE+W+S+N.I.

6(1)This paragraph applies to a face-value voucher that is not a credit voucher, a retailer voucher or a postage stamp.

(2)A supply of such a voucher is chargeable at the rate in force under section 2(1) (standard rate) except where sub-paragraph (3), (4) or (5) below applies.

(3)Where the voucher is one that can only be used to obtain goods or services in one particular non-standard rate category, the supply of the voucher falls in that category.

(4)Where the voucher is used to obtain goods or services all of which fall in one particular non-standard rate category, the supply of the voucher falls in that category.

(5)Where the voucher is used to obtain goods or services in a number of different rate categories—

(a)the supply of the voucher shall be treated as that many different supplies, each falling in the category in question, and

(b)the value of each of those supplies shall be determined on a just and reasonable basis.

Vouchers supplied free with other goods or servicesE+W+S+N.I.

7Where—

(a)a face-value voucher (other than a postage stamp) and other goods or services are supplied to the same person in a composite transaction, and

(b)the total consideration for the supplies is no different, or not significantly different, from what it would be if the voucher were not supplied,

the supply of the voucher shall be treated as being made for no consideration.

InterpretationE+W+S+N.I.

8(1)In this Schedule—

  • credit voucher” has the meaning given by paragraph 3(1) above;

  • face value” has the meaning given by paragraph 1(2) above;

  • face value voucher” has the meaning given by paragraph 1(1) above;

  • retailer voucher” has the meaning given by paragraph 4(1) above.

(2)For the purposes of this Schedule—

(a)the “rate categories” of supplies are—

(i)supplies chargeable at the rate in force under section 2(1) (standard rate),

(ii)supplies chargeable at the rate in force under section 29A (reduced rate),

(iii)zero-rated supplies, and

(iv)exempt supplies and other supplies that are not taxable supplies;

(b)the “non-standard rate categories” of supplies are those in sub-paragraphs (ii), (iii) and (iv) of paragraph (a) above;

(c)goods or services are in a particular rate category if a supply of those goods or services falls in that category.

(3)A reference in this Schedule to a voucher being used to obtain goods or services includes a reference to the case where it is used as part-payment for those goods or services..

3In Schedule 6 to the Value Added Tax Act 1994 (c. 23) (valuation: special cases), omit paragraph 5 (vouchers etc).

4The amendments made by this Schedule apply to supplies of tokens, stamps or vouchers issued on or after 9th April 2003.

Section 23

SCHEDULE 2E+W+S+N.I.Supply of electronic services in member States: VAT special accounting scheme

IntroductoryE+W+S+N.I.

1The Value Added Tax Act 1994 (c. 23) is amended as follows.

Insertion of new section 3AE+W+S+N.I.

2After section 3 insert—

3ASupply of electronic services in member States: special accounting scheme

(1)Schedule 3B (scheme enabling persons who supply electronically supplied services in any member State, but who are not established in a member State, to account for and pay VAT in the United Kingdom on those supplies) has effect.

(2)The Treasury may by order amend Schedule 3B.

(3)The power of the Treasury by order to amend Schedule 3B includes power to make such incidental, supplemental, consequential and transitional provision in connection with any amendment of that Schedule as they think fit..

Persons registered under Schedule 1E+W+S+N.I.

3In Schedule 1 (registration in respect of taxable supplies) in paragraph 13 (cancellation of registration) at the end insert—

(8)This paragraph is subject to paragraph 18 of Schedule 3B (cancellation of registration under this Schedule of persons seeking to be registered under that Schedule, etc)..

The special accounting schemeE+W+S+N.I.

4After Schedule 3A insert—

Section 3A

SCHEDULE 3BE+W+S+N.I.Supply of electronic services in member States: special accounting scheme

Part 1E+W+S+N.I.Registration
The registerE+W+S+N.I.

1Persons registered under this Schedule are to be registered in a single register kept by the Commissioners for the purposes of this Schedule.

Persons who may be registeredE+W+S+N.I.

2(1)A person may be registered under this Schedule if he satisfies the following conditions.

(2)Condition 1 is that the person makes or intends to make qualifying supplies in the course of a business carried on by him.

(3)Condition 2 is that the person has neither his business establishment nor a fixed establishment in the United Kingdom or in another member State in relation to any supply of goods or services.

(4)Condition 3 is that the person is not—

(a)registered under this Act,

(b)identified for the purposes of VAT in accordance with the law of another member State, or

(c)registered under an Act of Tynwald for the purposes of any tax imposed by or under an Act of Tynwald which corresponds to VAT.

(5)Condition 4 is that the person—

(a)is not required to be registered or identified as mentioned in condition 3, or

(b)is required to be so registered or identified, but solely by virtue of the fact that he makes or intends to make qualifying supplies.

(6)Condition 5 is that the person is not identified under any provision of the law of another member State which implements Article 26c.

(7)In this Schedule, “Article 26c” means Article 26c of the 1977 VAT Directive (which is inserted by Article 1(3) of the 2002 VAT Directive).

(8)References in this Schedule to a person’s being registered under this Act do not include a reference to that person’s being registered under this Schedule.

Qualifying suppliesE+W+S+N.I.

3In this Schedule, “qualifying supply” means a supply of electronically supplied services (within the meaning of paragraph 7C of Schedule 5) to a person who—

(a)belongs in the United Kingdom or another member State, and

(b)receives those services otherwise than for the purposes of a business carried on by him.

Registration requestE+W+S+N.I.

4(1)If a person—

(a)satisfies the Commissioners that the conditions in paragraph 2 above are satisfied in his case, and

(b)makes a request in accordance with this paragraph (a “registration request”),

the Commissioners must register him under this Schedule.

(2)Sub-paragraph (1) above is subject to paragraph 9 below.

(3)A registration request must contain the following particulars—

(a)the name of the person making the request;

(b)his postal address;

(c)his electronic addresses (including any websites);

(d)where he has been allocated a number by the tax authorities in the country in which he belongs, that number;

(e)the date on which he began, or intends to begin, making qualifying supplies.

(4)A registration request must include a statement that the person making the request is not—

(a)registered under this Act,

(b)identified for the purposes of VAT in accordance with the law of another member State, or

(c)registered under an Act of Tynwald for the purposes of any tax imposed by or under an Act of Tynwald which corresponds to VAT.

(5)A registration request must be made by such electronic means, and in such manner, as the Commissioners may direct or may by regulations prescribe.

Date on which registration takes effectE+W+S+N.I.

5(1)Where a person is registered under this Schedule, his registration takes effect—

(a)on the date on which his registration request is made, or

(b)on such earlier or later date as may be agreed between him and the Commissioners.

(2)For the purposes of sub-paragraph (1) above—

(a)no registration is to take effect before 1st July 2003, and

(b)registration requests made before that date are to be treated as if they were made on that date.

Registration numberE+W+S+N.I.

6On registering a person under this Schedule, the Commissioners must—

(a)allocate a registration number to him, and

(b)notify him electronically of the number.

Obligation to notify changesE+W+S+N.I.

7(1)A person who has made a registration request must notify the Commissioners if subsequently—

(a)there is a change in any of the particulars contained in his request in accordance with paragraph 4(3) above,

(b)he ceases to make, or to have the intention of making, qualifying supplies, or

(c)he ceases to satisfy the conditions in any of sub-paragraphs (3) to (6) of paragraph 2 above.

(2)A notification under this paragraph must be given within the period of 30 days beginning with the date of the change of particulars or of the cessation.

(3)A notification under this paragraph must be given by such electronic means, and in such manner, as the Commissioners may direct or may by regulations prescribe.

Cancellation of registrationE+W+S+N.I.

8(1)The Commissioners must cancel a person’s registration under this Schedule if—

(a)he notifies them that he has ceased to make, or to have the intention of making, qualifying supplies,

(b)they otherwise determine that he has ceased to make, or to have the intention of making, qualifying supplies,

(c)he notifies them that he has ceased to satisfy the conditions in any of sub-paragraphs (3) to (6) of paragraph 2 above,

(d)they otherwise determine that he has ceased to satisfy any of those conditions, or

(e)they determine that he has persistently failed to comply with his obligations under this Schedule.

(2)In a case falling within sub-paragraph (1)(a) or (c) above, cancellation of a person’s registration under this paragraph takes effect—

(a)on the date on which the notification is received, or

(b)on such earlier or later date as may be agreed between him and the Commissioners.

(3)In a case falling within sub-paragraph (1)(b), (d) or (e) above, cancellation of a person’s registration under this paragraph takes effect—

(a)on the date on which the determination is made, or

(b)on such earlier or later date as the Commissioners may in his particular case direct.

Registration after cancellation for persistent defaultE+W+S+N.I.

9(1)The Commissioners—

(a)are not required by paragraph 4(1) above to register a person under this Schedule if he is a persistent defaulter, but

(b)shall have the power to do so.

(2)In this paragraph, “persistent defaulter” means a person—

(a)whose previous registration under this Schedule has been cancelled under paragraph 8(1)(e) above (persistent failure to comply with obligations under this Schedule), or

(b)who has been excluded from the identification register under any provision of the law of another member State which implements Article 26c(B)(4)(d) of the 1977 VAT Directive (persistent failure to comply with rules concerning the special scheme).

Part 2E+W+S+N.I.Obligations following registration, etc
Liability for VATE+W+S+N.I.

10(1)A person is liable to pay VAT under and in accordance with this Schedule if—

(a)he makes a qualifying supply, and

(b)he is registered under this Schedule when he makes the supply.

(2)The amount of VAT which a person is liable to pay by virtue of this Schedule on any qualifying supply is to be determined in accordance with sub-paragraphs (3) and (4) below.

(3)If the qualifying supply is treated as made in the United Kingdom, the amount is the amount of VAT that would have been charged on the supply under this Act if the person had been registered under this Act when he made the supply.

(4)If the qualifying supply is treated as made in another member State, the amount is the amount of VAT that would have been charged on the supply in accordance with the law of that member State if the person had been identified for the purposes of VAT in that member State when he made the supply.

(5)Where a person is liable to pay VAT by virtue of this Schedule—

(a)any amount falling to be determined in accordance with sub-paragraph (3) above is to be regarded for the purposes of this Act as VAT charged in accordance with this Act, and

(b)any amount falling to be determined in accordance with sub-paragraph (4) above in relation to another member State is to be regarded for those purposes as VAT charged in accordance with the law of that member State.

Obligation to submit special accounting returnsE+W+S+N.I.

11(1)A person who is, or has been, registered under this Schedule must submit a return (a “special accounting return”) to the Controller for each reporting period.

(2)Each quarter for the whole or any part of which a person is registered under this Schedule is a “reporting period” in the case of that person.

(3)The special accounting return must state the person’s registration number.

(4)For each member State in which the person is treated as having made qualifying supplies for the reporting period, the special accounting return must specify—

(a)the total value of his qualifying supplies treated as made in that member State in that period, apart from the VAT which he is liable to pay by virtue of this Schedule in respect of those supplies,

(b)the rate of VAT applicable to those supplies by virtue of sub-paragraph (3) or (4) (as the case may be) of paragraph 10 above, and

(c)the total amount of VAT payable by him by virtue of this Schedule in respect of those supplies in that period.

(5)The special accounting return must state the total amount of VAT which the person is liable to pay by virtue of this Schedule in respect of all qualifying supplies treated as made by him in all member States in the reporting period.

(6)If a person is registered under this Schedule for part only of a reporting period, references in this paragraph to his qualifying supplies in that period are references to his qualifying supplies in that part of that period.

(7)In this Schedule, “the Controller” means the Controller, Customs and Excise Value Added Tax Central Unit.

Further obligations with respect to special accounting returnsE+W+S+N.I.

12(1)A special accounting return must set out in sterling the amounts referred to in paragraph 11 above.

(2)Any conversion from one currency into another for the purposes of sub-paragraph (1) above shall be made by using the exchange rates published by the European Central Bank—

(a)for the last day of the reporting period to which the special accounting return relates, or

(b)if no such rate is published for that day, for the next day for which such a rate is published.

(3)A special accounting return must be submitted to the Controller within the period of 20 days after the last day of the reporting period to which it relates.

(4)A special accounting return must be submitted by such electronic means, and in such manner, as the Commissioners may direct or may by regulations prescribe.

Payment of VATE+W+S+N.I.

13(1)A person who is required to submit a special accounting return must, at the same time as he submits the return, pay to the Controller in sterling the amount referred to in paragraph 11(5) above in respect of the reporting period to which the return relates.

(2)A payment under this paragraph must be made in such manner as the Commissioners may direct or may by regulations prescribe.

Obligations to keep and produce recordsE+W+S+N.I.

14(1)A person must keep records of the transactions which he enters into for the purposes of, or in connection with, qualifying supplies made by him at any time when he is registered under this Schedule.

(2)The records to be kept must be such as will enable the tax authorities for the member State in which a qualifying supply is treated as made to determine whether any special accounting return which is submitted in respect of that supply is correct.

(3)Any records required to be kept must be made available—

(a)to the tax authorities for the member State in which the qualifying supply to which the records relate was treated as made, if they so request, or

(b)to the Commissioners, if they so request.

(4)Records must be made available electronically under sub-paragraph (3) above.

(5)The records relating to a transaction must be maintained for a period of ten years beginning with the 1st January following the date on which the transaction was entered into.

Commissioners' power to request production of recordsE+W+S+N.I.

15(1)The Commissioners may request a person to make available to them electronically records of the transactions entered into by him for the purposes of, or in connection with, qualifying supplies to which this paragraph applies.

(2)This paragraph applies to qualifying supplies which—

(a)are treated as made in the United Kingdom, and

(b)are made by the person while he is identified under any provision of the law of another member State which implements Article 26c.

Part 3E+W+S+N.I.Understatements and overstatements of UK VAT
Understatement or overstatement of UK VAT in special scheme returnE+W+S+N.I.

16(1)If the Commissioners consider that a person who is or has been a participant in the special scheme has submitted a special scheme return which understates his liability to UK VAT, they may give him a notice—

(a)identifying the return in which they consider that the understatement was made,

(b)specifying the amount by which they consider that the person’s liability to UK VAT has been understated, and

(c)requesting him to pay that amount to the Controller within the period of 30 days beginning with the date on which the notice is given.

(2)If the Commissioners consider that a person who is or has been a participant in the special scheme has submitted a special scheme return which overstates his liability to UK VAT, they may give him a notice—

(a)identifying the return in which they consider that the overstatement was made, and

(b)specifying the amount by which they consider that the person’s liability to UK VAT has been overstated.

(3)Where the Commissioners give a person a notice under sub-paragraph (2) above, they are liable to pay him the amount specified in the notice.

(4)No notice under this paragraph may be given more than 3 years after the end of the period for which the special scheme return in question was made.

(5)In this Schedule, “participant in the special scheme” means a person who—

(a)is registered under this Schedule, or

(b)is identified under any provision of the law of another member State which implements Article 26c.

(6)In this paragraph—

  • special scheme return” means—

    (a)

    a special accounting return; or

    (b)

    a value added tax return submitted to the tax authorities of another member State;

  • UKVAT” means VAT which a person is liable to pay (whether in the United Kingdom or another member State) in respect of qualifying supplies treated as made in the United Kingdom at a time when he is or was a participant in the special scheme;

  • value added tax return”, in relation to another member State, means any value added tax return required to be submitted under any provision of the law of that member State which implements Article 26c(B)(5) of the 1977 VAT Directive.

Part 4E+W+S+N.I.Application of provisions relating to VAT
Registration under this ActE+W+S+N.I.

17Notwithstanding any provision in this Act to the contrary, a participant in the special scheme is not required to be registered under this Act by virtue of making qualifying supplies.

De-registrationE+W+S+N.I.

18Where a person who is registered under Schedule 1 satisfies the Commissioners that he intends to apply for—

(a)registration under this Schedule, or

(b)identification under any provision of the law of another member State which implements Article 26c,

they may, if he so requests, cancel his registration under Schedule 1 with effect from the day on which the request is made or from such later date as may be agreed between him and the Commissioners.

VAT representativesE+W+S+N.I.

19Section 48(1) (VAT representatives) does not permit the Commissioners to direct a participant in the special scheme to appoint a VAT representative.

AppealsE+W+S+N.I.

20(1)An appeal shall lie to a tribunal with respect to any of the following—

(a)the registration or cancellation of the registration of any person under this Schedule;

(b)a decision of the Commissioners to give a notice under sub-paragraph (1) of paragraph 16 above;

(c)the amount specified in any such notice or in a notice under sub-paragraph (2) of that paragraph.

(2)Part 5 (appeals), and any orders or regulations under that Part, have effect in relation to an appeal under this paragraph as if it were an appeal under section 83 (but not under any particular paragraph of that section).

Payments on account of non-UK VAT to other member StatesE+W+S+N.I.

21(1)Neither—

(a)paragraph 1(2) of Schedule 11, nor

(b)section 10 of the Exchequer and Audit Departments Act 1866,

applies to money or securities for money collected or received for or on account of VAT if required to be paid to another member State by virtue of the VAT Co-operation Regulation.

(2)In sub-paragraph (1) above, “the VAT Co-operation Regulation” means the Council Regulation of 27 January 1992 on administrative co-operation in the field of indirect taxation (VAT) (218/92/EEC), as amended by the Council Regulation of 7 May 2002 (792/2002/EC) (which temporarily amends the VAT Co-operation Regulation as regards additional measures regarding electronic commerce).

Refund of UK VATE+W+S+N.I.

22(1)The provisions which give effect to the 1986 VAT Refund Directive in the United Kingdom have effect in relation to a participant in the special scheme, but with the following modifications.

(2)The provision which gives effect to Article 2(1) of the 1986 VAT Refund Directive (as at 9th April 2003, see regulation 186 of the Value Added Tax Regulations 1995) shall apply in relation to a participant in the special scheme, but only so as to entitle him to a refund of VAT charged on—

(a)goods imported by him into the United Kingdom, and

(b)supplies made to him in the United Kingdom,

in connection with the making by him of qualifying supplies while he is a participant in the special scheme.

(3)The following provisions shall be omitted.

(4)The first provision is that which gives effect to Article 1(1) of the 1986 VAT Refund Directive, so far as it requires a member State to prevent a person who is deemed to have supplied services in that member State during a period from being granted a refund of VAT for that period (as at 9th April 2003, see regulation 188(2)(b) of the Value Added Tax Regulations 1995).

(5)The second provision is that which gives effect to Article 2(2) of the 1986 VAT Refund Directive (which permits member States to make refunds conditional upon the granting by third States of comparable advantages regarding turnover taxes: as at 9th April 2003, see regulation 188(1) of the Value Added Tax Regulations 1995).

(6)The third provision is that which gives effect to Article 2(3) of the 1986 VAT Refund Directive (which permits member States to require the appointment of a tax representative: as at 9th April 2003, see regulation 187 of the Value Added Tax Regulations 1995).

(7)The fourth provision is that which gives effect to Article 4(2) of the 1986 VAT Refund Directive (which permits member States to provide for the exclusion of certain expenditure and to make refunds subject to additional conditions).

(8)In this paragraph “the 1986 VAT Refund Directive” means the Thirteenth Council Directive of 17th November 1986 on the harmonisation of the laws of the member States relating to turnover taxes – arrangements for the refund of value added tax to taxable persons not established in Community territory (86/560/EEC).

Part 5E+W+S+N.I.Supplementary
InterpretationE+W+S+N.I.

23(1)In this Schedule—

  • the 1977 VAT Directive” means the Sixth Council Directive of 17 May 1977 on the harmonisation of the laws of the member States relating to turnover taxes – common system of value added tax: uniform basis of assessment (77/388/EEC);

  • the 2002 VAT Directive” means the Council Directive of 7 May 2002 amending and amending temporarily the 1977 VAT Directive as regards the value added tax arrangements applicable to radio and television broadcasting services and certain electronically supplied services (2002/38/EC);

  • Article 26c” has the meaning given by paragraph 2(7) above;

  • the Controller” has the meaning given by paragraph 11(7) above;

  • participant in the special scheme” has the meaning given by paragraph 16(5) above;

  • qualifying supply” has the meaning given by paragraph 3 above;

  • registration number” means the number allocated to a person on his registration under this Schedule in accordance with paragraph 6(a) above;

  • registration request” is to be construed in accordance with paragraph 4(1)(b) above;

  • reporting period” is to be construed in accordance with paragraph 11(2) above;

  • special accounting return” is to be construed in accordance with paragraph 11(1) above.

(2)References in this Schedule to a qualifying supply being “treated as made” in a member State are references to its being treated as made—

(a)in the United Kingdom, by virtue of any provision which gives effect in the United Kingdom to Article 9(2)(f) of the 1977 VAT Directive (which is inserted by Article 1(1)(b) of the 2002 VAT Directive), or

(b)in another member State, by virtue of any provision of the law of that member State which gives effect to that Article.

(3)The provision which, as at 9th April 2003, is to give effect in the United Kingdom to Article 9(2)(f) of the 1977 VAT Directive (as mentioned in sub-paragraph (2)(a) above) is article 16A of the Value Added Tax (Place of Supply of Services) Order 1992 (which is prospectively inserted by article 3 of the Value Added Tax (Place of Supply of Services) (Amendment) Order 2003)..

Section 49

SCHEDULE 3E+W+S+N.I.Stamp duty land tax: transactions exempt from charge

No chargeable considerationE+W+S+N.I.

1A land transaction is exempt from charge if there is no chargeable consideration for the transaction.

Grant of certain leases by registered social landlordsE+W+S+N.I.

2(1)The grant of a lease of a dwelling is exempt from charge if the lease—E+W+S+N.I.

(a)is granted by a registered social landlord to one or more individuals in accordance with arrangements to which this paragraph applies, and

(b)is for an indefinite term or is terminable by notice of a month or less.

(2)This paragraph applies to arrangements between a registered social landlord and a housing authority under which the landlord provides, for individuals nominated by the authority in pursuance of its statutory housing functions, temporary rented accommodation which the landlord itself has obtained on a short-term basis.

The reference above to accommodation obtained by the landlord “on a short-term basis” is to accommodation leased to the landlord for a term of five years or less.

(3)A “housing authority” means—

(a)in relation to England and Wales—

(i)a principal council within the meaning of the Local Government Act 1972 (c. 70), or

(ii)the Common Council of the City of London;

(b)in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39);

(c)in relation to Northern Ireland—

(i)the Department for Social Development in Northern Ireland, or

(ii)the Northern Ireland Housing Executive.

Transactions in connection with divorce etcE+W+S+N.I.

3A transaction between one party to a marriage and the other is exempt from charge if it is effected—

(a)in pursuance of an order of a court made on granting in respect of the parties a decree of divorce, nullity of marriage or judicial separation;

(b)in pursuance of an order of a court made in connection with the dissolution or annulment of the marriage, or the parties' judicial separation, at any time after the granting of such a decree;

(c)in pursuance of—

(i)an order of a court made at any time under section 22A, 23A or 24A of the Matrimonial Causes Act 1973 (c. 18), or

(ii)an incidental order of a court made under section 8(2) of the Family Law (Scotland) Act 1985 (c. 37) by virtue of section 14(1) of that Act;

(d)at any time in pursuance of an agreement of the parties made in contemplation or otherwise in connection with the dissolution or annulment of the marriage, their judicial separation or the making of a separation order in respect of them.

[F1Assents and appropriations by personal representativesE+W+S+N.I.

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Amendments (Textual)

F1Sch. 3 para. 3A and cross-heading inserted (with effect in accordance with s. 300(2) of the amending Act) by Finance Act 2004 (c. 12), s. 300(1)

3A(1)The acquisition of property by a person in or towards satisfaction of his entitlement under or in relation to the will of a deceased person, or on the intestacy of a deceased person, is exempt from charge.E+W+S+N.I.

(2)Sub-paragraph (1) does not apply if the person acquiring the property gives any consideration for it, other than the assumption of secured debt.

(3)Where sub-paragraph (1) does not apply because of sub-paragraph (2), the chargeable consideration for the transaction is determined in accordance with paragraph 8A(1) of Schedule 4.

(4)In this paragraph—

  • debt” means an obligation, whether certain or contingent, to pay a sum of money either immediately or at a future date, and

  • secured debt” means debt that, immediately after the death of the deceased person, is secured on the property.]

Variation of testamentary dispositions etcE+W+S+N.I.

4(1)A transaction following a person’s death that varies a disposition (whether effected by will, under the law relating to intestacy or otherwise) of property of which the deceased was competent to dispose is exempt from charge if the following conditions are met.E+W+S+N.I.

(2)The conditions are—

(a)that the transaction is carried out within the period of two years after a person’s death, and

(b)that no consideration in money or money’s worth other than the making of a variation of another such disposition is given for it.

[F2(2A)Where the condition in sub-paragraph (2)(b) is not met, the chargeable consideration for the transaction is determined in accordance with paragraph 8A(2) of Schedule 4.]

(3)This paragraph applies whether or not the administration of the estate is complete or the property has been distributed in accordance with the original dispositions.

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Amendments (Textual)

F2Sch. 3 para. 4(2A) inserted (with effect in accordance with s. 301(7) of the amending Act) by Finance Act 2004 (c. 12), s. 301(1)

Power to add further exemptionsE+W+S+N.I.

5(1)The Treasury may by regulations provide that any description of land transaction specified in the regulations is exempt from charge.E+W+S+N.I.

(2)The regulations may contain such supplementary, incidental and transitional provision as appears to the Treasury to be appropriate.

Section 50

SCHEDULE 4E+W+S+N.I.Stamp duty land tax: chargeable consideration

Money or money’s worthE+W+S+N.I.

1(1)The chargeable consideration for a transaction is, except as otherwise expressly provided, any consideration in money or money’s worth given for the subject-matter of the transaction, directly or indirectly, by the purchaser or a person connected with him.E+W+S+N.I.

(2)Section 839 of the Taxes Act 1988 (connected persons) applies for the purposes of sub-paragraph (1).

Value added taxE+W+S+N.I.

2The chargeable consideration for a transaction shall be taken to include any value added tax chargeable in respect of the transaction, other than value added tax chargeable by virtue of an election under paragraph 2 of Schedule 10 to the Value Added Tax Act 1994 (c. 23) made after the effective date of the transaction.

Postponed considerationE+W+S+N.I.

3The amount or value of the chargeable consideration for a transaction shall be determined without any discount for postponement of the right to receive it or any part of it.

Just and reasonable apportionmentE+W+S+N.I.

4(1)For the purposes of this Part consideration attributable—E+W+S+N.I.

(a)to two or more land transactions, or

(b)in part to a land transaction and in part to another matter, or

(c)in part to matters making it chargeable consideration and in part to other matters,

shall be apportioned on a just and reasonable basis.

(2)If the consideration is not so apportioned, this Part has effect as if it had been so apportioned.

(3)For the purposes of this paragraph any consideration given for what is in substance one bargain shall be treated as attributable to all the elements of the bargain, even though—

(a)separate consideration is, or purports to be, given for different elements of the bargain, or

(b)there are, or purport to be, separate transactions in respect of different elements of the bargain.

ExchangesE+W+S+N.I.

5(1)This paragraph applies to determine the chargeable consideration where one or more land transactions are entered into by a person as purchaser (alone or jointly) wholly or partly in consideration of one or more other land transactions being entered into by him (alone or jointly) as vendor.E+W+S+N.I.

(2)In this paragraph—

(a)relevant transaction” means any of those transactions, and

(b)relevant acquisition” means a relevant transaction entered into as purchaser and “relevant disposal” means a relevant transaction entered into as vendor.

(3)The following rules apply if the subject-matter of any of the relevant transactions is a major interest in land—

(a)where a single relevant acquisition is made, the chargeable consideration for the acquisition is—

(i)the market value of the subject-matter of the acquisition, and

(ii)if the acquisition is the grant of a lease at a rent, that rent;

(b)where two or more relevant acquisitions are made, the chargeable consideration for each relevant acquisition is—

(i)the market value of the subject-matter of that acquisition, and

(ii)if the acquisition is the grant of a lease at a rent, that rent.

(4)The following rules apply if the subject-matter of none of the relevant transactions is a major interest in land—

(a)where a single relevant acquisition is made in consideration of one or more relevant disposals, the chargeable consideration for the acquisition is the amount or value of any chargeable consideration other than the disposal or disposals that is given for the acquisition;

(b)where two or more relevant acquisitions are made in consideration of one or more relevant disposals, the chargeable consideration for each relevant acquisition is the appropriate proportion of the amount or value of any chargeable consideration other than the disposal or disposals that is given for the acquisitions.

(5)For the purposes of sub-paragraph (4)(b) the appropriate proportion is—

where—

MV is the market value of the subject-matter of the acquisition for which the chargeable consideration is being determined, and

TMV is the total market value of the subject-matter of all the relevant acquisitions.

(6)This paragraph has effect subject to—

  • paragraph 6 of this Schedule (partition etc: disregard of existing interest), F3...

  • F4...

  • F3...

[F5(7)This paragraph does not apply in a case to which paragraph 17 applies.]

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Amendments (Textual)

F3Words in Sch. 4 para. 5(6) repealed (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 4(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)

Partition etc: disregard of existing interestE+W+S+N.I.

6In the case of a land transaction giving effect to a partition or division of a chargeable interest to which persons are jointly entitled, the share of the interest held by the purchaser immediately before the partition or division does not count as chargeable consideration.

Valuation of non-monetary considerationE+W+S+N.I.

7Except as otherwise expressly provided, the value of any chargeable consideration for a land transaction, other than—

(a)money (whether in sterling or another currency), or

(b)debt as defined for the purposes of paragraph 8 (debt as consideration),

shall be taken to be its market value at the effective date of the transaction.

Debt as considerationE+W+S+N.I.

8(1)Where the chargeable consideration for a land transaction consists in whole or in part of—E+W+S+N.I.

(a)the satisfaction or release of debt due to the purchaser or owed by the vendor, or

(b)the assumption of existing debt by the purchaser,

the amount of debt satisfied, released or assumed shall be taken to be the whole or, as the case may be, part of the chargeable consideration for the transaction.

[F6(1A)Where—

(a)debt is secured on the subject-matter of a land transaction immediately before and immediately after the transaction, and

(b)the rights or liabilities in relation to that debt of any party to the transaction are changed as a result of or in connection with the transaction,

then for the purposes of this paragraph there is an assumption of that debt by the purchaser, and that assumption of debt constitutes chargeable consideration for the transaction.

(1B)Where in a case in which sub-paragraph (1)(b) applies—

(a)the debt assumed is or includes debt secured on the property forming the subject-matter of the transaction, and

(b)immediately before the transaction there were two or more persons each holding an undivided share of that property, or there are two or more such persons immediately afterwards,

the amount of secured debt assumed shall be determined as if the amount of that debt owed by each of those persons at a given time were the proportion of it corresponding to his undivided share of the property at that time.

(1C)For the purposes of sub-paragraph (1B), in England and Wales and Northern Ireland each joint tenant of property is treated as holding an equal undivided share of it.]

(2)If the effect of [F7this paragraph] would be that the amount of the chargeable consideration for the transaction exceeded the market value of the subject-matter of the transaction, the amount of the chargeable consideration is treated as limited to that value.

(3)In this paragraph—

(a)debt” means an obligation, whether certain or contingent, to pay a sum of money either immediately or at a future date,

(b)existing debt”, in relation to a transaction, means debt created or arising before the effective date of, and otherwise than in connection with, the transaction, and

(c)references to the amount of a debt are to the principal amount payable or, as the case may be, the total of the principal amounts payable, together with the amount of any interest that has accrued due on or before the effective date of the transaction.

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Amendments (Textual)

F6Sch. 4 para. 8(1A)-(1C) inserted (with effect in accordance with s. 301(6) of the amending Act) by Finance Act 2004 (c. 12), s. 301(3)

F7Words in Sch. 4 para. 8(2) substituted (with effect in accordance with s. 301(6) of the amending Act) by Finance Act 2004 (c. 12), s. 301(4)

[F8Cases where conditions for exemption not fully metE+W+S+N.I.

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Amendments (Textual)

F8Sch. 4 para. 8A and cross-heading inserted (with effect in accordance with s. 301(7) of the amending Act) by Finance Act 2004 (c. 12), s. 301(5)

8A(1)Where a land transaction would be exempt from charge under paragraph 3A of Schedule 3 (assents and appropriations by personal representatives) but for sub-paragraph (2) of that paragraph (cases where person acquiring property gives consideration for it), the chargeable consideration for the transaction does not include the amount of any secured debt assumed.E+W+S+N.I.

  • Secured debt” has the same meaning as in that paragraph.

(2)Where a land transaction would be exempt from charge under paragraph 4 of Schedule 3 (variation of testamentary dispositions etc) but for a failure to meet the condition in sub-paragraph (2)(b) of that paragraph (no consideration other than variation of another disposition), the chargeable consideration for the transaction does not include the making of any such variation as is mentioned in that sub-paragraph.]

Conversion of amounts in foreign currencyE+W+S+N.I.

9(1)References in this Part to the amount or value of the consideration for a transaction are to its amount or value in sterling.E+W+S+N.I.

(2)For the purposes of this Part the sterling equivalent of an amount expressed in another currency shall be ascertained by reference to the London closing exchange rate on the effective date of the transaction (unless the parties have used a different rate for the purposes of the transaction).

Carrying out of worksE+W+S+N.I.

10(1)Where the whole or part of the consideration for a land transaction consists of the carrying out of works of construction, improvement or repair of a building or other works to enhance the value of land, then—E+W+S+N.I.

(a)to the extent that the conditions specified in sub-paragraph (2) are met, the value of the works does not count as chargeable consideration, and

(b)to the extent that those conditions are not met, the value of the works shall be taken into account as chargeable consideration.

(2)The conditions referred to in sub-paragraph (1) are—

(a)that the works are carried out after the effective date of the transaction,

(b)that the works are carried out on land acquired or to be acquired under the transaction or on other land held by the purchaser or a person connected with him, and

(c)that it is not a condition of the transaction that the works are carried out by the vendor or a person connected with him.

[F9(2A)[F10Where by virtue of—

(a)subsection (8) of section 44 (contract and conveyance),

(b)paragraph 12A of Schedule 17A (agreement for lease), or

(c)paragraph 19(3) to (6) of Schedule 17A (missives of let etc in Scotland),

there are two notifiable transactions (the first being the contract or agreement and the second being the transaction effected on completion or, as the case may be, the grant or execution of the lease),] the condition in sub-paragraph (2)(a) is treated as met in relation to the second transaction if it is met in relation to the first.]

(3)In this paragraph—

(a)references to the acquisition of land are to the acquisition of a major interest in it;

(b)the value of the works shall be taken to be the amount that would have to be paid in the open market for the carrying out of the works in question.

(4)Section 839 of the Taxes Act 1988 (connected persons) has effect for the purposes of this paragraph.

[F11(5)This paragraph is subject to paragraph 17 (arrangements involving public or educational bodies).]

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Amendments (Textual)

F9Sch. 4 para. 10(2A) inserted (with effect in accordance with Sch. 39 para. 13(3)-(6) of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 9(2)

F10Words in Sch. 4 para. 10(2A) substituted (with effect in accordance with s. 297(9) of the amending Act) by Finance Act 2004 (c. 12), s. 297(8)

Provision of servicesE+W+S+N.I.

11[F12(1)]Where the whole or part of the consideration for a land transaction consists of the provision of services (other than the carrying out of works to which paragraph 10 applies), the value of that consideration shall be taken to be the amount that would have to be paid in the open market to obtain those services.E+W+S+N.I.

[F13(2)This paragraph is subject to paragraph 17 (arrangements involving public or educational bodies).]

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Amendments (Textual)

Land transaction entered into by reason of employmentE+W+S+N.I.

12(1)Where a land transaction is entered into by reason of the purchaser’s employment, or that of a person connected with him, then—E+W+S+N.I.

(a)if the transaction gives rise to a charge to tax under Chapter 5 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (taxable benefits: living accommodation) and—

(i)no rent is payable by the purchaser, or

(ii)the rent payable by the purchaser is less than the cash equivalent of the benefit calculated under section 105 or 106 of that Act,

there shall be taken to be payable by the purchaser as rent an amount equal to the cash equivalent chargeable under those sections;

(b)if the transaction would give rise to a charge under that Chapter but for section 99 of that Act (accommodation provided for performance of duties), the consideration for the transaction is the actual consideration (if any);

(c)if neither paragraph (a) nor paragraph (b) applies, the consideration for the transaction shall be taken to be not less than the market value of the subject-matter of the transaction as at the effective date of the transaction.

(2)Section 839 of the Taxes Act 1988 (connected persons) has effect for the purposes of this paragraph.

Obligations under leaseE+W+S+N.I.

F1413. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

F14Sch. 4 paras. 13-15 repealed (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 4(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)

Surrender of existing lease in return for new leaseE+W+S+N.I.

F1414. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

F14Sch. 4 paras. 13-15 repealed (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 4(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)

Reverse premiumE+W+S+N.I.

F1415. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

F14Sch. 4 paras. 13-15 repealed (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 4(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)

Indemnity given by purchaserE+W+S+N.I.

16Where the purchaser agrees to indemnify the vendor in respect of liability to a third party arising from breach of an obligation owed by the vendor in relation to the land that is the subject of the transaction, neither the agreement nor any payment made in pursuance of it counts as chargeable consideration.

[F15Arrangements involving public or educational bodiesE+W+S+N.I.

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Amendments (Textual)

17.(1)This paragraph applies in any case where arrangements are entered into under which—E+W+S+N.I.

[F16(a)there is a transfer, or the grant or assignment of a lease, of land by a qualifying body (“A”) to a non-qualifying body (“B”) (“the main transfer”),]

[F17(b)in consideration (whether in whole or in part) of the main transfer there is a grant by B to A of a lease or under-lease of the whole, or substantially the whole, of that land (“the leaseback”),]

(c)B undertakes to carry out works or provide services to A, and

(d)some or all of the consideration given by A to B for the carrying out of those works or the provision of those services is consideration in money,

[F18whether or not there is also a transfer, or the grant or assignment of a lease, of any other land by A to B (a “transfer of surplus land”).]

(2)The following are qualifying bodies—

(a)public bodies within section 66,

(b)institutions within the further education sector or the higher education sector within the meaning of 91 of the Further and Higher Education Act 1992,

(c)further education corporations within the meaning of section 17 of that Act,

(d)higher education corporations within the meaning section 90 of that Act,

(e)persons who undertake to establish and maintain, and carry on, or provide for the carrying on, of an Academy within the meaning of section 482 of the Education Act 1996, and

(f)in Scotland, institutions funded by the Scottish Further Education Funding Council or the Scottish Higher Education Funding Council.

[F19(3)The following shall not count as chargeable consideration for the main transfer or any transfer of surplus land—

(a)the lease-back;

(b)the carrying out of building works by B for A; or

(c)the provision of services by B to A.

(4)The chargeable consideration for the lease back does not include—

(a)the main transfer;

(b)any transfer of surplus land; or

(c)the consideration in money paid by A to B for the building works or other services referred to in sub-paragraph (3).]

[F20(4A)Sub-paragraphs (3) and (4) shall be disregarded for the purposes of determining whether the land transaction in question is notifiable.]

(5)This paragraph applies to Scotland as if—

(a)references to A transferring land to B were references to A transferring the interest of an owner of land to B, and

[F21(b)references in sub-paragraph (1) to assignment were references to assignation.]

  • Until the appointed day for the purposes of the Abolition of Feudal Tenure etc. (Scotland) Act 2000 (asp 5), the reference in paragraph (a) to the interest of the owner shall be read, in relation to feudal property, as a reference to the estate or interest of the proprietor of the dominium utile.

(6)In this paragraph “under-lease” includes a sub-lease.]

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Amendments (Textual)

F20Sch. 4 para. 17(4A) inserted (with effect in accordance with Sch. 39 para. 13(3)-(6) of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 9(3)

Section 56

SCHEDULE 5E+W+S+N.I.Stamp duty land tax: amount of tax chargeable: rent

IntroductionE+W+S+N.I.

1This Schedule provides for calculating the tax chargeable—

(a)in respect of a chargeable transaction for which the chargeable consideration consists of or includes rent, or

(b)where such a transaction is to be taken into account as a linked transaction.

[F22Amounts payable in respect of periods before grant of leaseE+W+S+N.I.

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Amendments (Textual)

F22Sch. 5 para. 1A and cross-heading inserted (with effect in accordance with Sch. 39 para. 13(3)-(6) of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 10

1AFor the purposes of this Part “rent” does not include any chargeable consideration for the grant of a lease that is payable in respect of a period before the grant of the lease.]

Calculation of tax chargeable in respect of rentE+W+S+N.I.

2(1)Tax is chargeable under this Schedule in respect of so much of the chargeable consideration as consists of rent.E+W+S+N.I.

[F23(2)The tax chargeable is the total of the amounts produced by taking the relevant percentage of so much of the relevant rental value as falls within each rate band.

(3)The relevant percentages and rate bands are determined by reference to whether the relevant land—

(a)consists entirely of residential property (in which case Table A below applies), or

(b)consists of or includes land that is not residential property (in which case Table B below applies).

TABLE A: RESIDENTIAL

Rate bandsPercentage
£0 to £60,0000%
Over £60,0001%

TABLE B: NON-RESIDENTIAL OR MIXED

Rate bandsPercentage
£0 to £150,0000%
Over £150,0001%

(4)For the purposes of sub-paragraphs (2) and (3)—

(a)the relevant rental value is the net present value of the rent payable over the term of the lease, and

(b)the relevant land is the land that is the subject of the lease.

(5)If the lease in question is one of a number of linked transactions for which the chargeable consideration consists of or includes rent, the above provisions are modified.

(6)In that case the tax chargeable is determined as follows.

  • First, calculate the amount of the tax that would be chargeable if the linked transactions were a single transaction, so that—

    (a)

    the relevant rental value is the total of the net present values of the rent payable over the terms of all the leases, and

    (b)

    the relevant land is all land that is the subject of any of those leases.

  • Then, multiply that amount by the fraction:

    where—

    • NPV is the net present value of the rent payable over the term of the lease in question, and

    • TNPV is the total of the net present values of the rent payable over the terms of the all the leases.]

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Amendments (Textual)

F23Sch. 5 para. 2(2)-(6) substituted for Sch. 5 para. 2(2)-(5) (1.12.2003) by The Stamp Duty Land Tax (Amendment of Schedule 5 to the Finance Act 2003) Regulations 2003 (SI 2003/2914), reg. 2 Sch. para. 1

Net present value of rent payable over term of leaseE+W+S+N.I.

3The net present value (v) of the rent payable over the term of a lease is calculated by applying the formula:

where—

  • ri is the rent payable F24... in year i,

  • i is the first, second, third, etc year of the term,

  • n is the term of the lease F24..., and

  • T is the temporal discount rate (see paragraph 8).

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Amendments (Textual)

F24Words in Sch. 5 para. 3 repealed (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 4(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)

Rent payableE+W+S+N.I.

F254. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

F25Sch. 5 paras. 4-7 repealed (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 4(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)

Effect of provision for rent reviewE+W+S+N.I.

F255. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

F25Sch. 5 paras. 4-7 repealed (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 4(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)

Term of leaseE+W+S+N.I.

F256. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

F25Sch. 5 paras. 4-7 repealed (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 4(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)

Treatment of lease for indefinite termE+W+S+N.I.

F257. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

F25Sch. 5 paras. 4-7 repealed (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 4(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)

Temporal discount rateE+W+S+N.I.

8(1)For the purposes of this Schedule the “temporal discount rate” is 3.5% or such other rate as may be specified by regulations made by the Treasury.E+W+S+N.I.

(2)Regulations under this paragraph may make any such provision as is mentioned in subsection (3)(b) to (f) of section 178 of the Finance Act 1989 (c. 26) (power of Treasury to set rates of interest).

(3)Subsection (5) of that section (power of Inland Revenue to specify rate by order in certain circumstances) applies in relation to regulations under this paragraph as it applies in relation to regulations under that section.

Tax chargeable in respect of consideration other than rentE+W+S+N.I.

9(1)Where in the case of a transaction to which this Schedule applies there is chargeable consideration other than rent, the provisions of this Part apply in relation to that consideration as in relation to other chargeable consideration.E+W+S+N.I.

(2)If the [F26relevant rental figure] exceeds £600 a year, the 0% band in the Tables in subsection (2) of section 55 does not apply and any case that would have fallen within that band is treated as falling within the 1% band.

[F27(2A)For the purposes of sub-paragraph (2) the relevant rental figure is—

(a)the annual rent in relation to the transaction in question, or

(b)if that transaction is one of a number of linked transactions for which the chargeable consideration consists of or includes rent, the total of the annual rents in relation to all those transactions.]

(3)[F28In sub-paragraph (2A)] the “annual rent” means the average annual rent over the term of the lease or, if—

(a)different amounts of rent are payable for different parts of the term, and

(b)those amounts (or any of them) are ascertainable at the effective date of the transaction,

the average annual rent over the period for which the highest ascertainable rent is payable.

(4)Tax chargeable under this Schedule is in addition to any tax chargeable under section 55 in respect of consideration other than rent.

(5)Where a transaction to which this Schedule applies falls to be taken into account for the purposes of that section as a linked transaction, no account shall be taken of rent in determining the relevant consideration.

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Amendments (Textual)

Increase of rent treated as grant of new leaseE+W+S+N.I.

F2910. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

F29Sch. 5 para. 10 repealed (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 4(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)

InterpretationE+W+S+N.I.

F3011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

F30Sch. 5 para. 11 repealed (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 4(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)

Section 57

SCHEDULE 6E+W+S+N.I.Stamp duty land tax: disadvantaged areas relief

Part 1E+W+S+N.I.Disadvantaged areas

Meaning of “disadvantaged area”E+W+S+N.I.

1(1)For the purposes of this Schedule a “disadvantaged area” means an area designated as a disadvantaged area by regulations made by the Treasury.E+W+S+N.I.

(2)The regulations may—

(a)designate specified areas as disadvantaged areas, or

(b)provide for areas of a description specified in the regulations to be designated as disadvantaged areas.

(3)If the regulations so provide, the designation of an area as a disadvantaged area shall have effect for such period as may be specified by or determined in accordance with the regulations.

(4)The regulations may—

(a)make different provision for different cases, and

(b)contain such incidental, supplementary, consequential or transitional provision as appears to the Treasury to be necessary or expedient.

Continuation of regulations made for purposes of stamp dutyE+W+S+N.I.

2Any regulations made by the Treasury—

(a)designating areas as disadvantaged areas for the purposes of section 92 of the Finance Act 2001 (c. 9) (stamp duty exemption for land in disadvantaged areas), and

(b)in force immediately before the implementation date,

have effect for the purposes of this Schedule as if made under paragraph 1 above and may be varied or revoked accordingly.

Part 2E+W+S+N.I.Land wholly situated in a disadvantaged area

IntroductionE+W+S+N.I.

3This Part of this Schedule applies to a land transaction if the subject matter of the transaction is a chargeable interest in relation to land that is wholly situated in a disadvantaged area.

Land all non-residentialE+W+S+N.I.

4If all the land is non-residential property, the transaction is exempt from charge.

Land all residentialE+W+S+N.I.

5(1)This paragraph applies where all the land is residential property.E+W+S+N.I.

(2)If—

(a)the consideration for the transaction does not include rent and the relevant consideration does not exceed £150,000, or

(b)the consideration for the transaction consists only of rent and the relevant rental value does not exceed £150,000,

the transaction is exempt from charge.

(3)If the consideration for the transaction includes rent and the relevant rental value does not exceed £150,000, the rent does not count as chargeable consideration.

(4)If the consideration for the transaction includes consideration other than rent, then—

(a)if—

(i)the annual rent does not exceed £600, and

(ii)the relevant consideration does not exceed £150,000,

the consideration other than rent does not count as chargeable consideration;

(b)if the annual rent exceeds £600, the 0% band in Table A in subsection (2) of section 55 does not apply in relation to the consideration other than rent and any case that would have fallen within that band is treated as falling within the 1% band.

Land partly non-residential and partly residentialE+W+S+N.I.

6(1)This paragraph applies where the land is partly non-residential property and partly residential property.E+W+S+N.I.

References in this paragraph to the consideration attributable to land that is non-residential property or land that is residential property (or to the rent or annual rent so attributable) are to the consideration (or rent or annual rent) so attributable on a just and reasonable apportionment.

(2)The consideration attributable to land that is non-residential property does not count as chargeable consideration.

(3)The following provisions apply in relation to the consideration attributable to land that is residential property.

(4)If—

(a)the consideration so attributable does not include rent and the relevant consideration does not exceed £150,000, or

(b)the consideration so attributable consists only of rent and the relevant rental value does not exceed £150,000,

none of the consideration so attributable counts as chargeable consideration.

(5)If the consideration so attributable includes rent and the relevant rental value does not exceed £150,000, the rent so attributable does not count as chargeable consideration.

(6)If the consideration so attributable includes consideration other than rent, then—

(a)if—

(i)the annual rent so attributable does not exceed £600, and

(ii)the relevant consideration does not exceed £150,000,

the consideration other than rent does not count as chargeable consideration;

(b)if the annual rent so attributable exceeds £600, the 0% band in the Tables in subsection (2) of section 55 does not apply in relation to the consideration other than rent and any case that would have fallen within that band is treated as falling within the 1% band.

Part 3E+W+S+N.I.Land partly situated in a disadvantaged area

IntroductionE+W+S+N.I.

7(1)This Part of this Schedule applies to a land transaction if the subject matter of the transaction is a chargeable interest in relation to land that is partly in a disadvantaged area and partly outside such an area.E+W+S+N.I.

(2)References in this Part to the consideration attributable to land situated in a disadvantaged area and to land not so situated (or to the rent or annual rent so attributable) are to the consideration (or rent or annual rent) so attributable on a just and reasonable apportionment.

Land all non-residentialE+W+S+N.I.

8If all of the land situated in a disadvantaged area is non-residential property, the consideration attributable to the land situated in the disadvantaged area does not count as chargeable consideration.

Land all residentialE+W+S+N.I.

9(1)This paragraph applies where all the land situated in a disadvantaged area is residential property.E+W+S+N.I.

(2)If—

(a)the consideration attributable to land situated in a disadvantaged area does not include rent and the relevant consideration does not exceed £150,000, or

(b)the consideration so attributable consists only of rent and the relevant rental value does not exceed £150,000,

none of the consideration so attributable counts as chargeable consideration.

(3)If the consideration attributable to land situated in a disadvantaged area includes rent and the relevant rental value does not exceed £150,000, the rent so attributable does not count as chargeable consideration.

(4)If the consideration attributable to land in a disadvantaged area includes consideration other than rent (“non-rent consideration”), then—

(a)if—

(i)the annual rent so attributable does not exceed £600, and

(ii)the relevant consideration does not exceed £150,000,

the non-rent consideration so attributable does not count as chargeable consideration;

(b)if the annual rent so attributable exceeds £600, the 0% band in Table A in subsection (2) of section 55 does not apply in relation to the non-rent consideration so attributable and any case that would have fallen within that band is treated as falling within the 1% band.

Land partly non-residential and partly residentialE+W+S+N.I.

10(1)This paragraph applies where the land situated in a disadvantaged area is partly non-residential property and partly residential property.E+W+S+N.I.

References in this paragraph to the consideration attributable to land that is non-residential property or land that is residential property (or to the rent or annual rent so attributable) are to the consideration (or rent or annual rent) attributable to land in a disadvantaged area that is, on a just and reasonable apportionment, so attributable.

(2)The consideration attributable to land that is non-residential property does not count as chargeable consideration.

(3)The following provisions apply in relation to the consideration attributable to land that is residential property.

(4)If—

(a)the consideration so attributable does not include rent and the relevant consideration does not exceed £150,000, or

(b)the consideration so attributable consists only of rent and the relevant rental value does not exceed £150,000,

none of the consideration so attributable counts as chargeable consideration.

(5)If the consideration so attributable includes rent and the relevant rental value does not exceed £150,000, the rent so attributable does not count as chargeable consideration.

(6)If the consideration so attributable includes consideration other than rent, then—

(a)if—

(i)the annual rent so attributable does not exceed £600, and

(ii)the relevant consideration does not exceed £150,000,

the consideration other than rent does not count as chargeable consideration;

(b)if the annual rent so attributable exceeds £600, the 0% band in the Tables in subsection (2) of section 55 does not apply in relation to the consideration other than rent and any case that would have fallen within that band is treated as falling within the 1% band.

Part 4E+W+S+N.I.[F31Supplementary]

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Amendments (Textual)

F31Sch. 6 Pt. 4 heading substituted (22.7.2004) by Finance Act 2004 (c. 12), s. 298(5)(a)

Relevant consideration and relevant rental valueE+W+S+N.I.

11(1)References in this Schedule to the “relevant consideration” in relation to a transaction are to the amount falling to be taken into account for the purposes of section 55(2) in determining the rate of tax chargeable under that section in relation to the transaction apart from any relief under this Schedule (whether in relation to that or any other transaction).E+W+S+N.I.

(2)References in this Schedule to the “relevant rental value” in relation to a transaction are to the amount falling to be taken into account for the purposes of paragraph 2(3) of Schedule 5 in determining the rate of tax chargeable under that Schedule in relation to the transaction apart from any relief under this Schedule (whether in relation to that or any other transaction).

Rent and annual rentE+W+S+N.I.

12For the purposes of this Schedule “rent” has the same meaning as in Schedule 5 (amount of tax chargeable: rent) and “annual rent” has the same meaning as in paragraph 9(2) of that Schedule.

[F32Notification of transactionsE+W+S+N.I.

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Amendments (Textual)

F32Sch. 6 para. 13 and cross-heading inserted (22.7.2004) by Finance Act 2004 (c. 12), s. 298(5)(b)

13For the purposes of section 77 (which specifies what land transactions are notifiable) no account shall be taken of any provision of this Schedule to the effect that consideration does not count as chargeable consideration.]

Section 58A

[F33SCHEDULE 6AE+W+S+N.I.Relief for certain acquisitions of residential property

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Amendments (Textual)

F33Sch. 6A inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 17(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)

Acquisition by house-building company from individual acquiring new dwellingE+W+S+N.I.

1(1)Where a dwelling (“the old dwelling”) is acquired by a house-building company from an individual (whether alone or with other individuals), the acquisition is exempt from charge if the following conditions are met.

(2)The conditions are—

(a)that the individual (whether alone or with other individuals) acquires from the house-building company a new dwelling,

(b)that the individual—

(i)occupied the old dwelling as his only or main residence at some time in the period of two years ending with the date of its acquisition, and

(ii)intends to occupy the new dwelling as his only or main residence,

(c)that each acquisition is entered into in consideration of the other, and

(d)that the area of land acquired by the house-building company does not exceed the permitted area.

(3)Where the conditions in sub-paragraph (2)(a) to (c) are met but the area of land acquired by the house-building company exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the old dwelling.

(4)A “house-building company” means a company that carries on the business of constructing or adapting buildings or parts of buildings for use as dwellings.

References in this paragraph to such a company include any company connected with it.

(5)In this paragraph—

(a)references to the acquisition of the new dwelling are to the acquisition, by way of grant or transfer, of a major interest in the dwelling;

(b)references to the acquisition of the old dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; and

(c)references to the market value of the old dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.

Acquisition by property trader from individual acquiring new dwellingE+W+S+N.I.

2(1)Where a dwelling (“the old dwelling”) is acquired by a property trader from an individual (whether alone or with other individuals), the acquisition is exempt from charge if the following conditions are met.

(2)The conditions are—

(a)that the acquisition is made in the course of a business that consists of or includes acquiring dwellings from individuals who acquire new dwellings from house-building companies,

(b)that the individual (whether alone or with other individuals) acquires a new dwelling from a house-building company,

(c)that the individual—

(i)occupied the old dwelling as his only or main residence at some time in the period of two years ending with the date of its acquisition, and

(ii)intends to occupy the new dwelling as his only or main residence,

(d)that the property trader does not intend—

(i)to spend more than the permitted amount on refurbishment of the old dwelling, or

(ii)to grant a lease or licence of the old dwelling, or

(iii)to permit any of its principals or employees (or any person connected with any of its principals or employees) to occupy the old dwelling, and

(e)that the area of land acquired by the property trader does not exceed the permitted area.

Paragraph (d)(ii) does not apply to the grant of lease or licence to the individual for a period of no more than six months.

(3)Where the conditions in sub-paragraph (2)(a) to (d) are met, but the area of land acquired by the property trader exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the old dwelling.

(4)The provisions of paragraph 1(4) (meaning of “house-building company” etc) also have effect for the purposes of this paragraph.

(5)In this paragraph—

(a)references to the acquisition of a new dwelling are to the acquisition, by way of grant or transfer, of a major interest in the dwelling;

(b)references to the acquisition of the old dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; and

(c)references to the market value of the old dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.

Acquisition by property trader from personal representativesE+W+S+N.I.

3(1)Where a dwelling is acquired by a property trader from the personal representatives of a deceased individual, the acquisition is exempt from charge if the following conditions are met.

(2)The conditions are—

(a)that the acquisition is made in the course of a business that consists of or includes acquiring dwellings from personal representatives of deceased individuals,

(b)that the deceased individual occupied the dwelling as his only or main residence at some time in the period of two years ending with the date of his death,

(c)that the property trader does not intend—

(i)to spend more than the permitted amount on refurbishment of the dwelling, or

(ii)to grant a lease or licence of the dwelling, or

(iii)to permit any of its principals or employees (or any person connected with any of its principals or employees) to occupy the dwelling, and

(d)that the area of land acquired does not exceed the permitted area.

(3)Where the conditions in sub-paragraph (2)(a) to (c) are met, but the area of land acquired exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the dwelling.

(4)In this paragraph—

(a)references to the acquisition of the dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; and

(b)references to the market value of the dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.

Acquisition by property trader from individual where chain of transactions breaks downE+W+S+N.I.

4(1)Where a dwelling (“the old dwelling”) is acquired by a property trader from an individual (whether alone or with other individuals), the acquisition is exempt from charge if—

(a)the individual has made arrangements to sell a dwelling (“the old dwelling”) and acquire another dwelling (“the second dwelling”),

(b)the arrangements to sell the old dwelling fail, and

(c)the acquisition of the old dwelling is made for the purpose of enabling the individual’s acquisition of the second dwelling to proceed,

and the following conditions are met.

(2)The conditions are—

(a)that the acquisition is made in the course of a business that consists of or includes acquiring dwellings from individuals in those circumstances,

(b)that the individual—

(i)occupied the old dwelling as his only or main residence at some time in the period of two years ending with the date of its acquisition, and

(ii)intends to occupy the second dwelling as his only or main residence,

(c)that the property trader does not intend—

(i)to spend more than the permitted amount on refurbishment of the old dwelling, or

(ii)to grant a lease or licence of the old dwelling, or

(iii)to permit any of its principals or employees (or any person connected with any of its principals or employees) to occupy the old dwelling, and

(d)that the area of land acquired does not exceed the permitted area.

Paragraph (c)(ii) does not apply to the grant of a lease or licence to the individual for a period of no more than six months.

(3)Where the conditions in sub-paragraph (2)(a) to (c) are met, but the area of land acquired exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the old dwelling.

(4)In this paragraph—

(a)references to the acquisition of the second dwelling are to the acquisition, by way of grant or transfer, of a major interest in the dwelling;

(b)references to the acquisition of the old dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; and

(c)references to the market value of the old dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.

Acquisition by employer in case of relocation of employmentE+W+S+N.I.

5(1)Where a dwelling is acquired from an individual (whether alone or with other individuals) by his employer, the acquisition is exempt from charge if the following conditions are met.

(2)The conditions are—

(a)that the individual occupied the dwelling as his only or main residence at some time in the period of two years ending with the date of the acquisition,

(b)that the acquisition is made in connection with a change of residence by the individual resulting from relocation of employment,

(c)that the consideration for the acquisition does not exceed the market value of the dwelling, and

(d)that the area of land acquired does not exceed the permitted area.

(3)Where the conditions in sub-paragraph (2)(a) to (c) are met but the area of land acquired exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the dwelling.

(4)In this paragraph “relocation of employment” means a change of the individual’s place of employment due to—

(a)his becoming an employee of the employer,

(b)an alteration of the duties of his employment with the employer, or

(c)an alteration of the place where he normally performs those duties.

(5)For the purposes of this paragraph a change of residence is one “resulting from” relocation of employment if—

(a)the change is made wholly or mainly to allow the individual to have his residence within a reasonable daily travelling distance of his new place of employment, and

(b)his former residence is not within a reasonable daily travelling distance of that place.

The individual’s “new place of employment” means the place where he normally performs, or is normally to perform, the duties of his employment after the relocation.

(6)In this paragraph—

(a)references to the acquisition of the dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling;

(b)references to the market value of the dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area; and

(c)references to an individual’s employer include a prospective employer.

Acquisition by property trader in case of relocation of employmentE+W+S+N.I.

6(1)Where a dwelling is acquired by a property trader from an individual (whether alone or with other individuals), the acquisition is exempt from charge if the following conditions are met.

(2)The conditions are—

(a)that the acquisition is made in the course of a business that consists of or includes acquiring dwellings from individuals in connection with a change of residence resulting from relocation of employment,

(b)that the individual occupied the dwelling as his only or main residence at some time in the period of two years ending with the date of the acquisition,

(c)that the acquisition is made in connection with a change of residence by the individual resulting from relocation of employment,

(d)that the consideration for the acquisition does not exceed the market value of the dwelling,

(e)that the property trader does not intend—

(i)to spend more than the permitted amount on refurbishment of the dwelling, or

(ii)to grant a lease or licence of the dwelling, or

(iii)to permit any of its principals or employees (or any person connected with any of its principals or employees) to occupy the dwelling, and

(f)that the area of land acquired does not exceed the permitted area.

Paragraph (e)(ii) does not apply to the grant of a lease or licence to the individual for a period of no more than six months.

(3)Where the conditions in sub-paragraph (2)(a) to (e) are met but the area of land acquired exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the dwelling.

(4)In this paragraph “relocation of employment” means a change of the individual’s place of employment due to—

(a)his becoming employed by a new employer,

(b)an alteration of the duties of his employment, or

(c)an alteration of the place where he normally performs those duties.

(5)For the purposes of this paragraph a change of residence is one “resulting from” relocation of employment if—

(a)the change is made wholly or mainly to allow the individual to have his residence within a reasonable daily travelling distance of his new place of employment, and

(b)his former residence is not within a reasonable daily travelling distance of that place.

An individual’s “new place of employment” means the place where he normally performs, or is normally to perform, the duties of his employment after the relocation.

(6)In this paragraph—

(a)references to the acquisition of the dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; and

(b)references to the market value of the dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.

Meaning of “dwelling”, “new dwelling” and “the permitted area”E+W+S+N.I.

7(1)Dwelling” includes land occupied and enjoyed with the dwelling as its garden or grounds.

(2)A building or part of a building is a “new dwelling”if—

(a)it has been constructed for use as a single dwelling and has not previously been occupied, or

(b)it has been adapted for use as a single dwelling and has not been occupied since its adaptation.

(3)The permitted area”, in relation to a dwelling, means land occupied and enjoyed with the dwelling as its garden or grounds that does not exceed—

(a)an area (inclusive of the site of the dwelling) of 0.5 of a hectare, or

(b)such larger area as is required for the reasonable enjoyment of the dwelling as a dwelling having regard to its size and character.

(4)Where sub-paragraph (3)(b) applies, the permitted area is taken to consist of that part of the land that would be the most suitable for occupation and enjoyment with the dwelling as its garden or grounds if the rest of the land were separately occupied.

Meaning of “property trader” and “principal”E+W+S+N.I.

8(1)A “property trader” means—

(a)a company,

(b)a limited liability partnership, or

(c)a partnership whose members are all either companies or limited liability partnerships,

that carries on the business of buying and selling dwellings.

(2)In relation to a property trader a “principal” means—

(a)in the case of a company, a director;

(b)in the case of a limited liability partnership, a member;

(c)in the case of a partnership whose members are all either companies or limited liability partnerships, a member or a person who is a principal of a member.

(3)For the purposes of this Schedule—

(a)anything done by or in relation to a company connected with a property trader is treated as done by or in relation to that property trader, and

(b)references to the principals or employees of a property trader include the principals or employees of any such company.

Meaning of “refurbishment” and “the permitted amount”E+W+S+N.I.

9(1)Refurbishment”of a dwelling means the carrying out of works that enhance or are intended to enhance the value of the dwelling, but does not include—

(a)cleaning the dwelling, or

(b)works required solely for the purpose of ensuring that the dwelling meets minimum safety standards.

(2)The “permitted amount”, in relation to the refurbishment of a dwelling, is—

(a)10,000, or

(b)5% of the consideration for the acquisition of the dwelling,

whichever is the greater, but subject to a maximum of £20,000.

Connected companies etcE+W+S+N.I.

10Section 839 of the Taxes Act 1988 (connected persons) has effect for the purposes of this Schedule.

Withdrawal of relief under this ScheduleE+W+S+N.I.

11(1)Relief under this Schedule is withdrawn in the following circumstances.

(2)Relief under paragraph 2 (acquisition by property trader from individual acquiring new dwelling) is withdrawn if the property trader—

(a)spends more than the permitted amount on refurbishment of the old dwelling, or

(b)grants a lease or licence of the old dwelling, or

(c)permits any of its principals or employees (or any person connected with any of its principals or employees) to occupy the old dwelling.

Paragraph (b) does not apply to the grant of lease or licence to the individual for a period of no more than six months.

(3)Relief under paragraph 3 (acquisition by property trader from personal representatives) is withdrawn if the property trader—

(a)spends more than the permitted amount on refurbishment of the dwelling, or

(b)grants a lease or licence of the dwelling, or

(c)permits any of its principals or employees (or any person connected with any of its principals or employees) to occupy the dwelling.

(4)Relief under paragraph 4 (acquisition by property trader from individual where chain of transactions breaks down) is withdrawn if the property trader—

(a)spends more than the permitted amount on refurbishment of the old dwelling, or

(b)grants a lease or licence of the old dwelling, or

(c)permits any of its principals or employees (or any person connected with any of its principals or employees) to occupy the old dwelling.

Paragraph (b) does not apply to the grant of lease or licence to the individual for a period of no more than six months.

(5)Relief under paragraph 6 (acquisition by property trader in case of relocation of employment) is withdrawn if the property trader—

(a)spends more than the permitted amount on refurbishment of the dwelling, or

(b)grants a lease or licence of the dwelling, or

(c)permits any of its principals or employees (or any person connected with any of its principals or employees) to occupy the dwelling.

Paragraph (b) does not apply to the grant of lease or licence to the individual for a period of no more than six months.

(6)Where relief is withdrawn the amount of tax chargeable is the amount that would have been chargeable in respect of the acquisition but for the relief.]

Section 62

SCHEDULE 7E+W+S+N.I.Stamp duty land tax: group relief and reconstruction and acquisition reliefs

Part 1E+W+S+N.I.Group relief

Group reliefE+W+S+N.I.

1(1)A transaction is exempt from charge if the vendor and purchaser are companies that at the effective date of the transaction are members of the same group.E+W+S+N.I.

(2)For the purposes of group relief—

(a)company” means a body corporate, and

(b)companies are members of the same group if one is the 75% subsidiary of the other or both are 75% subsidiaries of a third company.

(3)For the purposes of group relief a company (“company A”) is the 75% subsidiary of another company (“company B”) if company B—

(a)is beneficial owner of not less than 75% of the ordinary share capital of company A,

(b)is beneficially entitled to not less than 75% of any profits available for distribution to equity holders of company A, and

(c)would be beneficially entitled to not less than 75% of any assets of company A available for distribution to its equity holders on a winding-up.

(4)The ownership referred to in sub-paragraph (3)(a) is ownership either directly or through another company or companies.

For the purposes of that provision the amount of ordinary share capital of company A owned by company B through another company or companies shall be determined in accordance with section 838(5) to (10) of the Taxes Act 1988.

(5)In sub-paragraphs (3)(a) and (4) above “ordinary share capital”, in relation to a company, means all the issued share capital (by whatever name called) of the company, other than capital the holders of which have a right to a dividend at a fixed rate but have no other right to share in the profits of the company.

(6)Schedule 18 to the Taxes Act 1988 (equity holders and profits or assets available for distribution) applies for the purposes of subsection (3)(b) and (c) above as it applies for the purposes of section 413(7)(a) and (b) of that Act, but with the omission of paragraphs 5(3) and 5B to 5E.

(7)This paragraph is subject to paragraph 2 (restrictions on availability of group relief) and paragraph 3 (withdrawal of group relief).

Restrictions on availability of group reliefE+W+S+N.I.

2(1)Group relief is not available if at the effective date of the transaction there are arrangements in existence by virtue of which, at that or some later time, a person has or could obtain, or any persons together have or could obtain, control of the purchaser but not of the vendor.E+W+S+N.I.

This does not apply to arrangements entered into with a view to an acquisition of shares by a company (“the acquiring company”)—

(a)in relation to which section 75 of the Finance Act 1986 (c. 41) (stamp duty: acquisition relief) will apply,

(b)in relation to which the conditions for relief under that section will be met, and

(c)as a result of which the purchaser will be a member of the same group as the acquiring company.

(2)Group relief is not available if the transaction is effected in pursuance of, or in connection with, arrangements under which—

(a)the consideration, or any part of the consideration, for the transaction is to be provided or received (directly or indirectly) by a person other than a group company, or

(b)the vendor and the purchaser are to cease to be members of the same group by reason of the purchaser ceasing to be a 75% subsidiary of the vendor or a third company.

(3)Arrangements are within sub-paragraph (2)(a) if under them the vendor or the purchaser, or another group company, is to be enabled to provide any of the consideration, or is to part with any of it, by or in consequence of the carrying out of a transaction or transactions involving, or any of them involving, a payment or other disposition by a person other than a group company.

(4)In sub-paragraphs (2)(a) and (3) a “group company” means a company that at the effective date of the transaction is a member of the same group as the vendor or the purchaser.

(5)In this paragraph—

  • arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable; and

  • control” has the meaning given by section 840 of the Taxes Act 1988.

Withdrawal of group reliefE+W+S+N.I.

3(1)Where in the case of a transaction (“the relevant transaction”) that is exempt from charge by virtue of paragraph 1 (group relief)—E+W+S+N.I.

(a)the purchaser ceases to be a member of the same group as the vendor—

(i)before the end of the period of three years beginning with the effective date of the transaction, or

(ii)in pursuance of, or in connection with, arrangements made before the end of that period,

and

(b)at the time the purchaser ceases to be a member of the same group as the vendor (“the relevant time”), it or a relevant associated company holds a chargeable interest—

(i)that was acquired by the purchaser under the relevant transaction, or

(ii)that is derived from a chargeable interest so acquired,

and that has not subsequently been acquired at market value under a chargeable transaction for which group relief was available but was not claimed,

group relief in relation to the relevant transaction, or an appropriate proportion of it, is withdrawn and tax is chargeable in accordance with this paragraph.

(2)The amount chargeable is the tax that would have been chargeable in respect of the relevant transaction but for group relief if the chargeable consideration for that transaction had been an amount equal to the market value of the subject matter of the transaction or, as the case may be, an appropriate proportion of the tax that would have been so chargeable.

(3)In sub-paragraphs (1) and (2) “an appropriate proportion” means an appropriate proportion having regard to the subject matter of the relevant transaction and what is held at the relevant time by the transferee company or, as the case may be, by that company and its relevant associated companies.

(4)In this paragraph—

  • arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable; and

  • relevant associated company”, in relation to the purchaser, means a company that—

    (a)

    is a member of the same group as the purchaser immediately before the purchaser ceases to be a member of the same group as the vendor, and

    (b)

    ceases to be a member of the same group as the vendor in consequence of the purchaser so ceasing.

(5)This paragraph has effect subject to paragraph 4 (cases in which group relief not withdrawn).

Cases in which group relief not withdrawnE+W+S+N.I.

4(1)Group relief is not withdrawn under paragraph 3 in the following cases.E+W+S+N.I.

(2)The first case is where the purchaser ceases to be a member of the same group as the vendor because the vendor leaves the group.

(3)The vendor is regarded as leaving the group if the companies cease to be members of the same group by reason of a transaction relating to shares in—

(a)the vendor, or

(b)another company that as a result of the transaction ceases to be a member of the same group as the purchaser.

(4)The second case is where the purchaser ceases to be a member of the same group as the vendor by reason of anything done for the purposes of, or in the course of, winding up the vendor or another company that is above the vendor in the group structure.

(5)For this purpose a company is “above” the vendor in the group structure if the vendor, or another company that is above the vendor in the group structure, is a 75% subsidiary of the company.

(6)The third case is where—

(a)the purchaser ceases to be a member of the same group as the vendor as a result of an acquisition of shares by another company (“the acquiring company”) in relation to which—

(i)section 75 of the Finance Act 1986 (c. 41) applies (stamp duty: acquisition relief), and

(ii)the conditions for relief under that section are met,

and

(b)the purchaser is immediately after that acquisition a member of the same group as the acquiring company.

(7)But if in a case within sub-paragraph (6)—

(a)the purchaser ceases to be a member of the same group as the acquiring company—

(i)before the end of the period of three years beginning with the effective date of the relevant transaction, or

(ii)in pursuance of, or in connection with, arrangements made before the end of that period,

and

(b)at the time the purchaser ceases to be a member of the same group as the acquiring company, it or a relevant associated company holds a chargeable interest—

(i)that was acquired by the purchaser under the relevant transaction, or

(ii)that is derived from an interest so acquired,

and that has not subsequently been acquired at market value under a chargeable transaction for which group relief was available but was not claimed,

the provisions of this Part relating to group relief apply as if the purchaser had then ceased to be a member of the same group as the vendor.

(8)In sub-paragraph (7)—

  • arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable; and

  • relevant associated company”, in relation to the purchaser, means a company that is a member of the same group as the purchaser that ceases to be a member of the same group as the acquiring company in consequence of the purchaser so ceasing.

Recovery of group relief from another group company or controlling directorE+W+S+N.I.

5(1)This paragraph applies where—E+W+S+N.I.

(a)tax is chargeable under paragraph 3 (withdrawal of group relief),

(b)the amount so chargeable has been finally determined, and

(c)the whole or part of the amount so chargeable is unpaid six months after the date on which it became payable.

(2)The following persons may, by notice under paragraph 6, be required to pay the unpaid tax—

(a)the vendor;

(b)any company that at any relevant time was a member of the same group as the purchaser and was above it in the group structure;

(c)any person who at any relevant time was a controlling director of the purchaser or a company having control of the purchaser.

(3)For the purposes of sub-paragraph (2)(b)—

(a)a “relevant time” means any time between the effective date of the relevant transaction and the purchaser ceasing to be a member of the same group as the vendor; and

(b)a company (“company A”) is “above” another company (“company B”) in a group structure if company B, or another company that is above company B in the group structure, is a 75% subsidiary of company A.

(4)In sub-paragraph (2)(c)—

  • director”, in relation to a company, has the meaning given by section 67(1) of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (read with subsection (2) of that section) and includes any person falling within section 417(5) of the Taxes Act 1988 (read with subsection (6) of that section); and

  • controlling director”, in relation to a company, means a director of the company who has control of it (construing control in accordance with section 416 of the Taxes Act 1988).

Recovery of group relief: supplementaryE+W+S+N.I.

6(1)The Inland Revenue may serve a notice on a person within paragraph 5(2) above requiring him within 30 days of the service of the notice to pay the amount that remains unpaid.E+W+S+N.I.

(2)Any such notice must be served before the end of the period of three years beginning with the date of the final determination mentioned in paragraph 5(1)(b).

(3)The notice must state the amount required to be paid by the person on whom the notice is served.

(4)The notice has effect—

(a)for the purposes of the recovery from that person of the amount required to be paid and of interest on that amount, and

(b)for the purposes of appeals,

as if it were a notice of assessment and that amount were an amount of tax due from that person.

(5)A person who has paid an amount in pursuance of a notice under this paragraph may recover that amount from the purchaser.

(6)A payment in pursuance of a notice under this paragraph is not allowed as a deduction in computing any income, profits or losses for any tax purpose.

Part 2E+W+S+N.I.Reconstruction and acquisition reliefs

Reconstruction reliefE+W+S+N.I.

7(1)Where—E+W+S+N.I.

(a)a company (“the acquiring company”) acquires the whole or part of the undertaking of another company (“the target company”) in pursuance of a scheme for the reconstruction of the target company, and

(b)the first, second and third conditions specified below are met,

a land transaction entered into for the purposes of or in connection with the transfer of the undertaking or part is exempt from charge.

Relief under this paragraph is referred to in this Part as “reconstruction relief”.

(2)The first condition is that the consideration for the acquisition consists wholly or partly of the issue of non-redeemable shares in the acquiring company to all the shareholders of the target company.

  • Non-redeemable shares” means shares that are not redeemable shares.

(3)Where the consideration for the acquisition consists partly of the issue of non-redeemable shares as mentioned in the first condition, that condition is met only if the rest of the consideration consists wholly of the assumption or discharge by the acquiring company of liabilities of the target company.

(4)The second condition is that after the acquisition has been made—

(a)each shareholder of each of the companies is a shareholder of the other, and

(b)the proportion of shares of one of the companies held by any shareholder is the same, or as nearly as may be the same, as the proportion of shares of the other company held by that shareholder.

(5)The third condition is that the acquisition is effected for bona fide commercial reasons and does not form part of a scheme or arrangement of which the main purpose, or one of the main purposes, is the avoidance of liability to tax.

  • Tax” here means stamp duty, income tax, corporation tax, capital gains tax or tax under this Part.

(6)This paragraph is subject to paragraph 9 (withdrawal of reconstruction or acquisition relief).

Acquisition reliefE+W+S+N.I.

8(1)Where—E+W+S+N.I.

(a)a company (“the acquiring company”) acquires the whole or part of the undertaking of another company (“the target company”), and

(b)the first and second conditions specified below are met,

the rate of tax chargeable on a land transaction entered into for the purposes of or in connection with the transfer of the undertaking or part is limited to 0.5%.

Relief under this paragraph is referred to in this Part as “acquisition relief”.

(2)The first condition is that the consideration for the acquisition consists wholly or partly of the issue of non-redeemable shares in the acquiring company to—

(a)the target company, or

(b)all or any of the target company’s shareholders.

  • Non-redeemable shares” means shares that are not redeemable shares.

(3)Where the consideration for the acquisition consists partly of the issue of non-redeemable shares as mentioned in the first condition, that condition is met only if the rest of the consideration consists wholly of—

(a)cash not exceeding 10% of the nominal value of the non-redeemable shares so issued, or

(b)the assumption or discharge by the acquiring company of liabilities of the target company, or

(c)both of those things.

(4)The second condition is that the acquiring company is not associated with another company that is a party to arrangements with the target company relating to shares of the acquiring company issued in connection with the transfer of the undertaking or part.

(5)For this purpose—

(a)companies are associated if one has control of the other or both are controlled by the same person or persons, and

(b)arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.

The reference in paragraph (a) to control shall be construed in accordance with section 416 of the Taxes Act 1988.

(6)This paragraph is subject to paragraph 9 (withdrawal of reconstruction or acquisition relief).

Withdrawal of reconstruction or acquisition reliefE+W+S+N.I.

9(1)Where in the case of a transaction (“the relevant transaction”) that is exempt by virtue of reconstruction relief or is subject to a reduced rate of tax by virtue of acquisition relief—E+W+S+N.I.

(a)control of the acquiring company changes—

(i)before the end of the period of three years beginning with the effective date of the transaction, or

(ii)in pursuance of, or in connection with, arrangements made before the end of that period,

and

(b)at the time control of the acquiring company changes (“the relevant time”), it or a relevant associated company holds a chargeable interest—

(i)that was acquired by the acquiring company under the relevant transaction, or

(ii)that is derived from an interest so acquired,

and that has not subsequently been acquired at market value under a chargeable transaction in relation to which reconstruction or acquisition relief was available but was not claimed,

reconstruction or acquisition relief in relation to the relevant transaction, or an appropriate proportion of it, is withdrawn and tax is chargeable in accordance with this paragraph.

(2)The amount chargeable is the tax that would have been chargeable in respect of the relevant transaction but for reconstruction or acquisition relief if the chargeable consideration for that transaction had been an amount equal to the market value of the subject matter of the transaction or, as the case may be, an appropriate proportion of the tax that would have been so chargeable.

(3)In sub-paragraphs (1) and (2) “an appropriate proportion” means an appropriate proportion having regard to the subject-matter of the relevant transaction and what is held at the relevant time by the acquiring company or, as the case may be, by that company and any relevant associated companies.

(4)In this paragraph “relevant associated company”, in relation to the acquiring company, means a company—

(a)that is controlled by the acquiring company immediately before the control of that company changes, and

(b)of which control changes in consequence of the change of control of that company.

(5)In this paragraph—

(a)arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable;

(b)control” shall be construed in accordance with section 416 of the Taxes Act 1988; and

(c)references to control of a company changing are to the company becoming controlled—

(i)by a different person,

(ii)by a different number of persons, or

(iii)by two or more persons at least one of whom is not the person, or one of the persons, by whom the company was previously controlled.

(6)This paragraph has effect subject to paragraph 10 (cases in which reconstruction or acquisition relief not withdrawn).

Cases in which reconstruction or acquisition relief not withdrawnE+W+S+N.I.

10(1)Reconstruction or acquisition relief is not withdrawn under paragraph 9 in the following cases.E+W+S+N.I.

(2)The first case is where control of the acquiring company changes as a result of a share transaction that is effected as mentioned in any of paragraphs (a) to (d) of paragraph 3 of Schedule 3 (transactions in connection with divorce etc).

(3)The second case is where control of the acquiring company changes as a result of a share transaction that—

(a)is effected as mentioned in paragraph 4(1) of Schedule 3, and

(b)meets the conditions in paragraph 4(2) of that Schedule (variation of testamentary dispositions etc).

(4)The third case is where control of the acquiring company changes as a result of an exempt intra-group transfer.

An “exempt intra-group transfer” means a transfer of shares effected by an instrument that is exempt from stamp duty by virtue of section 42 of the Finance Act 1930 (c. 28) or section 11 of the Finance Act (Northern Ireland) 1954 (c. 23 (N. I.)) (transfers between associated bodies corporate).

But see paragraph 11 (withdrawal of relief in case of subsequent non-exempt transfer).

(5)The fourth case is where control of the acquiring company changes as a result of a transfer of shares to another company in relation to which share acquisition relief applies.

  • Share acquisition relief” means relief under section 77 of the Finance Act 1986 (c. 41) and a transfer is one in relation to which that relief applies if an instrument effecting the transfer is exempt from stamp duty by virtue of that provision. But see paragraph 11 (withdrawal in case of subsequent non-exempt transfer).

(6)The fifth case is where—

(a)control of the acquiring company changes as a result of a loan creditor becoming, or ceasing to be, treated as having control of the company, and

(b)the other persons who were previously treated as controlling the company continue to be so treated.

Loan creditor” here has the meaning given by section 417(7) to (9) of the Taxes Act 1988.

Withdrawal of reconstruction or acquisition relief on subsequent non-exempt transferE+W+S+N.I.

11(1)Where paragraph 10(4) (change of control of acquiring company as a result of exempt intra-group transfer) has effect to prevent the withdrawal of reconstruction or acquisition relief on a change of control of the acquiring company, but—E+W+S+N.I.

(a)a company holding shares in the acquiring company to which the exempt intra-group transfer related, or that are derived from shares to which that transfer related, ceases to be a member of the same group as the target company—

(i)before the end of the period of three years beginning with the effective date of the relevant transaction, or

(ii)in pursuance of or in connection with arrangements made before the end of that period,

and

(b)the acquiring company or a relevant associated company, at that time (“the relevant time”), holds a chargeable interest—

(i)that was transferred to the acquiring company by the relevant transaction, or

(ii)that is derived from an interest that was so transferred,

and that has not subsequently been transferred at market value by a chargeable transaction in relation to which reconstruction or acquisition relief was available but was not claimed,

reconstruction or acquisition relief in relation to the relevant transaction, or an appropriate proportion of it, is withdrawn and tax is chargeable in accordance with this paragraph.

(2)Where paragraph 10(5) (change of control of acquiring company as a result of a transfer to which share acquisition relief applies) has effect to prevent the withdrawal of reconstruction or acquisition relief on a change of control of the acquiring company, but—

(a)control of the other company mentioned in that provision changes—

(i)before the end of the period of three years beginning with the effective date of the relevant transaction, or

(ii)in pursuance of or in connection with arrangements made before the end of that period,

at a time when that company holds any shares transferred to it by the exempt transfer, or any shares derived from shares so transferred,

and

(b)the acquiring company or a relevant associated company, at that time (“the relevant time”), holds a chargeable interest—

(i)that was transferred to the acquiring company by the relevant transaction, or

(ii)that is derived from an interest that was so transferred,

and that has not subsequently been transferred at market value by a chargeable transaction in relation to which reconstruction or acquisition relief was available but was not claimed,

reconstruction or acquisition relief in relation to the relevant transaction, or an appropriate proportion of it, is withdrawn and tax is chargeable in accordance with this paragraph.

(3)The amount chargeable is the tax that would have been chargeable in respect of the relevant transaction but for reconstruction or acquisition relief if the chargeable consideration for that transaction had been an amount equal to the market value of the subject matter of the transaction or, as the case may be, an appropriate proportion of the tax that would have been so chargeable.

(4)In sub-paragraphs (1), (2) and (3) “an appropriate proportion” means an appropriate proportion having regard to the subject-matter of the relevant transaction and what is held at the relevant time by the acquiring company or, as the case may be, by that company and any relevant associated companies.

(5)In this paragraph “relevant associated company”, in relation to the acquiring company, means a company—

(a)that is controlled by the acquiring company immediately before the control of that company changes, and

(b)of which control changes in consequence of the change of control of that company.

(6)In this paragraph—

(a)arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable;

(b)control” shall be construed in accordance with section 416 of the Taxes Act 1988; and

(c)references to control of a company changing are to the company becoming controlled—

(i)by a different person,

(ii)by a different number of persons, or

(iii)by two or more persons at least one of whom is not the person, or one of the persons, by whom the company was previously controlled.

Recovery of reconstruction or acquisition relief from another group company or controlling directorE+W+S+N.I.

12(1)This paragraph applies where—E+W+S+N.I.

(a)tax is chargeable under paragraph 9 or 11 (withdrawal of reconstruction or acquisition relief),

(b)the amount so chargeable has been finally determined, and

(c)the whole or part of the amount so chargeable is unpaid six months after the date on which it became payable.

(2)The following persons may, by notice under paragraph 13, be required to pay the unpaid tax—

(a)any company that at any relevant time was a member of the same group as the acquiring company and was above it in the group structure;

(b)any person who at any relevant time was a controlling director of the acquiring company or a company having control of the acquiring company.

(3)For the purposes of sub-paragraph (2) “relevant time” means any time between effective date of the relevant transaction and the change of control by virtue of which tax is chargeable.

(4)For the purposes of sub-paragraph (2)(a) a company (“company A”) is “above” another company (“company B”) in a group structure if company B, or another company that is above company B in the group structure, is a 75% subsidiary of company A.

(5)For the purposes of sub-paragraph (2)(b)—

(a)director”, in relation to a company, has the meaning given by section 67(1) of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (read with subsection (2) of that section) and includes any person falling within section 417(5) of the Taxes Act 1988 (read with subsection (6) of that section); and

(b)controlling director”, in relation to a company, means a director of the company who has control of it (construing control in accordance with section 416 of the Taxes Act 1988).

Recovery of reconstruction or acquisition relief: supplementaryE+W+S+N.I.

13(1)The Inland Revenue may serve a notice on a person within paragraph 12(2) above requiring him within 30 days of the service of the notice to pay the amount that remains unpaid.E+W+S+N.I.

(2)Any such notice must be served before the end of the period of three years beginning with the date of the final determination mentioned in paragraph 12(1)(b).

(3)The notice must state the amount required to be paid by the person on whom the notice is served.

(4)The notice has effect—

(a)for the purposes of the recovery from that person of the amount required to be paid and of interest on that amount, and

(b)for the purposes of appeals,

as if it were a notice of assessment and that amount were an amount of tax due from that person.

(5)A person who has paid an amount in pursuance of a notice under this paragraph may recover that amount from the acquiring company.

(6)A payment in pursuance of a notice under this paragraph is not allowed as a deduction in computing any income, profits or losses for any tax purpose.

Section 68

SCHEDULE 8E+W+S+N.I.Stamp duty land tax: charities relief

Charities reliefE+W+S+N.I.

1(1)A land transaction is exempt from charge if the purchaser is a charity and the following conditions are met.E+W+S+N.I.

Relief under [F34this Schedule] is referred to in this Part as “charities relief”.

(2)The first condition is that the purchaser must intend to hold the subject-matter of the transaction for qualifying charitable purposes, that is—

(a)for use in furtherance of the charitable purposes of the purchaser or of another charity, or

(b)as an investment from which the profits are applied to the charitable purposes of the purchaser.

(3)The second condition is that the transaction must not have not been entered into for the purpose of avoiding tax under this Part (whether by the purchaser or any other person).

(4)In this paragraph a “charity” means a body or trust established for charitable purposes only.

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Amendments (Textual)

F34Words in Sch. 8 para. 1(1) substituted (with effect in accordance with s. 302(7) of the amending Act) by Finance Act 2004 (c. 12), s. 302(3)

Withdrawal of charities reliefE+W+S+N.I.

2(1)Where in the case of a transaction (“the relevant transaction”) that is exempt by virtue of [F35this Schedule]E+W+S+N.I.

(a)a disqualifying event occurs—

(i)before the end of the period of three years beginning with the effective date of the transaction, or

(ii)in pursuance of, or in connection with, arrangements made before the end of that period,

and

(b)at the time of the disqualifying event the purchaser holds a chargeable interest—

(i)that was acquired by the purchaser under the relevant transaction, or

(ii)that is derived from an interest so acquired,

charities relief in relation to the relevant transaction, or an appropriate proportion of it, is withdrawn and tax is chargeable in accordance with this paragraph.

(2)The amount chargeable is the amount that would have been chargeable in respect of the relevant transaction but for charities relief or, as the case may be, an appropriate proportion of the tax that would have been so chargeable.

(3)For the purposes of this paragraph a “disqualifying event” means—

(a)the purchaser ceasing to be established for charitable purposes only, or

(b)the subject-matter of the transaction, or any interest or right derived from it, being used or held by the purchaser otherwise than for qualifying charitable purposes.

(4)In sub-paragraphs (1) and (2) an “appropriate proportion” means an appropriate proportion having regard to—

(a)what was acquired by the purchaser under the relevant transaction and what is held by the purchaser at the time of the disqualifying event, and

(b)the extent to which what is held by the purchaser at that time becomes used or held for purposes other than qualifying charitable purposes.

(5)In this paragraph “qualifying charitable purposes” has the same meaning as in paragraph 1.

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Amendments (Textual)

F35Words in Sch. 8 para. 2(1) substituted (with effect in accordance with s. 302(7) of the amending Act) by Finance Act 2004 (c. 12), s. 302(4)

[F36Cases where first condition not fully metE+W+S+N.I.

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Amendments (Textual)

F36Sch. 8 para. 3 and cross-heading inserted (with effect in accordance with s. 302(7) of the amending Act) by Finance Act 2004 (c. 12), s. 302(1)

3(1)This paragraph applies where—E+W+S+N.I.

(a)a land transaction is not exempt from charge under paragraph 1 because the first condition in that paragraph is not met, but

(b)the purchaser (“C”) intends to hold the greater part of the subject-matter of the transaction for qualifying charitable purposes.

(2)In such a case—

(a)the transaction is exempt from charge, but

(b)for the purposes of paragraph 2 (withdrawal of charities relief) “disqualifying event” includes—

(i)any transfer by C of a major interest in the whole or any part of the subject-matter of the transaction, or

(ii)any grant by C at a premium of a low-rental lease of the whole or any part of that subject-matter,

that is not made in furtherance of the charitable purposes of C.

(3)For the purposes of sub-paragraph (2)(b)(ii)—

(a)a lease is granted “at a premium” if there is consideration other than rent, and

(b)a lease is a “low-rental”lease if the annual rent (if any) does not exceed £600 a year.

(4)In relation to a transaction that, by virtue of this paragraph, is a disqualifying event for the purposes of paragraph 2—

(a)the date of the event for those purposes is the effective date of the transaction;

(b)paragraph 2 has effect as if—

(i)in sub-paragraph (1)(b), for “at the time of” there were substituted “ immediately before ”,

(ii)in sub-paragraph (4)(a), for “at the time of” there were substituted “ immediately before and immediately after ”, and

(iii)sub-paragraph (4)(b) were omitted.

(5)In this paragraph—

  • qualifying charitable purposes” has the same meaning as in paragraph 1;

  • rent” has the same meaning as in Schedule 5 (amount of tax chargeable: rent) and “annual rent” has the same meaning as in paragraph 9(2) of that Schedule.]

[F37Charitable trustsE+W+S+N.I.

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Amendments (Textual)

F37Sch. 8 para. 4 and cross-heading inserted (with effect in accordance with s. 302(7) of the amending Act) by Finance Act 2004 (c. 12), s. 302(2)

4(1)This Schedule applies in relation to a charitable trust as it applies in relation to a charity.E+W+S+N.I.

(2)In this paragraph “charitable trust” means—

(a)a trust of which all the beneficiaries are charities, or

(b)a unit trust scheme in which all the unit holders are charities,

and “charity” has the same meaning as in paragraph 1.

(3)In this Schedule as it applies by virtue of this paragraph—

(a)references to the purchaser in paragraphs (a) and (b) of paragraph 1(2) are to the beneficiaries or unit holders, or any of them;

(b)the reference to the purchaser in paragraph 2(3)(a) is to any of the beneficiaries or unit holders;

(c)the reference in paragraph 3(2)(b) to the charitable purposes of C is to those of the beneficiaries or unit holders, or any of them.]

Section 70

SCHEDULE 9E+W+S+N.I.Stamp duty land tax: right to buy, shared ownership leases etc

Right to buy transactionsE+W+S+N.I.

1(1)In the case of a right to buy transaction—E+W+S+N.I.

(a)section 51(1) (contingent consideration to be included in chargeable consideration on assumption that contingency will occur) does not apply, and

(b)any consideration that would be payable only if a contingency were to occur, or that is payable only because a contingency has occurred, does not count as chargeable consideration.

(2)A “right to buy transaction” means—

(a)the sale of a dwelling at a discount, or the grant of a lease of a dwelling at a discount, by a relevant public sector body, or

(b)the sale of a dwelling, or the grant of a lease of a dwelling, in pursuance of the preserved right to buy.

(3)The following are relevant public sector bodies for the purposes of sub-paragraph (2)(a):

Government
A Minister of the Crown
The Scottish Ministers
A Northern Ireland department
Local Government
A local housing authority within the meaning of the Housing Act 1985 (c. 68)
A county council in England
A council constituted under section 2 of the Local Government etc.
(Scotland) Act 1994 (c. 39), the common good of such a council or any trust under its control
A district council within the meaning of the Local Government Act (Northern Ireland) 1972 (c. 9 (N.I.))
Social housing
The Housing Corporation
Scottish Homes
The Northern Ireland Housing Executive
A registered social landlord
A housing action trust established under Part 3 of the Housing Act 1988 (c. 50)
New towns and development corporations
The Commission for the New Towns
A development corporation established by an order made, or having effect as if made, under the New Towns Act 1981 (c. 64)
A development corporation established by an order made, or having effect as if made, under the New Towns (Scotland) Act 1968 (c. 16)
A new town commission established under section 7 of the New Towns Act (Northern Ireland) 1965 (c. 13 (N.I.))
An urban development corporation established by an order made under section 135 of the Local Government, Planning and Land Act 1980 (c. 65)
The Welsh Development Agency
Police
A police authority within the meaning of section 101(1) of the Police Act 1996 (c. 16)
A police authority within the meaning of section 2(1) or 19(9)(b) of the Police (Scotland) Act 1967 (c. 77)
The Northern Ireland Policing Board
Miscellaneous
An Education and Libraries Board within the meaning of the Education and Libraries (Northern Ireland) Order 1986 (S.I. 1986/594 (N.I. 3))
The United Kingdom Atomic Energy Authority
Any person mentioned in paragraphs (g), (k), (l) or (n) of section 61(11) of the Housing (Scotland) Act 1987 (c. 26)
A body prescribed for the purposes of this sub-paragraph by Treasury order.

(4)For the purposes of sub-paragraph (2)(b) the transfer of a dwelling, or the grant of a lease of a dwelling, is made in pursuance of the preserved right to buy if—

(a)the vendor is—

(i)in England and Wales, a person against whom the right to buy under Part 5 of the Housing Act 1985 (c. 68) is exercisable by virtue of section 171A of that Act, or

(ii)in Scotland, a person against whom the right to buy under section 61 of the Housing (Scotland) Act 1987 is exercisable by virtue of section 81A of that Act,

(which provide for the preservation of the right to buy on disposal to a private sector landlord),

(b)the purchaser is the qualifying person for the purposes of the preserved right to buy, and

(c)the dwelling is the qualifying dwelling-house in relation to the purchaser.

(5)A grant under section 20 or 21 of the Housing Act 1996 (c. 52) (purchase grants in respect of disposals at a discount by registered social landlords) does not count as part of the chargeable consideration for a right to buy transaction in relation to which the vendor is a registered social landlord.

Shared ownership lease: election for market value treatmentE+W+S+N.I.

2(1)This paragraph applies where—E+W+S+N.I.

(a)a lease is granted—

(i)by a qualifying body, or

(ii)in pursuance of the preserved right to buy,

(b)the conditions in sub-paragraph (2) are met, and

(c)the purchaser elects for tax to be charged in accordance with this paragraph.

(2)The conditions are as follows—

(a)the lease must be of a dwelling;

(b)the lease must give the lessee or lessees exclusive use of the dwelling;

(c)the lease must provide for the lessee or lessees to acquire the reversion;

(d)the lease must be granted partly in consideration of rent and partly in consideration of a premium calculated by reference to—

(i)the market value of the dwelling, or

(ii)a sum calculated by reference to that value;

(e)the lease must contain a statement of—

(i)the market value of the dwelling, or

(ii)the sum calculated by reference to that value,

by reference to which the premium is calculated.

(3)An election for tax to be charged in accordance with this paragraph must be included in the land transaction return made in respect of the grant of the lease, or in an amendment of that return, and is irrevocable, so that the return may not be amended so as to withdraw the election.

(4)Where this paragraph applies the chargeable consideration for the grant of the lease shall be taken to be the amount stated in the lease in accordance with sub-paragraph (2)(e)(i) or (ii).

As to the tax treatment of the acquisition of the reversion in pursuance of the lease, see paragraph 3.

(5)Section 118 (meaning of “market value”) does not apply in relation to the reference in sub-paragraph (2)(e) above to the market value of the dwelling.

Transfer of reversion under shared ownership lease where election made for market value treatmentE+W+S+N.I.

3The transfer of the reversion to the lessee or lessees under the terms of a lease to which paragraph 2 applies (shared ownership lease: election for market value treatment) is exempt from charge if—

(a)an election was made for tax to be charged in accordance with that paragraph, and

(b)any tax chargeable in respect of the grant of the lease has been paid.

Shared ownership lease: election where staircasing allowedE+W+S+N.I.

4(1)This paragraph applies where—E+W+S+N.I.

(a)a lease is granted by a qualifying body or in pursuance of the preserved right to buy,

(b)the conditions in sub-paragraph (2) below are met, and

(c)the purchaser elects for tax to be charged in accordance with this paragraph.

(2)The conditions are as follows—

(a)the lease must be of a dwelling;

(b)the lease must give the lessee or lessees exclusive use of the dwelling;

(c)the lease must provide that the lessee or lessees may, on the payment of a sum, require the terms of the lease to be altered so that the rent payable under it is reduced;

(d)the lease must be granted partly in consideration of rent and partly in consideration of a premium calculated by reference to—

(i)the premium obtainable on the open market for the grant of a lease containing the same terms as the lease but with the substitution of the minimum rent for the rent payable under the lease, or

(ii)a sum calculated by reference to that premium;

(e)the lease must contain a statement of the minimum rent and of—

(i)the premium obtainable on the open market, or

(ii)the sum calculated by reference to that premium,

by reference to which the premium is calculated.

(3)An election for tax to be charged in accordance with this paragraph must be included in the land transaction return made in respect of the grant of the lease, or in an amendment of that return, and is irrevocable, so that the return may not be amended so as to withdraw the election.

(4)Where this paragraph applies—

(a)the rent in consideration of which the lease is granted shall be taken to be the minimum rent stated in the lease in accordance with sub-paragraph (2)(e), and

(b)the chargeable consideration for the grant other than rent shall be taken to be the amount stated in the lease in accordance with sub-paragraph (2)(e)(i) or (ii).

(5)In this paragraph the “minimum rent” means the lowest rent which could become payable under the lease if it were altered as mentioned in sub-paragraph (2)(c) at the date when the lease is granted.

[F38Shared ownership lease: treatment of staircasing transactionE+W+S+N.I.

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Amendments (Textual)

F38Sch. 9 para. 4A and cross-heading inserted (with effect in accordance with s. 303(4) of the amending Act) by Finance Act 2004 (c. 12), s. 303(1)

4A(1)This paragraph applies where under a shared ownership lease—E+W+S+N.I.

(a)the lessee or lessees have the right, on the payment of a sum, to require the terms of the lease to be altered so that the rent payable under it is reduced, and

(b)by exercising that right the lessee or lessees acquire an interest, additional to one already held, calculated by reference to the market value of the dwelling and expressed as a percentage of the dwelling or its value (a “share of the dwelling”).

(2)Such an acquisition is exempt from charge if—

(a)an election was made for tax to be charged in accordance with paragraph 2 or, as the case may be, paragraph 4 and any tax chargeable in respect of the grant of the lease has been paid, or

(b)immediately after the acquisition the total share of the dwelling held by the lessee or lessees does not exceed 80%.

(3)In this paragraph “shared ownership lease” means a lease granted—

(a)by a qualifying body, or

(b)in pursuance of the preserved right to buy,

in relation to which the conditions in paragraph 2(2) or 4(2) are met.

(4)Section 118 (meaning of “market value”) does not apply in relation to the references in this paragraph to the market value of the dwelling.]

Shared ownership leases: meaning of “qualifying body” and “preserved right to buy”E+W+S+N.I.

5(1)This paragraph has effect for the purposes of paragraphs [F392, 4 and 4A] (shared ownership leases: election as to basis of taxation).E+W+S+N.I.

(2)A “qualifying body” means—

(a)a local housing authority within the meaning of the Housing Act 1985 (c. 68);

(b)a housing association within the meaning of—

(i)the Housing Associations Act 1985 (c. 69), or

(ii)Part 2 of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15));

(c)a housing action trust established under Part 3 of the Housing Act 1988 (c. 50);

(d)the Northern Ireland Housing Executive;

(e)the Commission for the New Towns;

(f)a development corporation established by an order made, or having effect as if made, under the New Towns Act 1981 (c. 64).

(3)A lease is granted “in pursuance of the preserved right to buy” if—

(a)the vendor is a person against whom the right to buy under Part 5 of the Housing Act 1985 is exercisable by virtue of section 171A of that Act (preservation of right to buy on disposal to private sector landlord),

(b)the lessee is, or lessees are, the qualifying person for the purposes of the preserved right to buy, and

(c)the lease is of a dwelling that is the qualifying dwelling-house in relation to the purchaser.

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Amendments (Textual)

F39Words in Sch. 9 para. 5(1) substituted (with effect in accordance with s. 303(4) of the amending Act) by Finance Act 2004 (c. 12), s. 303(2)

Rent to mortgage or rent to loan: chargeable considerationE+W+S+N.I.

6(1)The chargeable consideration for a rent to mortgage or rent to loan transaction is determined in accordance with this paragraph.E+W+S+N.I.

(2)A “rent to mortgage transaction” means—

(a)the transfer of a dwelling to a person, or

(b)the grant of a lease of a dwelling to a person,

pursuant to the exercise by that person of the right to acquire on rent to mortgage terms under Part 5 of the Housing Act 1985 (c. 68).

(3)The chargeable consideration for such a transaction is equal to the price that, by virtue of section 126 of the Housing Act 1985, would be payable for—

(a)a transfer of the dwelling to the person (where the rent to mortgage transaction is a transfer), or

(b)the grant of a lease of the dwelling to the person (where the rent to mortgage transaction is the grant of a lease),

if the person were exercising the right to buy under Part 5 of that Act.

(4)A “rent to loan transaction” means the execution of a heritable disposition in favour of a person pursuant to the exercise by that person of the right to purchase a house by way of the rent to loan scheme in Part 3 of the Housing (Scotland) Act 1987 (c. 26).

(5)The chargeable consideration for such a transaction is equal to the price that, by virtue of section 62 of the Housing (Scotland) Act 1987, would be payable for the house if the person were exercising the right to purchase under section 61 of that Act.

Section 78

SCHEDULE 10E+W+S+N.I.Stamp duty land tax: returns, enquiries, assessments and appeals

Part 1E+W+S+N.I.Land transaction returns

Contents of returnE+W+S+N.I.

1(1)A land transaction return must—E+W+S+N.I.

(a)be in the prescribed form,

(b)contain the prescribed information, and

(c)include a declaration by the purchaser (or each of them) that the return is to the best of his knowledge correct and complete.

[F40(1A)Sub-paragraph (1)(c) is subject to paragraphs 1A and 1B.]

(2)In sub-paragraph (1) “prescribed” means prescribed by regulations made by the Inland Revenue.

(3)The regulations may make different provision for different kinds of return.

(4)Regulations under sub-paragraph (1)(b) may require the provision of information corresponding to any of the particulars formerly required under—

(a)Schedule 2 to the Finance Act 1931 (c. 28) (requirement to deliver particulars of land transactions in Great Britain), or

(b)section 244 of the Finance Act 1994 (c. 9) (corresponding provision for Northern Ireland).

(5)The return is treated as containing any information provided by the purchaser for the purpose of completing the return.

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Amendments (Textual)

F40Sch. 10 para. 1(1A) inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Stamp Duty Land Tax (Land Transaction Returns) Regulations 2004 (S.I. 2004/3208), regs. 1, 3(a)

[F41Declaration by agentE+W+S+N.I.

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Amendments (Textual)

F41Sch. 10 paras. 1A, 1B and cross-headings inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Stamp Duty Land Tax (Land Transaction Returns) Regulations 2004 (S.I. 2004/3208), regs. 1, 3(b)

1A.(1)Where —E+W+S+N.I.

(a)the purchaser (or each of them) authorises an agent to complete a land transaction return,

(b)the purchaser (or each of them) makes a declaration that, with the exception of the effective date, the information provided in the return is to the best of his knowledge correct and complete, and

(c)the land transaction return includes a declaration by the agent that the effective date provided in the return is to the best of his knowledge correct,

the requirement in paragraph 1(1)(c) shall be deemed to be met.

(2)Sub-paragraph (1) applies only where the return is in a form specified by the Inland Revenue for the purposes of that sub-paragraph.

(3)Nothing in this paragraph affects the liability of the purchaser (or each of them) under this Part of this Act.

Declaration by the relevant Official SolicitorE+W+S+N.I.

1B.(1)Where —E+W+S+N.I.

(a)the purchaser (or any of them) is a person under a disability,

(b)the Official Solicitor is acting for the purchaser (or any of them), and

(c)the land transaction return includes a declaration by the Official Solicitor that the return is to the best of his knowledge correct and complete,

the requirement in paragraph 1(1)(c) shall be deemed to be met.

(2)Sub-paragraph (1) applies only where the return is in a form specified by the Inland Revenue for the purposes of that sub-paragraph.

(3)Nothing in this paragraph affects the liability of the purchaser (or each of them) under this Part of this Act.

(4)In this paragraph “the Official Solicitor” means the Official Solicitor to the Supreme Court of England and Wales or the Official Solicitor to the Supreme Court of Northern Ireland (as the case requires).]

Meaning of filing date and delivery of returnE+W+S+N.I.

2(1)References in this Part of this Act to the filing date, in relation to a land transaction return, are to the last day of the period within which the return must be delivered.E+W+S+N.I.

(2)References in this Part of this Act to the delivery of a land transaction return are to the delivery of a return that—

(a)complies with the requirements of paragraph 1(1) (contents of return), and

(b)is accompanied by payment of any tax required to accompany the return.

Failure to deliver return: flat-rate penaltyE+W+S+N.I.

3(1)A person who is required to deliver a land transaction return and fails to do so by the filing date is liable to a flat-rate penalty under this paragraph.E+W+S+N.I.

He may also be liable to a tax-related penalty under paragraph 4.

(2)The penalty is—

(a)£100 if the return is delivered within three months after the filing date, and

(b)£200 in any other case.

Failure to deliver return: tax-related penaltyE+W+S+N.I.

4(1)A purchaser who is required to deliver a land transaction return in respect of a chargeable transaction and fails to do so within twelve months after the filing date is liable to a tax-related penalty under this paragraph.E+W+S+N.I.

This is in addition to any flat-rate penalty under paragraph 3.

(2)The penalty is an amount not exceeding the amount of tax chargeable in respect of the transaction.

Formal notice to deliver return: daily penaltyE+W+S+N.I.

5(1)If it appears to the Inland Revenue—E+W+S+N.I.

(a)that a purchaser required to deliver a land transaction return in respect of a chargeable transaction has failed to do so, and

(b)that the filing date has now passed,

they may issue a notice requiring him to deliver a land transaction return in respect of the transaction.

(2)The notice must specify—

(a)the transaction to which it relates, and

(b)the period for complying with the notice (which must not be less than 30 days from the date of issue of the notice).

(3)If the purchaser does not comply with the notice within the specified period, the Inland Revenue may apply to the General or Special Commissioners for an order imposing a daily penalty.

(4)On such an application the Commissioners may direct that the purchaser shall be liable to a penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which he is notified of the direction.

(5)This paragraph does not affect, and is not affected by, any penalty under paragraph 3 or 4 (flat-rate or tax-related penalty for failure to deliver return).

Amendment of return by purchaserE+W+S+N.I.

6(1)The purchaser may amend a land transaction return given by him by notice to the Inland Revenue.E+W+S+N.I.

(2)The notice must be in such form, and contain such information, as the Inland Revenue may require.

[F42(2A)If the effect of the amendment would be to entitle the purchaser to a repayment of tax, the notice must be accompanied by—

(a)the contract for the land transaction; and

(b)the instrument (if any) by which that transaction was effected.]

(3)Except as otherwise provided, an amendment may not be made more than twelve months after the filing date.

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Amendments (Textual)

F42Sch. 10 para. 6(2A) inserted (with effect in accordance with reg. 1 of the amending S.I.) by The Stamp Duty Land Tax (Land Transaction Returns) Regulations 2004 (S.I. 2004/3208), regs. 1, 3(c)

Correction of return by RevenueE+W+S+N.I.

7(1)The Inland Revenue may amend a land transaction return so as to correct obvious errors or omissions in the return (whether errors of principle, arithmetical mistakes or otherwise).E+W+S+N.I.

(2)A correction under this paragraph is made by notice to the purchaser.

(3)No such correction may be made more than nine months after—

(a)the day on which the return was delivered, or

(b)if the correction is required in consequence of an amendment under paragraph 6, the day on which that amendment was made.

(4)A correction under this paragraph is of no effect if the purchaser—

(a)amends the return so as to reject the correction, or

(b)after the end of the period within which he may amend the return, but within three months from the date of issue of the notice of correction, gives notice rejecting the correction.

(5)Notice under sub-paragraph (4)(b) must be given to the officer of the Board by whom notice of the correction was given.

Penalty for incorrect or uncorrected returnE+W+S+N.I.

8(1)A purchaser who—E+W+S+N.I.

(a)fraudulently or negligently delivers in respect of a chargeable transaction a land transaction return which is incorrect, or

(b)discovers that a land transaction return delivered by him in respect of a chargeable transaction (neither fraudulently nor negligently) is incorrect and does not remedy the error without unreasonable delay,

is liable to a tax-related penalty.

(2)The penalty is an amount not exceeding the amount of tax understated, that is, the difference between—

(a)the amount of tax chargeable in respect of the transaction, and

(b)the amount that would have been chargeable on the basis of the return delivered.

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Modifications etc. (not altering text)

C1Sch. 10 para. 8 restricted (22.7.2004 for specified purposes) by Finance Act 2004 (c. 12), ss. 313(4)(f), 319(1)(2) (with s. 314)

Part 2E+W+S+N.I.Duty to keep and preserve records

Duty to keep and preserve recordsE+W+S+N.I.

9(1)A purchaser who is required to deliver a land transaction return must—E+W+S+N.I.

(a)keep such records as may be needed to enable him to deliver a correct and complete return, and

(b)preserve those records in accordance with this paragraph.

(2)The records must be preserved for six years after the effective date of the transaction and until any later date on which—

(a)an enquiry into the return is completed, or

(b)if there is no enquiry, the Inland Revenue no longer have power to enquire into the return.

(3)The records required to be kept and preserved under this paragraph include—

(a)relevant instruments relating to the transaction, in particular, any contract or conveyance, and any supporting maps, plans or similar documents;

(b)records of relevant payments, receipts and financial arrangements.

Preservation of information instead of original recordsE+W+S+N.I.

10(1)The duty under paragraph 9 to preserve records may be satisfied by the preservation of the information contained in them.E+W+S+N.I.

(2)Where information is so preserved a copy of any document forming part of the records is admissible in evidence in any proceedings before the Commissioners to the same extent as the records themselves.

Penalty for failure to keep and preserve recordsE+W+S+N.I.

11(1)A person who fails to comply with paragraph 9 in relation to a transaction is liable to a penalty not exceeding £3,000, subject to the following exception.E+W+S+N.I.

(2)No penalty is incurred if the Inland Revenue are satisfied that any facts that they reasonably require to be proved, and that would have been proved by the records, are proved by other documentary evidence provided to them.

Part 3E+W+S+N.I.Enquiry into return

Notice of enquiryE+W+S+N.I.

12(1)The Inland Revenue may enquire into a land transaction return if they give notice of their intention to do so (“notice of enquiry”)—E+W+S+N.I.

(a)to the purchaser,

(b)before the end of the enquiry period.

(2)The enquiry period is the period of nine months—

(a)after the filing date, if the return was delivered on or before that date;

(b)after the date on which the return was delivered, if the return was delivered after the filing date;

(c)after the date on which the amendment was made, if the return is amended under paragraph 6 (amendment by purchaser).

[F43This is subject to the following qualification.]

[F44(2A)If—

(a)the Inland Revenue give notice, within the period specified in sub-paragraph (2), of their intention to enquire into a land transaction return delivered under section 80 (adjustment where contingency ceases or consideration is ascertained), 81 (further return where relief withdrawn) or 81A (return or further return in consequence of later linked transaction), and

(b)it appears to the Inland Revenue to be necessary to give a notice under this paragraph in respect of an earlier land transaction return in respect of the same land transaction,

a notice may be given notwithstanding that the period referred to in sub-paragraph (2) has elapsed in relation to that earlier land transaction.]

(3)A return that has been the subject of one notice of enquiry may not be the subject of another, except one given in consequence of an amendment (or another amendment) of the return under paragraph 6.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F43Words in Sch. 10 para. 12(2) added (with effect in accordance with reg. 1 of the amending S.I.) by The Stamp Duty Land Tax (Land Transaction Returns) Regulations 2004 (S.I. 2004/3208), regs. 1, 4(2)(a)

Scope of enquiryE+W+S+N.I.

13(1)An enquiry extends to anything contained in the return, or required to be contained in the return, that relates—E+W+S+N.I.

(a)to the question whether tax is chargeable in respect of the transaction, or

(b)to the amount of tax so chargeable.

This is subject to the following exception.

(2)If the notice of enquiry is given as a result of an amendment of the return under paragraph 6 (amendment by purchaser)—

(a)at a time when it is no longer possible to give notice of enquiry under paragraph 12, or

(b)after an enquiry into the return has been completed,

the enquiry into the return is limited to matters to which the amendment relates or that are affected by the amendment.

Notice to produce documents etc for purposes of enquiryE+W+S+N.I.

14(1)If the Inland Revenue give notice of enquiry into a land transaction return, they may by notice in writing require the purchaser—E+W+S+N.I.

(a)to produce to them such documents in his possession or power, and

(b)to provide them with such information, in such form,

as they may reasonably require for the purposes of the enquiry.

(2)A notice under this paragraph (which may be given at the same time as the notice of enquiry) must specify the time (which must not be less than 30 days) within which the purchaser is to comply with it.

(3)In complying with a notice under this paragraph copies of documents may be produced instead of originals, but—

(a)the copies must be photographic or other facsimiles, and

(b)the Inland Revenue may by notice require the original to be produced for inspection.

A notice under paragraph (b) must specify the time (which must not be less than 30 days) within which the purchaser is to comply with it.

(4)The Inland Revenue may take copies of, or make extracts from, any documents produced to them under this paragraph.

(5)A notice under this paragraph does not oblige a purchaser to produce documents or provide information relating to the conduct of—

(a)any pending appeal by him, or

(b)any pending referral to the Special Commissioners under paragraph 19 to which he is a party.

Appeal against notice to produce documents etcE+W+S+N.I.

15(1)An appeal may be brought against a requirement imposed by a notice under paragraph 14 to produce documents or provide information.E+W+S+N.I.

(2)Notice of appeal must be given—

(a)in writing,

(b)within 30 days after the issue of the notice appealed against,

(c)to the officer of the Board by whom that notice was given.

(3)An appeal under this paragraph shall be heard and determined in the same way as an appeal against an assessment.

(4)On an appeal under this paragraph the Commissioners—

(a)shall set aside the notice so far as it requires the production of documents, or the provision of information, that appears to them not reasonably required for the purposes of the enquiry, and

(b)shall confirm the notice so far as it requires the production or documents, or the provision of information, that appears to them reasonably required for the purposes of the enquiry.

(5)A notice that is confirmed by the Commissioners (or so far as it is confirmed) has effect as if the period specified in it for complying was 30 days from the determination of the appeal.

(6)The decision of the Commissioners on an appeal under this paragraph is final.

Penalty for failure to produce documents etcE+W+S+N.I.

16(1)A person who fails to comply with a notice under paragraph 14 (notice to produce documents etc for purposes of enquiry) is liable—E+W+S+N.I.

(a)to a penalty of £50, and

(b)if the failure continues after a penalty is imposed under paragraph (a) above, to a further penalty or penalties not exceeding the amount specified in sub-paragraph (2) below for each day on which the failure continues.

(2)The amount referred to in sub-paragraph (1)(b) is—

(a)£30 if the penalty is determined by an officer of the Board, and

(b)£150 if the penalty is determined by the court.

(3)No penalty shall be imposed under this paragraph in respect of a failure at any time after the failure has been remedied.

Amendment of self-assessment during enquiry to prevent loss of taxE+W+S+N.I.

17(1)If at a time when an enquiry is in progress into a land transaction return the Inland Revenue form the opinion—E+W+S+N.I.

(a)that the amount stated in the self-assessment contained in the return as the amount of tax payable is insufficient, and

(b)that unless the assessment is immediately amended there is likely to be a loss of tax to the Crown,

they may by notice in writing to the purchaser amend the assessment to make good the deficiency.

(2)In the case of an enquiry that under paragraph 13(2) is limited to matters arising from an amendment of the return, sub-paragraph (1) above applies only so far as the deficiency is attributable to the amendment.

(3)For the purposes of this paragraph the period during which an enquiry is in progress is the whole of the period—

(a)beginning with the day on which notice of enquiry is given, and

(b)ending with the day on which the enquiry is completed.

Amendment of return by taxpayer during enquiryE+W+S+N.I.

18(1)This paragraph applies if a return is amended under paragraph 6 (amendment by purchaser) at a time when an enquiry is in progress into the return.E+W+S+N.I.

(2)The amendment does not restrict the scope of the enquiry but may be taken into account (together with any matters arising) in the enquiry.

(3)So far as the amendment affects the amount stated in the self-assessment included in the return as the amount of tax payable, it does not take effect while the enquiry is in progress and—

(a)if the Inland Revenue state in the closure notice that they have taken the amendments into account and that—

(i)the amendment has been taken into account in formulating the amendments contained in the notice, or

(ii)their conclusion is that the amendment is incorrect,

the amendment shall not take effect;

(b)otherwise, the amendment takes effect when the closure notice is issued.

(4)For the purposes of this paragraph the period during which an enquiry is in progress is the whole of the period—

(a)beginning with the day on which notice of enquiry is given, and

(b)ending with the day on which the enquiry is completed.

Referral of questions to Special Commissioners during enquiryE+W+S+N.I.

19(1)At any time when an enquiry is in progress into a land transaction return any question arising in connection with the subject-matter of the enquiry may be referred to the Special Commissioners for their determination.E+W+S+N.I.

(2)Notice of referral must be given—

(a)jointly by the purchaser and the Inland Revenue,

(b)in writing,

(c)to the Special Commissioners.

(3)The notice of referral must specify the question or questions being referred.

(4)More than one notice of referral may be given under this paragraph in relation to an enquiry.

(5)For the purposes of this paragraph the period during which an enquiry is in progress is the whole of the period—

(a)beginning with the day on which the notice of enquiry was given, and

(b)ending with the day on which the enquiry is completed.

Withdrawal of notice of referralE+W+S+N.I.

20(1)The Inland Revenue or the purchaser may withdraw a notice of referral under paragraph 19 by notice in accordance with this paragraph.E+W+S+N.I.

(2)Notice of withdrawal must be given—

(a)in writing,

(b)to the other party to the referral and to the Special Commissioners,

(c)before the first hearing by the Special Commissioners in relation to the referral.

Effect of referral on enquiryE+W+S+N.I.

21(1)While proceedings on a referral under paragraph 19 are in progress in relation to an enquiry—E+W+S+N.I.

(a)no closure notice shall be given in relation to the enquiry, and

(b)no application may be made for a direction to give such a notice.

(2)For the purposes of this paragraph proceedings on a referral are in progress where—

(a)notice of referral has been given,

(b)the notice has not been withdrawn, and

(c)the questions referred have not been finally determined.

(3)For the purposes of sub-paragraph (2)(c) a question referred is finally determined when—

(a)it has been determined by the Special Commissioners, and

(b)there is no further possibility of the determination being varied or set aside (disregarding any power to grant permission to appeal out of time).

Effect of determinationE+W+S+N.I.

22(1)The determination of a question referred to the Special Commissioners under paragraph 19 is binding on the parties to the referral in the same way, and to the same extent, as a decision on a preliminary issue in an appeal.E+W+S+N.I.

(2)The determination shall be taken into account by the Inland Revenue—

(a)in reaching their conclusions on the enquiry, and

(b)in formulating any amendments of the return required to give effect to those conclusions.

(3)Any right of appeal under paragraph 35 (appeals against assessments etc) may not be exercised so as to reopen the question determined except to the extent (if any) that it could be reopened if it had been determined as a preliminary issue in that appeal.

Completion of enquiryE+W+S+N.I.

23(1)An enquiry under paragraph 12 is completed when the Inland Revenue by notice (a “closure notice”) inform the purchaser that they have completed their enquiries and state their conclusions.E+W+S+N.I.

(2)A closure notice must either—

(a)state that in the opinion of the Inland Revenue no amendment of the return is required, or

(b)make the amendments of the return required to give effect to their conclusions.

(3)A closure notice takes effect when it is issued.

Direction to complete enquiryE+W+S+N.I.

24(1)The purchaser may apply to the General or Special Commissioners for a direction that the Inland Revenue give a closure notice within a specified period.E+W+S+N.I.

(2)Any such application shall be heard and determined in the same way as an appeal.

(3)The Commissioners hearing the application shall give a direction unless they are satisfied that the Inland Revenue have reasonable grounds for not giving a closure notice within a specified period.

Part 4E+W+S+N.I.Revenue determination if no return delivered

Determination of tax chargeable if no return deliveredE+W+S+N.I.

25(1)If in the case of a chargeable transaction no land transaction return is delivered by the filing date, the Inland Revenue may make a determination (a “Revenue determination”) to the best of their information and belief of the amount of tax chargeable in respect of the transaction.E+W+S+N.I.

(2)Notice of the determination must be served on the purchaser, stating the date on which it is issued.

(3)No Revenue determination may be made more than six years after the effective date of the transaction.

Determination to have effect as a self-assessmentE+W+S+N.I.

26(1)A Revenue determination has effect for enforcement purposes as if were a self-assessment by the purchaser.E+W+S+N.I.

(2)In sub-paragraph (1) “for enforcement purposes” means for the purposes of the following provisions of this Part of this Act—

(a)the provisions of this Schedule providing for tax-related penalties;

(b)section 87 (interest on unpaid tax);

(c)section 91 and Schedule 12 (collection and recovery of unpaid tax etc).

(3)Nothing in this paragraph affects any liability of the purchaser to a penalty for failure to deliver a return.

Determination superseded by actual self-assessmentE+W+S+N.I.

27(1)If after a Revenue determination has been made the purchaser delivers a land transaction return in respect of the transaction, the self-assessment included in that return supersedes the determination.E+W+S+N.I.

(2)Sub-paragraph (1) does not apply to a return delivered—

(a)more than six years after the day on which the power to make the determination first became exercisable, or

(b)more than twelve months after the date of the determination,

whichever is the later.

(3)Where—

(a)proceedings have been begun for the recovery of any tax charged by a Revenue determination, and

(b)before the proceedings are concluded the determination is superseded by a self-assessment,

the proceedings may be continued as if they were proceedings for the recovery of so much of the tax charged by the self-assessment as is due and payable and has not been paid.

Part 5E+W+S+N.I.Revenue assessments

Assessment where loss of tax discoveredE+W+S+N.I.

28(1)If the Inland Revenue discover as regards a chargeable transaction that—E+W+S+N.I.

(a)an amount of tax that ought to have been assessed has not been assessed, or

(b)an assessment to tax is or has become insufficient, or

(c)relief has been given that is or has become excessive,

they may make an assessment (a “discovery assessment”) in the amount or further amount that ought in their opinion to be charged in order to make good to the Crown the loss of tax.

(2)The power to make a discovery assessment in respect of a transaction for which the purchaser has delivered a return is subject to the restrictions specified in paragraph 30.

Assessment to recover excessive repayment of taxE+W+S+N.I.

29(1)If an amount of tax has been repaid to any person that ought not to have been repaid to him, that amount may be assessed and recovered as if it were unpaid tax.E+W+S+N.I.

(2)Where the repayment was made with interest, the amount assessed and recovered may include the amount of interest that ought not to have been paid.

(3)The power to make an assessment under this paragraph in respect of a transaction for which the purchaser has delivered a land transaction return is subject to the restrictions specified in paragraph 30.

Restrictions on assessment where return deliveredE+W+S+N.I.

30(1)If the purchaser has delivered a land transaction return in respect of the transaction in question, an assessment under paragraph 28 or 29 in respect of the transaction—E+W+S+N.I.

(a)may only be made in the two cases specified in sub-paragraphs (2) and (3) below, and

(b)may not be made in the circumstances specified in sub-paragraph (5) below.

(2)The first case is where the situation mentioned in paragraph 28(1) or 29(1) is attributable to fraudulent or negligent conduct on the part of—

(a)the purchaser,

(b)a person acting on behalf of the purchaser, or

(c)a person who was a partner of the purchaser at the relevant time.

(3)The second case is where the Inland Revenue, at the time they—

(a)ceased to be entitled to give a notice of enquiry into the return, or

(b)completed their enquiries into the return,

could not have been reasonably expected, on the basis of the information made available to them before that time, to be aware of the situation mentioned in paragraph 28(1) or 29(1).

(4)For this purpose information is regarded as made available to the Inland Revenue if—

(a)it is contained in a land transaction return made by the purchaser,

(b)it is contained in any documents produced or information provided to the Inland Revenue for the purposes of an enquiry into any such return, or

(c)it is information the existence of which, and the relevance of which as regards the situation mentioned in paragraph 28(1) or 29(1)—

(i)could reasonably be expected to be inferred by the Inland Revenue from information falling within paragraphs (a) or (b) above, or

(ii)are notified in writing to the Inland Revenue by the purchaser or a person acting on his behalf.

(5)No assessment may be made if—

(a)the situation mentioned in paragraph 28(1) or 29(1) is attributable to a mistake in the return as to the basis on which the tax liability ought to have been computed, and

(b)the return was in fact made on the basis or in accordance with the practice generally prevailing at the time it was made.

Time limit for assessmentE+W+S+N.I.

31(1)The general rule is that no assessment may be made more than six years after the effective date of the transaction to which it relates.E+W+S+N.I.

(2)In a case involving fraud or negligence on the part of—

(a)the purchaser, or

(b)a person acting on behalf of the purchaser, or

(c)a person who was a partner of the purchaser at the relevant time,

an assessment may be made up to 21 years after the effective date of the transaction to which it relates.

(3)An assessment under paragraph 29 (assessment to recover excessive repayment of tax) is not out of time—

(a)in a case where notice of enquiry is given into the land transaction return delivered by the person concerned, if it is made before the enquiry is completed;

(b)in any case, if it is made within one year after the repayment in question was made.

(4)Where the purchaser has died—

(a)any assessment on the personal representatives of the deceased must be made within three years after his death, and

(b)an assessment shall not be made by virtue of sub-paragraph (2) in respect of a transaction of which the effective date was more than six years before the death.

(5)Any objection to the making of an assessment on the ground that the time limit for making it has expired can only be made on an appeal against the assessment.

Assessment procedureE+W+S+N.I.

32(1)Notice of an assessment must be served on the purchaser.E+W+S+N.I.

(2)The notice must state—

(a)the tax due,

(b)the date on which the notice is issued, and

(c)the time within which any appeal against the assessment must be made.

(3)After notice of the assessment has been served on the purchaser, the assessment may not be altered except in accordance with the express provisions of this Part of this Act.

(4)Where an officer of the Board has decided to make an assessment to tax, and has taken all other decisions needed for arriving at the amount of the assessment, he may entrust to some other officer of the Board responsibility for completing the assessing procedure, whether by means involving the use of a computer or otherwise, including responsibility for serving notice of the assessment.

Part 6E+W+S+N.I.Relief in case of excessive assessment

Relief in case of double assessmentE+W+S+N.I.

33(1)A person who believes he has been assessed to tax more than once in respect of the same matter may make a claim [F45to the Inland Revenue for relief against any double charge] .E+W+S+N.I.

F46(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F46(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)An appeal against a decision of the Inland Revenue on a claim for relief under this paragraph may be brought to the Commissioners having jurisdiction to hear an appeal relating to the assessment, or the later of the assessments, to which the claim relates.

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F45Words in Sch. 10 para. 33(1) substituted (22.7.2004) by Finance Act 2004 (c. 12), s. 299(7)(a)

F46Sch. 10 para. 33(2)(3) repealed (22.7.2004) by Finance Act 2004 (c. 12), s. 299(7)(b), Sch. 42 Pt. 4(2)

Relief in case of mistake in returnE+W+S+N.I.

34(1)A person who believes he has paid tax under an assessment that was excessive by reason of some mistake in a land transaction return may make a claim [F47to the Inland Revenue for relief against any excessive charge].E+W+S+N.I.

(2)The claim must be made F48... not more than six years after the effective date of the transaction.

F49(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)No relief shall be given under this paragraph—

(a)in respect of a mistake as to the basis on which the liability of the claimant ought to have been computed when the return was in fact made on the basis or in accordance with the practice generally prevailing at the time when it was made, or

(b)in respect of a mistake in a claim or election included in the return.

(5)In determining a claim under this paragraph the Inland Revenue shall have regard to all the relevant circumstances of the case.

They shall, in particular, consider whether the granting of relief would result in amounts being excluded from charge to tax.

(6)On an appeal against the Inland Revenue’s decision on the claim, the Special Commissioners shall hear and determine the claim in accordance with the same principles as apply to the determination by the Inland Revenue of claims under this paragraph.

Annotations: Help about Annotation
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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F47Words in Sch. 10 para. 34(1) substituted (22.7.2004) by Finance Act 2004 (c. 12), s. 299(8)(a)

F48Words in Sch. 10 para. 34(2) repealed (22.7.2004) by Finance Act 2004 (c. 12), s. 299(8)(b), Sch. 42 Pt. 4(2)

F49Sch. 10 para. 34(3) repealed (22.7.2004) by Finance Act 2004 (c. 12), s. 299(8)(c), Sch. 42 Pt. 4(2)

Part 7E+W+S+N.I.Appeals against Revenue decisions on tax

Right of appealE+W+S+N.I.

35(1)An appeal may be brought against—E+W+S+N.I.

(a)an amendment of a self-assessment under paragraph 17 (amendment by Revenue during enquiry to prevent loss of tax),

(b)a conclusion stated or amendment made by a closure notice,

(c)a discovery assessment, F50...

(d)an assessment under paragraph 29 (assessment to recover excessive repayment)[F51, or

(e)a Revenue determination under paragraph 25 (determination of tax chargeable if no return delivered).]

(2)The appeal lies to the General or Special Commissioners.

(3)An appeal under sub-paragraph (1)(a) against an amendment of a self-assessment made while an enquiry is in progress shall not be heard and determined until the enquiry is completed.

Annotations: Help about Annotation
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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

F50Word in Sch. 10 para. 35(1)(c) omitted (with effect in accordance with reg. 1 of the amending S.I.) by virtue of The Stamp Duty Land Tax (Land Transaction Returns) Regulations 2004 (S.I. 2004/3208), regs. 1, 5(2)(a)

F51Sch. 10 para. 35(1)(e) and word added (with effect in accordance with reg. 1 of the amending S.I.) by The Stamp Duty Land Tax (Land Transaction Returns) Regulations 2004 (S.I. 2004/3208), regs. 1, 5(2)(b)

Notice of appealE+W+S+N.I.

36(1)Notice of an appeal under paragraph 35 must be given—E+W+S+N.I.

(a)in writing,

(b)within 30 days after the specified date,

(c)to the relevant officer of the Board.

(2)In relation to an appeal under paragraph 35(1)(a)—

(a)the specified date is the date on which the notice of amendment was issued, and

(b)the relevant officer of the Board is the officer by whom the notice of amendment was given.

(3)In relation to an appeal under paragraph 35(1)(b)—

(a)the specified date is the date on which the closure notice was issued, and

(b)the relevant officer of the Board is the officer by whom the closure notice was given.

(4)In relation to an appeal under paragraph 35(1)(c) or (d)—

(a)the specified date is the date on which the notice of assessment was issued, and

(b)the relevant officer of the Board is the officer by whom the notice of assessment was given.

[F52(4A)In relation to an appeal under paragraph 35(1)(e) —

(a)the specified date is the date on which the Revenue determination was issued, and

(b)the relevant officer of the Board is the officer by whom the determination was made.]

(5)The notice of appeal must specify the grounds of appeal.

[F53(5A)The only grounds on which an appeal lies under paragraph 35(1)(e) are that—

(a)the purchase to which the determination relates did not take place,

(b)the interest in the land to which the determination relates has not been purchased,

(c)the contract for the purchase of the interest to which the determination relates has not been substantially performed, or

(d)the land transaction is one for which a self-certificate is due (for example, because the land transaction is exempt from charge under Schedule 3).]

(6)On the hearing of the appeal the Commissioners may allow the appellant to put forward grounds not specified in the notice, and take them into consideration, if satisfied that the omission was not deliberate or unreasonable.

Annotations: Help about Annotation
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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

Settling of appeals by agreementE+W+S+N.I.

37(1)If, before an appeal under paragraph 35 is determined, the appellant and the Inland Revenue agree that the decision appealed against—E+W+S+N.I.

(a)should be upheld without variation,

(b)should be varied in a particular manner, or

(c)should be discharged or cancelled,

the same consequences shall follow, for all purposes, as would have followed if, at the time the agreement was come to, the Commissioners had determined the appeal and had upheld the decision without variation, varied it in that manner or discharged or cancelled it, as the case may be.

(2)Sub-paragraph (1) does not apply if, within 30 days from the date when the agreement was come to, the appellant gives notice in writing to the Inland Revenue that he wishes to withdraw from the agreement.

(3)Where the agreement is not in writing—

(a)sub-paragraphs (1) and (2) do not apply unless the fact that an agreement was come to, and the terms agreed, are confirmed by notice in writing given by the Inland Revenue to the appellant or by the appellant to the Inland Revenue, and

(b)the references in those provisions to the time when the agreement was come to shall be read as references to the time when the notice of confirmation was given.

(4)Where—

(a)the appellant notifies the Inland Revenue, orally or in writing, that he does not wish to proceed with the appeal, and

(b)the Inland Revenue do not, within 30 days after that notification, give the appellant notice in writing indicating that they are unwilling that the appeal should be withdrawn,

the provisions of sub-paragraphs (1) to (3) have effect as if, at the date of the appellant’s notification, the appellant and the Inland Revenue had come to an agreement (orally or in writing, as the case may be) that the decision under appeal should be upheld without variation.

(5)References in this paragraph to an agreement being come to with an appellant, and to the giving of notice or notification by or to the appellant, include references to an agreement being come to, or notice or notification being given by or to, a person acting on behalf of the appellant in relation to the appeal.

Recovery of tax not postponed by appealE+W+S+N.I.

38(1)