Finance Act 2005

Section 96

SCHEDULE 9 Stamp duty land tax and stamp duty: removal of disadvantaged areas relief for non-residential property

Stamp duty land tax

1 (1) Schedule 6 to FA 2003 (disadvantaged areas relief) is amended as follows.

(2) In paragraph 3 (land wholly situated in a disadvantaged area: introduction), after “if” insert “(a)” and at the end insert “, and

(b) the land is wholly or partly residential property”.

(3) Omit paragraph 4 (land wholly situated in a disadvantaged area: exemption from charge where land all non-residential).

(4) In paragraph 6 (land wholly situated in a disadvantaged area: cases where land partly non-residential and partly residential)—

(a) for the first sentence of sub-paragraph (1) substitute—

“This paragraph applies, where the land is partly non-residential property and partly residential property, in relation to the consideration attributable to land that is residential property.”;

(b) in the second sentence of that sub-paragraph omit “land that is non-residential property or”;

(c) omit sub-paragraphs (2) and (3).

(5) In paragraph 7 (land partly situated in a disadvantaged area: introduction), in sub-paragraph (1) after “if” insert “(a)” and at the end of that sub-paragraph insert “, and

(b) the land situated in a disadvantaged area is wholly or partly residential property”.

(6) Omit paragraph 8 (land partly situated in a disadvantaged area: exemption from charge for part so situated if all non-residential).

(7) In paragraph 10 (land partly situated in a disadvantaged area: cases where part so situated is partly non-residential and partly residential)—

(a) for the first sentence of sub-paragraph (1) substitute—

“This paragraph applies, where the land situated in a disadvantaged area is partly non-residential property and partly residential property, in relation to the consideration attributable to land that is residential property.”;

(b) in the second sentence of that sub-paragraph omit “land that is non-residential property or”;

(c) omit sub-paragraphs (2) and (3).

Stamp duty

2 (1) The Stamp Duty (Disadvantaged Areas) (Application of Exemptions) Regulations 2003 (S.I. 2003/1056) are amended as follows.

(2) After regulation 2 insert—

“2A “Disapplication of exemptions conferred by section 92 or by Schedule 30 where all of land is non-residential property

An exemption conferred by section 92 or by Schedule 30 shall not apply where none of the land in question is residential property.”.

(3) In regulation 5 (application of exemptions conferred by section 92 or by Schedule 30 where land only partly residential property), after paragraph (3) insert—

“(3A) An exemption conferred by section 92 or by Schedule 30 shall not apply in relation to any duty chargeable in respect of relevant consideration, or the rate or average rate of rent, attributed to the land in question to the extent that it is not residential property.”.

3 The insertion by paragraph 2 of provisions into the Stamp Duty (Disadvantaged Areas) (Application of Exemptions) Regulations 2003 is without prejudice to the power to amend or revoke those provisions by further regulations under section 92A of FA 2001.

Commencement and transitional provisions

4 (1) Subject to sub-paragraph (2), paragraph 1 applies in relation to any transaction of which the effective date is after 16th March 2005.

(2) That paragraph does not apply—

(a) in relation to any transaction that is effected in pursuance of a contract entered into and substantially performed on or before 16th March 2005, or

(b) (subject to sub-paragraph (3)) in relation to any other transaction that is effected in pursuance of a contract entered into on or before that date.

(3) The exclusion by sub-paragraph (2)(b) of transactions effected in pursuance of contracts entered into on or before 16th March 2005 does not apply—

(a) if there is any variation of the contract or assignment of rights under the contract after that date,

(b) if the transaction is effected in consequence of the exercise after that date of any option, right of pre-emption or similar right, or

(c) if after that date there is an assignment, subsale or other transaction (relating to the whole or part of the subject-matter of the contract) as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance to him.

(4) In this paragraph “effective date” and “substantially performed” have the same meaning as in Part 4 of FA 2003.

5 (1) Subject to sub-paragraph (2), paragraph 2 applies in relation to instruments executed after 16th March 2005.

(2) That paragraph does not apply in relation to an instrument giving effect to a contract entered into on or before 16th March 2005, unless—

(a) the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right, or

(b) the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract, because of an assignment (or, in Scotland, assignation) or further contract made after that date.