123 Transfer of property between associated companies: Great Britain.U.K.
(1)Amend section 42 of the M1Finance Act 1930 as follows.
(2)In subsection (2) (instruments on which stamp duty not chargeable) in paragraph (a) for “to another" substitute “ (“the transferor”) to another (“the transferee”) ”.
(3)In that subsection, after paragraph (b) insert— “ unless at the time the instrument is executed arrangements are in existence by virtue of which at that or some later time any person has or could obtain, or any persons together have or could obtain, control of the transferee but not of the transferor. ”.
(4)In subsection (2B) (body to be parent of another if beneficial owner of 75% of ordinary share capital) after “if at that time the first body" insert “ (a) ” and at the end of the subsection add—
“(b)is beneficially entitled to not less than 75 per cent of any profits available for distribution to equity holders of the second body; and
(c)would be beneficially entitled to not less than 75 per cent of any assets of the second body available for distribution to its equity holders on a winding-up.”.
(5)In subsection (3)—
(a)after “The ownership referred to in" insert “ paragraph (a) of ”; and
(b)for “this section" substitute “ that paragraph ”.
(6)At the end of the section add—
“(5)Schedule 18 to the M2Income and Corporation Taxes Act 1988 shall apply for the purposes of paragraphs (b) and (c) of subsection (2B) as it applies for the purposes of paragraphs (a) and (b) of section 413(7) of that Act; but this is subject to subsection (6).
(6)In determining for the purposes of this section whether a body corporate is the parent of the transferor, paragraphs 5(3) and 5B to 5E of Schedule 18 to the Income and Corporation Taxes Act 1988 shall not apply for the purposes of paragraph (b) or (c) of subsection (2B).
(7)In this section, “control” shall be construed in accordance with section 840 of the M3Income and Corporation Taxes Act 1988.”.
(7)This section has effect in relation to instruments executed after the day on which this Act is passed.