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U.K.

Finance Act 2003

2003 CHAPTER 14

An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance.

[10th July 2003]

Most Gracious Sovereign,

We, Your Majesty’s most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty’s public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Modifications etc. (not altering text)

Part 1 U.K.Excise duties

Tobacco products dutyU.K.

1Rates of tobacco products dutyU.K.

(1)For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 (c. 7) substitute—

Table
1. CigarettesAn amount equal to 22 per cent of the retail price plus £96.88 per thousand cigarettes.
2. Cigars£141.10 per kilogram.
3. Hand-rolling tobacco£101.42 per kilogram.
4. Other smoking tobacco and chewing tobacco£62.03 per kilogram.

(2)This section shall be deemed to have come into force at 6 o'clock in the evening of 9th April 2003.

Alcoholic liquor dutiesU.K.

2Rate of duty on beerU.K.

(1)In section 36(1AA)(a) of the Alcoholic Liquor Duties Act 1979 (c. 4) (rate of duty on beer), for “£11.89” substitute “ £12.22 ”.

(2)This section shall be deemed to have come into force at midnight on 13th April 2003.

3Rates of duty on wine and made-wineU.K.

(1)For Part 1 of the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (rates of duty on wine and made-wine) substitute—

Part 1 U.K.Wine and made-wine of a strength not exceeding 22 per cent
Description of wine or made-wineRates of duty per hectolitre
£
Wine or made-wine of a strength not exceeding 4 per cent48.91
Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent67.25
Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not sparkling158.69
Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent166.70
Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding 15 per cent220.54
Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent211.58

(2)This section shall be deemed to have come into force at midnight on 13th April 2003.

Hydrocarbon oil dutiesU.K.

4Rates of hydrocarbon oil dutiesU.K.

(1)In section 6(1A) of the Hydrocarbon Oil Duties Act 1979 (c. 5) (rates of duty)—

(a)in paragraph (a) (ultra low sulphur petrol) for “£0.4582” substitute “ £0.4710 ”,

(b)in paragraph (b) (other light oil) for “£0.5468” substitute “ £0.5620 ”,

(c)in paragraph (c) (ultra low sulphur diesel) for “£0.4582” substitute “ £0.4710 ”, and

(d)in paragraph (d) (other heavy oil) for “£0.5182” substitute “ £0.5327 ”.

(2)In section 6AA(3) of that Act (biodiesel duty) for “£0.2582” substitute “ £0.2710 ”.

(3)In section 13A(1) of that Act (rebate on unleaded petrol) for “£0.0586” substitute “ £0.0601 ”.

(4)This section shall come into force on 1st October 2003.

5Rebates on hydrocarbon oil dutiesU.K.

(1)In section 11(1) of the Hydrocarbon Oil Duties Act 1979 (rebate on heavy oil)—

(a)in paragraph (a) (fuel oil) for “£0.0274” substitute “ £0.0382 ”,

(b)in paragraph (b) (gas oil: general) for “£0.0313” substitute “ £0.0422 ”, and

(c)in paragraph (ba) (ultra low sulphur diesel) for “£0.0313” substitute “ £0.0422 ”.

(2)In section 14(1) of that Act (furnace fuel) for “£0.0274” substitute “ £0.0382 ”.

(3)This section shall be deemed to have come into force at 6 o'clock in the evening of 9th April 2003.

Betting and gaming dutiesU.K.

6General betting duty and pool betting duty: relief for lossesU.K.

(1)Part 1 of the Betting and Gaming Duties Act 1981 (c. 63) (betting duties) is amended as follows.

(2)In section 5 (net stake receipts) at the end of subsection (3) (negative net stake receipts to be disregarded) insert “ except as provided for by section 5AA ”.

(3)After that section insert—

5AARelief for losses

(1)This section applies where the amount of a person’s net stake receipts for an accounting period in respect of a class of bets (calculated in accordance with section 5(1)) is a negative amount.

(2)That amount shall be carried forward to the following accounting period and, to the extent that it does not exceed it, deducted from the amount of the person’s net stake receipts in respect of the same class of bets for that period.

(3)If the amount of those net stake receipts for that following accounting period—

(a)is not a positive amount, or

(b)is less than the amount carried forward,

the amount carried forward or, as the case may be, the balance of it shall be treated for the purposes of this section as if it were a negative amount of net stake receipts for that period in respect of the same class of bets..

(4)Omit section 5A (multiple bets) (which becomes unnecessary as a result of the amendment made by subsection (3) above).

(5)After section 7 (duty charged on net pool betting receipts) insert—

7ZARelief for losses

(1)This section applies where the amount of a person’s net pool betting receipts for an accounting period is a negative amount.

(2)That amount shall be carried forward to the following accounting period and, to the extent that it does not exceed it, deducted from the amount of the person’s net pool betting receipts for that period.

(3)If the amount of the net pool betting receipts for that following accounting period—

(a)is not a positive amount, or

(b)is less than the amount carried forward,

the amount carried forward or, as the case may be, the balance of it shall be treated for the purposes of this section as if it were a negative amount of net pool betting receipts for that period..

(6)The amendments made by this section apply in relation to any accounting period beginning on or after 1st September 2003 for which the net stake receipts in respect of a particular class of bets, or (as the case may be) the net pool betting receipts, is a negative amount.

7General betting duty: betting exchangesU.K.

(1)Part 1 of the Betting and Gaming Duties Act 1981 (c. 63) (betting duties) is amended as follows.

(2)After section 5AA (inserted by section 6 above) insert—

5ABBetting exchanges

(1)This section applies where—

(a)one person makes a bet with another person using facilities provided by a third person in the course of a business, and

(b)that business is one that does not involve the provision of premises for use by persons making or taking bets.

(2)General betting duty shall be charged on the amounts (“commission charges”) that the parties to the bet are charged, whether by deduction from winnings or otherwise, for using those facilities.

(3)No deductions shall be allowed from commission charges.

(4)The amount of duty charged under this section in respect of bets determined in an accounting period shall be 15 per cent of the commission charges relating to those bets.

(5)For the purposes of this section, and section 5B(4) so far as relating to this section, a person who arranges for facilities relating to a bet to be provided by another person shall be treated as providing them himself (and the other person shall not)..

(3)In section 5B (liability to pay)—

(a)for subsection (1) substitute—

(1)All general betting duty chargeable in respect of—

(a)bets made in an accounting period, or

(b)in the case of duty chargeable under section 5AB, bets determined in an accounting period,

shall become due at the end of that period.;

(b)in subsection (4), after “section 4(1) to (3)” insert “ or 5AB ”.

(4)In section 5C (bet-brokers)—

(a)in paragraph (a) of subsection (1) (application of section) after “in the course of a business” insert “ , other than a betting-exchange business, ”;

(b)at the end of that subsection insert— “ In paragraph (a) “betting-exchange business” means a business such as is mentioned in section 5AB(1). ”;

(c)omit subsections (2) (bet treated as made between bettor and bet-broker) and (3) (subsection (2) not to apply to off-course bets where bet-taker is a bookmaker);

(d)in subsection (4) omit the words “In the case of a bet which is excluded from subsection (2) by virtue of subsection (3),”.

(5)The amendments made by this section apply in relation to any accounting period beginning on or after 1st June 2003.

(6)Those amendments do not apply in relation to a bet (a “straddling bet”) that is—

(a)made, using facilities provided by a person (“the broker”), in an accounting period of the broker beginning before 1st June 2003, but

(b)not determined until an accounting period of the broker beginning on or after that date.

(7)Any winnings paid in respect of a straddling bet to which section 5AB of the Betting and Gaming Duties Act 1981 (c. 63) would apply but for subsection (6) above shall be treated for the purposes of that Act as paid in the broker’s accounting period in which the bet was made (“the earlier accounting period”).

(8)Subsection (7) shall not have effect to reduce the general betting duty payable by the broker for the earlier accounting period; but the amount of the reduction that would (but for this subsection) have been made for that period shall be set against any liability of the broker to general betting duty for accounting periods in the following three years, taking earlier periods before later ones until the amount is exhausted.

8General betting duty: restriction of exemption for on-course betsU.K.

(1)In section 12(4) of the Betting and Gaming Duties Act 1981 (general betting duty: supplementary provisions), in the definition of “on-course bet” for “a meeting” substitute “ a horse or dog race meeting ”.

(2)This section applies to bets made on or after 1st September 2003.

9Bingo dutyU.K.

(1)For sections 17 to 20 of the Betting and Gaming Duties Act 1981 (bingo duty) substitute—

17Bingo duty

(1)A duty of excise, to be known as bingo duty, shall be charged—

(a)on the playing of bingo in the United Kingdom, and

(b)at the rate of 15 per cent of a person’s bingo promotion profits for an accounting period.

(2)Subsection (1) is subject to the exemptions specified in Part 1 of Schedule 3 to this Act.

(3)The amount of a person’s bingo promotion profits for an accounting period is—

(a)the amount of the person’s bingo receipts for the period (calculated in accordance with section 19), minus

(b)the amount of his expenditure on bingo winnings for the period (calculated in accordance with section 20).

(4)Bingo duty charged in respect of a person’s bingo promotion profits shall be paid by him.

(5)Where the amount that would be charged in respect of a person’s bingo promotion profits for an accounting period is less than £1, no duty shall be charged.

18Accounting period

(1)For the purposes of section 17 an accounting period ends, and another begins, at the end of the last Sunday in each calendar month.

(2)But regulations under paragraph 9 of Schedule 3 to this Act may make provision in place of subsection (1) for the purposes of the application of section 17 to specified persons or in specified circumstances.

(3)Regulations made by virtue of subsection (2) may make transitional provision.

19Bingo receipts

(1)A person has bingo receipts for an accounting period if payments fall due in the period in respect of entitlement to participate in bingo promoted by him.

(2)The amount of the person’s bingo receipts for the accounting period is the aggregate of those payments.

(3)For the purposes of subsections (1) and (2)—

(a)an amount in respect of entitlement to participate in a game of bingo is to be treated as falling due in the accounting period in which the game is played,

(b)where a payment relates to a supply of services on which value added tax is chargeable, the amount of value added tax chargeable shall be disregarded (irrespective of whether or not that amount is paid by way of value added tax),

(c)it is immaterial whether an amount falls due to be paid to the promoter or to another person,

(d)it is immaterial whether an amount is described as a fee for participation, as a stake, or partly as one and partly as the other, and

(e)where a sum is paid partly in respect of entitlement to participate in a game of bingo and partly in respect of another matter—

(i)such part of the sum as is applied to, or properly attributable to, entitlement to participate in the game shall be treated as an amount falling due in respect of entitlement to participate in the game, and

(ii)the remainder shall be disregarded.

20Expenditure on bingo winnings

(1)A person’s expenditure on bingo winnings for an accounting period is the aggregate of the values of prizes provided by him in that period by way of winnings at bingo promoted by him.

(2)Where a prize is obtained by the promoter from a person not connected with him, the cost to the promoter shall be treated as the value of the prize for the purpose of subsection (1).

(3)Where a prize is a voucher which—

(a)may be used in place of money as whole or partial payment for benefits of a specified kind obtained from a specified person,

(b)specifies an amount as the sum or maximum sum in place of which the voucher may be used, and

(c)does not fall within subsection (2),

the specified amount is the value of the voucher for the purpose of subsection (1).

(4)Where a prize is a voucher (whether or not it falls within subsection (2)) it shall be treated as having no value for the purpose of subsection (1) if—

(a)it does not satisfy subsection (3)(a) and (b), or

(b)its use as described in subsection (3)(a) is subject to a specified restriction, condition or limitation which may make the value of the voucher to the recipient significantly less than the amount mentioned in subsection (3)(b).

(5)In the case of a prize which—

(a)is neither money nor a voucher, and

(b)does not fall within subsection (2),

the value of the prize for the purpose of subsection (1) is—

(i)the amount which the prize would cost the promoter if obtained from a person not connected with him, or

(ii)where no amount can reasonably be determined in accordance with sub-paragraph (i), nil.

(6)For the purpose of this section—

(a)a reference to connection between two persons shall be construed in accordance with section 839 of the Income and Corporation Taxes Act 1988 (connected persons), and

(b)an amount paid by way of value added tax on the acquisition of a thing shall be treated as part of its cost (irrespective of whether or not the amount is taken into account for the purpose of a credit or refund).

20ACombined bingo

(1)A game of bingo is “combined bingo” if—

(a)it is multiple bingo within the meaning of section 1 of the Gaming (Bingo) Act 1985, or

(b)it is played in more than one place and promoted by more than one person.

(2)Payments made in respect of entitlement to participate in combined bingo shall be treated for the purposes of section 19(1) as bingo receipts only of the first promoter to whom (or at whose direction) they are paid.

(3)Where money representing stakes hazarded at combined bingo is paid in an accounting period by one promoter of the bingo (“the first promoter”) to another (“the second promoter”)—

(a)the money shall not be treated as a bingo receipt of the second promoter for the purposes of section 19(1),

(b)the payment shall be treated as expenditure of the first promoter on bingo winnings for the accounting period for the purposes of section 20(1), and

(c)no subsequent payment of all or part of the money shall be treated as expenditure on bingo winnings for the purposes of section 20(1) (whether paid by the second promoter to another person, by the first promoter having received it from the second promoter, or otherwise).

(4)Subsections (2) and (3) shall apply only where the combined bingo is played entirely in the United Kingdom.

20BCarrying losses forward

(1)Where the calculation of a person’s bingo promotion profits for an accounting period results in a negative amount (“the loss”)—

(a)no bingo duty shall be chargeable in respect of that accounting period, and

(b)for the purpose of section 17(3), the amount of the person’s expenditure on bingo winnings for the next accounting period shall be increased by the amount of the loss.

(2)Subsection (1) applies to an accounting period whether or not the loss results wholly or partly from the previous application of that subsection.

20CSupplementary

(1)Part 2 of Schedule 3 to this Act (bingo duty: supplementary) shall have effect.

(2)In sections 17 to 20B above, this section and Schedule 3—

(3)For the purposes of those provisions, except in relation to combined bingo, the promoter of a game of bingo is—

(a)in the case of licensed bingo, the holder of the licence, and

(b)in the case of non-licensed bingo, the person who provides the facilities for the game.

(4)For the purposes of those provisions in relation to combined bingo a person promotes a game of bingo if he is wholly or partly responsible for organising it or for providing facilities for it.

(5)In those provisions a reference to entitlement to participate in a game of bingo includes a reference to an opportunity to participate in a game of bingo in respect of which a charge is made (whether by way of a fee for participation, a stake, or both).

(6)In proceedings relating to bingo duty under the customs and excise Acts an averment in any process that a particular game is a version of bingo shall, until the contrary is proved, be sufficient evidence that it is..

(2)In paragraph 1 of Schedule 3 to the Betting and Gaming Duties Act 1981 (c. 63) (bingo duty: exemptions: domestic bingo) for “Bingo duty shall not be charged in respect of” substitute “ In calculating liability to bingo duty no account shall be taken of ”.

(3)For paragraph 2 of Schedule 3 to the Betting and Gaming Duties Act 1981 (bingo duty: exemptions: small-scale bingo) substitute—

Small-scale bingo

2(1)This paragraph applies where entitlement to participate in non-licensed bingo depends on a person’s being—

(a)a member of a group or organisation,

(b)a guest of a member of a group or organisation, or

(c)a guest of a group or organisation.

(2)Payments in respect of entitlement to participate in the non-licensed bingo shall not be brought into account in relation to any person for the purpose of section 19.

(3)Winnings at the non-licensed bingo shall not be brought into account in relation to any person for the purpose of section 20.

Small-scale bingo

2A(1)In the case of non-licensed bingo to which paragraph 2 does not apply—

(a)payments in respect of entitlement to participate in the non-licensed bingo shall not be brought into account in relation to any person for the purpose of section 19 (subject to sub-paragraphs (2) to (5) below), and

(b)winnings at the non-licensed bingo shall not be brought into account in relation to any person for the purpose of section 20 (subject to sub-paragraphs (2) to (5) below).

(2)If on a day winnings at non-licensed bingo promoted by a person exceed £500, sub-paragraph (1) shall not apply in relation to the person in respect of the accounting period in which that day falls and the next two accounting periods.

(3)If stakes exceeding in aggregate £500 are hazarded on a day at non-licensed bingo promoted by a person, sub-paragraph (1) shall not apply in relation to the person in respect of the accounting period in which that day falls and the next two accounting periods.

(4)If in an accounting period winnings at non-licensed bingo promoted by a person exceed £7,500, sub-paragraph (1) shall not apply in relation to the person in respect of that accounting period and the next two accounting periods.

(5)If stakes exceeding in aggregate £7,500 are hazarded in an accounting period at non-licensed bingo promoted by a person, sub-paragraph (1) shall not apply in relation to the person in respect of that accounting period and the next two accounting periods.

(6)For the purposes of this paragraph winnings at bingo shall be valued in accordance with section 20(2) to (6)..

F1(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)In paragraph 5(1) of Schedule 3 to the Betting and Gaming Duties Act 1981 (c. 63) (bingo duty: exemptions: commercial amusements) for “Bingo duty shall not be charged in respect of” substitute “ In calculating liability to bingo duty no account shall be taken of ”.

(6)In paragraph 6 of Schedule 3 to that Act (bingo duty: exemptions: machine bingo) for “Bingo duty shall not be charged in respect of” substitute “ In calculating liability to bingo duty no account shall be taken of ”.

(7)In paragraph 10(1) of Schedule 3 to that Act (notification and registration of bingo-promoters) for “which will, or may, be chargeable with bingo duty” substitute “ in connection with which bingo duty may be chargeable ”.

(8)The following paragraphs of Schedule 3 to that Act shall cease to have effect—

(a)paragraph 11 (announcement of prizes),

(b)paragraph 12 (records), and

(c)paragraph 15 (disputes).

(9)In paragraph 16(2) of Schedule 3 to that Act (enforcement)—

(a)for “(being bingo which is or may be chargeable with bingo duty)” substitute “ (being bingo in connection with which bingo duty may be chargeable) ”, and

(b)paragraph (b) (and the word “or” immediately before it) shall cease to have effect.

(10)This section shall have effect in relation to bingo played on or after 27th October 2003 (with which day the first accounting period for the purposes of section 17 of the Betting and Gaming Duties Act 1981 shall begin).

Textual Amendments

10Amusement machines not operated by coins or tokensU.K.

(1)In section 21 of the Betting and Gaming Duties Act 1981 (amusement machine licences), for subsections (3B) to (3D) (meaning of “fifty-penny machine”) substitute—

(3B)For the purposes of this section an amusement machine is a “fifty-penny machine” if, and only if—

(a)where it is a machine on which a game can be played solo, the cost for each time the game is played on it solo—

(i)does not exceed 50p, or

(ii)where the machine provides differing numbers of games in different circumstances, cannot exceed 50p;

and

(b)where it is a machine on which a game can be played by more than one person at a time, the cost per player for each time the game is played on it simultaneously by more than one player—

(i)does not exceed 50p, or

(ii)where the machine provides differing numbers of games in different circumstances, cannot exceed 50p..

(2)In section 25(1) of that Act (definition of “amusement machine”), in paragraph (c) for “coin or token” substitute “ coin, token or other thing ”.

(3)In section 26(2) of that Act (interpretation), for the definitions of “two-penny machine”, “five-penny machine” and “ten-penny machine” substitute—

two-penny machine” means an amusement machine in relation to which the cost for each time a game is played on it—

(a)does not exceed 2p, or

(b)where the machine provides differing numbers of games in different circumstances, cannot exceed 2p,

and “five-penny machine” and “ten-penny machine” have a corresponding meaning;.

(4)In the following provisions of the Value Added Tax Act 1994 (c. 23)—

(a)the definition of “gaming machine” in section 23(4), and

(b)Note (3) (definition of “gaming machine”) to Group 4 of Schedule 9,

for “coin or token” substitute “ coin, token or other thing ”.

11Amusement machines: use of currencies other than sterlingU.K.

(1)In section 26 of the Betting and Gaming Duties Act 1981 (c. 63) (interpretation etc), omit the definition of “coin” in subsection (2).

(2)After that section insert—

26AAmounts in currencies other than sterling

(1)Any reference in this Part of this Act to a amount in sterling, in the context of—

(a)the cost of playing a game, or

(b)the amount of the prize for a game,

includes a reference to the equivalent amount in another currency.

(2)The equivalent amount in another currency, in relation to any day, shall be determined by reference to the London closing exchange rate for the previous day.

(3)For the purposes of determining what duty is payable on an amusement machine licence in a case where this section applies, the equivalent in another currency of an amount in sterling shall be taken to be its equivalent on the day on which the application for the licence is received by the Commissioners, or the due date in the case of a default licence.

(4)In subsection (3) above—

(3)This section does not apply in relation to any amusement machine licence granted before the day on which this Act is passed or to anything done under such a licence.

12Responsibility for unlicensed amusement machinesU.K.

(1)In section 24(5) of the Betting and Gaming Duties Act 1981 (c. 63) (penalty for unlicensed amusement machines), for paragraph (c) (liability of person responsible for, inter alia, issuing or exchanging coins etc for amusement machine) substitute—

(c)is a person responsible for controlling the use of any amusement machine on the premises, or.

(2)In Schedule 4A to that Act (unlicensed amusement machines), for paragraph (c) of paragraph 7(3) (which makes similar provision) substitute—

(c)responsible for controlling the use of any amusement machine on the premises, or.

13Rates of gaming dutyU.K.

(1)For the Table in section 11(2) of the Finance Act 1997 (c. 16) (rates of gaming duty) substitute—

Table
Part of gross gaming yieldRate
The first £502,5002.5 per cent.
The next £1,115,50012.5 per cent.
The next £1,115,50020 per cent.
The next £1,953,00030 per cent.
The remainder40 per cent.

(2)This section has effect in relation to accounting periods beginning on or after 1st April 2003.

Vehicle excise dutyU.K.

14Vehicle excise duty: ratesU.K.

(1)In paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (the general rate)—

F2(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)in sub-paragraph (2A) (general rate of duty in case of vehicle with engine with cylinder capacity not exceeding 1,549 cubic centimetres) for “£105” substitute “ £110 ”.

F3(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)In paragraph 1J of that Schedule (rates of duty applicable to light goods vehicles first registered on or after 1st March 2001)—

(a)in paragraph (a) (vehicle which is not a lower-emission van) for “£160” substitute “ £165 ”;

(b)in paragraph (b) (vehicle which is a lower-emission van) for “£105” substitute “ £110 ”.

(4)This section applies to any licence taken out on or after 17th April 2003 for a period beginning on or after 1st May 2003.

Textual Amendments

15Disclosure for exemptions: Northern IrelandU.K.

In section 22ZA of the Vehicle Excise and Registration Act 1994 (c. 22) (nil licences for vehicles for disabled persons: disclosure of information) in subsection (1)(a) (which provides that the section applies to certain information held by the Secretary of State or a person providing services to him) in sub-paragraphs (i) and (ii), after “the Secretary of State” insert “ or a Northern Ireland department ”.

16Duty at higher rate: exception for tractive unitsU.K.

(1)After section 15 of the Vehicle Excise and Registration Act 1994 insert—

15AException for tractive units from charge at higher rate

(1)Where—

(a)a vehicle licence has been taken out for a tractive unit, and

(b)the licence was taken out at a rate of vehicle excise duty applicable to a tractive unit which is to be used with semi-trailers with a minimum number of axles,

duty at a higher rate does not become chargeable under section 15 by reason only that while the licence is in force the tractive unit is used with a semi-trailer with fewer axles than that minimum number, if the condition in subsection (2) is satisfied.

(2)The condition is that the rate of duty at which the licence was taken out is equal to or exceeds the rate which would have been applicable if the revenue weight of the tractive unit had been a weight equal to the actual laden weight, at the time of the use, of the articulated vehicle consisting of the tractive unit and the semi-trailer..

(2)Section 16 of that Act (which makes provision, in the case of tractive units, for exemptions from the charge to vehicle excise duty at a higher rate on a basis different from that set out in new section 15A) shall cease to have effect.

(3)This section has effect in relation to the use of a tractive unit on or after 9th April 2003.

Part 2 U.K.Value added tax

17Requirement of evidence or securityU.K.

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

(2)In section 24(6)(a) (regulations about input tax etc: requirement of documentary evidence) after “documents” insert “ or other information ”.

(3)In paragraph 4 of Schedule 11 (power to require security and production of documents) for sub-paragraph (1) substitute—

(1)The Commissioners may, as a condition of allowing or repaying input tax to any person, require the production of such evidence relating to VAT as they may specify.

(1A)If they think it necessary for the protection of the revenue, the Commissioners may require, as a condition of making any VAT credit, the giving of such security for the amount of the payment as appears to them appropriate..

(4)For sub-paragraph (2) of that paragraph substitute—

(2)If they think it necessary for the protection of the revenue, the Commissioners may require a taxable person, as a condition of his supplying or being supplied with goods or services under a taxable supply, to give security, or further security, for the payment of any VAT that is or may become due from—

(a)the taxable person, or

(b)any person by or to whom relevant goods or services are supplied.

(3)In sub-paragraph (2) above “relevant goods or services” means goods or services supplied by or to the taxable person.

(4)Security under sub-paragraph (2) above shall be of such amount, and shall be given in such manner, as the Commissioners may determine.

(5)The powers conferred on the Commissioners by sub-paragraph (2) above are without prejudice to their powers under section 48(7)..

(5)In section 72(11) (penalty for supplying goods in contravention of paragraph 4(2) of Schedule 11) after “supplies” insert “ or is supplied with ”.

(6)In section 83(l) (right of appeal against requirement of security under paragraph 4(2) of Schedule 11 etc) for “paragraph 4(2)” substitute “ paragraph 4(1A) or (2) ”.

(7)In section 84 (further provisions relating to appeals) after subsection (4D) insert—

(4E)Where an appeal is brought against a requirement imposed under paragraph 4(2)(b) of Schedule 11 that a person give security, the tribunal shall allow the appeal unless the Commissioners satisfy the tribunal that—

(a)there has been an evasion of, or an attempt to evade, VAT in relation to goods or services supplied to or by that person, or

(b)it is likely, or without the requirement for security it is likely, that VAT in relation to such goods or services will be evaded.

(4F)A reference in subsection (4E) above to evading VAT includes a reference to obtaining a VAT credit that is not due or a VAT credit in excess of what is due..

(8)This section shall be deemed to have come into force on 10th April 2003.

18Joint and several liability for unpaid VAT of another traderU.K.

(1)In Part 4 of the Value Added Tax Act 1994 (c. 23) (administration, collection and enforcement), after section 77 insert—

Liability for unpaid VAT of anotherU.K.

77AJoint and several liability of traders in supply chain where tax unpaid

(1)This section applies to goods of any of the following descriptions—

(a)telephones and any other equipment, including parts and accessories, made or adapted for use in connection with telephones or telecommunication;

(b)computers and any other equipment, including parts, accessories and software, made or adapted for use in connection with computers or computer systems.

(2)Where—

(a)a taxable supply of goods to which this section applies has been made to a taxable person, and

(b)at the time of the supply the person knew or had reasonable grounds to suspect that some or all of the VAT payable in respect of that supply, or on any previous or subsequent supply of those goods, would go unpaid,

the Commissioners may serve on him a notice specifying the amount of the VAT so payable that is unpaid, and stating the effect of the notice.

(3)The effect of a notice under this section is that—

(a)the person served with the notice, and

(b)the person liable, apart from this section, for the amount specified in the notice,

are jointly and severally liable to the Commissioners for that amount.

(4)For the purposes of subsection (2) above the amount of VAT that is payable in respect of a supply is the lesser of—

(a)the amount chargeable on the supply, and

(b)the amount shown as due on the supplier’s return for the prescribed accounting period in question (if he has made one) together with any amount assessed as due from him for that period (subject to any appeal by him).

(5)The reference in subsection (4)(b) above to assessing an amount as due from a person includes a reference to the case where, because it is impracticable to do so, the amount is not notified to him.

(6)For the purposes of subsection (2) above, a person shall be presumed to have reasonable grounds for suspecting matters to be as mentioned in paragraph (b) of that subsection if the price payable by him for the goods in question—

(a)was less than the lowest price that might reasonably be expected to be payable for them on the open market, or

(b)was less than the price payable on any previous supply of those goods.

(7)The presumption provided for by subsection (6) above is rebuttable on proof that the low price payable for the goods was due to circumstances unconnected with failure to pay VAT.

(8)Subsection (6) above is without prejudice to any other way of establishing reasonable grounds for suspicion.

(9)The Treasury may by order amend subsection (1) above; and any such order may make such incidental, supplemental, consequential or transitional provision as the Treasury think fit.

(10)For the purposes of this section—

(a)goods” includes services;

(b)an amount of VAT counts as unpaid only to the extent that it exceeds the amount of any refund due..

(2)In section 83 of that Act (appeals) after paragraph (r) insert—

(ra)any liability arising by virtue of section 77A;.

(3)In section 84(3) of that Act (appeals not to be entertained unless the VAT has been paid or deposited, except where that would cause hardship) for “or (q)” substitute “ , (q) or (ra) ”.

(4)This section shall be deemed to have come into force on 10th April 2003 except subsection (3) which applies in relation to any appeal notice of which is given on or after the day on which this Act is passed.

Commencement Information

I1S. 18 wholly in force at Royal Assent; s. 18(1)(2)(4) in force retrospective to 10.4.2003 and s. 18(3) in force at Royal Assent see s. 18(4)

19Face-value vouchersU.K.

Schedule 1 to this Act (VAT: face-value vouchers) has effect.

20Supplies arising from prior grant of fee simpleU.K.

(1)In section 96 of the Value Added Tax Act 1994 (c. 23) (interpretative provisions), after subsection (10A) (time for determining status of supplies arising from prior grant of interest etc) insert—

(10B)Notwithstanding subsection (10A) above—

(a)item 1 of Group 1 of Schedule 9 does not make exempt any supply that arises for the purposes of this Act from the prior grant of a fee simple falling within paragraph (a) of that item; and

(b)that paragraph does not prevent the exemption of a supply that arises for the purposes of this Act from the prior grant of a fee simple not falling within that paragraph..

(2)This section applies in relation to any supply that arises for the purposes of the Value Added Tax Act 1994 (c. 23) from the prior grant of a fee simple made on or after 9th April 2003.

21Business giftsU.K.

(1)In Schedule 4 to the Value Added Tax Act 1994 (matters to be treated as supply of goods or services), paragraph 5 (business gifts etc) is amended as follows.

(2)In sub-paragraph (2) (cases where sub-paragraph (1) does not apply), for paragraph (a) substitute—

(a)a business gift the cost of which, together with the cost of any other business gifts made to the same person in the same year, was not more than £50..

(3)After that sub-paragraph insert—

((2ZA))In sub-paragraph (2) above—

business gift” means a gift of goods that is made in the course or furtherance of the business in question;

cost”, in relation to a gift of goods, means the cost to the donor of acquiring or, as the case may be, producing the goods;

the same year”, in relation to a gift, means any period of twelve months that includes the day on which the gift is made..

(4)This section applies in relation to gifts made on or after 1st October 2003.

F422Non-business use of business propertyU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

23Supply of electronic services in member States: special accounting schemeU.K.

(1)Schedule 2 to this Act (scheme enabling persons who supply certain electronic 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 amendments made by that Schedule have effect in relation to qualifying supplies made on or after 1st July 2003.

Part 3U.K.Taxes and duties on importation and exportation: penalties

PreliminaryU.K.

24IntroductoryU.K.

(1)This Part makes provision for and in connection with the imposition of liability to a penalty where a person—

(a)engages in any conduct for the purpose of evading any relevant tax or duty, or

(b)engages in any conduct by which he contravenes a duty, obligation, requirement or condition imposed by or under legislation relating to any relevant tax or duty.

(2)For the purposes of this Part “relevant tax or duty” means any of the following—

(a)customs duty;

(b)Community export duty;

(c)Community import duty;

(d)import VAT;

(e)customs duty of a preferential tariff country.

(3)In this Part—

(4)References in this Part to the Community Customs Code are references to that Code as from time to time amended, whether before or after the coming into force of this Part.

(5)The Treasury may by order amend this Part for the purpose of replacing any reference to, or to a provision of,—

(a)the Community Customs Code, or

(b)any instrument referred to in this Part by virtue of an order under this subsection,

with a reference to, or (as the case may be) to a provision of, a different instrument.

(6)A statutory instrument containing an order under subsection (5) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.

(7)Except for this subsection and section 41 (which accordingly come into force on the passing of this Act), this Part comes into force on such day as the Treasury may by order appoint.

Textual Amendments

Commencement Information

I2S. 24 partly in force; s. 24(7) in force at 10.7.2003, see s. 24(7)

I3S. 24(1)-(6) in force at 27.11.2003 by S.I. 2003/2985, art. 2

The penaltiesU.K.

25Penalty for evasionU.K.

(1)In any case where—

(a)a person engages in any conduct for the purpose of evading any relevant tax or duty, and

(b)his conduct involves dishonesty (whether or not such as to give rise to any criminal liability),

that person is liable to a penalty of an amount equal to the amount of the tax or duty evaded or, as the case may be, sought to be evaded.

(2)Subsection (1) is subject to the following provisions of this Part.

(3)Nothing in this section applies in relation to any customs duty of a preferential tariff country.

(4)Any reference in this section to a person’s “evading” any relevant tax or duty includes a reference to his obtaining or securing, without his being entitled to it,—

(a)any repayment, rebate or drawback of any relevant tax or duty,

(b)any relief or exemption from, or any allowance against, any relevant tax or duty, or

(c)any deferral or other postponement of his liability to pay any relevant tax or duty or of the discharge by payment of any such liability,

and also includes a reference to his evading the cancellation of any entitlement to, or the withdrawal of, any such repayment, rebate, drawback, relief, exemption or allowance.

(5)In relation to any such evasion of any relevant tax or duty as is mentioned in subsection (4), the reference in subsection (1) to the amount of the tax or duty evaded or sought to be evaded is a reference to the amount of—

(a)the repayment, rebate or drawback,

(b)the relief, exemption or allowance, or

(c)the payment which, or the liability to make which, is deferred or otherwise postponed,

as the case may be.

(6)Where, by reason of conduct falling within subsection (1) in the case of any relevant tax or duty, a person—

(a)is convicted of an offence,

(b)is given, and has not had withdrawn, a demand notice in respect of a penalty to which he is liable under section 26, or

(c)is liable to a penalty imposed upon him under any other provision of the law relating to that relevant tax or duty,

that conduct does not also give rise to liability to a penalty under this section in respect of that relevant tax or duty.

Commencement Information

I4S. 25 in force at 27.11.2003 by S.I. 2003/2985, art. 2

26Penalty for contravention of relevant ruleU.K.

(1)If, in the case of any relevant tax or duty, a person of a prescribed description engages in any conduct by which he contravenes—

(a)a prescribed relevant rule, or

(b)a relevant rule of a prescribed description,

he is liable to a penalty under this section of a prescribed amount.

(2)Subsection (1) is subject to the following provisions of this Part.

(3)The power conferred by subsection (1) to prescribe a description of person includes power to prescribe any person (without further qualification) as such a description.

(4)Different penalties may be prescribed under subsection (1) for different cases or different circumstances.

(5)Any amount prescribed under subsection (1) as the amount of a penalty must not be more than £2,500.

(6)The Treasury may by order amend subsection (5) by substituting a different amount for the amount for the time being specified in that subsection.

(7)A statutory instrument containing an order under subsection (6) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.

(8)In this Part “relevant rule”, in relation to any relevant tax or duty, means any duty, obligation, requirement or condition imposed by or under any of the following—

(a)the Customs and Excise Management Act 1979 (c. 2), as it applies in relation to the relevant tax or duty;

(b)any other Act, or any statutory instrument, as it applies in relation to the relevant tax or duty;

(c)in the case of customs duty, Community export duty or Community import duty, Community customs rules;

(d)in the case of import VAT, Community customs rules as they apply in relation to import VAT;

(e)any directly applicable Community legislation relating to the relevant tax or duty;

(f)any relevant international rules applying in relation to the relevant tax or duty.

(9)In subsection (8)—

Commencement Information

I5S. 26 in force at 27.11.2003 by S.I. 2003/2985, art. 2

27Exceptions from section 26U.K.

(1)A person is not liable to a penalty under section 26 if he satisfies—

(a)the Commissioners, or

(b)on appeal, an appeal tribunal,

that there is a reasonable excuse for his conduct.

(2)For the purposes of subsection (1) none of the following is a reasonable excuse—

(a)an insufficiency of funds available to any person for paying any relevant tax or duty or any penalty due;

(b)that reliance was placed by any person on another to perform any task;

(c)that the contravention is attributable, in whole or in part, to the conduct of a person on whom reliance to perform any task was so placed.

(3)Where, by reason of conduct falling within subsection (1) of section 26 in the case of any relevant tax or duty, a person—

(a)is prosecuted for an offence,

(b)is given, and has not had withdrawn, a demand notice in respect of a penalty to which he is liable under section 25, or

(c)is liable to a penalty imposed upon him under any other provision of the law relating to that relevant tax or duty,

that conduct does not also give rise to liability to a penalty under section 26 in respect of that relevant tax or duty.

(4)A person is not liable to a penalty under section 26 in respect of any conduct, so far as relating to import VAT, if in respect of that conduct—

(a)he is liable to a penalty under any of sections 62 to 69A of the Value Added Tax Act 1994 (c. 23) (penalty for contravention of statutory requirements as to VAT), or

(b)he would be so liable but for section 62(4), 63(11), 64(6), 67(9), 69(9) or 69A(7) of that Act (conduct resulting in conviction, different penalty etc).

Commencement Information

I6S. 27 in force at 27.11.2003 by S.I. 2003/2985, art. 2

28Liability of directors etc where body corporate liable to penalty for evasionU.K.

(1)Where it appears to the Commissioners—

(a)that a body corporate is liable to a penalty under section 25, and

(b)that the conduct giving rise to the penalty is, in whole or in part, attributable to the dishonesty of a person who is, or at the material time was, a director or managing officer of the body corporate (a “relevant officer”),

the Commissioners may give a notice under this section to the body corporate (or its representative) and to the relevant officer (or his representative).

(2)A notice under this section must state—

(a)the amount of the penalty referred to in subsection (1)(a) (the “basic penalty”), and

(b)that the Commissioners propose, in accordance with this section, to recover from the relevant officer such portion (which may be the whole) of the basic penalty as is specified in the notice.

(3)If a notice is given under this section, this Part shall apply in relation to the relevant officer as if he were personally liable under section 25 to a penalty which corresponds to that portion of the basic penalty specified in the notice.

(4)If a notice is given under this section—

(a)the amount which may be recovered from the body corporate under this Part is limited to so much (if any) of the basic penalty as is not recoverable from the relevant officer by virtue of subsection (3), and

(b)the body corporate is to be treated as discharged from liability for so much of the basic penalty as is so recoverable from the relevant officer.

(5)In this section “managing officer”, in relation to a body corporate, means—

(a)a manager, secretary or other similar officer of the body corporate, or

(b)a person purporting to act in any such capacity or as a director.

(6)Where the affairs of a body corporate are managed by its members, this section applies in relation to the conduct of a member in connection with his functions of management as if he were a director of the body corporate.

Commencement Information

I7S. 28 in force at 27.11.2003 by S.I. 2003/2985, art. 2

Reduction of amount of penaltyU.K.

29Reduction of penalty under section 25 or 26U.K.

(1)Where a person is liable to a penalty under section 25 or 26—

(a)the Commissioners (whether originally or on review) or, on appeal, an appeal tribunal may reduce the penalty to such amount (including nil) as they think proper; and

(b)the Commissioners on a review, or an appeal tribunal on an appeal, relating to a penalty reduced by the Commissioners under this subsection may cancel the whole or any part of the reduction previously made by the Commissioners.

(2)In exercising their powers under subsection (1), neither the Commissioners nor an appeal tribunal are entitled to take into account any of the matters specified in subsection (3).

(3)Those matters are—

(a)the insufficiency of the funds available to any person for paying any relevant tax or duty or the amount of the penalty,

(b)the fact that there has, in the case in question or in that case taken with any other cases, been no or no significant loss of any relevant tax or duty,

(c)the fact that the person liable to the penalty, or a person acting on his behalf, has acted in good faith.

Commencement Information

I8S. 29 in force at 27.11.2003 by S.I. 2003/2985, art. 2

Demand noticesU.K.

30Demands for penaltiesU.K.

(1)Where a person is liable to a penalty under this Part, the Commissioners may give to that person or his representative a notice in writing (a “demand notice”) demanding payment of the amount due by way of penalty.

(2)An amount demanded as due from a person or his representative in accordance with subsection (1) is recoverable as if it were an amount due from the person or, as the case may be, the representative as an amount of customs duty.

This subsection is subject to—

(a)any appeal under section [F733] (appeals to tribunal); and

(b)subsection (3).

(3)An amount so demanded is not recoverable if or to the extent that—

(a)the demand has subsequently been withdrawn; or

(b)the amount has been reduced under section 29.

Textual Amendments

Commencement Information

I9S. 30 in force at 27.11.2003 by S.I. 2003/2985, art. 2

31Time limits for demands for penaltiesU.K.

(1)A demand notice may not be given—

(a)in the case of a penalty under section 25, more than 20 years after the conduct giving rise to the liability to the penalty ceased, or

(b)in the case of a penalty under section 26, more than 3 years after the conduct giving rise to the liability to the penalty ceased.

(2)A demand notice may not be given more than 2 years after there has come to the knowledge of the Commissioners evidence of facts sufficient in the opinion of the Commissioners to justify the giving of the demand notice.

(3)A demand notice—

(a)may be given in respect of a penalty to which a person was liable under section 25 or 26 immediately before his death, but

(b)in the case of a penalty to which the deceased was so liable under section 25, may not be given more than 3 years after his death.

Commencement Information

I10S. 31 in force at 27.11.2003 by S.I. 2003/2985, art. 2

32No prosecution after demand notice for penalty under section 26U.K.

Where a demand notice is given demanding payment of an amount due by way of penalty under section 26 in respect of any conduct of a person, no proceedings may be brought against that person for any offence constituted by that conduct (whether or not the demand notice is subsequently withdrawn).

Commencement Information

I11S. 32 in force at 27.11.2003 by S.I. 2003/2985, art. 2

[F8Appeals and reviews]U.K.

33[F9Right to appeal against certain decisions]U.K.

(1)If, in the case of any relevant tax or duty, [F10HMRC] give a person or his representative a notice informing him—

(a)that they have decided that the person has engaged in conduct by which he contravenes a relevant rule, and

(b)that the person is, in consequence, liable to a penalty under section 26, but

(c)that they do not propose to give a demand notice in respect of the penalty,

the person or his representative may [F11make an appeal to an appeal tribunal in respect of] the decision mentioned in paragraph (a).

(2)Where [F12HMRC] give a demand notice to a person or his representative, the person or his representative may [F13make an appeal to an appeal tribunal in respect of]

(a)their decision that the person is liable to a penalty under section 25 or 26, or

(b)their decision as to the amount of the liability.

(3)Where [F14HMRC] give a notice under section 28 to a body corporate and to a relevant officer—

(a)subsection (2) does not apply to any demand notice given in respect of the liability of either of them to a penalty under this Part in respect of the conduct in question, but

(b)subsections (4) and (5) have effect instead in relation to any such demand notice.

(4)Where [F15HMRC] give a demand notice to the relevant officer or his representative for a penalty which corresponds to the portion of the basic penalty specified in the notice under section 28, the relevant officer or his representative may [F16make an appeal to an appeal tribunal in respect of]

(a)their decision that the conduct of the body corporate referred to in section 28(1)(b) is, in whole or in part, attributable to the relevant officer’s dishonesty, or

(b)their decision as to the portion of the basic penalty which the [F17HMRC] are seeking to recover from the relevant officer or his representative.

(5)Where [F18HMRC] give a demand notice to the body corporate or its representative for so much of the basic penalty as is not recoverable from the relevant officer by virtue of section 28(3), the body corporate or its representative may [F19make an appeal to an appeal tribunal in respect of]

(a)their decision that the body corporate is liable to a penalty under section 25, or

(b)their decision as to amount of the basic penalty as if it were the amount specified in the demand notice.

[F20(6)The powers of an appeal tribunal on an appeal under this section include—

(a)power to quash or vary a decision; and

(b)power to substitute the tribunal’s own decision for any decision so quashed.

(7)On an appeal under this section—

(a)the burden of proof as to the matters mentioned in section 25(1) or 26(1) lies on HMRC; but

(b)it is otherwise for the appellant to show that the grounds on which any such appeal is brought have been established.]

Textual Amendments

Commencement Information

I12S. 33 in force at 27.11.2003 by S.I. 2003/2985, art. 2

[F2133AOffer of reviewU.K.

(1)HMRC must offer a person (P) a review of a decision that has been notified to P if an appeal lies under section 33 in respect of the decision.

(2)The offer of the review must be made by notice given to P at the same time as the decision is notified to P.

(3)This section does not apply to the notification of the conclusions of a review.

33BReview by HMRCU.K.

(1)  HMRC must review a decision if—

(a)they have offered a review of the decision under section 33A, and

(b)P notifies HMRC accepting the offer within 30 days from the date of the document containing the notification of the offer.

(2)But P may not notify acceptance of the offer if P has already appealed to the appeal tribunal under section 33F.

(3)HMRC shall not review a decision if P has appealed to the appeal tribunal under section 33F in respect of the decision.

33CExtensions of timeU.K.

(1)If under section 33A, HMRC have offered P a review of a decision, HMRC may within the relevant period notify P that the relevant period is extended.

(2)If notice is given the relevant period is extended to the end of 30 days from—

(a)the date of the notice, or

(b)any other date set out in the notice or a further notice.

(3)In this section “relevant period” means—

(a)the period of 30 days referred to in section 33B(1)(b), or

(b)if notice has been given under subsection (1) that period as extended (or as most recently extended) in accordance with subsection (2).

33DReview out of timeU.K.

(1)This section applies if—

(a)HMRC have offered a review of a decision under section 33A, and

(b)P does not accept the offer within the time allowed under section 33B(1)(b) or 33C(2).

(2)HMRC must review the decision under section 33B if—

(a)after the time allowed, P notifies HMRC in writing requesting a review out of time,

(b)HMRC are satisfied that P had a reasonable excuse for not accepting the offer or requiring review within the time allowed, and

(c)HMRC are satisfied that P made the request without unreasonable delay after the excuse had ceased to apply.

(3)HMRC shall not review a decision if P has appealed to the appeal tribunal under section 33F in respect of the decision.

33ENature of review etcU.K.

(1)This section applies if HMRC are required to undertake a review under section 33B or 33D.

(2)The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.

(3)For the purpose of subsection (2), HMRC must, in particular, have regard to steps taken before the beginning of the review—

(a)by HMRC in reaching the decision, and

(b)by any person in seeking to resolve disagreement about the decision.

(4)The review must take account of any representations made by P at a stage which gives HMRC a reasonable opportunity to consider them.

(5)The review may conclude that the decision is to be—

(a)upheld,

(b)varied, or

(c)cancelled.

(6)HMRC must give P notice of the conclusions of the review and their reasoning within—

(a)a period of 45 days beginning with the relevant date, or

(b)such other period as HMRC and P may agree.

(7)In subsection (6) “relevant date” means—

(a)the date HMRC received P’s notification accepting the offer of a review (in a case falling within section 33A), or

(b)the date on which HMRC decided to undertake the review (in a case falling within section 33D).

(8)Where HMRC are required to undertake a review but do not give notice of the conclusions within the period specified in subsection (6), the review is to be treated as having concluded that the decision is upheld.

(9)If subsection (8) applies, HMRC must notify P of the conclusions which the review is treated as having reached.

33FBringing of appealsU.K.

(1)An appeal under section 33 is to be made to the appeal tribunal before—

(a)the end of the period of 30 days beginning with the date of the document notifying the decision to which the appeal relates, or

(b)if later, the end of the relevant period (within the meaning of section 33C).

(2)But that is subject to subsections (3) to (5).

(3)In a case where HMRC are required to undertake a review under section 33C—

(a)an appeal may not be made until the conclusion date, and

(b)any appeal is to be made within the period of 30 days beginning with the conclusion date.

(4)In a case where HMRC are requested to undertake a review in accordance with section 33D—

(a)an appeal may not be made—

(i)unless HMRC have decided whether or not to undertake a review, and

(ii)if HMRC decide to undertake a review, until the conclusion date; and

(b)any appeal is to be made within the period of 30 days beginning with—

(i)the conclusion date (if HMRC decide to undertake a review), or

(ii)the date on which HMRC decide not to undertake a review.

(5)In a case where section 33E(8) applies, an appeal may be made at any time from the end of the period specified in section 33E(6) to the date 30 days after the conclusion date.

(6)An appeal may be made after the end of the period specified in subsection (1), (3)(b), (4)(b) or (5) if an appeal tribunal gives permission to do so.

(7)In this section “conclusion date” means the date of the document notifying the conclusions of the review.]

F2234Time limit and right to further reviewU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2235Powers of Commissioners on a reviewU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2236Appeals to a tribunalU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F2337Appeal tribunalsU.K.

Section 85 of the Value Added Tax Act 1994 (settling appeals by agreement) has effect as if the reference to section 83 of that Act included a reference to section 33 above.]

EvidenceU.K.

38Admissibility of certain statements and documentsU.K.

(1)Statements made or documents produced by or on behalf of a person are not inadmissible in—

(a)any criminal proceedings against that person in respect of any offence in connection with or in relation to any relevant tax or duty, or

(b)any proceedings against that person for the recovery of any sum due from him in connection with or in relation to any relevant tax or duty,

by reason only that any of the matters specified in subsection (2) has been drawn to his attention and that he was, or may have been, induced by that matter having been brought to his attention to make the statements or produce the documents.

(2)The matters mentioned in subsection (1) are—

(a)that the Commissioners have power, in relation to any relevant tax or duty, to demand by means of a written notice an amount by way of a civil penalty, instead of instituting criminal proceedings;

(b)that it is the Commissioners' practice, without being able to give an undertaking as to whether they will make such a demand in any case, to be influenced in determining whether to make such a demand by the fact (where it is the case) that a person has made a full confession of any dishonest conduct to which he has been a party and has given full facilities for an investigation;

(c)that the Commissioners or, on appeal, an appeal tribunal have power to reduce a penalty under section 25, as provided in subsection (1) of section 29; and

(d)that, in determining the extent of such a reduction in the case of any person, the Commissioners or tribunal will have regard to the extent of the co-operation which he has given to the Commissioners in their investigation.

(3)References in this section to a relevant tax or duty do not include a reference to customs duty of a preferential tariff country.

Commencement Information

I13S. 38 in force at 27.11.2003 by S.I. 2003/2985, art. 2

Miscellaneous and supplementaryU.K.

39Service of noticesU.K.

Any notice to be given to any person for the purposes of this Part may be given by sending it by post in a letter addressed to that person or his representative at the last or usual residence or place of business of that person or representative.

Commencement Information

I14S. 39 in force at 27.11.2003 by S.I. 2003/2985, art. 2

F2440Penalties not to be deducted for income tax or corporation tax purposesU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F24S. 40 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

41Regulations and ordersU.K.

(1)Any power conferred on the Treasury by this Part to make regulations or an order includes power—

(a)to make different provision for different cases, and

(b)to make incidental, consequential, supplemental or transitional provision or savings.

(2)Any power conferred on the Treasury by this Part to make regulations or an order shall be exercisable by statutory instrument.

(3)Any statutory instrument containing regulations under this Part shall be subject to annulment in pursuance of a resolution of the House of Commons.

Part 4U.K.Stamp duty land tax

Modifications etc. (not altering text)

IntroductionU.K.

42The taxU.K.

(1)A tax (to be known as “stamp duty land tax”) shall be charged in accordance with this Part on land transactions.

(2)The tax is chargeable—

(a)whether or not there is any instrument effecting the transaction,

(b)if there is such an instrument, whether or not it is executed in the United Kingdom, and

(c)whether or not any party to the transaction is present, or resident, in the United Kingdom.

(3)The tax is under the care and management of the Commissioners of Inland Revenue (referred to in this Part as “the Board”).

Commencement Information

I15Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

Land transactionsU.K.

43Land transactionsU.K.

(1)In this Part a “land transaction” means any acquisition of a chargeable interest. As to the meaning of “chargeable interest” see section 48.

(2)Except as otherwise provided, this Part applies however the acquisition is effected, whether by act of the parties, by order of a court or other authority, by or under any statutory provision or by operation of law.

(3)For the purposes of this Part—

(a)the creation of a chargeable interest is—

(i)an acquisition by the person becoming entitled to the interest created, and

(ii)a disposal by the person whose interest or right is subject to the interest created;

(b)the surrender or release of a chargeable interest is—

(i)an acquisition of that interest by any person whose interest or right is benefitted or enlarged by the transaction, and

(ii)a disposal by the person ceasing to be entitled to that interest; F25...

(c)the variation of a chargeable interest [F26(other than a lease)] is—

(i)an acquisition of a chargeable interest [F26(other than a lease)] by the person benefitting from the variation, and

(ii)a disposal of a chargeable interest [F26(other than a lease)] by the person whose interest is subject to or limited by the variation.

[F27(d)the variation of a lease is an acquisition and disposal of a chargeable interest only where

[F28(i)] it takes effect, or is treated for the purposes of this Part, as the grant of a new lease[F29, or

(ii)paragraph 15A of Schedule 17A (reduction of rent or term) applies.]]

(4)References in this Part to the “purchaser” and “vendor”, in relation to a land transaction, are to the person acquiring and the person disposing of the subject-matter of the transaction.

These expressions apply even if there is no consideration given for the transaction.

(5)A person is not treated as a purchaser unless he has given consideration for, or is a party to, the transaction.

(6)References in this Part to the subject-matter of a land transaction are to the chargeable interest acquired (the “main subject-matter”), together with any interest or right appurtenant or pertaining to it that is acquired with it.

Textual Amendments

F25Word in s. 43(3) repealed (with effect in accordance with Sch. 39 para. 13 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 4(2)

F26Words in s. 43(3)(c) 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. 2(a)

F27S. 43(3)(d) 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. 2(b)

F28Words in s. 43(3)(d) renumbered as s. 43(3)(d)(i) (with effect in accordance with s. 297(9) of the amending Act) by Finance Act 2004 (c. 12), s. 297(2)

F29S. 43(3)(d)(ii) and word inserted (with effect in accordance with s. 297(9) of the amending Act) by Finance Act 2004 (c. 12), s. 297(2)

Commencement Information

I16Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

44Contract and conveyanceU.K.

(1)This section applies where a contract for a land transaction is entered into under which the transaction is to be completed by a conveyance.

(2)A person is not regarded as entering into a land transaction by reason of entering into the contract, but the following provisions have effect.

(3)If the transaction is completed without previously having been substantially performed, the contract and the transaction effected on completion are treated as parts of a single land transaction. In this case the effective date of the transaction is the date of completion.

(4)If the contract is substantially performed without having been completed, the contract is treated as if it were itself the transaction provided for in the contract.

In this case the effective date of the transaction is when the contract is substantially performed.

(5)A contract is “substantially performed” when—

(a)the purchaser[F30, or a person connected with the purchaser,] takes possession of the whole, or substantially the whole, of the subject-matter of the contract, or

(b)a substantial amount of the consideration is paid or provided.

(6)For the purposes of subsection (5)(a)—

[F31(a)possession includes receipt of rents and profits or the right to receive them, and]

(b)it is immaterial whether [F32possession is taken] under the contract or under a licence or lease of a temporary character.

(7)For the purposes of subsection (5)(b) a substantial amount of the consideration is paid or provided—

(a)if none of the consideration is rent, where the whole or substantially the whole of the consideration is paid or provided;

(b)if the only consideration is rent, when the first payment of rent is made;

(c)if the consideration includes both rent and other consideration, when—

(i)the whole or substantially the whole of the consideration other than rent is paid or provided, or

(ii)the first payment of rent is made.

(8)Where subsection (4) applies and the contract is subsequently completed by a conveyance—

(a)both the contract and the transaction effected on completion are notifiable transactions, and

(b)tax is chargeable on the latter transaction to the extent (if any) that the amount of tax chargeable on it is greater than the amount of tax chargeable on the contract.

(9)Where subsection (4) applies and the contract is (to any extent) afterwards rescinded or annulled, or is for any other reason not carried into effect, the tax paid by virtue of that subsection shall (to that extent) be repaid by the Inland Revenue.

Repayment must be claimed by amendment of the land transaction return made in respect of the contract.

[F33(9A)Where—

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

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

it applies in place of subsections (4), (8) and (9).]

(10)In this section—

(a)references to completion are to completion of the land transaction proposed, between the same parties, in substantial conformity with the contract; and

(b)contract” includes any agreement and “conveyance” includes any instrument.

[F34(11)[F35Section 1122 of the Corporation Tax Act 2010] (connected persons) has effect for the purposes of this section.]

Textual Amendments

F30Words in s. 44(5)(a) inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 15(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)

F31S. 44(6)(a) substituted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 15(3)(a) (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)

F32Words in s. 44(6)(b) substituted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 15(3)(b) (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)

F33S. 44(9A) 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. 3

F34S. 44(11) added (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 15(4) (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)

F35Words in s. 44(11) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 401 (with Sch. 2)

Commencement Information

I17Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

[F3644AContract providing for conveyance to third partyU.K.

(1)This section applies where a contract is entered into under which a chargeable interest is to be conveyed by one party to the contract (A) at the direction or request of the other (B)—

(a)to a person (C) who is not a party to the contract, or

(b)either to such a person or to B.

(2)B is not regarded as entering into a land transaction by reason of entering into the contract, but the following provisions have effect.

(3)If the contract is substantially performed B is treated for the purposes of this Part as acquiring a chargeable interest, and accordingly as entering into a land transaction.

The effective date of the transaction is when the contract is substantially performed.

(4)Where the contract is (to any extent) afterwards rescinded or annulled, or is for any other reason not carried into effect, the tax paid by virtue of subsection (3) shall (to that extent) be repaid by the Inland Revenue.

Repayment must be claimed by amendment of the land transaction return made in respect of the contract.

(5)Subject to subsection (6), section 44 (contract and conveyance) does not apply (except so far as it defines “substantial performance”) in relation to the contract.

(6)Where—

(a)this section applies by virtue of subsection (1)(b), and

(b)by reason of B’s direction or request, A becomes obliged to convey a chargeable interest to B,

section 44 applies to that obligation as it applies to a contract for a land transaction that is to be completed by a conveyance.

(7)Section 44 applies in relation to any contract between B and C, in respect of the chargeable interest referred to in subsection (1) above, that is to be completed by a conveyance.

References to completion in that section, as it so applies, include references to conveyance by A to C of the subject matter of the contract between B and C.

(8)In this section “contract” includes any agreement and “conveyance” includes any instrument.]

Textual Amendments

F36S. 44A inserted (with effect in accordance with Sch. 39 para. 13(1) of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 4(1)

45Contract and conveyance: effect of transfer of rightsU.K.

(1)This section applies where—

(a)a contract for a land transaction (“the original contract”) is entered into under which the transaction is to be completed by a conveyance, F37...

(b)there is an assignment, subsale or other transaction (relating to the whole or part of the subject-matter of the original contract) as a result of which a person other than the original purchaser becomes entitled to call for a conveyance to him[F38, and

(c)paragraph 12B of Schedule 17A (assignment of agreement for lease) does not apply.]

References in the following provisions of this section to a transfer of rights are to any such assignment, subsale or other transaction[F39, and references to the transferor and the transferee shall be read accordingly].

(2)The transferee is not regarded as entering into a land transaction by reason of the transfer of rights, but section 44 (contract and conveyance) has effect in accordance with the following provisions of this section.

(3)That section applies as if there were a contract for a land transaction (a “secondary contract”) under which—

(a)the transferee is the purchaser, and

(b)the consideration for the transaction is—

(i)so much of the consideration under the original contract as is referable to the subject-matter of the transfer of rights and is to be given (directly or indirectly) by the transferee or a person connected with him, and

(ii)the consideration given for the transfer of rights.

The substantial performance or completion of the original contract at the same time as, and in connection with, the substantial performance or completion of the secondary contract shall be disregarded [F40except in a case where the secondary contract gives rise to a transaction that is exempt from charge by virtue of subsection (3) of section 73 (alternative property finance: land sold to financial institution and re-sold to individual)].

(4)Where there are successive transfers of rights, subsection (3) has effect in relation to each of them.

The substantial performance or completion of the secondary contract arising from an earlier transfer of rights at the same time as, and in connection with, the substantial performance or completion of the secondary contract arising from a subsequent transfer of rights shall be disregarded.

[F41(5)Where a transfer of rights relates to part only of the subject-matter of the original contract (“the relevant part”)—

(a)subsection (8)(b) of section 44 (restriction of charge to tax on subsequent conveyance) has effect as if the reference to the amount of tax chargeable on that contract were a reference to an appropriate proportion of that amount, and

(b)a reference in the second sentence of subsection (3) above to the original contract, or a reference in subsection (4) above to the secondary contract arising from an earlier transfer of rights, is to that contract so far as relating to the relevant part (and that contract so far as not relating to the relevant part shall be treated as a separate contract).]

[F42(5A)In relation to a land transaction treated as taking place by virtue of subsection (3)—

(a)references in Schedule 7 (group relief) to the vendor shall be read as references to the vendor under the original contract;

(b)other references in this Part to the vendor shall be read, where the context permits, as referring to either the vendor under the original contract or the transferor.]

(6)[F43Section 1122 of the Corporation Tax Act 2010] (connected persons) applies for the purposes of subsection (3)(b)(i).

(7)In this section “contract” includes any agreement and “conveyance” includes any instrument.

Textual Amendments

F37Word in s. 45(1) repealed (with effect in accordance with Sch. 39 para. 13 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 4(2)

F38S. 45(1)(c) and word inserted (with effect in accordance with Sch. 39 para. 13(2) of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 5(2)(a)

F39Words in s. 45(1) inserted (with effect in accordance with Sch. 39 para. 13(2) of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 5(2)(b)

F40Words in s. 45(3) inserted (with effect in accordance with Sch. 10 para. 16(5)-(9) of the amending Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 10 para. 2

F41S. 45(5) substituted (with effect in accordance with Sch. 39 para. 13(2) of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 5(3)

F42S. 45(5A) inserted (with effect in accordance with Sch. 39 para. 13(2) of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 5(4)

F43Words in s. 45(6) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 402 (with Sch. 2)

Commencement Information

I18Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

[F4445AContract providing for conveyance to third party: effect of transfer of rightsU.K.

(1)This section applies where—

(a)a contract (“the original contract”) is entered into under which a chargeable interest is to be conveyed by one party to the contract (A) at the direction or request of the other (B)—

(i)to a person (C) who is not a party to the contract, or

(ii)either to such a person or to B,

and

(b)there is an assignment or other transaction (relating to the whole or part of the subject-matter of the original contract) as a result of which a person (D) becomes entitled to exercise any of B’s rights under the original contract in place of B.

References in the following provisions of this section to a transfer of rights are to any such assignment or other transaction.

(2)D is not regarded as entering into a land transaction by reason of the transfer of rights, but section 44A (contract providing for conveyance to third party) has effect in accordance with the following provisions of this section.

(3)That section applies as if—

(a)D had entered into a contract (a “secondary contract”) in the same terms as the original contract except with D as a party instead of B, and

(b)the consideration due from D under the secondary contract were—

(i)so much of the consideration under the original contract as is referable to the subject-matter of the transfer of rights and is to be given (directly or indirectly) by D or a person connected with him, and

(ii)the consideration given for the transfer of rights.

(4)The substantial performance of the original contract shall be disregarded if—

(a)it occurs at the same time as, and in connection with, the substantial performance of the secondary contract, or

(b)it occurs after the transfer of rights.

(5)Where there are successive transfers of rights, subsection (3) has effect in relation to each of them.

(6)The substantial performance of the secondary contract arising from an earlier transfer of rights shall be disregarded if—

(a)it occurs at the same time as, and in connection with, the substantial performance of the secondary contract arising from a subsequent transfer of rights, or

(b)it occurs after that subsequent transfer.

(7)Where a transfer of rights relates to only part of the subject matter of the original contract, or to only some of the rights under that contract—

(a)a reference in subsection (3)(a) or (4) to the original contract, or a reference in subsection (6) to the secondary contract arising from an earlier transfer, is to that contract so far as relating to that part or those rights, and

(b)that contract so far as not relating to that part or those rights shall be treated as a separate contract.

(8)The effective date of a land transaction treated as entered into by virtue of subsection (3) is not earlier than the date of the transfer of rights.

(9)In relation to a such a transaction—

(a)references in Schedule 7 (group relief) to the vendor shall be read as references to A;

(b)other references in this Part to the vendor shall be read, where the context permits, as referring to either A or B.

(10)[F45Section 1122 of the Corporation Tax Act 2010] (connected persons) applies for the purposes of subsection (3)(b).

(11)In this section “contract” includes any agreement.]

Textual Amendments

F44S. 45A inserted (with effect in accordance with Sch. 39 para. 13(2) of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 5(5)

F45Words in s. 45A(10) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 403 (with Sch. 2)

46Options and rights of pre-emptionU.K.

(1)The acquisition of—

(a)an option binding the grantor to enter into a land transaction, or

(b)a right of pre-emption preventing the grantor from entering into, or restricting the right of the grantor to enter into, a land transaction,

is a land transaction distinct from any land transaction resulting from the exercise of the option or right.

They may be “linked transactions” (see section 108).

(2)The reference in subsection (1)(a) to an option binding the grantor to enter into a land transaction includes an option requiring the grantor either to enter into a land transaction or to discharge his obligations under the option in some other way.

(3)The effective date of the transaction in the case of the acquisition of an option or right such as is mentioned in subsection (1) is when the option or right is acquired (as opposed to when it becomes exercisable).

(4)Nothing in this section applies to so much of an option or right of pre-emption as constitutes or forms part of a land transaction apart from this section.

Commencement Information

I20Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

47ExchangesU.K.

(1)Where a land transaction is entered into by the purchaser (alone or jointly) wholly or partly in consideration of another land transaction being entered into by him (alone or jointly) as vendor, this Part applies in relation to each transaction as if each were distinct and separate from the other [F46(and they are not linked transactions within the meaning of section 108)].

(2)A transaction is treated for the purposes of this Part as entered into by the purchaser wholly or partly in consideration of another land transaction being entered into by him as vendor in any case where an obligation to give consideration for a land transaction that a person enters into as purchaser is met wholly or partly by way of that person entering into another transaction as vendor.

(3)As to the amount of the chargeable consideration in the case of exchanges and similar transactions, see—

Textual Amendments

F46Words in s. 47(1) inserted (with effect in accordance with s. 76(3) of the amending Act) by Finance Act 2007 (c. 11), s. 76(1)

F47Words in s. 47(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)

Commencement Information

I21Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

Chargeable interests, chargeable transactions and chargeable considerationU.K.

48Chargeable interestsU.K.

(1)In this Part “chargeable interest” means—

(a)an estate, interest, right or power in or over land in the United Kingdom, or

(b)the benefit of an obligation, restriction or condition affecting the value of any such estate, interest, right or power,

other than an exempt interest.

(2)The following are exempt interests—

(a)any security interest;

(b)a licence to use or occupy land;

(c)in England and Wales or Northern Ireland—

(i)a tenancy at will;

(ii)an advowson, franchise or manor.

(3)In subsection (2)—

(a)security interest” means an interest or right (other than a rentcharge) held for the purpose of securing the payment of money or the performance of any other obligation; and

(b)franchise” means a grant from the Crown such as the right to hold a market or fair, or the right to take tolls.

[F49(3A)Section 73B makes additional provision about exempt interests in relation to alternative finance arrangements.]

(4)In the application of this Part in Scotland the reference in subsection (3)(a) to a rentcharge shall be read as a reference to a feu duty or a payment mentioned in section 56(1) of the Abolition of Feudal Tenure etc. (Scotland) Act 2000 (asp 5).

(5)The Treasury may by regulations provide that any other description of interest or right in relation to land in the United Kingdom is an exempt interest.

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

[F50(7)This section has effect subject to subsection (3) of section 44A (contract and conveyance to third party) [F51and to paragraph 15A of Schedule 17A (reduction of rent or term of lease)].]

Textual Amendments

F49S. 48(3A) inserted (19.7.2007) by Finance Act 2007 (c. 11), s. 75(2)

F50S. 48(7) inserted (with effect in accordance with Sch. 39 para. 13(1) of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 4(2)

F51Words in s. 48(7) inserted (with effect in accordance with s. 297(9) of the amending Act) by Finance Act 2004 (c. 12), s. 297(3)

Commencement Information

I22Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

49Chargeable transactionsU.K.

(1)A land transaction is a chargeable transaction if it is not a transaction that is exempt from charge.

(2)Schedule 3 provides for certain transactions to be exempt from charge.

Other transactions are exempt from charge under other provisions of this Part.

Commencement Information

I23Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

50Chargeable considerationU.K.

(1)Schedule 4 makes provision as to the chargeable consideration for a transaction.

(2)The Treasury may by regulations amend or repeal the provisions of this Part relating to chargeable consideration and make such other provision as appears to them appropriate with respect to—

(a)what is to count as chargeable consideration, or

(b)the determination of the amount of chargeable consideration.

(3)The regulations may make different provision in relation to different descriptions of transaction or consideration and different circumstances.

Commencement Information

I24Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

51Contingent, uncertain or unascertained considerationU.K.

(1)Where the whole or part of the chargeable consideration for a transaction is contingent, the amount or value of the consideration shall be determined for the purposes of this Part on the assumption that the outcome of the contingency will be such that the consideration is payable or, as the case may be, does not cease to be payable.

(2)Where the whole or part of the chargeable consideration for a transaction is uncertain or unascertained, its amount or value shall be determined for the purposes of this Part on the basis of a reasonable estimate.

(3)In this Part—

(4)This section has effect subject to—

[F52(5)This section applies in relation to chargeable consideration consisting of rent only to the extent that it is applied by paragraph 7 of Schedule 17A.]

Textual Amendments

F52S. 51(5) added (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 22(3) (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)

Commencement Information

I25Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

52Annuities etc: chargeable consideration limited to twelve years' paymentsU.K.

(1)This section applies to so much of the chargeable consideration for a land transaction as consists of an annuity payable—

(a)for life, or

(b)in perpetuity, or

(c)for an indefinite period, or

(d)for a definite period exceeding twelve years.

(2)For the purposes of this Part the consideration to be taken into account is limited to twelve years' annual payments.

(3)Where the amount payable varies, or may vary, from year to year, the twelve highest annual payments shall be taken.

No account shall be taken for the purposes of this Schedule of any provision for adjustment of the amount payable in line with the retail price index.

(4)References in this section to annual payments are to payments in respect of each successive period of twelve months beginning with the effective date of the transaction.

(5)For the purposes of this section the amount or value of any payment shall be determined (if necessary) in accordance with section 51 (contingent, uncertain or unascertained consideration).

(6)References in this section to an annuity include any consideration (other than rent) that falls to be paid or provided periodically. References to payment shall be read accordingly.

(7)Where this section applies—

(a)section 80 (adjustment where contingency ceases or consideration is ascertained) does not apply, and

(b)no application may be made under section 90 (application to defer payment in case of contingent or uncertain consideration).

Commencement Information

I26Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

53Deemed market value where transaction involves connected companyU.K.

[F53(1)This section applies where the purchaser is a company and—

(a)the vendor is connected with the purchaser, or

(b)some or all of the consideration for the transaction consists of the issue or transfer of shares in a company with which the vendor is connected.

(1A)The chargeable consideration for the transaction shall be taken to be not less than—

(a)the market value of the subject-matter of the transaction as at the effective date of the transaction, and

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

(2)[F54Section 1122 of the Corporation Tax Act 2010] (connected persons) has effect for the purposes of this section.

(3)In this section—

(4)Where this section applies paragraph 1 of Schedule 3 (exemption of transactions for which there is no chargeable consideration) does not apply.

But this section has effect subject to any other provision affording exemption or relief from stamp duty land tax.

(5)This section is subject to the exceptions provided for in section 54.

Textual Amendments

F53S. 53(1)(1A) substituted for s. 53(1) (with effect in accordance with s. 297(9) of the amending Act) by Finance Act 2004 (c. 12), s. 297(4)

F54Words in s. 53(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), Sch. 1 para. 404 (with Sch. 2)

Commencement Information

I27Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

54Exceptions from deemed market value ruleU.K.

(1)Section 53 (chargeable consideration: transaction with connected company) does not apply in the following cases.

In the following provisions “the company” means the company that is the purchaser in relation to the transaction in question.

(2)Case 1 is where immediately after the transaction the company holds the property as trustee in the course of a business carried on by it that consists of or includes the management of trusts.

(3)Case 2 is where—

(a)immediately after the transaction the company holds the property as trustee, and

(b)the vendor is connected with the company only because of [F55section 1122(6) of the Corporation Tax Act 2010].

(4)Case 3 is where—

(a)the vendor is a company and the transaction is, or is part of, a distribution of the assets of that company (whether or not in connection with its winding up), and

(b)it is not the case that—

(i)the subject-matter of the transaction, or

(ii)an interest from which that interest is derived,

has, within the period of three years immediately preceding the effective date of the transaction, been the subject of a transaction in respect of which group relief was claimed by the vendor.

Textual Amendments

F55Words in s. 54(3)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), Sch. 1 para. 405 (with Sch. 2)

Commencement Information

I29Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

Amount of tax chargeableU.K.

55Amount of tax chargeable: generalU.K.

(1)The amount of tax chargeable in respect of a chargeable transaction is a percentage of the chargeable consideration for the transaction.

(2)That percentage is 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),

and, in either case, by reference to the amount of the relevant consideration.

Table A: Residential
Relevant considerationPercentage
Not more than [F56£125,000]0%
More than [F56£125,000] but not more than £250,0001%
More than £250,000 but not more than £500,0003%
More than £500,0004%
Table B: Non-residential or mixed
Relevant considerationPercentage
Not more than £150,0000%
More than £150,000 but not more than £250,0001%
More than £250,000 but not more than £500,0003%
More than £500,0004%

(3)For the purposes of subsection (2)—

(a)the relevant land is the land an interest in which is the main subject-matter of the transaction, and

(b)the relevant consideration is the chargeable consideration for the transaction,

subject as follows.

(4)If the transaction in question is one of a number of linked transactions—

(a)the relevant land is any land an interest in which is the main subject-matter of any of those transactions, and

(b)the relevant consideration is the total of the chargeable consideration for all those transactions.

(5)This section has effect subject to—

(which provide for the rate of tax to be determined by reference to a fraction of the relevant consideration).

(6)In the case of a transaction for which the whole or part of the chargeable consideration is rent this section has effect subject to section 56 and Schedule 5 (amount of tax chargeable: rent).

(7)References in this Part to the “rate of tax” are to the percentage determined under this section.

Textual Amendments

F56Sum in s. 55(2) substituted (with effect in accordance with s. 162(4) of the amending Act) by Finance Act 2006 (c. 25), s. 162(1)

F57Words in s. 55(5) substituted (with effect in accordance with s. 80(7) of the amending Act) by Finance Act 2009 (c. 10), s. 80(6)

Modifications etc. (not altering text)

C4S. 55(2) modified (temp.) (21.7.2009) by Finance Act 2009 (c. 10), s. 10(1)

C5S. 55(4) excluded (with effect in accordance with reg. 1(2) of the amending S.I.) by The Stamp Duty Land Tax (Zero-Carbon Homes Relief) Regulations 2007 (S.I. 2007/3437), regs. 1(1), 9 (with reg. 3)

Commencement Information

I30Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

56Amount of tax chargeable: rentU.K.

Schedule 5 provides for the calculation of the tax chargeable where the chargeable consideration for a transaction consists of or includes rent.

Commencement Information

I31Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

ReliefsU.K.

57Disadvantaged areas reliefU.K.

(1)Schedule 6 provides for relief in the case of transactions relating to land in a disadvantaged area.

(2)In that Schedule—

Commencement Information

I32Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

[F5857ASale and leaseback arrangementsU.K.

(1)The leaseback element of a sale and leaseback arrangement is exempt from charge if the qualifying conditions specified below are met.

(2)A “sale and leaseback”arrangement means an arrangement under which—

(a)A transfers or grants to B a major interest in land (the “sale”), and

(b)out of that interest B grants a lease to A (the “leaseback”).

(3)The qualifying conditions are—

(a)that the sale transaction is entered into wholly or partly in consideration of the leaseback transaction being entered into,

[F59(aa)that the sale transaction is entered into wholly or partly in consideration of the leaseback transaction being entered into,

(b)that the only other consideration (if any) for the sale is the payment of money or the assumption, satisfaction or release of a debt (or both),]

(c)that the sale is not a transfer of rights within the meaning of section 45 (contract and conveyance: effect of transfer of rights) or 45A (contract providing for conveyance to third party: effect of transfer of rights), and

(d)where A and B are both bodies corporate at the effective date of the leaseback transaction, that they are not members of the same group for the purposes of group relief (see paragraph 1 of Schedule 7) at that date.

[F60(e)where A and B are both bodies corporate at the effective date of the leaseback transaction, that they are not members of the same group for the purposes of group relief (see paragraph 1 of Schedule 7) at that date.]

F61(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F58S. 57A inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 16 (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)

F59S. 57A(3)(aa)(b) substituted for s. 57A(3)(b) (with effect in accordance with Sch. 39 para. 13(3)-(6) of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 6(2)

F60S. 57A(3)(e) 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. 6(3)

F61S. 57A(4) omitted (with effect in accordance with Sch. 39 para. 13(3)-(6) of the amending Act) by virtue of Finance Act 2004 (c. 12), Sch. 39 para. 6(4)

[F6258ARelief for certain acquisitions of residential propertyU.K.

Schedule 6A provides for relief in the case of certain acquisitions of residential property.]

Textual Amendments

F62 S. 58A substituted (with effect in accordance with Sch. 39 para. 26 of the amending Act) for ss. 58 and 59 by Finance Act 2004 (c. 12), Sch. 39 para. 17(1) (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)

[F6358BRelief for new zero-carbon homesU.K.

(1)The Treasury may make regulations granting relief on the first acquisition of a dwelling which is a “zero-carbon home”.

[F64(2)For the purposes of this section—

(a)a building, or a part of a building, is a dwelling if it is constructed for use as a single dwelling, and

(b)first acquisition”, in relation to a dwelling, means its acquisition when it has not previously been occupied.]

(3)For the purpose of subsection (2) land occupied or enjoyed with a dwelling as a garden or grounds is part of the dwelling.

(4)The regulations shall define “zero-carbon home” by reference to specified aspects of the energy efficiency of a building; for which purpose “energy efficiency” includes—

(a)consumption of energy,

(b)conservation of energy, and

(c)generation of energy.

(5)The relief may take the form of—

(a)exemption from charge, or

(b)a reduction in the amount of tax chargeable.

(6)Regulations under this section shall not have effect in relation to acquisitions on or after 1st October 2012.

(7)The Treasury may by order—

(a)substitute a later date for the date in subsection (6);

(b)make transitional provision, or provide savings, in connection with the effect of subsection (6).

Textual Amendments

F63Ss. 58B, 58C inserted (19.7.2007) by Finance Act 2007 (c. 11), s. 19(1)

F64S. 58B(2) substituted (retrospective to 19.7.2007) by Finance Act 2008 (c. 9), s. 93(2)(7)

58CRelief for new zero-carbon homes: supplementalU.K.

(1)Regulations under section 58B—

(a)shall include provision about the method of claiming relief (including documents or information to be provided), and

(b)in particular, shall include provision about the evidence to be adduced to show that a [F65dwelling] satisfies the definition of “zero-carbon home”.

(2)Regulations made by virtue of subsection (1)(b) may, in particular—

(a)refer to a scheme or process established by or for the purposes of an enactment about building;

(b)establish or provide for the establishment of a scheme or process of certification;

(c)specify, or provide for the approval of, one or more schemes or processes for certifying energy efficiency.

[F66(d)provide for the charging of fees of a reasonable amount in respect of services provided as part of a scheme or process of certification.]

(3)In defining “zero-carbon home” regulations under section 58B may include requirements which may be satisfied in relation to [F67a dwelling] either—

(a)by features of the [F68building which, or part of which, constitutes the dwelling], or

(b)by other installations or utilities.

(4)Regulations under section 58B may modify the effect of section 108, or another provision of this Part about linked transactions, in relation to a set of transactions of which at least one is the first acquisition of a dwelling which is a zero-carbon home.

(5)In determining whether section 116(7) applies, and in the application of section 116(7), a transaction shall be disregarded if or in so far as it involves the first acquisition of a dwelling which is a zero-carbon home.

(6)Regulations under section 58B—

(a)may provide for relief to be wholly or partly withdrawn if a dwelling ceases to be a zero-carbon home, and

(b)may provide for the reduction or withholding of relief where a person acquires more than one zero-carbon home within a specified period.

(7)Regulations under section 58B may include provision for relief to be granted in respect of acquisitions occurring during a specified period before the regulations come into force.]

Textual Amendments

F63Ss. 58B, 58C inserted (19.7.2007) by Finance Act 2007 (c. 11), s. 19(1)

F65Word in s. 58C(1) substituted (retrospective to 19.7.2007) by Finance Act 2008 (c. 9), s. 93(4)(7)

F66S. 58C(2)(d) inserted (21.7.2008) by Finance Act 2008 (c. 9), s. 93(5)

F67Words in s. 58C(3) substituted (retrospective to 19.7.2007) by Finance Act 2008 (c. 9), s. 93(6)(a)(7)

F68Words in s. 58C(3) substituted (retrospective to 19.7.2007) by Finance Act 2008 (c. 9), s. 93(6)(b)(7)

60Compulsory purchase facilitating developmentU.K.

(1)A compulsory purchase facilitating development is exempt from charge.

(2)In this section “compulsory purchase facilitating development” means—

(a)in relation to England and Wales or Scotland, the acquisition by a person of a chargeable interest in respect of which that person has made a compulsory purchase order for the purpose of facilitating development by another person;

(b)in relation to Northern Ireland, the acquisition by a person of a chargeable interest by means of a vesting order made for the purpose of facilitating development by a person other than the person who acquires the interest.

(3)For the purposes of subsection (2)(a) it does not matter how the acquisition is effected (so that provision applies where the acquisition is effected by agreement).

(4)In subsection (2)(b) a “vesting order” means an order made under any statutory provision to authorise the acquisition of land otherwise than by agreement.

(5)In this section “development”—

(a)in relation to England and Wales, has the same meaning as in the Town and Country Planning Act 1990 (c. 8) (see section 55 of that Act);

(b)in relation to Scotland, has the same meaning as in the Town and Country Planning (Scotland) Act 1997 (c. 8) (see section 26 of that Act); and

(c)in relation to Northern Ireland, has the same meaning as in the Planning (Northern Ireland) Order 1991 (1991/1220 (N.I. 11)) (see Article 11 of that Order).

Commencement Information

I33Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

61Compliance with planning obligationsU.K.

(1)A land transaction that is entered into in order to comply with a planning obligation or a modification of a planning obligation is exempt from charge if—

(a)the planning obligation or modification is enforceable against the vendor,

(b)the purchaser is a public authority, and

(c)the transaction takes place within the period of five years beginning with the date on which the planning obligation was entered into or modified.

(2)In this section—

(a)in relation to England and Wales—

(b)in relation to Scotland, “planning obligation” means an agreement made under section 75 or section 246 of the Town and Country Planning (Scotland) Act 1997;

(c)in relation to Northern Ireland—

(3)The following are public authorities for the purposes of subsection (1)(b)—

Government
A Minister of the Crown or government department
The Scottish Ministers
A Northern Ireland department
[F69The Welsh Ministers, the First Minister for Wales and the Counsel General to the Welsh Government]
Local government: England
A county or district council constituted under section 2 of the Local Government Act 1972 (c. 70)
The council of a London borough
The Common Council of the City of London
The Greater London Authority
Transport for London
The Council of the Isles of Scilly
Local government: Wales
A county or county borough council constituted under section 21 of the Local Government Act 1972
Local government: Scotland
A council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39)
Local government: Northern Ireland
A district council within the meaning of the Local Government Act (Northern Ireland) 1972 (c. 9 (N.I.))
Health: England and Wales
A Strategic Health Authority [F70established under section 13 of the National Health Service Act 2006]
A Special Health Authority established under [F71section 28 of that Act or section 22 of the National Health Service (Wales) Act 2006]
A Primary Care Trust established under [F72section 18 of the National Health Service Act 2006]
A Local Health Board established under [F73section 11 of the National Health Service (Wales) Act 2006]
A National Health Service Trust established under [F74section 25 of the National Health Service Act 2006 or section 18 of the National Health Service (Wales) Act 2006]
Health: Scotland
The Common Services Agency established under section 10(1) of the National Health Service (Scotland) Act 1978 (c. 29)
A Health Board established under section 2(1)(a) of that Act
A National Health Service Trust established under section 12A(1) of that Act
A Special Health Board established under section 2(1)(b) of that Act
Health: Northern Ireland
A Health and Social Services Board established under Article 16 of the Health and Personal Social Services (Northern Ireland) Order 1972 (S.I. 1972/1265 (N.I. 14))
A Health and Social Services Trust established under Article 10 of the Health and Personal Social Services (Northern Ireland) Order 1991 (S.I. 1991/194 (N.I. 1))
Other planning authorities

Any other authority that—

(a)

is a local planning authority within the meaning of the Town and Country Planning Act 1990 (c. 8), or

(b)

is the planning authority for any of the purposes of the planning Acts within the meaning of the Town and Country Planning (Scotland) Act 1997 (c. 8).

Prescribed persons
A person prescribed for the purposes of this section by Treasury order

Textual Amendments

F69Words in s. 61(3) substituted by Government of Wales Act 2006 (c. 32), s. 160, Sch. 10 para. 63 (with Sch. 11 para. 22), the amending provision coming into force immediately after "the 2007 election" (held on 3.5.2007) subject to s. 161(1)(4)(5) of the amending Act, which provides for certain provisions to come into force for specified purposes immediately after the end of "the initial period" (which ended with the day of the first appointment of a First Minister on 25.5.2007) - see ss. 46, s. 161(4)(5) of the amending Act.

Commencement Information

I34Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

62Group relief and reconstruction or acquisition reliefU.K.

(1)Schedule 7 provides for relief from stamp duty land tax.

(2)In that Schedule—

(3)Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.

Commencement Information

I35Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

63Demutualisation of insurance companyU.K.

(1)A land transaction is exempt from charge if it is entered into for the purposes of or in connection with a qualifying transfer of the whole or part of the business of a mutual insurance company (“the mutual”) to a company that has share capital (“the acquiring company”).

(2)A transfer is a qualifying transfer if—

(a)it is a transfer of business consisting of the effecting or carrying out of contracts of insurance and takes place under an insurance business transfer scheme, or

(b)it is a transfer of business of a general insurance company carried on through a permanent establishment in the United Kingdom and takes place in accordance with authorisation granted outside the United Kingdom for the purposes of—

(i)Article 14 of the life assurance Directive, or

(ii)Article 12 of the 3rd non-life insurance Directive,

and, in either case, the requirements of subsections (3) and (4) are met in relation to the shares of a company (“the issuing company”) which is either the acquiring company or a company of which the acquiring company is a wholly-owned subsidiary.

(3)Shares in the issuing company must be offered, under the scheme, to at least 90% of the persons who are members of the mutual immediately before the transfer.

(4)Under the scheme all of the shares in the issuing company that will be in issue immediately after the transfer has been made, other than shares that are to be or have been issued pursuant to an offer to the public, must be offered to the persons who (at the time of the offer) are—

(a)members of the mutual,

(b)persons who are entitled to become members of the mutual, or

(c)employees, former employees or pensioners of—

(i)the mutual, or

(ii)a wholly-owned subsidiary of the mutual.

(5)The Treasury may by regulations—

(a)amend subsection (3) by substituting a lower percentage for the percentage mentioned there;

(b)provide that any or all of the references in subsections (3) and (4) to members shall be construed as references to members of a class specified in the regulations.

Regulations under paragraph (b) may make different provision for different cases.

(6)For the purposes of this section a company is the wholly-owned subsidiary of another company (“the parent”) if the company has no members except the parent and the parent’s wholly-owned subsidiaries or persons acting on behalf of the parent or the parent’s wholly-owned subsidiaries.

(7)In this section—

Commencement Information

I36Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

64Demutualisation of building societyU.K.

A land transaction effected by section 97(6) or (7) of the Building Societies Act 1986 (c. 53) (transfer of building society’s business to a commercial company) is exempt from charge.

Commencement Information

I37Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

F7564AInitial transfer of assets to trustees of unit trust schemeU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F75S. 64A repealed (with effect in accordance with s. 166(4)-(8) of the amending Act) by Finance Act 2006 (c. 25), s. 166(2), Sch. 26 Pt. 7(3)

65Incorporation of limited liability partnershipU.K.

(1)A transaction by which a chargeable interest is transferred by a person (“the transferor”) to a limited liability partnership in connection with its incorporation is exempt from charge if the following three conditions are met.

(2)The first condition is that the effective date of the transaction is not more than one year after the date of incorporation of the limited liability partnership.

(3)The second condition is that at the relevant time the transferor—

(a)is a partner in a partnership comprised of all the persons who are or are to be members of the limited liability partnership (and no-one else), or

(b)holds the interest transferred as nominee or bare trustee for one or more of the partners in such a partnership.

(4)The third condition is that—

(a)the proportions of the interest transferred to which the persons mentioned in subsection (3)(a) are entitled immediately after the transfer are the same as those to which they were entitled at the relevant time, or

(b)none of the differences in those proportions has arisen as part of a scheme or arrangement of which the main purpose, or one of the main purposes, is avoidance of liability to any duty or tax.

(5)In this section “the relevant time” means—

(a)where the transferor acquired the interest after the incorporation of the limited liability partnership, immediately after he acquired it, and

(b)in any other case, immediately before its incorporation.

(6)In this section “limited liability partnership” means a limited liability partnership formed under the Limited Liability Partnerships Act 2000 (c. 12) or the Limited Liability Partnerships Act (Northern Ireland) 2002 (c. 12 (N. I.)).

Commencement Information

I38Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

66Transfers involving public bodiesU.K.

(1)A land transaction entered into on, or in consequence of, or in connection with, a reorganisation effected by or under a statutory provision is exempt from charge if the purchaser and vendor are both public bodies.

(2)The Treasury may by order provide that a land transaction that is not entered into as mentioned in subsection (1) is exempt from charge if—

(a)the transaction is effected by or under a prescribed statutory provision, and

(b)either the purchaser or the vendor is a public body.

In this subsection “prescribed” means prescribed in an order made under this subsection.

(3)A “reorganisation” means changes involving—

(a)the establishment, reform or abolition of one or more public bodies,

(b)the creation, alteration or abolition of functions to be discharged or discharged by one or more public bodies, or

(c)the transfer of functions from one public body to another.

(4)The following are public bodies for the purposes of this section—

Government, Parliament etc
A Minister of the Crown
The Scottish Ministers
A Northern Ireland department
[F76The Welsh Ministers, the First Minister for Wales and the Counsel General to the Welsh Government]
The Corporate Officer of the House of Lords
The Corporate Officer of the House of Commons
The Scottish Parliamentary Corporate Body
The Northern Ireland Assembly Commission
[F77The National Assembly for Wales Commission]
Local government: England
A county or district council constituted under section 2 of the Local Government Act 1972 (c. 70)
The council of a London borough
The Greater London Authority
The Common Council of the City of London
The Council of the Isles of Scilly
Local government: Wales
A county or county borough council constituted under section 21 of the Local Government Act 1972
Local government: Scotland
A council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39)
Local government: Northern Ireland
A district council within the meaning of the Local Government Act (Northern Ireland) 1972 (c. 9 (N.I.))
Health: England and Wales
A Strategic Health Authority [F78established under section 13 of the National Health Service Act 2006]
A Special Health Authority established under [F79section 28 of that Act or section 22 of the National Health Service (Wales) Act 2006]
A Primary Care Trust established under [F80section 18 of the National Health Service Act 2006]
A Local Health Board established under [F81section 11 of the National Health Service (Wales) Act 2006]
A National Health Service Trust established under [F82section 25 of the National Health Service Act 2006 or section 18 of the National Health Service (Wales) Act 2006]
Health: Scotland
The Common Services Agency established under section 10(1) of the National Health Service (Scotland) Act 1978 (c. 29)
A Health Board established under section 2(1)(a) of that Act
A National Health Service Trust established under section 12A(1) of that Act
A Special Health Board established under section 2(1)(b) of that Act
Health: Northern Ireland
A Health and Social Services Board established under Article 16 of the Health and Personal Social Services (Northern Ireland) Order 1972 (S.I. 1972/1265 (N.I. 14))
A Health and Social Services Trust established under Article 10 of the Health and Personal Social Services (Northern Ireland) Order 1991 (S.I. 1991/194 (N.I. 1))
Other planning authorities

Any other authority that—

(a)

is a local planning authority within the meaning of the Town and Country Planning Act 1990 (c. 8), or

(b)

is the planning authority for any of the purposes of the planning Acts within the meaning of the Town and Country Planning (Scotland) Act 1997 (c. 8)

Statutory bodies
A body (other than a company) that is established by or under a statutory provision for the purpose of carrying out functions conferred on it by or under a statutory provision
Prescribed persons
A person prescribed for the purposes of this section by Treasury order

(5)In this section references to a public body include—

(a)a company in which all the shares are owned by such a body, and

(b)a wholly-owned subsidiary of such a company.

[F83(6)In this section “company” means a company as defined by section [F841] of the Companies Act [F842006] F85....]

Textual Amendments

F76Words in s. 66(4) substituted by Government of Wales Act 2006 (c. 32), s. 160, Sch. 10 para. 64(a) (with Sch. 11 para. 22), the amending provision coming into force immediately after "the 2007 election" (held on 3.5.2007) subject to s. 161(1)(4)(5) of the amending Act, which provides for certain provisions to come into force for specified purposes immediately after the end of "the initial period" (which ended with the day of the first appointment of a First Minister on 25.5.2007) - see ss. 46, s. 161(4)(5) of the amending Act.

F77Words in s. 66(4) inserted by Government of Wales Act 2006 (c. 32), s. 160, Sch. 10 para. 64(b) (with Sch. 11 para. 22), the amending provision coming into force immediately after "the 2007 election" (held on 3.5.2007) subject to s. 161(1)(4)(5) of the amending Act, which provides for certain provisions to come into force for specified purposes immediately after the end of "the initial period" (which ended with the day of the first appointment of a First Minister on 25.5.2007) - see ss. 46, s. 161(4)(5) of the amending Act.

F83S. 66(6) inserted (with effect in accordance with Sch. 10 para. 22(1)(5) of the amending Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 10 para. 18

Commencement Information

I39Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

67Transfer in consequence of reorganisation of parliamentary constituenciesU.K.

(1)Where—

(a)an Order in Council is made under the Parliamentary Constituencies Act 1986 (c. 56) (orders specifying new parliamentary constituencies), and

(b)an existing local constituency association transfers a chargeable interest to—

(i)a new association that is a successor to the existing association, or

(ii)a related body that as soon as practicable transfers the interest or right to a new association that is a successor to the existing association,

the transfer, or where paragraph (b)(ii) applies each of the transfers, is exempt from charge.

(2)In relation to any such order as is mentioned in subsection (1)(a)—

(a)the date of the change” means the date on which the order comes into operation;

(b)former parliamentary constituency” means an area that, for the purposes of parliamentary elections, was a constituency immediately before that date but is no longer such a constituency after that date;

(c)new parliamentary constituency” means an area that, for the purposes of parliamentary elections, is such a constituency after that date but was not such a constituency immediately before that date.

(3)In relation to the date of the change—

(a)existing local constituency association” means a local constituency association whose area was the same, or substantially the same, as the area of a former parliamentary constituency or two or more such constituencies, and

(b)new association” means a local constituency association whose area is the same, or substantially the same, as that of a new parliamentary constituency or two or more such constituencies.

(4)In this section—

(a)local constituency association” means an unincorporated association (whether described as an association, a branch or otherwise) whose primary purpose is to further the aims of a political party in an area that at any time is or was the same or substantially the same as the area of a parliamentary constituency or two or more parliamentary constituencies, and

(b)related body”, in relation to such an association, means a body (whether corporate or unincorporated) that is an organ of the political party concerned.

(5)For the purposes of this section a new association is a successor to an existing association if any part of the existing association’s area is comprised in the new association’s area.

Commencement Information

I40Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

68Charities reliefU.K.

(1)Schedule 8 provides for relief from stamp duty land tax for acquisitions by charities.

(2)Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.

Commencement Information

I41Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

69Acquisition by bodies established for national purposesU.K.

A land transaction is exempt from charge if the purchaser is any of the following—

(a)the Historic Buildings and Monuments Commission for England;

(b)the National Endowment for Science, Technology and the Arts;

(c)the Trustees of the British Museum;

(d)the Trustees of the National Heritage Memorial Fund;

(e)the Trustees of the Natural History Museum.

Commencement Information

I42Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

70Right to buy transactions, shared ownership leases etcU.K.

Schedule 9 makes provision for relief in the case of right to buy transactions, shared ownership leases and certain related transactions.

Commencement Information

I43Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

71Certain acquisitions by registered social landlordU.K.

[F86(A1)A land transaction under which the purchaser is a profit-making registered provider of social housing is exempt from charge if the transaction is funded with the assistance of a public subsidy.]

(1)A land transaction under which the purchaser is a [F87relevant housing provider] is exempt from charge if—

(a)the [F87relevant housing provider] is controlled by its tenants,

(b)the vendor is a qualifying body, or

(c)the transaction is funded with the assistance of a public subsidy.

[F88(1A)In this section “relevant housing provider” means—

(a)a non-profit registered provider of social housing, or

(b)a registered social landlord.]

(2)The reference in subsection (1)(a) to a [F89relevant housing provider]controlled by its tenants” is to a [F89relevant housing provider] the majority of whose board members are tenants occupying properties owned or managed by it.

(3)In subsection (1)(b) “qualifying body” means—

(a)a [F90relevant housing provider],

(b)a housing action trust established under Part 3 of the Housing Act 1988 (c. 50),

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

(d)the Common Council of the City of London,

(e)the Scottish Ministers,

(f)a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39),

(g)Scottish Homes,

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

(i)the Northern Ireland Housing Executive.

(4)In [F91this section]public subsidy” means any grant or other financial assistance—

(a)made or given by way of a distribution pursuant to section 25 of the National Lottery etc. Act 1993 (c. 39) (application of money by distributing bodies),

(b)under section 18 of the Housing Act 1996 (c. 52) (social housing grants),

(c)under section 126 of the Housing Grants, Construction and Regeneration Act 1996 (c. 53) (financial assistance for regeneration and development),

[F92(ca)under section 19 of the Housing and Regeneration Act 2008 (financial assistance by the Homes and Communities Agency),]

(d)under section 2 of the Housing (Scotland) Act 1988 (c. 43) (general functions of the Scottish Ministers), or

(e)under Article 33 [F93or 33A] of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15)).

Textual Amendments

F86S. 71(A1) inserted (with effect in accordance with s. 81(8) of the amending Act) by Finance Act 2009 (c. 10), s. 81(3)

F91Words in s. 71(4) substituted (with effect in accordance with s. 81(8) of the amending Act) by Finance Act 2009 (c. 10), s. 81(4)

Commencement Information

I44Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

[F9471AAlternative property finance: land sold to financial institution and leased to [F95person] U.K.

(1)This section applies where arrangements are entered into between [F96a person] and a financial institution under which—

(a)the institution purchases a major interest in land or an undivided share of a major interest in land (“the first transaction”),

(b)where the interest purchased is an undivided share, the major interest is held on trust for the institution and the [F95person] as beneficial tenants in common,

(c)the institution (or the person holding the land on trust as mentioned in paragraph (b)) grants to the [F95person] out of the major interest a lease (if the major interest is freehold) or a sub-lease (if the major interest is leasehold) (“the second transaction”), and

(d)the institution and the [F95person] enter into an agreement under which the [F95person] has a right to require the institution or its successor in title to transfer to the [F95person] (in one transaction or a series of transactions) the whole interest purchased by the institution under the first transaction.

(2)The first transaction is exempt from charge if the vendor is—

(a)the [F95person], 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 [F95person].

(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 [F95person] that results from the exercise of the right mentioned in subsection (1)(d) (“a further transaction”) is exempt from charge if—

(a)the provisions of this Part relating to the first and second transactions are complied with, and

(b)at all times between the second transaction and the further transaction—

(i)the interest purchased under the first transaction is held by a financial institution so far as not transferred by a previous further transaction, and

(ii)the lease or sub-lease granted under the second transaction is held by the [F95person].

(5)The agreement mentioned in subsection (1)(d) 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).

[F97(6)The requirements of subsection (1), or (4)(b)(ii), are not met if—

(a)the [F95person] enters into the arrangement, or holds the lease or sub-lease, as trustee and any beneficiary of the trust is not [F96a person], or

(b)the [F95person] enters into the arrangements, or holds the lease or sub-lease, as partner and any of the other partners is not [F96a 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 [F95person] of the whole interest purchased by the institution under the first transaction, so far as not transferred by a previous further transaction.

[F98(8)In this section “financial institution” has the meaning given by [F99section 564B of the Income Tax Act 2007] (alternative finance arrangements).]

(9)References in this section to [F96a person] shall be read, in relation to times after the death of the [F95person] concerned, as references to his personal representatives.

(10)This section does not apply in relation to land in Scotland.]

Textual Amendments

F94S. 71A inserted (with effect in accordance with Sch. 8 para. 7 of the amending Act) by Finance Act 2005 (c. 7), Sch. 8 para. 2

F95Word 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)

F96Words 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)

F97S. 71A(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)

F98S. 71A(8) substituted (with effect in accordance with s. 75(4) of the amending Act) by Finance Act 2007 (c. 11), s. 75(3)

F99Words in s. 71A(8) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 206 (with Sch. 9 paras. 1-9, 22)

72Alternative property finance [F100in Scotland]: land sold to financial institution and leased to [F95person] U.K.

(1)This section applies where arrangements are entered into between [F96a person] and a financial institution under which the institution—

(a)purchases a major interest in land (“the first transaction”),

(b)grants to the [F95person] out of that interest a lease (if the interest acquired is [F101the interest of the owner]) or a sub-lease (if the interest acquired is [F102the tenant's right over or interest in a property subject to a lease]) (“the second transaction”), and

(c)enters into an agreement under which the [F95person] has a right to require the institution F103... to transfer the major interest purchased by the institution under the first transaction.

(2)The first transaction is exempt from charge if the vendor is—

(a)the [F95person], 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 [F95person].

(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)A transfer to the [F95person] that results from the exercise of the right mentioned in subsection (1)(c) (“the third transaction”) is exempt from charge if—

(a)the provisions of this Part relating to the first and second transactions are complied with, and

(b)at all times between the second and third transactions—

(i)the interest purchased under the first transaction is held by a financial institution, and

(ii)the lease or sub-lease granted under the second transaction is held by the [F95person].

(5)The agreement mentioned in subsection (1)(c) is not to be treated—

(a)as substantially performed unless and until the third transaction is entered into (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).

[F104(6)The requirements of subsection (1), or (4)(b)(ii), are not met if—

(a)the [F95person] enters into the arrangement, or holds the lease or sub-lease, as trustee and any beneficiary of the trust is not [F96a person], or

(b)the [F95person] enters into the arrangements, or holds the lease or sub-lease, as partner and any of the other partners is not [F96a person].]

[F105(7)In this section “financial institution” has the meaning given by [F106section 564B of the Income Tax Act 2007] (alternative finance arrangements).]

F107(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9)References in this section to [F96a person] shall be read, in relation to times after the death of the [F95person] concerned, as references to his personal representatives.

[F108(10)This section applies only in relation to land in Scotland.]

Textual Amendments

F95Word 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)

F96Words 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)

F100Words in s. 72 heading inserted (with effect in accordance with Sch. 8 para. 7 of the amending Act) by Finance Act 2005 (c. 7), Sch. 8 para. 3(6)

F101Words in s. 72(1)(b) substituted (with effect in accordance with Sch. 8 para. 7 of the amending Act) by Finance Act 2005 (c. 7), Sch. 8 para. 3(2)(a)(i)

F102Words in s. 72(1)(b) substituted (with effect in accordance with Sch. 8 para. 7 of the amending Act) by Finance Act 2005 (c. 7), Sch. 8 para. 3(2)(a)(ii)

F103Words in s. 72(1)(c) repealed (with effect in accordance with Sch. 8 para. 7 of the amending Act) by Finance Act 2005 (c. 7), Sch. 8 para. 3(2)(b), Sch. 11 Pt. 3(1)

F104S. 72(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)

F105S. 72(7) substituted (with effect in accordance with s. 75(4) of the amending Act) by Finance Act 2007 (c. 11), s. 75(3)

F106Words in s. 72(7) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 207 (with Sch. 9 paras. 1-9, 22)

F107S. 72(8) repealed (with effect in accordance with Sch. 8 para. 7 of the amending Act) by Finance Act 2005 (c. 7), Sch. 8 para. 3(4), Sch. 11 Pt. 3(1)

F108S. 72(10) inserted (with effect in accordance with Sch. 8 para. 7 of the amending Act) by Finance Act 2005 (c. 7), Sch. 8 para. 3(5)

Commencement Information

I45Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

[F10972AAlternative property finance in Scotland: land sold to financial institution and [F95person] in commonU.K.

(1)This section applies where arrangements are entered into between [F96a person] and a financial institution under which—

(a)the institution and the [F95person] purchase a major interest in land as owners in common (“the first transaction”),

(b)the institution and the [F95person] enter into an agreement under which the [F95person] has a right to occupy the land exclusively ( “the second transaction”), and

(c)the institution and the [F95person] enter into an agreement under which the [F95person] has a right to require the institution to transfer to the [F95person] (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 [F95person], 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 [F95person].

(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 [F95person] 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 [F95person] as owners in common, and

(ii)the land is occupied by the [F95person] 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).

[F110(6)The requirements of subsection (1), or (4)(b)(ii), are not met if the [F95person] enters into the arrangements, or occupies the land, as partner and any of the other partners is not [F96a 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 [F95person] of the whole interest purchased by the institution under the first transaction, so far as not transferred by a previous further transaction.

[F111(8)In this section “financial institution” has the meaning given by [F112section 564B of the Income Tax Act 2007] (alternative finance arrangements).]

(9)References in this section to [F96a person] shall be read, in relation to times after the death of the [F95person] concerned, as references to his personal representatives.

(10)This section applies only in relation to land in Scotland.]

Textual Amendments

F95Word 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)

F96Words 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)

F109S. 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

F110S. 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)

F111S. 72A(8) substituted (with effect in accordance with s. 75(4) of the amending Act) by Finance Act 2007 (c. 11), s. 75(3)

F112Words in s. 72A(8) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 208 (with Sch. 9 paras. 1-9, 22)

73Alternative property finance: land sold to financial institution and re-sold to [F95person] U.K.

(1)This section applies where arrangements are entered into between [F96a person] and a financial institution under which—

(a)the institution—

(i)purchases a major interest in land (“the first transaction”), and

(ii)sells that interest to the [F95person] (“the second transaction”), and

(b)the [F95person] grants the institution a legal mortgage over that interest.

(2)The first transaction is exempt from charge if the vendor is—

(a)the [F95person] concerned, or

(b)another financial institution by whom the interest was acquired under other arrangements of the kind mentioned in [F113section 71A(1), 72(1) or 72A(1)] entered into between it and the [F95person].

(3)The second transaction is exempt from charge if the financial institution complies with the provisions of this Part relating to the first transaction (including the payment of any tax chargeable [F114on a chargeable consideration that is not less than the market value of the interest and, in the case of the grant of a lease at a rent, the rent.]).

[F115(4)This section does not apply if—

(a)the [F95person] enters into the arrangements as trustee and any beneficiary of the trust is not [F96a person], or

(b)the [F95person] enters into the arrangements as partner and any of the other partners is not [F96a person].]

(5)In this section—

[F116(a)In this section “financial institution” has the meaning given by [F117section 564B of the Income Tax Act 2007] (alternative finance arrangements).]

(b)legal mortgage”—

(i)in relation to land in England or Wales, means a legal mortgage as defined in section 205(1)(xvi) of the Law of Property Act 1925 (c. 20);

(ii)in relation to land in Scotland, means a standard security;

(iii)in relation to land in Northern Ireland, means a mortgage by conveyance of a legal estate or by demise or sub-demise or a charge by way of legal mortgage.

(6)References in this section to [F96a person] shall be read, in relation to times after the death of the [F95person] concerned, as references to his personal representatives.

Textual Amendments

F95Word 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)

F96Words 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)

F113Words in s. 73(2)(b) substituted (with effect in accordance with Sch. 8 para. 7 of the amending Act) by Finance Act 2005 (c. 7), Sch. 8 para. 5(2)

F114Words in s. 73(3) inserted (with effect in accordance with s. 168(5) of the amending Act) by Finance Act 2006 (c. 25), s. 168(3)

F115S. 73(4) 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)

F116S. 73(5)(a) substituted (with effect in accordance with s. 75(4) of the amending Act) by Finance Act 2007 (c. 11), s. 75(3)

F117Words in s. 73(5)(a) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 209 (with Sch. 9 paras. 1-9, 22)

Commencement Information

I46Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

[F11873A[F119Sections 71A to 73: relationship with Schedule 7]U.K.

Sections 71A to 73 do not apply to arrangements in which the first transaction is exempt from charge by virtue of Schedule 7.]

Textual Amendments

F118S. 73A inserted (with effect in accordance with s. 168(5) of the amending Act) by Finance Act 2006 (c. 25), s. 168(4)

F119S. 73A heading substituted (21.7.2008) by Finance Act 2008 (c. 9), s. 155(2)

[F12073ABSections 71A to 72A: arrangements to transfer control of financial institutionU.K.

(1)Section 71A, 72 or 72A does not apply to alternative finance arrangements if those arrangements, or any connected arrangements, include arrangements for a person to acquire control of the relevant financial institution.

(2)That includes arrangements for a person to acquire control of the relevant financial institution only if one or more conditions are met (such as the happening of an event or doing of an act).

(3)In this section—

(4)[F121Section 1124 of the Corporation Tax Act 2010] applies for the purposes of determining who has control of the relevant financial institution.]

Textual Amendments

F120S. 73AB inserted (with effect in accordance with s. 155(4) of the amending Act) by Finance Act 2008 (c. 9), s. 155(3)

F121Words in s. 73AB(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 406 (with Sch. 2)

[F12273BExempt interestsU.K.

(1)An interest held by a financial institution as a result of the first transaction within the meaning of section 71A(1)(a), 72(1)(a) or 72A(1)(a) is an exempt interest for the purposes of stamp duty land tax.

(2)That interest ceases to be an exempt interest if—

(a)the lease or agreement mentioned in section 71A(1)(c), 72(1)(b) or 72A(1)(b) ceases to have effect, or

(b)the right under section 71A(1)(d), 72(1)(c) or 72A(1)(c) ceases to have effect or becomes subject to a restriction.

(3)Subsection (1) does not apply if the first transaction is exempt from charge by virtue of Schedule 7.

(4)Subsection (1) does not make an interest exempt in respect of—

(a)the first transaction itself, or

(b)a further transaction or third transaction within the meaning of section 71A(4), 72(4) or 72A(4).]

Textual Amendments

F122S. 73B inserted (with effect in accordance with s. 75(4) of the amending Act) by Finance Act 2007 (c. 11), s. 75(1)

[F12373CAlternative finance investment bondsU.K.

Schedule 61 to the Finance Act 2009 makes provision for relief from charge in the case of arrangements [F124to which section 564G of the Income Tax Act 2007 or section 151N of the Taxation of Chargeable Gains Act 1992 (investment bond arrangements) applies].]

Textual Amendments

F123S. 73C inserted (21.7.2009) by Finance Act 2009 (c. 10), Sch. 61 para. 25

F124Words in s. 73C substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 210 (with Sch. 9 paras. 1-9, 22)

74[F125Exercise of collective rights by tenants of flats]U.K.

[F126(1)This section applies where a chargeable transaction is entered into by a person or persons nominated or appointed by qualifying tenants of flats contained in premises in exercise of—

(a)a right under Part 1 of the Landlord and Tenant Act 1987 (right of first refusal), or

(b)a right under Chapter 1 of Part 1 of the Leasehold Reform, Housing and Urban Development Act 1993 (right to collective enfranchisement).]

(2)F127... the rate of tax is determined by reference to the fraction of the relevant consideration produced by dividing the total amount of that consideration by the number of [F128qualifying flats contained in the premises].

(3)The tax chargeable is then determined by applying that rate to the chargeable consideration for the transaction.

[F129(4)In this section—

(5)References in this section to the relevant consideration have the same meaning as in section 55.

Textual Amendments

F125S. 74 heading substituted (with effect in accordance with s. 80(7) of the amending Act) by Finance Act 2009 (c. 10), s. 80(5)

F126S. 74(1) substituted (with effect in accordance with s. 80(7) of the amending Act) by Finance Act 2009 (c. 10), s. 80(2)

F127Words in s. 74(2) omitted (with effect in accordance with s. 80(7) of the amending Act) by virtue of Finance Act 2009 (c. 10), s. 80(3)(a)

F128Words in s. 74(2) substituted (with effect in accordance with s. 80(7) of the amending Act) by Finance Act 2009 (c. 10), s. 80(3)(b)

F129S. 74(4) substituted (with effect in accordance with s. 80(7) of the amending Act) by Finance Act 2009 (c. 10), s. 80(4)

Modifications etc. (not altering text)

C4S. 55(2) modified (temp.) (21.7.2009) by Finance Act 2009 (c. 10), s. 10(1)

Commencement Information

I47Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

75Crofting community right to buyU.K.

(1)This section applies where—

(a)a chargeable transaction is entered into in pursuance of the crofting community right to buy, and

(b)under that transaction two or more crofts are being bought.

(2)In that case, the rate of tax is determined by reference to the fraction of the relevant consideration produced by dividing the total amount of that consideration by the number of crofts being bought.

(3)The tax chargeable is then determined by applying that rate to the amount of the chargeable consideration for the transaction in question.

(4)In this section “crofting community right to buy” means the right exercisable by a crofting community body under Part 3 of the Land Reform (Scotland) Act 2003 (asp 2).

(5)References in this section to the relevant consideration have the same meaning as in section 55.

Commencement Information

I48Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

[F13075AAnti-avoidanceU.K.

(1)This section applies where—

(a)one person (V) disposes of a chargeable interest and another person (P) acquires either it or a chargeable interest deriving from it,

(b)a number of transactions (including the disposal and acquisition) are involved in connection with the disposal and acquisition (“the scheme transactions”), and

(c)the sum of the amounts of stamp duty land tax payable in respect of the scheme transactions is less than the amount that would be payable on a notional land transaction effecting the acquisition of V's chargeable interest by P on its disposal by V.

(2)In subsection (1) “transaction” includes, in particular—

(a)a non-land transaction,

(b)an agreement, offer or undertaking not to take specified action,

(c)any kind of arrangement whether or not it could otherwise be described as a transaction, and

(d)a transaction which takes place after the acquisition by P of the chargeable interest.

(3)The scheme transactions may include, for example—

(a)the acquisition by P of a lease deriving from a freehold owned or formerly owned by V;

(b)a sub-sale to a third person;

(c)the grant of a lease to a third person subject to a right to terminate;

(d)the exercise of a right to terminate a lease or to take some other action;

(e)an agreement not to exercise a right to terminate a lease or to take some other action;

(f)the variation of a right to terminate a lease or to take some other action.

(4)Where this section applies—

(a)any of the scheme transactions which is a land transaction shall be disregarded for the purposes of this Part, but

(b)there shall be a notional land transaction for the purposes of this Part effecting the acquisition of V's chargeable interest by P on its disposal by V.

(5)The chargeable consideration on the notional transaction mentioned in subsections (1)(c) and (4)(b) is the largest amount (or aggregate amount)—

(a)given by or on behalf of any one person by way of consideration for the scheme transactions, or

(b)received by or on behalf of V (or a person connected with V within the meaning of [F131section 1122 of the Corporation Tax Act 2010]) by way of consideration for the scheme transactions.

(6)The effective date of the notional transaction is—

(a)the last date of completion for the scheme transactions, or

(b)if earlier, the last date on which a contract in respect of the scheme transactions is substantially performed.

(7)This section does not apply where subsection (1)(c) is satisfied only by reason of—

(a)sections 71A to 73, or

(b)a provision of Schedule 9.

Textual Amendments

F130Ss. 75A-75C inserted (with effect in accordance with s. 71(2) of the amending Act) by Finance Act 2007 (c. 11), s. 71(1) (with s. 71(3))

F131Words in s. 75A(5)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 407 (with Sch. 2)

75BAnti-avoidance: incidental transactionsU.K.

(1)In calculating the chargeable consideration on the notional transaction for the purposes of section 75A(5), consideration for a transaction shall be ignored if or in so far as the transaction is merely incidental to the transfer of the chargeable interest from V to P.

(2)A transaction is not incidental to the transfer of the chargeable interest from V to P—

(a)if or in so far as it forms part of a process, or series of transactions, by which the transfer is effected,

(b)if the transfer of the chargeable interest is conditional on the completion of the transaction, or

(c)if it is of a kind specified in section 75A(3).

(3)A transaction may, in particular, be incidental if or in so far as it is undertaken only for a purpose relating to—

(a)the construction of a building on property to which the chargeable interest relates,

(b)the sale or supply of anything other than land, or

(c)a loan to P secured by a mortgage, or any other provision of finance to enable P, or another person, to pay for part of a process, or series of transactions, by which the chargeable interest transfers from V to P.

(4)In subsection (3)—

(a)paragraph (a) is subject to subsection (2)(a) to (c),

(b)paragraph (b) is subject to subsection (2)(a) and (c), and

(c)paragraph (c) is subject to subsection (2)(a) to (c).

(5)The exclusion required by subsection (1) shall be effected by way of just and reasonable apportionment if necessary.

(6)In this section a reference to the transfer of a chargeable interest from V to P includes a reference to a disposal by V of an interest acquired by P.

Textual Amendments

F130Ss. 75A-75C inserted (with effect in accordance with s. 71(2) of the amending Act) by Finance Act 2007 (c. 11), s. 71(1) (with s. 71(3))

75CAnti-avoidance: supplementalU.K.

(1)A transfer of shares or securities shall be ignored for the purposes of section 75A if but for this subsection it would be the first of a series of scheme transactions.

(2)The notional transaction under section 75A attracts any relief under this Part which it would attract if it were an actual transaction (subject to the terms and restrictions of the relief).

(3)The notional transaction under section 75A is a land transaction entered into for the purposes of or in connection with the transfer of an undertaking or part for the purposes of paragraphs 7 and 8 of Schedule 7, if any of the scheme transactions is entered into for the purposes of or in connection with the transfer of the undertaking or part.

(4)In the application of section 75A(5) no account shall be taken of any amount paid by way of consideration in respect of a transaction to which any of sections 60, 61, 63, 64, 65, 66, 67, 69, 71, 74 and 75, or a provision of Schedule 6A or 8, applies.

(5)In the application of section 75A(5) an amount given or received partly in respect of the chargeable interest acquired by P and partly in respect of another chargeable interest shall be subjected to just and reasonable apportionment.

(6)Section 53 applies to the notional transaction under section 75A.

(7)Paragraph 5 of Schedule 4 applies to the notional transaction under section 75A.

(8)For the purposes of section 75A—

(a)an interest in a property-investment partnership (within the meaning of paragraph 14 of Schedule 15) is a chargeable interest in so far as it concerns land owned by the partnership, and

(b)where V or P is a partnership, Part 3 of Schedule 15 applies to the notional transaction as to the transfer of a chargeable interest from or to a partnership.

(9)For the purposes of section 75A a reference to an amount of consideration includes a reference to the value of consideration given as money's worth.

(10)Stamp duty land tax paid in respect of a land transaction which is to be disregarded by virtue of section 75A(4)(a) is taken to have been paid in respect of the notional transaction by virtue of section 75A(4)(b).

(11)The Treasury may by order provide for section 75A not to apply in specified circumstances.

(12)An order under subsection (11) may include incidental, consequential or transitional provision and may make provision with retrospective effect.]

Textual Amendments

F130Ss. 75A-75C inserted (with effect in accordance with s. 71(2) of the amending Act) by Finance Act 2007 (c. 11), s. 71(1) (with s. 71(3))

Returns and other administrative mattersU.K.

76Duty to deliver land transaction returnU.K.

(1)In the case of every notifiable transaction the purchaser must deliver a return (a “land transaction return”) to the Inland Revenue before the end of the period of 30 days after the effective date of the transaction.

(2)The Inland Revenue may by regulations amend subsection (1) so as to require a land transaction return to be delivered before the end of such shorter period after the effective date of the transaction as may be prescribed or, if the regulations so provide, on that date.

(3)A land transaction return in respect of a chargeable transaction must—

(a)include an assessment (a “self-assessment”) of the tax that, on the basis of the information contained in the return, is chargeable in respect of the transaction, F132...

F132(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F132S. 76(3)(b) and word repealed (with effect in accordance with s. 80(9) of the amending Act) by Finance Act 2007 (c. 11), s. 80(2), Sch. 27 Pt. 4(4)

Commencement Information

I49Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

[F13377Notifiable transactionsU.K.

(1)A land transaction is notifiable if it is—

(a)an acquisition of a major interest in land that does not fall within one or more of the exceptions in section 77A,

(b)an acquisition of a chargeable interest other than a major interest in land where there is chargeable consideration in respect of which tax is chargeable at a rate of 1% or higher or would be so chargeable but for a relief,

(c)a land transaction that a person is treated as entering into by virtue of section 44A(3), or

(d)a notional land transaction under section 75A.

(2)This section has effect subject to—

(a)sections 71A(7) and 72A(7), and

(b)paragraph 30 of Schedule 15.

(3)In this section “relief” does not include an exemption from charge under Schedule 3.

Textual Amendments

F133 Ss. 77, 77A substituted for s. 77 (with effect in accordance with s. 94(5) of the amending Act) by Finance Act 2008 (c. 9), s. 94(2)

77AExceptions for certain acquisitions of major interests in landU.K.

(1)The exceptions referred to in section 77(1)(a) are as follows.

1An acquisition which is exempt from charge under Schedule 3.

2An acquisition (other than the grant, assignment or surrender of a lease) where the chargeable consideration for that acquisition, together with the chargeable consideration for any linked transactions, is less than £40,000.

3The grant of a lease for a term of 7 years or more where—

(a)any chargeable consideration other than rent is less than £40,000, and

(b)the relevant rent is less than £1,000.

4The assignment or surrender of a lease where—

(a)the lease was originally granted for a term of 7 years or more, and

(b)the chargeable consideration for the assignment or surrender is less than £40,000.

5The grant of a lease for a term of less than 7 years where the chargeable consideration does not exceed the zero rate threshold.

6The assignment or surrender of a lease where—

(a)the lease was originally granted for a term of less than 7 years, and

(b)the chargeable consideration for the assignment or surrender does not exceed the zero rate threshold.

(2)Chargeable consideration for an acquisition does not exceed the zero rate threshold if it does not consist of or include—

(a)any amount in respect of which tax is chargeable at a rate of 1% or higher, or

(b)any amount in respect of which tax would be so chargeable but for a relief.

(3)In this section—

Textual Amendments

F133 Ss. 77, 77A substituted for s. 77 (with effect in accordance with s. 94(5) of the amending Act) by Finance Act 2008 (c. 9), s. 94(2)

78Returns, enquiries, assessments and related mattersU.K.

(1)Schedule 10 has effect with respect to land transaction returns, assessments and related matters.

(2)In that Schedule—

(3)The Treasury may by regulations make such amendments of that Schedule, and such consequential amendments of any other provisions of this Part, as appear to them to be necessary or expedient from time to time.

Commencement Information

I50Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

[F13478ADisclosure of information contained in land transaction returnsU.K.

(1)Relevant information contained in land transaction returns delivered under section 76 (whether before or after the commencement of this section) is to be available for use—

(a)by listing officers appointed under section 20 of the Local Government Finance Act 1992, for the purpose of facilitating the compilation and maintenance by them of valuation lists in accordance with Chapter 2 of Part 1 of that Act,

(b)as evidence in an appeal by virtue of section 24(6) of that Act to a valuation tribunal F135...,

(c)by the Commissioner of Valuation for Northern Ireland, for the purpose of maintaining a valuation list prepared, and from time to time altered, by him in accordance with Part 3 of the Rates (Northern Ireland) Order 1977, and

(d)by such other persons or for such other purposes as the Treasury may by regulations prescribe.

(2)In this section, “relevant information” means any information of the kind mentioned in paragraph 1(4) of Schedule 10 (information corresponding to particulars required under previous legislation).

(3)The Treasury may by regulations amend the definition of relevant information in subsection (2).

[F136(4)In this section “valuation tribunal” means—

(a)in relation to England: the Valuation Tribunal for England;

(b)in relation to Wales: a valuation tribunal established under paragraph 1 of Schedule 11 to the Local Government Finance Act 1988.]]

79Registration of land transactions etcU.K.

(1)A land transaction to which this section applies, or (as the case may be) a document effecting or evidencing a land transaction to which this section applies, shall not be registered, recorded or otherwise reflected in an entry made—

(a)in England and Wales, in the register of title maintained by the Chief Land Registrar,

(b)in Scotland, in any register maintained by the Keeper of the Registers of Scotland [F137(other than the Register of Community Interests in Land)], or

(c)in Northern Ireland, in any register maintained by the Land Registry of Northern Ireland or in the Registry of Deeds for Northern Ireland,

unless there is produced, together with the relevant application, a certificate as to compliance with the requirements of this Part in relation to the transaction [F138or such information about compliance as the Commissioners for Her Majesty's Revenue and Customs may specify in regulations.]

This does not apply where the entry is required to be made without any application or so far as the entry relates to an interest or right other than the chargeable interest acquired by the purchaser under the land transaction that gives rise to the application.

(2)This section applies to every [F139notifiable] land transaction [F140other than a transaction treated as taking place—

(a)under subsection (4) of section 44 (contract and conveyance) or under that section as it applies [F141by virtue of—

(i)section 45 (contract and conveyance: effect of transfer of rights), or

(ii)paragraph 12B of Schedule 17A (assignment of agreement for lease),]

(b)under subsection (3) of section 44A (contract providing for conveyance to third party) or under that section as it applies by virtue of section 45A (contract providing for conveyance to third party: effect of transfer of rights).]

[F142(c)under paragraph 12A(2) or 19(3) of Schedule 17A (agreement for lease), or

(d)under paragraph 13 (increase of rent) or 15A (reduction of rent or term) of that Schedule.]

In this subsection “contract” includes any agreement and “conveyance” includes any instrument.

[F143(2A)Subsection (1), so far as relating to the entry of a notice under section 34 of the Land Registration Act 2002 or section 38 of the Land Registration Act (Northern Ireland) 1970 (notice in respect of interest affecting registered land), does not apply where the land transaction in question is the variation of a lease.]

(3)The certificate [F144referred to in subsection (1)] must be F145...—

(a)a certificate by the Inland Revenue (a “Revenue certificate”) that a land transaction return has been delivered in respect of the transaction, F146...

F146(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)The Inland Revenue may make provision by regulations about Revenue certificates. The regulations may, in particular—

(a)make provision as to the conditions to be met before a certificate is issued;

(b)prescribe the form and content of the certificate;

(c)make provision about the issue of duplicate certificates if the original is lost or destroyed;

(d)provide for the issue of multiple certificates where a return is made relating to more than one transaction.

[F147(5)Part 2 of Schedule 11 imposes a duty to keep and preserve records in respect of transactions that are not notifiable.]

(6)The registrar (in Scotland, the Keeper of the Registers of Scotland)—

(a)shall allow the Inland Revenue to inspect any certificates F148... produced to him under this section and in his possession, and

(b)may enter into arrangements for affording the Inland Revenue other information and facilities for verifying that the requirements of this Part have been complied with.

Textual Amendments

F137Words in s. 79(1)(b) inserted (22.7.2004) by Finance Act 2004 (c. 12), s. 298(3)

F138Words in s. 79(1) inserted (20.7.2005) by Finance (No. 2) Act 2005 (c. 22), s. 47(2)

F139Word in s. 79(2) inserted (with effect in accordance with s. 94(5) of the amending Act) by Finance Act 2008 (c. 9), s. 94(3)

F140Words in s. 79(2) substituted (with effect in accordance with Sch. 39 para. 13 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 7

F141Words in s. 79(2)(a) substituted (with effect in accordance with s. 297(10) of the amending Act) by Finance Act 2004 (c. 12), s. 297(5)(a)

F142S. 79(2)(c)(d) inserted (with effect in accordance with s. 297(10) of the amending Act) by Finance Act 2004 (c. 12), s. 297(5)(b)

F143S. 79(2A) inserted (with effect in accordance with s. 297(10) of the amending Act) by Finance Act 2004 (c. 12), s. 297(6)

F144Words in s. 79(3) inserted (with effect in accordance with s. 297(10) of the amending Act) by Finance Act 2004 (c. 12), s. 297(7)

F145Word in s. 79(3) omitted (with effect in accordance with s. 94(5) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 30 para. 2(2)

F146S. 79(3)(b) and word omitted (with effect in accordance with s. 94(5) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 30 para. 2(2)

F147S. 79(5) substituted (with effect in accordance with s. 94(5) of the amending Act) by Finance Act 2008 (c. 9), Sch. 30 para. 2(3)

F148Words in s. 79(6)(a) omitted (with effect in accordance with s. 94(5) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 30 para. 2(4)

Commencement Information

I51Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

80Adjustment where contingency ceases or consideration is ascertainedU.K.

(1)Where section 51 (contingent, uncertain or unascertained consideration) applies in relation to a transaction and—

(a)in the case of contingent consideration, the contingency occurs or it becomes clear that it will not occur, or

(b)in the case of uncertain or unascertained consideration, an amount relevant to the calculation of the consideration, or any instalment of consideration, becomes ascertained,

the following provisions have effect to require or permit reconsideration of how this Part applies to the transaction (and to any transaction in relation to which it is a linked transaction).

(2)If the effect of the new information is that a transaction becomes notifiable F149..., or that additional tax is payable in respect of a transaction or that tax is payable where none was payable before—

(a)the purchaser must make a return to the Inland Revenue within 30 days,

(b)the return must contain a self-assessment of the tax chargeable in respect of the transaction on the basis of the information contained in the return,

(c)the tax so chargeable is to be calculated by reference to the rates in force at the effective date of the transaction, and

[F150(d)the tax or additional tax payable must be paid not later than the filing date for the return.]

(3)The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a [F151return under section 76 (general requirement to make land transaction return), subject to the adaptation that references to the effective date of the transaction shall be read as references to the date of the event as a result of which the return is required].

(4)If the effect of the new information is that less tax is payable in respect of a transaction than has already been paid,

[F152(a)the purchaser may, within the period allowed for amendment of the land transaction return, amend the return accordingly;

(b)after the end of that period he may (if the land transaction return is not so amended) make a claim to the Inland Revenue for repayment of the amount overpaid].

[F153(4A)Where the transaction (“the relevant transaction”) is the grant or assignment of a lease, no claim may be made under subsection (4)—

(a)in respect of the repayment (in whole or part) of any loan or deposit that is treated by paragraph 18A of Schedule 17A as being consideration given for the relevant transaction, or

(b)in respect of the refund of any of the consideration given for the relevant transaction, in a case where the refund—

(i)is made under arrangements that were made in connection with the relevant transaction, and

(ii)is contingent on the determination or assignment of the lease or on the grant of a chargeable interest out of the lease.]

[F154(5)This section does not apply so far as the consideration consists of rent (see paragraph 8 of Schedule 17A).]

Textual Amendments

F149Words in s. 80(2) 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)

F150S. 80(2)(d) substituted (with effect in accordance with s. 80(9) of the amending Act) by Finance Act 2007 (c. 11), s. 80(3)

F151Words in s. 80(3) substituted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 22(4)(a) (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)

F152Words in s. 80(4) substituted (22.7.2004) by Finance Act 2004 (c. 12), s. 299(4)

F153S. 80(4A) inserted (with effect in accordance with Sch. 10 para. 16(5)-(9) of the amending Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 10 para. 15

F154S. 80(5) added (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 22(4)(b) (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)

Modifications etc. (not altering text)

Commencement Information

I52Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

81Further return where relief withdrawnU.K.

(1)Where relief is withdrawn to any extent under—

[F155(za)paragraph 11 of Schedule 6A (relief for certain acquisitions of residential property),]

(a)Part 1 of Schedule 7 (group relief),

(b)Part 2 of that Schedule (reconstruction or acquisition relief), or

(c)Schedule 8 (charities relief),

the purchaser must deliver a further return before the end of the period of 30 days after the date on which the disqualifying event occurred.

(2)The return must—

(a)include a self-assessment of the amount of tax chargeable, F156...

F156(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F157(2A)Tax payable must be paid not later than the filing date for the return.]

(3)The provisions of Schedule 10 (returns, assessments and other matters) apply to a return under this section as they apply to a [F158return under section 76 (general requirement to deliver land transaction return)], with the following adaptations—

(a)references to the transaction to which the return relates shall be read as references to the disqualifying event;

(b)references to the effective date of the transaction shall be read as references to the date on which the disqualifying event occurs.

(4)In this section “the disqualifying event” means—

[F159(za)in relation to the withdrawal of relief under Schedule 6A, an event mentioned in paragraph (a), (b) or (c) of paragraph 11(2), (3), (4) or (5) of that Schedule;]

(a)in relation to the withdrawal of group relief, the purchaser ceasing to be a member of the same group as the vendor within the meaning of Part 1 of Schedule 7;

(b)in relation to the withdrawal of reconstruction or acquisition relief, the change of control of the acquiring company mentioned in paragraph 9(1)(a) of Schedule 7 or, as the case may be, the event mentioned in paragraph 11(1)(a) or (2)(a) of that Schedule;

(c)in relation to the withdrawal of charities relief, a disqualifying event as defined in paragraph 2(3) [F160or 3(2)] of Schedule 8.

Textual Amendments

F155S. 81(1)(za) inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 17(3)(a) (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)

F156S. 81(2)(b) and word repealed (with effect in accordance with s. 80(9) of the amending Act) by Finance Act 2007 (c. 11), s. 80(4)(a), Sch. 27 Pt. 4(4)

F157S. 81(2A) inserted (with effect in accordance with s. 80(9) of the amending Act) by Finance Act 2007 (c. 11), s. 80(4)(b)

F158Words in s. 81(3) substituted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 19(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)

F159S. 81(4)(za) inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 17(3)(b) (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)

F160Words in s. 81(4)(c) inserted (with effect in accordance with s. 302(7) of the amending Act) by Finance Act 2004 (c. 12), s. 302(5)

Commencement Information

I53Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

[F16181AReturn or further return in consequence of later linked transactionU.K.

(1)Where the effect of a transaction (“the later transaction”) that is linked to an earlier transaction is that the earlier transaction becomes notifiable, or that additional tax is payable in respect of the earlier transaction or that tax is payable in respect of the earlier transaction where none was payable before—

(a)the purchaser under the earlier transaction must deliver a return or further return in respect of that transaction before the end of the period of 30 days after the effective date of the later transaction,

(b)the return must include a self-assessment of the amount of tax chargeable as a result of the later transaction,

(c)the tax so chargeable is to be calculated by reference to the rates in force at the effective date of the earlier transaction, and

[F162(d)the tax or additional tax payable must be paid not later than the filing date for the return.]

(2)The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a return under section 76 (general requirement to deliver land transaction return), with the following adaptations—

(a)in paragraph 5 (formal notice to deliver return), the requirement in sub-paragraph (2)(a) that the notice specify the transaction to which it relates shall be read as requiring both the earlier and later transactions to be specified;

(b)references to the effective date of the transaction to which the return relates shall be read as references to the effective date of the later transaction.

(3)This section does not affect any requirement to make a return under section 76 in respect of the later transaction.]

Textual Amendments

F161S. 81A inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 19(1) (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)

F162S. 81A(1)(d) substituted (with effect in accordance with s. 80(9) of the amending Act) by Finance Act 2007 (c. 11), s. 80(5)

[F16381BDeclaration by person authorised to act on behalf of individualU.K.

(1)This section applies to the declaration mentioned in paragraph 1(1)(c) of Schedule 10 F164... (declaration that return F164... is correct and complete).

(2)The requirement that an individual make such a declaration (alone or jointly with others) is treated as met if a declaration to that effect is made by a person authorised to act on behalf of that individual in relation to the matters to which the return or certificate relates.

(3)For the purposes of this section a person is not regarded as authorised to act on behalf of an individual unless he is so authorised by a power of attorney in writing, signed by that individual.

In this subsection as it applies in Scotland “power of attorney” includes factory and commission.

(4)Nothing in this section affects the making of a declaration in accordance with—

(a)section 100(2) (persons through whom a company acts), or

(b)section 106 (1) or (2) (person authorised to act on behalf of incapacitated person or minor).]

Textual Amendments

F163S. 81B inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 20 (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)

F164Words in s. 81B(1) omitted (with effect in accordance with s. 94(5) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 30 para. 3

82Loss or destruction of, or damage to, return etcU.K.

(1)This section applies where—

(a)a return delivered to the Inland Revenue, or

(b)any other document relating to tax made by or provided to the Inland Revenue,

has been lost or destroyed, or been so defaced or damaged as to be illegible or otherwise useless.

(2)The Inland Revenue may treat the return as not having been delivered or the document as not having been made or provided.

(3)Anything done on that basis shall be as valid and effective for all purposes as it would have been if the return had not been made or the document had not been made or provided.

(4)But if as a result a person is charged with tax and he proves to the satisfaction of the [F165tribunal] that he has already paid tax in respect of the transaction in question, relief shall be given, by reducing the charge or by repayment as the case may require.

Textual Amendments

Commencement Information

I54Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

[F16682AClaims not included in returnsU.K.

Schedule 11A has effect with respect to claims not included in returns.]

Textual Amendments

F166S. 82A inserted (22.7.2004) by Finance Act 2004 (c. 12), s. 299(2)

83Formal requirements as to assessments, penalty determinations etcU.K.

(1)An assessment, determination, notice or other document required to be used in assessing, charging, collecting and levying tax or determining a penalty under this Part must be in accordance with the forms prescribed from time to time by the Board and a document in the form so prescribed and supplied or approved by the Board is valid and effective.

(2)Any such assessment, determination, notice or other document purporting to be made under this Part is not ineffective—

(a)for want of form, or

(b)by reason of any mistake, defect or omission in it,

if it is substantially in conformity with this Part and its intended effect is reasonably ascertainable by the person to whom it is directed.

(3)The validity of an assessment or determination is not affected—

(a)by any mistake in it as to—

(i)the name of a person liable, or

(ii)the amount of the tax charged, or

(b)by reason of any variance between the notice of assessment or determination and the assessment or determination itself.

Commencement Information

I55Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

84Delivery and service of documentsU.K.

(1)A notice or other document to be served under this Part on a person may be delivered to him or left at his usual or last known place of abode.

(2)A notice or other document to be given, served or delivered under this Part may be served by post.

(3)For the purposes of section 7 of the Interpretation Act 1978 (c. 30) (general provisions as to service by post) any such notice or other document to be given or delivered to, or served on, any person by the Inland Revenue is properly addressed if it is addressed to that person—

(a)in the case of an individual, at his usual or last known place of residence or his place of business;

(b)in the case of a company—

(i)at its principal place of business,

(ii)if a liquidator has been appointed, at his address for the purposes of the liquidation, or

(iii)at any place prescribed by regulations made by the Inland Revenue.

Commencement Information

I56Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

Liability for and payment of taxU.K.

85Liability for taxU.K.

(1)The purchaser is liable to pay the tax in respect of a chargeable transaction.

(2)As to the liability of purchasers acting jointly see—

Commencement Information

I57Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

86Payment of taxU.K.

(1)Tax payable in respect of a land transaction must be paid [F167not later than the filing date for the land transaction return relating to the transaction.]

(2)Tax payable as a result of the withdrawal of relief under—

(a)Part 1 of Schedule 7 (group relief),

(b)Part 2 of that Schedule (reconstruction or acquisition relief), or

(c)Schedule 8 (charities relief),

must be paid [F168not later than the filing date for the return relating to the withdrawal] (see section 81).

(3)Tax payable as a result of the amendment of a return must be paid forthwith or, if the amendment is made before the filing date for the return, not later than that date.

(4)Tax payable in accordance with a determination or assessment by the Inland Revenue must be paid within 30 days after the determination or assessment is issued.

(5)The above provisions are subject to—

(a)section 90 (application to defer payment of tax in case of contingent or uncertain consideration), and

(b)paragraphs 39 and 40 of Schedule 10 (postponement of payment pending determination of appeal).

[F169(5A)The above provisions are also subject to paragraph 7 of Schedule 61 to the Finance Act 2009 (payment of tax where land ceases to qualify for relief in respect of alternative finance investment bonds).]

(6)This section does not affect the date from which interest is payable (as to which, see section 87).

Textual Amendments

F167Words in s. 86(1) substituted (with effect in accordance with s. 80(9) of the amending Act) by Finance Act 2007 (c. 11), s. 80(6)(a)

F168Words in s. 86(2) substituted (with effect in accordance with s. 80(9) of the amending Act) by Finance Act 2007 (c. 11), s. 80(6)(b)

F169S. 86(5A) inserted (with effect in accordance with Sch. 61 para. 29(2)(c) of the amending Act) by Finance Act 2009 (c. 10), Sch. 61 para. 26

Commencement Information

I58Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

87Interest on unpaid taxU.K.

(1)Interest is payable on the amount of any unpaid tax from the end of the period of 30 days after the relevant date until the tax is paid.

(2)The Inland Revenue may by regulations amend subsection (1) so as to make interest run from the end of such shorter period after the relevant date as may be prescribed or, if the regulations so provide, from that date.

(3)For the purposes of this section “the relevant date” is—

(a)in the case of an amount payable because relief is withdrawn under—

[F170(ia)Schedule 6A (relief for certain acquisitions of residential property),]

(i)Part 1 of Schedule 7 (group relief),

(ii)Part 2 of that Schedule (reconstruction or acquisition relief), or

(iii)Schedule 8 (charities relief),

the date of the disqualifying event;

[F171(aa)in the case of an amount payable under section 81A in respect of an earlier transaction because of the effect of a later linked transaction, the effective date of the later transaction;]

[F172(ab)in the case of an amount payable under paragraph 3(3) or 4(3) of Schedule 17A (leases that continue after a fixed term and treatment of leases for an indefinite term), the day on which the lease becomes treated as being for a longer fixed term;]

(b)in the case of a deferred payment under section 90, the date when the deferred payment is due;

(c)in any other case, the effective date of the transaction.

(4)In subsection (3)(a) “the disqualifying event” means—

[F173(za)in relation to the withdrawal of relief under Schedule 6A an event mentioned in paragraph (a), (b) or (c) of paragraph 11(2), (3), (4) or (5) of that Schedule;]

(a)in relation to the withdrawal of group relief, the purchaser ceasing to be a member of the same group as the vendor (within the meaning of Part 1 of Schedule 7);

(b)in relation to the withdrawal of reconstruction or acquisition relief, the change of control of the acquiring company mentioned in paragraph 9(1)(a) of that Schedule or, as the case may be, the event mentioned in paragraph 11(1)(a) or (2)(a) of that Schedule;

(c)in relation to the withdrawal of charities relief, a disqualifying event as defined in paragraph 2(3) [F174or 3(2)] of Schedule 8.

(5)Subsection (3)(c) applies in a case within section 51 (contingent, uncertain or unascertained consideration) if payment is not deferred under section 90, with the result that interest on any tax payable under section 80 (adjustment where contingency ceases or consideration is ascertained) runs from the effective date of the transaction.

(6)If an amount is lodged with the Inland Revenue in respect of the tax, the amount on which interest is payable is reduced by that amount.

(7)Interest is calculated at the rate applicable under section 178 of the Finance Act 1989 (c. 26) (power of Treasury to prescribe rates of interest).

Textual Amendments

F170S. 87(3)(a)(ia) inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 17(4)(a) (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)

F171S. 87(3)(aa) inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 19(3) (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)

F172S. 87(3)(ab) inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 22(5) (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)

F173S. 87(4)(za) inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 17(4)(b) (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)

F174Words in s. 87(4)(c) inserted (with effect in accordance with s. 302(7) of the amending Act) by Finance Act 2004 (c. 12), s. 302(6)

Commencement Information

I59Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

88Interest on penaltiesU.K.

A penalty under this Part shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the date it is determined until payment.

Commencement Information

I60Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

89Interest on repayment of tax overpaid etcU.K.

(1)A repayment by the Inland Revenue to which this section applies shall be made with interest at the rate applicable under section 178 of the Finance Act 1989 for the period between the relevant time (as defined below) and the date when the order for repayment is issued.

(2)This section applies to—

(a)any repayment of tax, and

(b)any repayment of a penalty under this Part.

In that case the relevant time is the date on which the payment of tax or penalty was made.

(3)This section also applies to a repayment by the Inland Revenue of an amount lodged with them in respect of the tax payable in respect of a transaction. In that case the relevant time is the date on which the amount was lodged with them.

(4)No interest is payable under this section in respect of a payment made in consequence of an order or judgment of a court having power to allow interest on the payment.

(5)Interest paid to any person under this section is not income of that person for any tax purposes.

Commencement Information

I61Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

90Application to defer payment in case of contingent or uncertain considerationU.K.

(1)The purchaser may apply to the Inland Revenue to defer payment of tax in a case where the amount payable depends on the amount or value of chargeable consideration that—

(a)at the effective date of the transaction is contingent or uncertain, and

(b)falls to be paid or provided on one or more future dates of which at least one falls, or may fall, more than six months after the effective date of the transaction.

(2)The Inland Revenue may make provision by regulations for carrying this section into effect.

(3)The regulations may in particular—

(a)specify when an application is to be made;

(b)impose requirements as to the form and contents of an application;

(c)require the applicant to provide such information as the Inland Revenue may reasonably require for the purposes of determining whether to accept an application;

(d)specify the grounds on which an application may be refused;

(e)specify the procedure for reaching a decision on an application;

(f)make provision for postponing payment of tax when an application has been made;

(g)provide for an appeal to the [F175tribunal] against a refusal to accept an application, and make provision in relation to such an appeal corresponding to any provision made in relation to appeals under Part 7 of Schedule 10 (appeals against Revenue decisions on tax);

(h)provide for the effect of accepting an application;

(i)require the purchaser to make a return or further return, and to make such payments or further payments of tax as may be specified, in such circumstances as may be specified.

(4)The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a land transaction return.

(5)An application under this section does not affect the purchaser’s obligations as regards payment of tax in respect of chargeable consideration that has already been paid or provided or is not contingent and whose amount is ascertained or ascertainable at the time the application is made.

This applies as regards both the time of payment and the calculation of the amount payable.

(6)Regulations under this section may provide that where—

(a)a payment is made as mentioned in subsection (5), and

(b)an application under this section is accepted in respect of other chargeable consideration taken into account in calculating the amount of that payment,

section 80 (adjustment where contingency ceases or consideration is ascertained) does not apply in relation to the payment and, instead, any necessary adjustment shall be made in accordance with the regulations.

[F176(7)This section does not apply so far as the consideration consists of rent.]

Textual Amendments

F176S. 90(7) added (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 22(6) (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)

Commencement Information

I62Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

91Collection and recovery of tax etcU.K.

(1)The provisions of Schedule 12 have effect with respect to the collection and recovery of tax.

In that Schedule—

(2)The provisions of that Schedule have effect in relation to the collection and recovery of any unpaid amount by way of—

(a)penalty under this Part, or

(b)interest under this Part (on unpaid tax or penalty),

as if it were an amount of unpaid tax.

Commencement Information

I63Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

92Payment by chequeU.K.

For the purposes of this Part where—

(a)payment to the Inland Revenue is made by cheque, and

(b)the cheque is paid on its first presentation to the banker on whom it is drawn,

the payment is treated as made on the day on which the cheque was received by the Inland Revenue.

Commencement Information

I64Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

ComplianceU.K.

93Information powersU.K.

(1)Schedule 13 has effect with respect to the powers of the Inland Revenue to call for documents and information for the purposes of stamp duty land tax.

(2)In that Schedule—

(3)A person who is required by a notice under Part F179... 3 of Schedule 13 to deliver a document or to provide information, or to make a document available for inspection, and who fails to comply with the notice is liable to a penalty not exceeding £300.

(4)If the failure continues after a penalty has been imposed under subsection (3), he is liable to a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which the penalty under that subsection was imposed (but excluding any day for which a penalty under this subsection has already been imposed).

(5)No penalty shall be imposed under subsection (3) or (4) in respect of a failure at any time after the failure has been remedied.

(6)A person who is required by a notice under Part F180... 3 of Schedule 13 to deliver a document or to provide information, or to make a document available for inspection, and who fraudulently or negligently delivers, provides or makes available any incorrect document or information is liable to a penalty not exceeding £3,000.

F18194Power to inspect premisesU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

95Offence of fraudulent evasion of taxU.K.

(1)A person commits an offence if he is knowingly concerned in the fraudulent evasion of tax by him or any other person.

(2)A person guilty of an offence under this section is liable—

(a)on summary conviction to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum, or both;

(b)on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine, or both.

Commencement Information

I66Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

96Penalty for assisting in preparation of incorrect return etcU.K.

A person who assists in or induces the preparation or delivery of any information, return or other document that—

(a)he knows will be, or is likely to be, used for any purpose of tax, and

(b)he knows to be incorrect,

is liable to a penalty not exceeding £3,000.

Commencement Information

I67Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

97Power to allow further time and reasonable excuse for failureU.K.

(1)For the purposes of this Part a person shall be deemed not to have failed to do anything required to be done within a limited time if he did it within such further time, if any, as the Inland Revenue may allow.

(2)Where a person had a reasonable excuse for not doing anything required to be done for the purposes of this Part—

(a)he shall be deemed not to have failed to do it unless the excuse ceased, and

(b)after the excuse ceased, he shall be deemed not to have failed to do it if he did it without unreasonably delay after the excuse had ceased.

Commencement Information

I68Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

98Admissibility of evidence not affected by offer of settlement etcU.K.

(1)Statements made or documents produced by or on behalf of a person are not inadmissible in proceedings to which this section applies by reason only that it has been drawn to his attention—

(a)that where serious tax fraud has been committed the Board may accept a money settlement and that the Board will accept such a settlement, and will not pursue a criminal prosecution, if he makes a full confession of all tax irregularities, or

(b)that the extent to which he is helpful and volunteers information is a factor that will be taken into account in determining the amount of any penalty,

and that he was or may have been induced thereby to make the statements or produce the documents.

(2)The proceedings to which this section applies are—

(a)any criminal proceedings against the person in question for any form of fraudulent conduct in connection with or in relation to tax;

(b)any proceedings against him for the recovery of any tax due from him;

(c)any proceedings for a penalty or on appeal against the determination of a penalty.

Commencement Information

I69Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

99General provisions about penaltiesU.K.

(1)Schedule 14 has effect with respect to the determination of penalties under this Part and related appeals.

(2)The Board may in their discretion mitigate a penalty under this Part, or stay or compound any proceedings for the recovery of such a penalty.

They may also, after judgment, further mitigate or entirely remit the penalty.

[F182(2A)Where a person is liable to more than one tax-related penalty in respect of the same land transaction, each penalty after the first shall be reduced so that his liability to such penalties, in total, does not exceed the amount of whichever is (or, but for this subsection, would be) the greatest one.]

(3)Nothing in the provisions of this Part relating to penalties affects any criminal proceedings for an offence.

Textual Amendments

F182S. 99(2A) inserted (22.7.2004) by Finance Act 2004 (c. 12), s. 298(4)

Commencement Information

I70Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

Application of provisionsU.K.

100CompaniesU.K.

(1)In this Part “company”, except as otherwise expressly provided, means any body corporate or unincorporated association, but does not include a partnership.

(2)Everything to be done by a company under this Part shall be done by the company acting through—

(a)the proper officer of the company, or

(b)another person having for the time being having the express, implied or apparent authority of the company to act on its behalf for the purpose.

Paragraph (b) does not apply where a liquidator has been appointed for the company.

(3)Service on a company of any document under or in pursuance of this Part may be effected by serving it on the proper officer.

(4)Tax due from a company that—

(a)is not a body corporate, or

(b)is incorporated under the law of a country or territory outside the United Kingdom,

may, without prejudice to any other method of recovery, be recovered from the proper officer of the company.

(5)The proper officer may retain out of any money coming into his hands on behalf of the company sufficient sums to pay that tax and, so far as he is not so reimbursed, he is entitled to be indemnified by the company in respect of the liability imposed on him.

(6)For the purposes of this Part—

(a)the proper officer of a body corporate is the secretary, or person acting as secretary, of the company, and

(b)the proper officer of an unincorporated association, or of a body corporate that does not have a proper officer within paragraph (a), is the treasurer, or person acting as treasurer, of the company.

This subsection does not apply if a liquidator or administrator has been appointed for the company.

(7)If a liquidator or administrator has been appointed for the company, then, for the purposes of this Part—

(a)the liquidator or, as the case may be, the administrator is the proper officer, and

(b)if two or more persons are appointed to act jointly or concurrently as the administrator of the company, the proper officer is—

(i)such one of them as is specified in a notice given to the Inland Revenue by those persons for the purposes of this section, or

(ii)where the Inland Revenue is not so notified, such one or more of those persons as the Inland Revenue may designate as the proper officer for those purposes.

Commencement Information

I71Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

101Unit trust schemesU.K.

(1)This Part (with the exception of the [F183provision] mentioned in subsection (7) below) applies in relation to a unit trust scheme as if—

(a)the trustees were a company, and

(b)the rights of the unit holders were shares in the company.

(2)Each of the parts of an umbrella scheme is regarded for the purposes of this Part as a separate unit trust scheme and the scheme as a whole is not so regarded.

(3)An “umbrella scheme” means a unit trust scheme—

(a)that provides arrangements for separate pooling of the contributions of participants and the profits or income out of which payments are to be made for them, and

(b)under which the participants are entitled to exchange rights in one pool for rights in another.

A “part” of an umbrella scheme means such of the arrangements as relate to a separate pool.

(4)In this Part, subject to any regulations under subsection (5)—

(5)The Treasury may by regulations provide that a scheme of a description specified in the regulations is to be treated as not being a unit trust scheme for the purposes of this Part.

Any such regulations may contain such supplementary and transitional provisions as appear to the Treasury to be necessary or expedient.

(6)[F184Section 620 of the Corporation Tax Act 2010 (court investment funds treated as authorised unit trusts)] applies for the purposes of this Part as it applies for the purposes of that Act, with the substitution for references to an authorised unit trust of references to a unit trust scheme.

(7)An unit trust scheme is not to be treated as a company for the purposes of—

Textual Amendments

F183Words in s. 101(1) substituted (with effect in accordance with s. 166(4)-(8) of the amending Act) by Finance Act 2006 (c. 25), s. 166(3)(a)

F184Words in s. 101(6) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 408 (with Sch. 2)

F185Words in s. 101(7) repealed (with effect in accordance with s. 166(4)-(8) of the amending Act) by Finance Act 2006 (c. 25), s. 166(3)(b), Sch. 26 Pt. 7(3)

Commencement Information

I72Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

102Open-ended investment companiesU.K.

(1)The Treasury may by regulations make such provision as they consider appropriate for securing that the provisions of this Part have effect in relation to—

(a)open-ended investment companies of such description as may be prescribed in the regulations, and

(b)transactions involving such companies,

in a manner corresponding, subject to such modifications as the Treasury consider appropriate, to the manner in which they have effect in relation to unit trust schemes and transactions involving such trusts.

(2)The regulations may, in particular, make provision—

(a)modifying the operation of any prescribed provision in relation to open-ended investment companies so as to secure that arrangements for treating the assets of such a company as assets comprised in separate pools are given an effect corresponding to that of equivalent arrangements constituting the separate parts of an umbrella scheme;

(b)treating the separate parts of the undertaking of an open-ended investment company in relation to which such provision is made as distinct companies for the purposes of this Part.

(3)Regulations under this section may—

(a)make different provision for different cases, and

(b)contain such incidental, supplementary, consequential and transitional provision as the Treasury think fit.

(4)In this section—

Commencement Information

I73Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

103Joint purchasersU.K.

(1)This section applies to a land transaction where there are two or more purchasers who are or will be jointly entitled to the interest acquired.

(2)The general rules are that—

(a)any obligation of the purchaser under this Part in relation to the transaction is an obligation of the purchasers jointly but may be discharged by any of them,

(b)anything required or authorised by this Part to be done in relation to the purchaser must be done by or in relation to all of them, and

(c)any liability of the purchaser under this Part in relation to the transaction (in particular, any liability arising by virtue of the failure to fulfil an obligation within paragraph (a)), is a joint and several liability of the purchasers.

These rules are subject to the following provisions.

(3)If the transaction is a notifiable transaction, a single land transaction return is required.

(4)The declaration required by paragraph 1(1)(c) of Schedule 10 F186... (declaration that return F186... is complete and correct) must be made by all the purchasers.

(5)If the Inland Revenue give notice of an enquiry into the return F187...—

(a)the notice must be given to each of the purchasers,

(b)the powers of the Inland Revenue as to the production of documents and provision of information for the purposes of the enquiry are exercisable separately (and differently) in relation to each of the purchasers,

(c)any of the purchasers may apply for a direction that a closure notice be given (and all of them are entitled to [F188to be parties to the application]), and

(d)the closure notice must be given to each of the purchasers.

(6)A Revenue determination or discovery assessment relating to the transaction must be made against all the purchasers and is not effective against any of them unless notice of it is given to each of them whose identity is known to the Inland Revenue.

(7)In the case of an appeal arising from proceedings under this Part relating to the transaction—

(a)the appeal may be brought by any of the purchasers,

(b)notice of the appeal must be given to any of them by whom it is not brought,

(c)the agreement of all the purchasers is required if the appeal is to be settled by agreement,

[F189(d)if it is not settled, and is notified to the tribunal, any of them are entitled to be parties to the appeal, and]

[F190(e)the tribunal’s decision on the appeal binds all of them.]

[F191(7A)In a case where subsection (7) applies and some (but not all) of the purchasers require HMRC to undertake a review under paragraph 36B or 36C of Schedule 10—

(a)notification of the review must be given by HMRC to each of the other purchasers whose identity is known to HMRC,

(b)any of the other purchasers may be a party to the review if they notify HMRC in writing,

(c)the notice of HMRC’s conclusions must be given to each of the other purchasers whose identity is known to HMRC,

(d)paragraph 36F of Schedule 10 (effect of conclusions of review) applies in relation to all of the purchasers, and

(e)any of the purchasers may notify the appeal to the tribunal under paragraph 36G.]

(8)This section has effect subject to—

Textual Amendments

F186Words in s. 103(4) omitted (with effect in accordance with s. 94(5) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 30 para. 4(2)

F187Words in s. 103(5) omitted (with effect in accordance with s. 94(5) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 30 para. 4(3)

Commencement Information

I74Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

104PartnershipsU.K.

(1)Schedule 15 has effect with respect to the application of this Part in relation to partnerships.

(2)In that Schedule—

Textual Amendments

F192Words in s. 104(2) substituted (with effect in accordance with Sch. 41 para. 3 of the amending Act) by Finance Act 2004 (c. 12), Sch. 41 para. 2(a)

Commencement Information

I75Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

105TrusteesU.K.

Schedule 16 has effect with respect to the application of this Part in relation to trustees.

Commencement Information

I76Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

106Persons acting in a representative capacity etcU.K.

(1)The person having the direction, management or control of the property of an incapacitated person—

(a)is responsible for discharging any obligations under this Part, in relation to a transaction affecting that property, to which the incapacitated person would be subject if he were not incapacitated, and

(b)may retain out of money coming into his hands on behalf of the incapacitated person sums sufficient to meet any payment he is liable to make under this Part, and, so far as he is not so reimbursed, is entitled to be indemnified in respect of any such payment.

(2)The parent or guardian of a minor is responsible for discharging any obligations of the minor under this Part that are not discharged by the minor himself.

(3)The personal representatives of a person who is the purchaser under a land transaction—

(a)are responsible for discharging the obligations of the purchaser under this Part in relation to the transaction, and

(b)may deduct any payment made by them under this Part out of the assets and effects of the deceased person.

(4)A receiver appointed by a court in the United Kingdom having the direction and control of any property is responsible for discharging any obligations under this Part in relation to a transaction affecting that property as if the property were not under the direction and control of the court.

Commencement Information

I77Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

107Crown applicationU.K.

[F193(1)This Part binds the Crown, subject to the following provisions of this section.]

(2)A land transaction under which the purchaser is any of the following is exempt from charge:

Government
A Minister of the Crown
The Scottish Ministers
A Northern Ireland department
[F194The Welsh Ministers, the First Minister for Wales and the Counsel General to the Welsh Government]
Parliament etc
The Corporate Officer of the House of Lords
The Corporate Officer of the House of Commons
The Scottish Parliamentary Corporate Body
The Northern Ireland Assembly Commission
[F195The National Assembly for Wales Commission]

(3)The powers conferred by Part 7 of Schedule 13 (entry with warrant to obtain information) are not exercisable in relation to premises occupied for the purposes of the Crown.

[F196(4)Nothing in this section shall be read as making the Crown liable to prosecution for an offence.]

Textual Amendments

F193S. 107(1) substituted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 21(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)

F194Words in s. 107(2) inserted by Government of Wales Act 2006 (c. 32), s. 160, Sch. 10 para. 65(a) (with Sch. 11 para. 22), the amending provision coming into force immediately after "the 2007 election" (held on 3.5.2007) subject to s. 161(1)(4)(5) of the amending Act, which provides for certain provisions to come into force for specified purposes immediately after the end of "the initial period" (which ended with the day of the first appointment of a First Minister on 25.5.2007) - see ss. 46, s. 161(4)(5) of the amending Act.

F195Words in s. 107(2) substituted by Government of Wales Act 2006 (c. 32), s. 160, Sch. 10 para. 65(b) (with Sch. 11 para. 22), the amending provision coming into force immediately after "the 2007 election" (held on 3.5.2007) subject to s. 161(1)(4)(5) of the amending Act, which provides for certain provisions to come into force for specified purposes immediately after the end of "the initial period" (which ended with the day of the first appointment of a First Minister on 25.5.2007) - see ss. 46, s. 161(4)(5) of the amending Act.

F196S. 107(4) added (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 21(3) (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)

Commencement Information

I78Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

Supplementary provisionsU.K.

108Linked transactionsU.K.

(1)Transactions are “linked” for the purposes of this Part if they form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser or, in either case, persons connected with them.

[F197Section 1122 of the Corporation Tax Act 2010] (connected persons) has effect for the purposes of this subsection

(2)Where there are two or more linked transactions with the same effective date, the purchaser, or all of the purchasers if there is more than one, may make a single land transaction return as if all of those transactions that are notifiable were a single notifiable transaction.

(3)Where two or more purchasers make a single return in respect of linked transactions, section 103 (joint purchasers) applies as if—

(a)the transactions in question were a single transaction, and

(b)those purchasers were purchasers acting jointly.

[F198(4)This section is subject to section 47(1).]

Textual Amendments

F197Words in s. 108(1) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 409 (with Sch. 2)

F198S. 108(4) inserted (with effect in accordance with s. 76(3) of the amending Act) by Finance Act 2007 (c. 11), s. 76(2)

Commencement Information

I79Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

109General power to vary this Part by regulationsU.K.

(1)The Treasury may if they consider it expedient in the public interest make provision by regulations for the variation of this Part in its application to land transactions of any description.

(2)The power conferred by this section includes, in particular, power to alter—

(a)the descriptions of land transaction that are chargeable or notifiable;

(b)the descriptions of land transaction in respect of which tax is chargeable at any existing rate or amount.

(3)The power conferred by this section does not, except as mentioned in subsection (2)(b), include power to vary any threshold, rate or amount specified in—

(a)section 55 (amount of tax chargeable: general), or

(b)Schedule 5 (amount of tax chargeable: rent).

(4)This section has effect subject to section 110 (approval of regulations by House of Commons).

(5)Regulations under this section do not apply in relation to any transaction of which the effective date is after the end of—

(a)the period of 18 months beginning with the day on which the regulations were made, or

(b)such shorter period as may be specified in the regulations.

This does not affect the power to make further provision by regulations under this section to the same or similar effect.

(6)Regulations under this section may include such supplementary, transitional and incidental provision as appears to the Treasury to be necessary or expedient.

(7)The power conferred by this section may be exercised at any time after the passing of this Act.

Commencement Information

I81Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

110Approval of regulations under general powerU.K.

(1)An instrument containing regulations under section 109 (general power to vary this Part by regulations) must be laid before the House of Commons after being made.

(2)If the regulations are not approved by the House of Commons before the end of the period of 28 days beginning with the day on which they are made, they shall cease to have effect at the end of that period (if they have not already ceased to have effect under subsection (3)).

(3)If on any day during that period of 28 days the House of Commons, in proceedings on a motion that (or to the effect that) the regulations be approved, comes to a decision rejecting the regulations, they shall cease to have effect at the end of that day.

(4)In reckoning any such period of 28 days take no account of any time during which—

(a)Parliament is prorogued or dissolved, or

(b)the House of Commons is adjourned for more than four days.

(5)Where regulations cease to have effect under this section, their ceasing to have effect is without prejudice to anything done in reliance on them.

As to claims for repayment, see section 111.

Commencement Information

I82Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

111Claim for repayment if regulations under general power not approvedU.K.

(1)Where regulations cease to have effect under section 110, [F199a claim may be made to the Inland Revenue for repayment of any tax, interest or penalty that would not have been payable but for the regulations].

(2)Section 89 (interest on repayment of tax overpaid etc) applies to a repayment under this section.

(3)A claim for repayment must be made within two years after the effective date of the transaction in question.

(4)The Inland Revenue may make provision by regulations—

(a)for varying the time limit for making a claim;

(b)as to any other conditions that must be met before repayment is made.

Textual Amendments

F199Words in s. 111(1) substituted (22.7.2004) by Finance Act 2004 (c. 12), s. 299(5)

Commencement Information

I83Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

112Power to amend certain provisions before implementationU.K.

(1)The Treasury may by regulations amend the following provisions of this Part—

(a)Schedule 5 (amount of tax chargeable: rent);

(b)subsection (2) of section 55 (amount of tax chargeable: general) so far as relating to the thresholds at which different rates of tax become payable.

(2)The regulations may make such consequential amendments of Schedule 6 (disadvantaged areas relief) as appear to the Treasury to be appropriate.

(3)A statutory instrument containing regulations under this section shall not be made unless a draft of the instrument has been laid before and approved by resolution of the House of Commons.

(4)The power conferred by this section is not exercisable after the implementation date.

Commencement Information

I84Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

113Functions conferred on “the Inland Revenue”U.K.

(1)References in this Part to “the Inland Revenue” are to any officer of the Board, except as otherwise provided.

(2)Any power of the Inland Revenue to make regulations is exercisable only by the Board.

(3)In Schedule 10 (returns, assessments and other administrative matters)—

(a)functions of the Inland Revenue under these provisions are exercisable by the Board or an officer of the Board—

(i)paragraph 28 (discovery assessment),

(ii)paragraph 29 (assessment to recover excessive repayment);

(b)functions of the Inland Revenue under these provisions are functions of the Board—

(i)paragraph 33 (relief in case of double assessment),

(ii)paragraph 34 (relief in case of mistake in return).

[F200(3A)The following functions of the Inland Revenue under Schedule 11A (claims not included in returns) are functions of the Board—

(a)functions under paragraph 2(1) (form of claims),

(b)functions relating to a claim made to the Board.]

(4)Nothing in this section affects any provision of this Part that expressly confers functions on the Board, an officer of the Board, a collector or a specific officer of the Board.

Textual Amendments

F200S. 113(3A) inserted (22.7.2004) by Finance Act 2004 (c. 12), s. 299(6)

Commencement Information

I85Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

114Orders and regulations made by the Treasury or the Inland RevenueU.K.

(1)Except as otherwise provided, any power of the Treasury or the Inland Revenue to make an order or regulations under this Part, or under any other enactments relating to stamp duty land tax (including enactments passed after this Act), is exercisable by statutory instrument.

(2)Subsection (1) does not apply in relation to the power conferred by—

(3)Except as otherwise provided, a statutory instrument containing any order or regulations made by the Treasury or the Inland Revenue under this Part, or under any other enactments relating to stamp duty land tax (including enactments passed after this Act), shall be subject to annulment in pursuance of a resolution of the House of Commons.

(4)Subsection (3) does not apply to a statutory instrument made under the power conferred by—

[F201(5)The first set of regulations under section 58B (new zero-carbon homes) may not be made unless a draft has been laid before and approved by resolution of the House of Commons.

(6)An order or regulations under this Part—

(a)may make provision having effect generally or only in specified cases or circumstances,

(b)may make different provision for different cases or circumstances, and

(c)may include incidental, consequential or transitional provision or savings.]

Textual Amendments

F201S. 114(5)(6) inserted (19.7.2007) by Finance Act 2007 (c. 11), s. 19(2)

Modifications etc. (not altering text)

C7S. 114(3) excluded (20.7.2005) by Finance (No. 2) Act 2005 (c. 22), s. 48(6)

Commencement Information

I86Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

F202115General and Special Commissioners, appeals and other proceedingsU.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation etcU.K.

116Meaning of “residential property”U.K.

(1)In this Part “residential property” means—

(a)a building that is used or suitable for use as a dwelling, or is in the process of being constructed or adapted for such use, and

(b)land that is or forms part of the garden or grounds of a building within paragraph (a) (including any building or structure on such land), or

(c)an interest in or right over land that subsists for the benefit of a building within paragraph (a) or of land within paragraph (b);

and “non-residential property” means any property that is not residential property.

This is subject to the rule in subsection (7) in the case of a transaction involving six or more dwellings.

(2)For the purposes of subsection (1) a building used for any of the following purposes is used as a dwelling—

(a)residential accommodation for school pupils;

(b)residential accommodation for students, other than accommodation falling with subsection (3)(b);

(c)residential accommodation for members of the armed forces;

(d)an institution that is the sole or main residence of at least 90% of its residents and does not fall within any of paragraphs (a) to (f) of subsection (3).

(3)For the purposes of subsection (1) a building used for any of the following purposes is not used as a dwelling—

(a)a home or other institution providing residential accommodation for children;

(b)a hall of residence for students in further or higher education;

(c)a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder;

(d)a hospital or hospice;

(e)a prison or similar establishment;

(f)a hotel or inn or similar establishment.

(4)Where a building is used for a purpose specified in subsection (3), no account shall be taken for the purposes of subsection (1)(a) of its suitability for any other use.

(5)Where a building that is not in use is suitable for use for at least one of the purposes specified in subsection (2) and at least one of those specified in subsection (3)—

(a)if there is one such use for which it is most suitable, or if the uses for which it is most suitable are all specified in the same sub-paragraph, no account shall be taken for the purposes of subsection (1)(a) of its suitability for any other use,

(b)otherwise, the building shall be treated for those purposes as suitable for use as a dwelling.

(6)In this section “building” includes part of a building.

(7)Where six or more separate dwellings are the subject of a single transaction involving the transfer of a major interest in, or the grant of a lease over, them, then, for the purposes of this Part as it applies in relation to that transaction, those dwellings are treated as not being residential property.

(8)The Treasury may by order—

(a)amend subsections (2) and (3) so as to change or clarify the cases where use of a building is, or is not to be, use of a building as a dwelling for the purposes of subsection (1);

(b)amend or repeal subsection (7) and the reference to that subsection in subsection (1).

Any such order may contain such incidental, supplementary, consequential or transitional provision as appears to the Treasury to be necessary or expedient.

Commencement Information

I87Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

117Meaning of “major interest” in landU.K.

(1)References in this Part to a “major interest” in land shall be construed as follows.

(2)In relation to land in England or Wales, the references are to—

(a)an estate in fee simple absolute, or

(b)a term of years absolute,

whether subsisting at law or in equity.

(3)In relation to land in Scotland, the references are to—

(a)the interest of an owner of land, or

(b)the tenant’s right over or interest in a property subject to a lease.

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.

(4)In relation to land in Northern Ireland, the references are to—

(a)any freehold estate, or

(b)any leasehold estate,

whether subsisting at law or in equity.

Commencement Information

I88Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

118Meaning of “market value”U.K.

For the purposes of this Part “market value” shall be determined as for the purposes of the Taxation of Chargeable Gains Act 1992 (c. 12) (see sections 272 to 274 of that Act).

Commencement Information

I89Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

119Meaning of “effective date” of a transactionU.K.

(1)Except as otherwise provided, the effective date of a land transaction for the purposes of this Part is

[F203(a)the date of completion, or

(b)such alternative date as the Commissioners for Her Majesty's Revenue and Customs may prescribe by regulations.]

(2)Other provision as to the effective date of certain descriptions of land transaction is made by—

Textual Amendments

F203Words in s. 119(1) substituted (20.7.2005) by Finance (No. 2) Act 2005 (c. 22), s. 47(3)

F204Word in s. 119(2) repealed (with effect in accordance with Sch. 39 para. 13 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 4(2)

F205Words in s. 119(2) inserted (with effect in accordance with Sch. 39 para. 13 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 8(a)

F206Words in s. 119(2) inserted (with effect in accordance with Sch. 39 para. 13 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 8(b)

Commencement Information

I90Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

[F207120Further provisions relating to leasesU.K.

Schedule 17A contains further provisions relating to leases.]

Textual Amendments

F207S. 120 substituted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 22(1) (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)

121Minor definitionsU.K.

In this Part—

Textual Amendments

Commencement Information

I91Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

122Index of defined expressionsU.K.

In this Part the expressions listed below are defined or otherwise explained by the provisions indicated—

acquisition reliefSchedule 7, paragraph 8(1)
assignment (in Scotland)section 121
bare trustSchedule 16, paragraph 1(2)
the Board (in relation to the Inland Revenue)section 42(3)
chargeable considerationsection 50 and Schedule 4
chargeable interestsection 48(1)
chargeable transactionsection 49
charities reliefSchedule 8, paragraph 1(1)
closure noticeSchedule 10, paragraph 23(1) (in relation to a land transaction return); F210...
companysection 100 (except as otherwise expressly provided)
completion (in Scotland)section 121
contingent (in relation to consideration)section 51(3)
delivery (in relation to a land transaction return)Schedule 10, paragraph 2(2)
discovery assessmentSchedule 10, paragraph 28(1)
effective date (in relation to a land transaction)section 119
employeesection 121
exempt interestsection 48(2) to (5)
filing date (in relation to a land transaction return)Schedule 10, paragraph 2(1)
implementation dateSchedule 19, paragraph 2(2)
the Inland Revenuesection 113
jointly entitledsection 121
landsection 121
land transactionsection 43(1)
land transaction returnsection 76(1)
lease (and related expressions) [F211Schedule 17A]
linked transactionssection 108
main subject-matter (in relation to a land transaction)section 43(6)
major interest (in relation to land)section 117
market valuesection 118
notice of enquirySchedule 10, paragraph 12(1) (in relation to a land transaction return); F212...
notifiable (in relation to a land transaction)section 77 [F213(see too sections 71A(7) and 72A(7))] [F214and paragraph 30 of Schedule 15]
partnership (and related expressions)Schedule 15, paragraphs 1 to 4
purchasersection 43(4)
rate of taxsection 55(7)
reconstruction reliefSchedule 7, paragraph 7(1)
registered social landlordsection 121
residential propertysection 116
[F215Revenue certificate section 79(3)(a)]
Revenue determinationSchedule 10, paragraph 25(1)
self-assessmentsection 76(3)(a)
F216. . .F216. . .
settlementSchedule 16, paragraph 1(1)
standard securitysection 121
statutory provisionsection 121
subject-matter (in relation to a land transaction)section 43(6)
substantial performance (in relation to a contract)section 44(5) to (7)
surrender (in Scotland)section 121
taxsection 121
[F217tribunal section 121]
uncertain (in relation to consideration)section 51(3)
unit holdersection 101(4)
unit trust schemesection 101(4)
vendorsection 43(4) [F218(see too sections 45(5A) and 45A(9))]

Textual Amendments

F210Words in s. 122 omitted (with effect in accordance with s. 94(5) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 30 para. 5(2)

F211Words in s. 122 substituted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 22(7) (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)

F212Words in s. 122 omitted (with effect in accordance with s. 94(5) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 30 para. 5(3)

F213Words in s. 122 inserted (with effect in accordance with Sch. 8 para. 7 of the amending Act) by Finance Act 2005 (c. 7), Sch. 8 para. 6

F214Words in s. 122 inserted (with effect in accordance with s. 94(5) of the amending Act) by Finance Act 2008 (c. 9), Sch. 30 para. 5(4)

F215Words in s. 122 inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 25(4) (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)

F216Words in s. 122 omitted (with effect in accordance with s. 94(5) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 30 para. 5(5)

F218Words in s. 122 inserted (with effect in accordance with Sch. 39 para. 13(2) of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 5(6)

Commencement Information

I92Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

Final provisionsU.K.

123Consequential amendmentsU.K.

(1)Schedule 18 contains certain amendments consequential on the provisions of this Part.

(2)The Treasury may by regulations make such other amendments and repeals as appear to them appropriate in consequence of the provisions of this Part.

(3)The regulations may, in particular, make such provision as the Treasury think fit for reproducing in relation to stamp duty land tax the effect of enactments providing for exemption from stamp duty.

Commencement Information

I93Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

124Commencement and transitional provisionsU.K.

Schedule 19 makes provision for and in connection with the coming into force of the provisions of this Part.

Commencement Information

I94Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

Part 5 U.K.Stamp duty

125Abolition of stamp duty except on instruments relating to stock or marketable securitiesU.K.

(1)Stamp duty is chargeable under Schedule 13 of the Finance Act 1999 (c. 16) only on instruments relating to stock or marketable securities.

(2)Section 12 of the Finance Act 1895 (c. 16) (collection of stamp duty in cases of property vested by Act or purchased under statutory powers) does not apply to property other than stock or marketable securities.

(3)This section shall be construed as one with the Stamp Act 1891 (c. 39).

(4)Part 1 of Schedule 20 to this Act contains provisions supplementing this section and Part 2 of that Schedule provides for consequential amendments and repeals.

(5)This section and that Schedule have effect—

(a)in relation to an instrument effecting a land transaction [F219(or any duplicate or counterpart of such an instrument)], if the transaction—

(i)is an SDLT transaction within the meaning of Schedule 19 to this Act (stamp duty land tax: commencement and transitional provisions), or

(ii)would be such a transaction but for an exemption or relief from stamp duty land tax;

(b)in relation to an instrument effecting a transaction other than a land transaction [F220(or any duplicate or counterpart of such an instrument)], if the instrument is executed on or after the implementation date for the purposes of stamp duty land tax (see paragraph 2(2) of that Schedule).

For this purpose an instrument effecting both a land transaction and a transaction other than a land transaction [F221(or any duplicate or counterpart of such an instrument)] is treated as if it were two instruments to which paragraph (a) and paragraph (b) above respectively applied.

(6)Where in the case of an instrument effecting both a land transaction and a transaction other than a land transaction the result of applying subsection (5) is that stamp duty is chargeable on either or both of the deemed instruments, the enactments relating to stamp duty have effect as if—

(a)there were two instruments as mentioned in the closing words of that subsection,

(b)the consideration had been apportioned between them in a just and reasonable manner, and

(c)the amount found on that apportionment to be attributable to the chargeable instrument, or (as the case may be) to each of them, had been set forth distinctly in that instrument.

(7)In subsections (5) and (6) “land transaction” has the same meaning as in Part 4 of this Act.

(8)This section and Schedule 20 have effect subject to [F222paragraph 31] of Schedule 15 to this Act (continued application of stamp duty in relation to certain partnership transactions).

Textual Amendments

F219Words in s. 125(5)(a) inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 23(a) (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)

F220Words in s. 125(5)(b) inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 23(b) (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)

F221Words in s. 125(5) inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 23(c) (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)

F222Words in s. 125(8) substituted (with effect in accordance with Sch. 41 para. 3 of the amending Act) by Finance Act 2004 (c. 12), Sch. 41 para. 2(b)

126Circumstances in which group relief withdrawnU.K.

(1)Section 111 of the Finance Act 2002 (c. 23) (stamp duty: withdrawal of group relief) is amended as follows.

(2)In subsection (1)(b) (circumstances in which relief withdrawn: transferee company ceasing to be member of group within two years) for “two years” substitute “ three years ”.

(3)In subsection (1)(c) (circumstances in which relief withdrawn: transferee company holding estate or interest when it ceases to be member of group)—

(a)in the opening words—

(i)for “it ceases” substitute “ the transferee company ceases ”, and

(ii)for “it holds” substitute “ it or a relevant associated company holds ”;

(b)in sub-paragraph (