Details of the Section
2.Subsection (1) provides for amendments to be made to section 45 of FA 2003 and for those amendments to apply in relation to (i) agreements for the grant or assignment of an option or (ii) a transfer of rights (subsale) entered into between 21 March 2012 and but before the day on which the Finance Bill receives Royal Assent.
3.Subsection (2) amends section 45(1A) to exclude agreements for the grant or assignment of an option from being a transfer of rights within section 45(1)(b).
4.Subsection (4) inserts new subsections (3A), (3B) and (3C) into section 45.
5.New subsection 45(3 A) (of FA 2003) provides that the disregard at subsection 45(3) does not apply where -
the secondary contract is substantially performed but not completed at the same time as the substantial performance or completion of the original contract,
the original purchaser (or a person connected with them) is in possession of the land at any time after substantial performance or completion of the secondary contract, and
the main purpose, or one of the main purposes, of the original purchaser in entering into the subsale is the obtaining of a tax advantage.
6.The result of these changes is that the completion of the original contract is not disregarded and the purchaser in that transaction is liable to pay any SDLT due on their purchase.
7.Subsections (5) to (7) provide that the new subsection 45(3A) applies both where only part of the land is subsold and in cases of successive subsales.
8.Subsections (8) to (12) provide that, in cases to which the amendment to section 45(1A) or new subsection 45(3A) apply, the purchaser under the original contract must submit a land transaction return or, if one has been submitted already, an amendment to it, no later than 30 September 2013.
