Finance Act 2003

81 Further return where relief withdrawn U.K.

(1) Where relief is withdrawn to any extent under—

[F1 (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), F2 ...

[F3 (ba) paragraph 5, 7 or 8 of Schedule 7A (PAIF seeding relief),

(bb) paragraph 13, 17 or 18 of Schedule 7A (COACS seeding 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.

[F4 (1A) Where relief is withdrawn to any extent under any of paragraphs 5G to 5K of Schedule 4A (higher rate for certain transactions)[F5 , or under paragraph 6 of Schedule 7A (PAIF seeding relief) or paragraph 14 or 16 of Schedule 7A (COACS seeding relief),] the purchaser must deliver a further return before the end of the period of 30 days after the relevant date.

(1B) In subsection (1A) “the relevant date” means—

(a) in the case of relief under paragraph 5 of Schedule 4A (businesses of letting, trading in or redeveloping properties), the first day in the period mentioned in paragraph 5G(2) on which a requirement under paragraph 5G(3) was not met in the case of the chargeable interest in question;

(b) in the case of relief under paragraph 5B of that Schedule (trades involving making a dwelling available to the public), the first day in the period mentioned in paragraph 5H(2) on which a requirement under paragraph 5H(3) was not met in the case of the chargeable interest in question;

(c) in the case of relief under paragraph 5C of that Schedule (financial institutions acquiring dwellings in the course of lending), the first day in the period mentioned in paragraph 5I(2) on which a requirement under paragraph 5I(3) was not met in the case of the chargeable interest in question;

[F6 (ca) in the case of relief under paragraph 5CA of that Schedule (acquisition under a regulated home reversion plan), the first day in the period mentioned in paragraph 5IA(2) of that Schedule on which the purchaser holds the higher threshold interest otherwise than for the purposes of the regulated home reversion plan, unless paragraph 5IA(3)(a) and (b) applies;]

(d) in the case of relief under paragraph 5D of that Schedule (dwellings for occupation by certain employees etc), the first day in the period mentioned in paragraph 5J(2) on which a requirement under paragraph 5J(3) was not met in the case of the chargeable interest in question;

[F7 (da) in the case of relief under paragraph 5EA of that Schedule (acquisition by management company of flat for occupation by caretaker), the first day in the period mentioned in paragraph 5JA(2) of that Schedule on which the purchaser holds the higher threshold interest otherwise than for the purpose of making the flat available for use as caretaker accommodation;]

(e) in the case of relief under paragraph 5F of that Schedule (farmhouses), the first day in the period mentioned in paragraph 5K(2) on which a requirement under paragraph 5K(3) was not met in the case of the chargeable interest in question.

[F8 (f) in the case of relief under paragraph 6 of Schedule 7A (PAIF seeding relief: portfolio test)—

(i) where relief is withdrawn under paragraph 6(1), the last day of the seeding period (see paragraph 3 of that Schedule), or

(ii) where relief is withdrawn under paragraph 6(3), the first time mentioned in paragraph 6(3)(a) or (b) at which the portfolio test was not met;

(g) in the case of relief under paragraph 14 of Schedule 7A (COACS seeding relief: genuine diversity of ownership condition), the first time mentioned in paragraph 14(1) at which the genuine diversity of ownership condition was not met;

(h) in the case of relief under paragraph 16 of Schedule 7A (COACS seeding relief: portfolio test)—

(i) where relief is withdrawn under paragraph 16(1), the last day of the seeding period (see paragraph 11 of that Schedule), or

(ii) where relief is withdrawn under paragraph 16(3), the first time mentioned in paragraph 16(3)(a) or (b) at which the portfolio test was not met.]]

(2) The return must—

(a) include a self-assessment of the amount of tax chargeable, F9 ...

F9 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F10 (2A) [F11 Where subsection (1) [F12 or (1A)] applies any 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 [F13 subsection (1)] as they apply to a [F14 return 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—

[F15 (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;

[F16 (ba) in relation to the withdrawal of PAIF seeding relief—

(i) the purchaser ceasing to be a property AIF as mentioned in paragraph 5 of Schedule 7A,

(ii) a person making a relevant disposal of units as mentioned in paragraph 7 of that Schedule, or

(iii) the grant of permission to a non-qualifying individual to occupy a dwelling as mentioned in paragraph 8 of that Schedule;

(bb) in relation to the withdrawal of COACS seeding relief—

(i) the purchaser ceasing to be a co-ownership authorised contractual scheme as mentioned in paragraph 13 of Schedule 7A,

(ii) a person making a relevant disposal of units as mentioned in paragraph 17 of that Schedule, or

(iii) the grant of permission to a non-qualifying individual to occupy a dwelling as mentioned in paragraph 18 of that Schedule;]

(c) in relation to the withdrawal of charities relief, a disqualifying event as defined in paragraph 2(3) [F17 or 3(2)] of Schedule 8.

[F18 (5) The provisions of Schedule 10 apply to a return under subsection (1A) as they apply to a return under section 76, but with the adaptation that references to the effective date of the transaction are to be read as references to the relevant date (as defined in subsection (1B)).]

Textual Amendments

F1 S. 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)

F2 Word in s. 81(1)(b) omitted (with effect in accordance with Sch. 16 para. 15 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 16 para. 7(2)(a)

F3 S. 81(1)(ba)(bb) inserted (with effect in accordance with Sch. 16 para. 15 of the amending Act) by Finance Act 2016 (c. 24), Sch. 16 para. 7(2)(b)

F4 S. 81(1A)(1B) inserted (with effect in accordance with Sch. 40 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 40 para. 3(2)

F5 Words in s. 81(1A) inserted (with effect in accordance with Sch. 16 para. 15 of the amending Act) by Finance Act 2016 (c. 24), Sch. 16 para. 7(3)

F6 S. 81(1B)(ca) inserted (with effect in accordance with s. 46(10) of the amending Act) by Finance Act 2019 (c. 1), s. 46(4)(a)(i)

F7 S. 81(1B)(da) inserted (with effect in accordance with s. 46(10) of the amending Act) by Finance Act 2019 (c. 1), s. 46(4)(a)(ii)

F8 S. 81(1B)(f)-(h) inserted (with effect in accordance with Sch. 16 para. 15 of the amending Act) by Finance Act 2016 (c. 24), Sch. 16 para. 7(4)

F9 S. 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)

F10 S. 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)

F11 Words in s. 81(2A) substituted (with effect in accordance with Sch. 40 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 40 para. 3(3)

F12 Words in s. 81(2A) inserted (with effect in accordance with s. 46(10) of the amending Act) by Finance Act 2019 (c. 1), s. 46(4)(b)

F13 Words in s. 81(3) substituted (with effect in accordance with Sch. 40 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 40 para. 3(4)

F14 Words 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)

F15 S. 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)

F16 S. 81(4)(ba)(bb) inserted (with effect in accordance with Sch. 16 para. 15 of the amending Act) by Finance Act 2016 (c. 24), Sch. 16 para. 7(5)

F17 Words 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)

F18 S. 81(5) inserted (with effect in accordance with Sch. 40 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 40 para. 3(5)

Commencement Information

I1 Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)