Finance Act 1980

97 Shared ownership transactions

(1) A lease to which this section applies shall, instead of being chargeable with stamp duty under the heading “Lease or Tack ” in Schedule 1 to the [1891 c. 39.] Stamp Act 1891, be chargeable with stamp duty under the heading “Conveyance or Transfer on Sale ” in that Schedule as if it were a conveyance for a consideration equal to the value stated in the lease in accordance with subsection (2) id) below; and where stamp duty has been paid on a lease in accordance with this section stamp duty shall not be chargeable under that Act on any instrument executed in pursuance of the lease whereby the reversion is transferred to the lessee.

(2) This section applies to any lease granted by a body mentioned in subsection (3) below, being a lease which—

(a) is of a dwelling for the exclusive use of the lessee or, if there are joint lessees, of those lessees ;

(b) is granted partly in consideration of a premium calculated by reference to the market value of the dwelling at the time of the grant and partly in consideration of rent;

(c) provides for the lessee to acquire the reversion ; and

(d) contains a statement of the market value referred to in paragraph (b) above and a statement to the effect that the parties intend duty to be charged in accordance with this section by reference to that value.

(3) The bodies referred to in subsection (2) above are—

(a) a local authority within the meaning of Part V of the [1957 c. 56.] Housing Act 1957;

(b) a housing association registered under section 13 of the [1974 c. 44.] Housing Act 1974 or Article 13 of the [S.I. 1976/1780.] Housing (Northern Ireland) Order 1976 ;

(c) a development corporation established by an order made, or having effect as if made, under the [1965 c. 59.] New Towns Act 1965 ;

(d) the Commission for the New Towns ;

(e) the Development Board for Rural Wales;

(f) the Northern Ireland Housing Executive ;

(g) the Council of the Isles of Scilly.

(4) For the purposes of subsection (1) above an instrument transferring a reversion shall not be regarded as executed in pursuance of a lease in respect of which duty has been paid in accordance with this section unless it contains a statement to the effect that it has been so executed.