Finance Act 1980

PART VII Development Land Tax

110 Enterprise zones

(1) Subject to subsection (2) below, development land tax shall not be chargeable on any realised development value accruing on the disposal of an interest in land if and to the extent that the land is in an enterprise zone.

(2) Subsection (1) above does not apply to a disposal made more than ten years after the date on which the land was first included in the zone.

(3) In this section “enterprise zone ” means an area designated as such by an order made by the Secretary of State under powers in that behalf conferred by any Act passed in the same Session as this Act or, in Northern Ireland, by an order made by the Department of the Environment for Northern Ireland under powers in that behalf conferred by an Order in Council under the [1974 c. 28.] Northern Ireland Act 1974.

111 Charities

(1) For sections 24 and 25 of the [1976 c. 24.] Development Land Tax Act 1976 (exemption for charities) there shall be substituted—

“24 Charities.

(1) Development land tax shall not be chargeable on any realised development value accruing to a charity on the disposal of an interest in land.

(2) If, at any time after the disposal of an interest in land, the body which made the disposal ceases to be a charity, then, immediately after it so ceases, an amount of realised development value equal, subject to subsection (3) below, to that in respect of which the exemption in subsection (1) above applied on the disposal shall be treated for the purposes of this Act as accruing to that body, as on the disposal of an interest in land.

(3) The amount of realised development value which is treated as accruing to a body under subsection (2) above shall not exceed the market value of the property (if any) which—

(a) is held by that body immediately before the time at which it ceases to be a charity, and

(b) is not immediately after that time held for charitable purposes by another body,

and for the purposes of this subsection section 7(1) above shall apply in relation to the market value of any property other than an interest in land as it applies in relation to the market value of an interest in land.”

(2) This section has effect in relation to any disposal after 25th March 1980.

112 Disposals to exempt bodies

Section 39 of the Development Land Tax Act 1976 (deduction of tax from consideration in case of disposals to exempt bodies) shall not have effect in relation to any disposal after 5th August 1980.

113 Payment by instalments

(1) Paragraph 45 of Schedule 8 to the [1976 c. 24.] Development Land Tax Act 1976 (payment by instalments) shall be amended as follows.

(2) After sub-paragraph (2) there shall be inserted—

“(2A) In any case where the liability referred to in subparagraph (1) above arises on the deemed disposal of an interest in land or on the occurrence of an event to which paragraph 44(1) above applies, sub-paragraph (2)(a) above shall have effect with the substitution for the reference to twelve months of a reference to two years.”.

(3) In sub-paragraph (3)(c) for the words “eight years ” there shall be substituted the words “nine years ”.

(4) This section has effect where the liability in question arises on a deemed disposal after 25th March 1980 or on the occurrence after that date of an event to which paragraph 44(1) of the said Schedule 8 applies.

114 Advance assessment of tax on deemed disposals

(1) Subject to the provisions of this section, a person who has a major interest in any land and intends to begin a project of material development on that land or any part of it may give a notice to the Board—

(a) specifying the project; and

(b) electing to be assessed and charged with development land tax in accordance with this section in respect of the deemed disposal which will be occasioned by the beginning of that project.

(2) Any notice under this section shall contain such information as the Board may reasonably require for the purposes of this section and shall be in such form as they may prescribe.

(3) Where a person has given a notice under this section in respect of a project—

(a) he may be assessed and charged with development land tax in respect of the deemed disposal referred to in subsection (1)(b) above before the project is begun; and

(b) the tax shall be so assessed and charged by reference to the market value of his interest at the date of the notice; and

(c) section 5 of the Development Land Tax Act 1976 and paragraph 8 of Schedule 1 to that Act shall apply as if the project had been begun on that date.

(4) If a person who has given a notice in respect of a project under this section begins that project within the period of two years beginning with the date of the notice the tax with which he is chargeable in respect of the deemed disposal referred to in subsection (1)(b) above shall be that assessed and charged on him in accordance with subsection (3) above; but if he does not begin that project within that period the notice shall be void.

(5) A notice under this section shall also be void if any information contained in it is not such as to make full and accurate disclosure of all facts and considerations which are material for tax to be assessed and charged in pursuance of the notice ; and a notice under this section may be withdrawn at any time before the project in question is begun.

(6) A notice under this section shall not affect the time when any tax is payable except that where the tax has been assessed and charged in pursuance of such a notice paragraph 45 of Schedule 8 to the said Act of 1976 shall have effect as if—

(a) sub-paragraph (2A) were omitted, and

(b) in sub-paragraph (3)(c) for the words “nine years” there were substituted the words “eight years ”.

(7) A person who has given a notice under this section (including a notice which has become void or which has been withdrawn) in respect of a project on any land shall not be entitled to give another notice in respect of that or any other project on that land or any part of it.

(8) Where a notice under this section becomes void or is withdrawn any assessment made in pursuance of it shall be of no effect and where a person has paid any tax as a result of a notice under this section which has become void or which has been withdrawn, the tax shall be repaid to him with interest at the rate for the time being prescribed for the purposes of section 86A of the [1970 c. 9.] Taxes Management Act 1970; and any such interest shall not be income of that person for any tax purposes.

(9) Where a person who has a major interest in land gives a notice under subsection (1) above in respect of a project in respect of which a person having a different interest has given a notice in the previous two years (whether or not the previous notice has become void or been withdrawn), the first-mentioned notice shall be treated for the purposes of subsection (4) above as if given on the date of the previous notice or if there has been more than one previous notice the date of the first of them.

(10) For the purposes of subsections (4) and (7) of this section companies which are members of the same group shall be treated as the same person; and references in this section to a person beginning a project include references to his causing or permitting another person to do so.

(11) Nothing in this section affects the value for which a person is deemed to have reacquired an interest on a deemed disposal of it.

(12) This section shall be construed as one with the said Act of 1976.

115 Administration

(1) In section 70(2) of the [1970 c. 9.] Taxes Management Act 1970 (evidence of payment of interest under section 86 or 87 of that Act) for the words “or 87 ” there shall be substituted the words “, 86A or 87 ”.

(2) In section 86A of that Act (interest on unpaid tax)—

(a) in subsection (1) the words “then, except as provided by paragraph 12 of Schedule 7 to the Development Land Tax Act 1976” shall be omitted and for the words “that Act ” there shall be substituted the words “the Development Land Tax Act 1976 ”; and

(b) in subsection (5) for “£10 ” there shall be substituted “£30 ”.

(3) In paragraph 39(4) of Schedule 8 to the [1976 c. 24.] Development Land Tax Act 1976 (notice of disposals) for the words “section 24(6) of this Act” there shall be substituted the words “section 24(2) of this Act ”.

(4) Paragraph (a) of subsection (2) above has effect in relation to tax on disposals after 5th August 1980, paragraph (b) of that subsection has effect in relation to interest on tax charged by assessments notice of which is issued after the passing of this Act and subsection (3) above has effect in relation to disposals after 25th March 1980.

116 Miscellaneous amendments

(1) in section 5(1)(b) and (c) and (6)(ii) of the Development Land Tax Act 1976 (relevant base value calculated by reference to 110 per cent, of current use value or of cost of acquisition) for the words " 110 per cent.“there shall be substituted the words ” 115 per cent. ".

(2) In section 12(5) of that Act (exclusion of exemption where chargeable person acquired interest from connected person for a consideration less than market value)—

(a) in paragraph (b) before the words “for a consideration ” there shall be inserted the words " for no consideration or; " and

(b) in paragraph (c) there shall be inserted at the end the words “being either a part disposal or a disposal of an interest resulting from a part disposal made after the date and within the period mentioned in paragraph (a) above by a person who at the time of the part disposal was connected for the purposes of that Act with the person to whom the part disposal was made ”.

(3) In section 19(1)(iii) and (7) and section 23(1)(iii) of that Act (deferment of tax on deemed disposal of industrial land or land of statutory undertakers not terminated by subsequent disposal forming part of a sale and lease-back transaction) for the words “a sale and lease-back transaction ” there shall be substituted the words “a lease-back transaction ”;

and in section 19(7)(a) of that Act (which defines such a transaction by reference to part disposals falling within paragraph (b) of subsection (1) of section 3 of that Act) for the words “paragraph (b) of subsection (1) of section 3 ” there shall be substituted the words “section 3(1) ”.

(4) In section 23(1)(ii) of that Act (deferment of tax for statutory undertakers until disposal of relevant interest) after the words “a disposal ” there shall be inserted the words “which is to other statutory undertakers and ”.

(5) In paragraph 5 of Schedule 4 to that Act (development excluded from material development)—

(a) in sub-paragraph (3) (a) for the words “where any development extends to two or more buildings within the same curtilage, those buildings” there shall be substituted the words “two or more buildings within the same curtilage ”;

(b) after sub-paragraph (3) there shall be inserted—

“(4) The rebuilding referred to in paragraph (b) of sub-paragraph (1) above may be on a different site within the same curtilage.”

(6) Subsections (1) and (5) above have effect in relation to disposals after 25th March 1980, subsection (2) above has effect where the acquisition referred to in section 12(5) is after that date and subsections (3) and (4) above have effect where the subsequent disposal referred to in section 19(1) or 23(1) is after that date.