Modifications etc. (not altering text)
C1Pt. 4 construed as one with S.I. 2006/575, reg. 43 (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 43(4)
C2Pt. 4 modified (coming into force at 2 p.m. on 6.12.2006) by The Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2006 (S.I. 2006/3237), regs. 1, 2, Sch.
(1)This section applies where arrangements are entered into between [F3a person] and a financial institution under which—
(a)the institution and the [F2person] purchase a major interest in land as owners in common (“the first transaction”),
(b)the institution and the [F2person] enter into an agreement under which the [F2person] has a right to occupy the land exclusively ( “the second transaction”), and
(c)the institution and the [F2person] enter into an agreement under which the [F2person] has a right to require the institution to transfer to the [F2person] (in one transaction or a series of transactions) the whole interest purchased under the first transaction.
(2)The first transaction is exempt from charge if the vendor is—
(a)the [F2person], or
(b)another financial institution by whom the interest was acquired under arrangements of the kind mentioned in subsection (1) entered into between it and the [F2person].
(3)The second transaction is exempt from charge if the provisions of this Part relating to the first transaction are complied with (including the payment of any tax chargeable).
(4)Any transfer to the [F2person] that results from the exercise of the right mentioned in subsection (1)(c) (“a further transaction”) is exempt from charge if—
(a)the provisions of this Part relating to the first transaction are complied with, and
(b)at all times between the first and the further transaction—
(i)the interest purchased under the first transaction is held by a financial institution and the [F2person] as owners in common, and
(ii)the land is occupied by the [F2person] under the agreement mentioned in subsection (1)(b).
(5)The agreement mentioned in subsection (1)(c) is not to be treated—
(a)as substantially performed unless and until the whole interest purchased by the institution under the first transaction has been transferred (and accordingly section 44(5) does not apply), or
(b)as a distinct land transaction by virtue of section 46 (options and rights of pre-emption).
[F4(6)The requirements of subsection (1), or (4)(b)(ii), are not met if the [F2person] enters into the arrangements, or occupies the land, as partner and any of the other partners is not [F3a person].]
(7)A further transaction that is exempt from charge by virtue of subsection (4) is not a notifiable transaction unless the transaction involves the transfer to the [F2person] of the whole interest purchased by the institution under the first transaction, so far as not transferred by a previous further transaction.
F5(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9)References in this section to [F3a person] shall be read, in relation to times after the death of the [F2person] concerned, as references to his personal representatives.
(10)This section applies only in relation to land in Scotland.]
Textual Amendments
F1S. 72A inserted (with effect in accordance with Sch. 8 para. 7 of the amending Act) by Finance Act 2005 (c. 7), Sch. 8 para. 4
F2Word in ss. 71A-73 substituted (with effect in accordance with s. 168(5) of the amending Act) by Finance Act 2006 (c. 25), s. 168(1)
F3Words in ss. 71A-73 substituted (with effect in accordance with s. 168(5) of the amending Act) by Finance Act 2006 (c. 25), s. 168(1)
F4S. 72A(6) ceased to have effect (with effect in accordance with s. 168(5) of the amending Act) by virtue of Finance Act 2006 (c. 25), s. 168(2)
F5S. 72A(8) omitted (with effect in accordance with Sch. 21 para. 6 of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 21 para. 3(1)