2006 No. 875
The Stamp Duty Land Tax (Amendment to the Finance Act 2003) Regulations 2006
Made
Laid before the House of Commons
Coming into force
The Treasury, in exercise of the powers conferred by section 50(2) and (3) of the Finance Act 20031, makes the following Regulations:
Citation, commencement and effect1
1
These Regulations may be cited as the Stamp Duty Land Tax (Amendment to the Finance Act 2003) Regulations 2006 and shall come into force on 12th April 2006.
2
These Regulations have effect in relation to land transactions with an effective date (within the meaning of Part 4 of the Finance Act 2003) on or after the day these Regulations come into force.
Amendment to the Finance Act 2003
2
Part 4 of the Finance Act 2003 is amended as follows.
3
In Schedule 4 (chargeable consideration for the purposes of stamp duty land tax) after paragraph 16 insert—
16APurchaser bearing inheritance tax liability
Where—
a
there is a land transaction that is—
i
a transfer of value within section 3 of the Inheritance Tax Act 19842 (transfers of value), or
ii
a disposition, effected by will or under the law of intestacy, of a chargeable interest comprised in the estate of a person immediately before his death,
and
b
the purchaser is or becomes liable to pay, agrees to pay or does in fact pay any inheritance tax due in respect of the transfer or disposition,
his liability, agreement or payment does not count as chargeable consideration for the transaction.
16BPurchaser bearing capital gains tax liability
1
Where—
a
there is a land transaction under which the chargeable interest in question—
i
is acquired otherwise than by a bargain made at arm’s length, or
ii
is treated by section 18 of the Taxation of Chargeable Gains Act 19923 (connected persons) as so acquired,
and
b
the purchaser is or becomes liable to pay, or does in fact pay, any capital gains tax due in respect of the corresponding disposal of the chargeable interest,
his liability or payment does not count as chargeable consideration for the transaction.
2
Sub-paragraph (1) does not apply if there is chargeable consideration for the transaction (disregarding the liability or payment referred to in sub-paragraph (1)(b)).
4
1
In Schedule 17A (further provisions relating to leases) in paragraph 10(1) (tenants' obligations etc that do not count as chargeable consideration) after paragraph (e) insert—
f
any liability of the tenant for costs under section 14(2) of the Leasehold Reform Act 1967 or section 60 of the Leasehold Reform, Housing and Urban Development Act 1993 (costs to be borne by person exercising statutory right to be granted lease);
g
any other obligation of the tenant to bear the landlord’s reasonable costs or expenses of or incidental to the grant of a lease;
h
any obligation under the lease to transfer to the landlord, on the termination of the lease, payment entitlements granted to the tenant under the single payment scheme (that is, the scheme of income support for farmers in pursuance of Title III of Council Regulation (EC) No 1782/20036) in respect of land subject to the lease.
(This note is not part of the Regulations)