http://www.legislation.gov.uk/ukpga/2003/14/contents/2010-01-01

Finance Act 2003

An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance.

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Statute Law Database

2024-06-12

Expert Participation

2010-01-01

Finance Act 2003

Sch. 10

para. 34(2)

Finance Act 2009

Sch. 51

para. 15(10)

s. 99(2)

art. 2(2)

Finance Act 2003

s. 44(5)(a)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 1(2)

reg. 1

Finance Act 2003

s. 44(6)(a)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 1(3)(a)

reg. 1

Finance Act 2003

s. 44(6)(b)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 1(3)(b)

reg. 1

Finance Act 2003

s. 44(11)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 1(4)

reg. 1

Finance Act 2003

s. 47(3)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 3(5)

reg. 1

Finance Act 2003

s. 51(5)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(3)

reg. 1

Finance Act 2003

s. 57A

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 2

reg. 1

Finance Act 2003

s. 58A

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 3(1)

reg. 1

Finance Act 2003

s. 64A

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 4

reg. 1

Finance Act 2003

s. 77(2)(a)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(4)

reg. 1

Finance Act 2003

s. 77(2)(b)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(4)

reg. 1

Finance Act 2003

s. 80(2)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 5(2)

reg. 1

Finance Act 2003

s. 80(3)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 5(3)

reg. 1

Finance Act 2003

s. 80(3)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(5)(a)

reg. 1

Finance Act 2003

s. 80(5)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(5)(b)

reg. 1

Finance Act 2003

s. 81(1)(za)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 3(3)(a)

reg. 1

Finance Act 2003

s. 81(3)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 5(3)

reg. 1

Finance Act 2003

s. 81(4)(za)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 3(3)(b)

reg. 1

Finance Act 2003

s. 81A

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 5(1)

reg. 1

Finance Act 2003

s. 81B

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 6

reg. 1

Finance Act 2003

s. 87(3)(a)

(ia)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 3(4)(a)

reg. 1

Finance Act 2003

s. 87(3)(aa)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 5(4)

reg. 1

Finance Act 2003

s. 87(3)(ab)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(6)

reg. 1

Finance Act 2003

s. 87(4)(za)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 3(4)(b)

reg. 1

Finance Act 2003

s. 90(7)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(7)

reg. 1

Finance Act 2003

s. 107(1)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 7(2)

reg. 1

Finance Act 2003

s. 107(4)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 7(3)

reg. 1

Finance Act 2003

s. 120

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(1)

reg. 1

Finance Act 2003

s. 122 Table

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(8)

reg. 1

Finance Act 2003

s. 122

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 11(4)

reg. 1

Finance Act 2003

s. 125(5)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 9(c)

reg. 1

Finance Act 2003

s. 125(5)(a)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 9(a)

reg. 1

Finance Act 2003

s. 125(5)(b)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 9(b)

reg. 1

Finance Act 2003

Sch. 4

para. 5(6)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 3(5)

reg. 1

Finance Act 2003

Sch. 4

para. 5(6)

The Stamp Duty Land Tax (Amendment of Schedule 4 to the Finance Act 2003) Regulations 2003

reg. 2(2)(a)

reg. 1

Finance Act 2003

Sch. 4

para. 13-15

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(11)

reg. 1

Finance Act 2003

Sch. 5

para. 3

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(9)

reg. 1

Finance Act 2003

Sch. 5

para. 4-7

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(11)

reg. 1

Finance Act 2003

Sch. 5

para. 10

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(11)

reg. 1

Finance Act 2003

Sch. 5

para. 11

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(11)

reg. 1

Finance Act 2003

Sch. 6A

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 3(2)

reg. 1

Finance Act 2003

Sch. 17A

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(2)

reg. 1

Finance Act 2003

Sch. 19

para. 6(1)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 11(1)

reg. 1

Finance Act 2003

Sch. 19

para. 7(4)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 8(10)

reg. 1

Finance Act 2003

Sch. 19

para. 8(1)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 11(2)(b)

reg. 1

Finance Act 2003

Sch. 19

para. 8(2)

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 11(3)

reg. 1

Finance Act 2003

Sch. 19 para. 4A 4B and heading

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 10

reg. 1

Finance Act 2003

Sch. 19 para. 7A and heading

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 11(1)

reg. 1

Finance Act 2003

Sch. 19 para. 8 heading

The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2003

Sch.

para. 11(2)(a)

reg. 1

Finance Act 2003

s. 47(3)

The Stamp Duty Land Tax (Amendment of Part 4 of the Finance Act 2003) Regulations 2004

reg. 3(a)

reg. 1

Finance Act 2003

s. 61(3)

Health and Social Care Act 2012

Sch. 14

para. 86

s. 179(5)(b)

s. 306(4)

Finance Act 2003

s. 66(4)

Health and Social Care Act 2012

Sch. 14

para. 87

s. 179(5)(b)

s. 306(4)

Finance Act 2003

s. 193(3)

Finance Act 2012

Sch. 32

para. 22(4)

Finance Act 2003

s. 193(5)

Finance Act 2012

Sch. 32

para. 22(4)

Finance Act 2003

Sch. 12

para. 1A

Tribunals, Courts and Enforcement Act 2007

Sch. 13

para. 147(2)

s. 89

s. 148

art. 2(1)(b)

Finance Act 2003

Sch. 12

para. 3(2)(aa)

Bankruptcy and Diligence etc. (Scotland) Act 2007

Sch. 5

para. 32

s. 223

s. 227(3)

art. 3(2)

(3)

art. 4

Finance Act 2003

Sch. 12

para. 1A

Finance Act 2008

Sch. 43

para. 9

s. 129(4)

art. 2

Finance Act 2003

Sch. 12

para. 5(3)(a)

Justice Act (Northern Ireland) 2015

Sch. 1

para. 121(a)

Sch. 9

Pt. 1

Sch. 8

para. 1

s. 106(2)

Finance Act 2003

Sch. 12

para. 5(3)(d)

Justice Act (Northern Ireland) 2015

Sch. 1

para. 121(b)

Sch. 9

Pt. 1

Sch. 8

para. 1

s. 106(2)

Finance Act 2003

s. 57(3)

Finance Act 2011

Sch. 22

para. 4

Finance Act 2003

Sch. 4

para. 16C

Leasehold and Freehold Reform Act 2024

Sch. 9

para. 12(a)

s. 124(3)

Finance Act 2003

Sch. 17A

para. 10(1)(f)

(fa)

Leasehold and Freehold Reform Act 2024

Sch. 9

para. 12(b)

s. 124(3)

Finance Act 2003

specified provision(s)

The Abolition of the Right to Buy and Associated Rights (Wales) Act 2018 (Consequential Amendments and Savings Provisions) Regulations 2019

Rheoliadau Deddf Diddymu’r Hawl i Brynu a Hawliau Cysylltiedig (Cymru) 2018 (Diwygiadau Canlyniadol a Darpariaethau Arbed) 2019

reg. 5

Finance Act 2003

s. 26(8)(e)

Taxation (Post-transition Period) Act 2020

Sch. 1

para. 10(4)(b)

Sch. 2

para. 7(7)-(9)

s. 11(1)(e)

reg. 9

Finance Act 2003

Part 1Excise duties

Tobacco products duty

1Rates of tobacco products duty

Alcoholic liquor duties

2Rate of duty on beer

3Rates of duty on wine and made-wine

Hydrocarbon oil duties

4Rates of hydrocarbon oil duties

5Rebates on hydrocarbon oil duties

Betting and gaming duties

6General betting duty and pool betting duty: relief for losses

7General betting duty: betting exchanges

8General betting duty: restriction of exemption for on-course bets

9Bingo duty

10Amusement machines not operated by coins or tokens

11Amusement machines: use of currencies other than sterling

12Responsibility for unlicensed amusement machines

13Rates of gaming duty

Vehicle excise duty

14Vehicle excise duty: rates

15Disclosure for exemptions: Northern Ireland

16Duty at higher rate: exception for tractive units

Part 2Value added tax

17Requirement of evidence or security

18Joint and several liability for unpaid VAT of another trader

19Face-value vouchers

20Supplies arising from prior grant of fee simple

21Business gifts

22Non-business use of business property

23Supply of electronic services in member States: special accounting scheme

Part 3Taxes and duties on importation and exportation: penalties

Preliminary

24Introductory

The penalties

25Penalty for evasion

26Penalty for contravention of relevant rule

27Exceptions from section 26

28Liability of directors etc where body corporate liable to penalty for evasion

Reduction of amount of penalty

29Reduction of penalty under section 25 or 26

Demand notices

30Demands for penalties

31Time limits for demands for penalties

32No prosecution after demand notice for penalty under section 26

Appeals and reviews

33Right to appeal against certain decisions

33AOffer of review

33BReview by HMRC

33CExtensions of time

33DReview out of time

33ENature of review etc

33FBringing of appeals

34Time limit and right to further review

35Powers of Commissioners on a review

36Appeals to a tribunal

37Appeal tribunals

Evidence

38Admissibility of certain statements and documents

Miscellaneous and supplementary

39Service of notices

40Penalties not to be deducted for income tax or corporation tax purposes

41Regulations and orders

Part 4Stamp duty land tax

44Contract and conveyance

44AContract providing for conveyance to third party

45Contract and conveyance: effect of transfer of rights

45AContract providing for conveyance to third party: effect of transfer of rights

46Options and rights of pre-emption

47Exchanges

Chargeable interests, chargeable transactions and chargeable consideration

48Chargeable interests

49Chargeable transactions

50Chargeable consideration

51Contingent, uncertain or unascertained consideration

52Annuities etc: chargeable consideration limited to twelve years' payments

53Deemed market value where transaction involves connected company

54Exceptions from deemed market value rule

Amount of tax chargeable

55Amount of tax chargeable: general

56Amount of tax chargeable: rent

Reliefs

57Disadvantaged areas relief

57ASale and leaseback arrangements

58ARelief for certain acquisitions of residential property

58BRelief for new zero-carbon homes

58CRelief for new zero-carbon homes: supplemental

60Compulsory purchase facilitating development

61Compliance with planning obligations

62Group relief and reconstruction or acquisition relief

63Demutualisation of insurance company

64Demutualisation of building society

64AInitial transfer of assets to trustees of unit trust scheme

65Incorporation of limited liability partnership

66Transfers involving public bodies

67Transfer in consequence of reorganisation of parliamentary constituencies

68Charities relief

69Acquisition by bodies established for national purposes

70Right to buy transactions, shared ownership leases etc

71Certain acquisitions by registered social landlord

71AAlternative property finance: land sold to financial institution and leased to person

72Alternative property finance in Scotland: land sold to financial institution and leased to person

72AAlternative property finance in Scotland: land sold to financial institution and person in common

73Alternative property finance: land sold to financial institution and re-sold to person

73ASections 71A to 73: relationship with Schedule 7

73ABSections 71A to 72A: arrangements to transfer control of financial institution

73BExempt interests

73CAlternative finance investment bonds

74Exercise of collective rights by tenants of flats

75Crofting community right to buy

75AAnti-avoidance

75BAnti-avoidance: incidental transactions

75CAnti-avoidance: supplemental

Returns and other administrative matters

76Duty to deliver land transaction return

77Notifiable transactions

77AExceptions for certain acquisitions of major interests in land

78Returns, enquiries, assessments and related matters

78ADisclosure of information contained in land transaction returns

79Registration of land transactions etc

80Adjustment where contingency ceases or consideration is ascertained

81Further return where relief withdrawn

81AReturn or further return in consequence of later linked transaction

81BDeclaration by person authorised to act on behalf of individual

82Loss or destruction of, or damage to, return etc

82AClaims not included in returns

83Formal requirements as to assessments, penalty determinations etc

84Delivery and service of documents

Liability for and payment of tax

85Liability for tax

86Payment of tax

87Interest on unpaid tax

88Interest on penalties

89Interest on repayment of tax overpaid etc

90Application to defer payment in case of contingent or uncertain consideration

91Collection and recovery of tax etc

92Payment by cheque

Compliance

93Information powers

94Power to inspect premises

95Offence of fraudulent evasion of tax

96Penalty for assisting in preparation of incorrect return etc

97Power to allow further time and reasonable excuse for failure

98Admissibility of evidence not affected by offer of settlement etc

99General provisions about penalties

Application of provisions

100Companies

101Unit trust schemes

102Open-ended investment companies

103Joint purchasers

104Partnerships

105Trustees

106Persons acting in a representative capacity etc

107Crown application

Supplementary provisions

108Linked transactions

109General power to vary this Part by regulations

110Approval of regulations under general power

111Claim for repayment if regulations under general power not approved

112Power to amend certain provisions before implementation

113Functions conferred on “the Inland Revenue”

114Orders and regulations made by the Treasury or the Inland Revenue

115General and Special Commissioners, appeals and other proceedings

Interpretation etc

116Meaning of “residential property”

117Meaning of “major interest” in land

118Meaning of “market value”

119Meaning of “effective date” of a transaction

120Further provisions relating to leases

121Minor definitions

122Index of defined expressions

Final provisions

123Consequential amendments

124Commencement and transitional provisions

Part 5Stamp duty

125Abolition of stamp duty except on instruments relating to stock or marketable securities

126Circumstances in which group relief withdrawn

127Circumstances in which relief for company acquisitions withdrawn

128Exemption of certain leases granted by registered social landlords

129Relief for certain leases granted before section 128 has effect

130Registered social landlords: treatment of certain leases granted between 1st January 1990 and 27 March 2000

Part 6Income tax and corporation tax: charge and rate bands

Income tax

131Charge and rates for 2003-04

132Indexed rate bands for 2003-04: PAYE deductions etc

Corporation tax

133Charge and main rate for financial year 2004

134Small companies' rate and fraction for financial year 2003

135Corporation tax starting rate and fraction for financial year 2003

Part 7Income tax, corporation tax and capital gains tax: general

Employment income and related matters

136Provision of services through intermediary

137Exemption where homeworker’s additional expenses met by employer

138Taxable benefits: lower threshold for cars with a CO2 emissions figure

139Approved share plans and schemes

140Employee securities and options

141Corporation tax relief for employee share acquisitions

142Ending of relief for contributions to QUESTS

143Restriction of deductions for employee benefit contributions

144PAYE on notional payments: reimbursement period

145PAYE: regulations and notional payments

146Payroll giving: extension of 10% supplement to 5th April 2004

147Sub-contractor deductions etc: interest on late payment or repayment

Taxation of non-resident companies and related matters

148Meaning of “permanent establishment”

149Non-resident companies: basis of charge to corporation tax

150Non-resident companies: assessment, collection and recovery of corporation tax

151Non-resident companies: extent of charge to income tax

152Non-resident companies: transactions carried out through broker, investment manager or Lloyd’s agent

153General replacement of references to branch or agency of company

154Double taxation relief: profits attributable to overseas permanent establishment

155Consequential amendments

156Overseas life insurance companies

Chargeable gains

157Life insurance policies and deferred annuity contracts

158Application of market value rule in case of exercise of option

159Reporting limits and annual exempt amount

160Taper relief: assets qualifying as business assets

161Earn-out rights to be treated as securities unless contrary election

162Deferred unascertainable consideration: election for treatment of loss

163Transfers of value: attribution of gains to beneficiaries

Capital allowances and related matters

164Avoidance affecting proceeds of balancing event

165Extension of first-year allowances for ICT expenditure by small enterprises

166Expenditure on software for sub-licensing

167First-year allowances for expenditure on environmentally beneficial plant or machinery

168Relief for research and development

169Tonnage tax: extension of capital allowance restrictions on lessors of ships

Life insurance and pensions

170Insurance companies

171Policies of life insurance etc: miscellaneous amendments

172Charges under life insurance policies for exceptional risk of disability

173Gains on policies of life insurance etc: rate of tax

174Personal pension arrangements: limit on contributions

Miscellaneous

175Payments to adopters

176Foster carers

177Currency contracts and currency options

178Loan relationships: amendments

179Derivative contracts: transactions within groups

180Contributions to urban regeneration companies

181Repos etc

182Relevant discounted securities: withdrawal of relief for costs and losses, etc

183Court common investment funds

184Intangible fixed assets: tax avoidance arrangements and related parties

Part 8Other taxes

Inheritance tax

185Gifts with reservation

186Authorised unit trusts, OEICs and common investment funds

Landfill tax

187Rate of landfill tax

Climate change levy

188Exemption for fuel used in recycling processes

189CHP exemption to be based on current efficiency

190Supplies not known to be taxable when made, etc

191Deemed supplies

192Amendments about registration, payment etc

193Electricity from renewable sources etc

Insurance premium tax

194Higher rate of tax: divided companies

Part 9Miscellaneous and supplementary provisions

Provisions consequential on changes to company law

195Companies acquiring their own shares

196Companies in administration

International matters

197Exchange of information between tax authorities of member States

198Arrangements for mutual exchange of tax information

199Savings income: Community obligations and international arrangements

200Controlled foreign companies: exempt activities

201Application of CFC provisions to Hong Kong and Macao companies

Administrative matters

202Deduction of tax from interest: recognised clearing houses etc

203Authorised unit trusts: interest distributions paid gross

204Mandatory electronic payment

205Use of electronic means of payment under other provisions

206Admissibility of evidence not affected by offer of settlement etc

207Consequential claims etc

National Savings

208Ordinary accounts and investment accounts

209Abolition of accounting requirements relating to investment deposits

Other financial matters

210Payments for service of national debt

211Definition of liabilities and assets of National Loans Fund

212Accounts of Consolidated Fund and National Loans Fund

213Debt Management Account: abolition of borrowing cap

214Payments in error from or to National Loans Fund

SCHEDULE 1VAT: face-value vouchers

1In Part 3 of the Value Added Tax Act 1994...

2After Schedule 10 to that Act insert— SCHEDULE 10A Face-value...

3In Schedule 6 to the Value Added Tax Act 1994...

4The amendments made by this Schedule apply to supplies of...

SCHEDULE 2Supply of electronic services in member States: VAT special accounting scheme

Introductory

1The Value Added Tax Act 1994 (c. 23) is amended...

Insertion of new section 3A

2After section 3 insert— Supply of electronic services in member...

Persons registered under Schedule 1

3In Schedule 1 (registration in respect of taxable supplies) in...

The special accounting scheme

4After Schedule 3A insert— SCHEDULE 3B Supply of electronic services...

SCHEDULE 3Stamp duty land tax: transactions exempt from charge

No chargeable consideration

1A land transaction is exempt from charge if there is...

Grant of certain leases by registered social landlords

2(1) The grant of a lease of a dwelling is...

Transactions in connection with divorce etc

3A transaction between one party to a marriage and the...

Assents and appropriations by personal representatives

3A(1) The acquisition of property by a person in or...

Transactions in connection with dissolution of civil partnership etc

3AA transaction between one party to a civil partnership and...

Variation of testamentary dispositions etc

4(1) A transaction following a person’s death that varies a...

Power to add further exemptions

5(1) The Treasury may by regulations provide that any description...

SCHEDULE 4Stamp duty land tax: chargeable consideration

Money or money’s worth

1(1) The chargeable consideration for a transaction is, except as...

Value added tax

2The chargeable consideration for a transaction shall be taken to...

Postponed consideration

3The amount or value of the chargeable consideration for a...

Just and reasonable apportionment

4(1) For the purposes of this Part consideration attributable—

Exchanges

5(1) This paragraph applies to determine the chargeable consideration where...

Partition etc: disregard of existing interest

6In the case of a land transaction giving effect to...

Valuation of non-monetary consideration

7Except as otherwise expressly provided, the value of any chargeable...

Debt as consideration

8(1) Where the chargeable consideration for a land transaction consists...

Cases where conditions for exemption not fully met

8A(1) Where a land transaction would be exempt from charge...

Conversion of amounts in foreign currency

9(1) References in this Part to the amount or value...

Carrying out of works

10(1) Where the whole or part of the consideration for...

Provision of services

11(1) Where the whole or part of the consideration for...

Land transaction entered into by reason of employment

12(1) Where a land transaction is entered into by reason...

Obligations under lease

13(1) In the case of the grant of a lease...

Surrender of existing lease in return for new lease

14(1) This paragraph applies where a lease is granted in...

Reverse premium

15(1) In the case of the grant, assignment or surrender...

Indemnity given by purchaser

16Where the purchaser agrees to indemnify the vendor in respect...

16APurchaser bearing inheritance tax liability

16BPurchaser bearing capital gains tax liability

16CCosts of enfranchisement

Arrangements involving public or educational bodies

17(1) This paragraph applies in any case where arrangements are...

SCHEDULE 5Stamp duty land tax: amount of tax chargeable: rent

Introduction

1This Schedule provides for calculating the tax chargeable—

Amounts payable in respect of periods before grant of lease

1AFor the purposes of this Part “ rent ” does...

Calculation of tax chargeable in respect of rent

2(1) Tax is chargeable under this Schedule in respect of...

Net present value of rent payable over term of lease

3The net present value (v) of the rent payable over...

Rent payable

4(1) For the purposes of this Schedule a single sum...

Effect of provision for rent review

5(1) This paragraph applies where the lease contains provision for...

Term of lease

6(1) For the purposes of this Schedule the term of...

Treatment of lease for indefinite term

7(1) For the purposes of this Schedule a lease for...

Temporal discount rate

8(1) For the purposes of this Schedule the “temporal discount...

Tax chargeable in respect of consideration other than rent : general

9(1) Where in the case of a transaction to which...

Tax chargeable in respect of consideration other than rent: 0% band

9A(1) This paragraph applies in the case of a transaction...

Increase of rent treated as grant of new lease

10(1) Where a lease is varied so as to increase...

Interpretation

11In Scotland any reference in this Part to the term...

SCHEDULE 6Stamp duty land tax: disadvantaged areas relief

Part 1Disadvantaged areas

Meaning of “disadvantaged area”

1(1) For the purposes of this Schedule a “disadvantaged area”...

Continuation of regulations made for purposes of stamp duty

2Any regulations made by the Treasury— (a) designating areas as...

Part 2Land wholly situated in a disadvantaged area

Introduction

3This Part of this Schedule applies to a land transaction...

Land all non-residential

4If all the land is non-residential property, the transaction is...

Land all residential

5(1) This paragraph applies where all the land is residential...

Land partly non-residential and partly residential

6(1) This paragraph applies, where the land is partly non-residential...

Part 3Land partly situated in a disadvantaged area

Introduction

7(1) This Part of this Schedule applies to a land...

Land all non-residential

8If all of the land situated in a disadvantaged area...

Land all residential

9(1) This paragraph applies where all the land situated in...

Land partly non-residential and partly residential

10(1) This paragraph applies, where the land situated in a...

Part 4Supplementary

Relevant consideration and relevant rental value

11(1) References in this Schedule to the “relevant consideration” in...

Rent and annual rent

12For the purposes of this Schedule “rent” has the same...

Notification of transactions

13For the purposes of sections 77 and 77A (which specify...

SCHEDULE 6ARelief for certain acquisitions of residential property

1Acquisition by house-building company from individual acquiring new dwelling

2Acquisition by property trader from individual acquiring new dwelling

3Acquisition by property trader from personal representatives

4Acquisition by property trader from individual where chain of transactions breaks down

5Acquisition by employer in case of relocation of employment

6Acquisition by property trader in case of relocation of employment

7Meaning of “dwelling”, “new dwelling” and “the permitted area”

8Meaning of “property trader” and “principal”

9Meaning of “refurbishment” and “the permitted amount”

10Connected companies etc

11Withdrawal of relief under this Schedule

SCHEDULE 7Stamp duty land tax: group relief and reconstruction and acquisition reliefs

Part 1Group relief

Group relief

1(1) A transaction is exempt from charge if the vendor...

Restrictions on availability of group relief

2(1) Group relief is not available if at the effective...

Withdrawal of group relief

3(1) Where in the case of a transaction (“the relevant...

Cases in which group relief not withdrawn

4(1) Group relief is not withdrawn under paragraph 3 in...

Group relief not withdrawn where vendor leaves group

4ZA(1) Group relief is not withdrawn under paragraph 3 where...

Withdrawal of group relief in certain cases involving successive transactions

4A(1) Where, in the case of a transaction (“ the...

Recovery of group relief from another group company or controlling director

5(1) This paragraph applies where— (a) tax is chargeable under...

Recovery of group relief: supplementary

6(1) The Inland Revenue may serve a notice on a...

Part 2Reconstruction and acquisition reliefs

Reconstruction relief

7(1) Where— (a) a company (“the acquiring company”) acquires the...

Acquisition relief

8(1) Where— (a) a company (“the acquiring company”) acquires the...

Withdrawal of reconstruction or acquisition relief

9(1) Where in the case of a transaction (“the relevant...

Cases in which reconstruction or acquisition relief not withdrawn

10(1) Reconstruction or acquisition relief is not withdrawn under paragraph...

Withdrawal of reconstruction or acquisition relief on subsequent non-exempt transfer

11(1) Where paragraph 10(4) (change of control of acquiring company...

Recovery of reconstruction or acquisition relief from another group company or controlling director

12(1) This paragraph applies where— (a) tax is chargeable under...

Recovery of reconstruction or acquisition relief: supplementary

13(1) The Inland Revenue may serve a notice on a...

SCHEDULE 8Stamp duty land tax: charities relief

Charities relief

1(1) A land transaction is exempt from charge if the...

Withdrawal of charities relief

2(1) Where in the case of a transaction (“the relevant...

Cases where first condition not fully met

3(1) This paragraph applies where— (a) a land transaction is...

Charitable trusts

4(1) This Schedule applies in relation to a charitable trust...

SCHEDULE 9Stamp duty land tax: right to buy, shared ownership leases etc

Right to buy transactions

1(1) In the case of a right to buy transaction—...

Shared ownership lease: election for market value treatment

2(1) This paragraph applies where— (a) a lease is granted—...

Transfer of reversion under shared ownership lease where election made for market value treatment

3The transfer of the reversion to the lessee or lessees...

Shared ownership lease: election where staircasing allowed

4(1) This paragraph applies where— (a) a lease is granted...

Shared ownership lease: treatment of staircasing transaction

4A(1) This paragraph applies where under a shared ownership lease—...

Shared ownership lease: grant not linked with staircasing transactions etc

4B(1) For the purpose of determining the rate of tax...

Shared ownership leases: meaning of “qualifying body” and “preserved right to buy”

5(1) This paragraph has effect for the purposes of paragraphs...

Rent to mortgage or rent to loan: chargeable consideration

6(1) The chargeable consideration for a rent to mortgage or...

7Shared ownership trust: introduction

8Shared ownership trust: “purchaser”

9Shared ownership trust: election for market value treatment

10Shared ownership trust: treatment of staircasing transaction

11Shared ownership trust: treatment of additional payments where no election made

12Shared ownership trust: declaration not linked with staircasing transactions etc

Rent to shared ownership lease: charge to tax

13(1) The chargeable consideration for transactions forming part of a...

Rent to shared ownership trust: charge to tax

14(1) The chargeable consideration for transactions forming part of a...

SCHEDULE 10Stamp duty land tax: returns, enquiries, assessments and appeals

Part 1Land transaction returns

Contents of return

1(1) A land transaction return must— (a) be in the...

Declaration by agent

1A(1) Where — (a) the purchaser (or each of them)...

Declaration by the relevant Official Solicitor

1B(1) Where — (a) the purchaser (or any of them)...

Meaning of filing date and delivery of return

2(1) References in this Part of this Act to the...

Failure to deliver return: flat-rate penalty

3(1) A person who is required to deliver a land...

Failure to deliver return: tax-related penalty

4(1) A purchaser who is required to deliver a land...

Formal notice to deliver return: daily penalty

5(1) If it appears to the Inland Revenue—

Amendment of return by purchaser

6(1) The purchaser may amend a land transaction return given...

Correction of return by Revenue

7(1) The Inland Revenue may amend a land transaction return...

Penalty for incorrect or uncorrected return

8(1) A purchaser who— (a) fraudulently or negligently delivers in...

Part 2Duty to keep and preserve records

Duty to keep and preserve records

9(1) A purchaser who is required to deliver a land...

Preservation of information instead of original records

10(1) The duty under paragraph 9 to preserve records may...

Penalty for failure to keep and preserve records

11(1) A person who fails to comply with paragraph 9...

Part 3Enquiry into return

Notice of enquiry

12(1) The Inland Revenue may enquire into a land transaction...

Scope of enquiry

13(1) An enquiry extends to anything contained in the return,...

Notice to produce documents etc for purposes of enquiry

14(1) If the Inland Revenue give notice of enquiry into...

Appeal against notice to produce documents etc

15(1) An appeal may be brought against a requirement imposed...

Penalty for failure to produce documents etc

16(1) A person who fails to comply with a notice...

Amendment of self-assessment during enquiry to prevent loss of tax

17(1) If at a time when an enquiry is in...

Amendment of return by taxpayer during enquiry

18(1) This paragraph applies if a return is amended under...

Referral of questions to the tribunal during enquiry

19(1) At any time when an enquiry is in progress...

Withdrawal of notice of referral

20(1) The Inland Revenue or the purchaser may withdraw a...

Effect of referral on enquiry

21(1) While proceedings on a referral under paragraph 19 are...

Effect of determination

22(1) The determination of a question referred to the tribunal...

Completion of enquiry

23(1) An enquiry under paragraph 12 is completed when the...

Direction to complete enquiry

24(1) The purchaser may apply to the General or Special...

Part 4Revenue determination if no return delivered

Determination of tax chargeable if no return delivered

25(1) If in the case of a chargeable transaction no...

Determination to have effect as a self-assessment

26(1) A Revenue determination has effect for enforcement purposes as...

Determination superseded by actual self-assessment

27(1) If after a Revenue determination has been made the...

Part 5Revenue assessments

Assessment where loss of tax discovered

28(1) If the Inland Revenue discover as regards a chargeable...

Assessment to recover excessive repayment of tax

29(1) If an amount of tax has been repaid to...

Restrictions on assessment where return delivered

30(1) If the purchaser has delivered a land transaction return...

Time limit for assessment

31(1) The general rule is that no assessment may be...

Assessment procedure

32(1) Notice of an assessment must be served on the...

Part 6Relief in case of excessive assessment

Relief in case of double assessment

33(1) A person who believes he has been assessed to...

Relief in case of mistake in return

34(1) A person who believes he has paid tax under...

Part 7Reviews and appeals

Right of appeal

35(1) An appeal may be brought against—

Notice of appeal

36(1) Notice of an appeal under paragraph 35 must be...

Appeal: HMRC review or determination by tribunal

36A(1) This paragraph applies if notice of appeal has been...

Appellant requires review by HMRC

36B(1) Sub-paragraphs (2) and (3) apply if the appellant notifies...

HMRC offer review

36C(1) Sub-paragraphs (2) to (6) apply if HMRC notify the...

Notifying appeal to the tribunal

36D(1) This paragraph applies in a case where paragraph 36A...

Nature of review etc

36E(1) This paragraph applies if HMRC are required by paragraph...

Effect of conclusions of review

36F(1) This paragraph applies if HMRC give notice of the...

Notifying appeal to tribunal after review concluded

36G(1) This paragraph applies if— (a) HMRC have given notice...

Notifying appeal to tribunal after review offered but not accepted

36H(1) This paragraph applies if— (a) HMRC have offered to...

Other interpretation

36I(1) In paragraphs 36A to 36H— (a) “matter in question”...

Settling of appeals by agreement

37(1) If, before an appeal under paragraph 35 is determined,...

Recovery of tax not postponed by appeal

38(1) Where there is an appeal ... under paragraph 35,...

Direction by the tribunal to postpone payment

39(1) If the appellant has grounds for believing that the...

Agreement to postpone payment of tax

40(1) If the appellant and the relevant officer of the...

Tribunal determinations

41The determination of the tribunal in relation to any proceedings...

Assessments and self assessments

42(1) In this paragraph any reference to an appeal means...

Payment of stamp duty land tax where there is a further appeal

43(1) Where a party to an appeal to the tribunal...

Late notice of appeal

44(1) This paragraph applies in a case where—

Questions to be determined by the relevant tribunal

45(1) Where the question in any dispute on any appeal...

Meaning of HMRC

46In this Schedule “ HMRC ” means Her Majesty’s Revenue...

SCHEDULE 11Stamp duty land tax: record-keeping where transaction is not notifiable

Part 1General

Introductory

1. . . . . . . . . ....

Form and contents of self-certificate

2. . . . . . . . . ....

2ADeclaration by agent

2BDeclaration by the relevant Official Solicitor

3. . . . . . . . . ....

Part 2Duty to keep and preserve records

Duty to keep and preserve records

4(A1) This paragraph applies where a transaction is not notifiable,...

Preservation of information instead of original records

5(1) The duty under paragraph 4 to preserve records may...

Penalty for failure to keep and preserve records

6(1) A person who fails to comply with paragraph 4...

Part 3Enquiry into self-certificate

Notice of enquiry

7. . . . . . . . . ....

Scope of enquiry

8. . . . . . . . . ....

Notice to produce documents etc for purposes of enquiry

9. . . . . . . . . ....

Appeal against notice to produce documents etc

10. . . . . . . . . ....

Penalty for failure to produce documents etc

11. . . . . . . . . ....

Referral of questions to Special Commissioners during enquiry

12. . . . . . . . . ....

Withdrawal of notice of referral

13. . . . . . . . . ....

Effect of referral on enquiry

14. . . . . . . . . ....

Effect of determination

15. . . . . . . . . ....

Completion of enquiry

16. . . . . . . . . ....

Direction to complete enquiry

17. . . . . . . . . ....

SCHEDULE 11AStamp duty land tax: claims not included in returns

Introductory

1This Schedule applies to a claim under any provision of...

Making of claims

2(1) A claim must be made in such form as...

Duty to keep and preserve records

3(1) A person who may wish to make a claim...

Amendment of claim by claimant

4(1) The claimant may amend his claim by notice to...

Correction of claim by Revenue

5(1) The Inland Revenue may by notice to the claimant...

Giving effect to claims and amendments

6(1) As soon as practicable after a claim is made,...

Notice of enquiry

7(1) The Inland Revenue may enquire into a person’s claim...

Notice to produce documents etc for purposes of enquiry

8(1) If the Inland Revenue give a person a notice...

Appeal against notice to produce documents etc

9(1) An appeal may be brought against a requirement imposed...

Penalty for failure to produce documents etc

10(1) A person who fails to comply with a notice...

Completion of enquiry

11(1) An enquiry under paragraph 7 is completed when the...

Direction to complete enquiry

12(1) The claimant may apply to the tribunal for a...

Giving effect to amendments under paragraph 11

13(1) Within 30 days after the date of issue of...

Appeals against amendments under paragraph 11

14(1) An appeal may be brought against a conclusion stated...

Jurisdiction of Commissioners

15. . . . . . . . . ....

SCHEDULE 12Stamp duty land tax: collection and recovery of tax

Part 1General

Issue of tax demands and receipts

1(1) Where tax is due and payable, a collector may...

Recovery of tax by distraint

2(1) In England and Wales or Northern Ireland, if a...

Recovery of tax by diligence in Scotland

3(1) In Scotland, where any tax is due and has...

Part 2Court proceedings

Civil proceedings in magistrates' court or court of summary jurisdiction

4(1) An amount not exceeding £2,000 due and payable by...

Proceedings in county court or sheriff court

5(1) Tax due and payable may be sued for and...

Proceedings in High Court or Court of Session

6Tax may be sued for and recovered from the person...

...

7. . . . . . . . . ....

SCHEDULE 13Stamp duty land tax: information powers

Part 1Power of authorised officer to call for documents or information from taxpayer

Notice requiring taxpayer to deliver documents or provide information

1(1) An authorised officer of the Board may by notice...

Requirement of consent of the tribunal

2(1) The consent of the tribunal is required for the...

Contents of notice under this Part

3(1) A notice under paragraph 1 must—

Summary of reasons to be given

4(1) An officer who gives a notice under paragraph 1...

Power to take copies of documents etc

5The person to whom documents are delivered, or to whom...

Part 2Power of authorised officer to call for documents from third party

Notice requiring documents to be delivered or made available

6(1) An authorised officer of the Board may for the...

Requirement of consent of the tribunal

7(1) The consent of the tribunal is required for the...

Contents of notice under paragraph 6

8(1) A notice under paragraph 6 must—

Copy of notice to be given to taxpayer

9(1) Where a notice is given to a person under...

Summary of reasons to be given

10(1) An officer who gives a notice under paragraph 6...

Power to give notice relating to unnamed taxpayer or taxpayers

11(1) If, on an application made by an officer of...

Contents of notice under paragraph 11

12(1) A notice under paragraph 11 must—

Power to take copies of documents etc

13The person to whom documents are delivered or made available...

Part 3Power to call for papers of tax accountant

Power to call for papers of tax accountant

14(1) Where a person who has stood in relation to...

When notice may be given

15(1) No notice under paragraph 14 may be given for...

Requirement of consent of appropriate judicial authority

16(1) The consent of the appropriate judicial authority is required...

Contents of notice

17(1) A notice under paragraph 14 must—

Power to take copies of documents etc

18The officer to whom documents are delivered in pursuance of...

Part 4Restrictions on powers under Parts 1 to 3

Introduction

19The provisions of Parts 1 to 3 of this Schedule...

Personal records or journalistic material

20(1) Parts 1 to 3 of this Schedule do not...

Documents or information relating to pending appeal

21(1) A notice under Part 1 of this Schedule does...

Barristers, advocates and solicitors

22(1) A notice under Part 2 or 3 of this...

Provision of copies instead of original documents

23(1) To comply with a notice under Part 1 or...

Documents originating more than six years before date of notice

24(1) A notice under Part 2 of this Schedule does...

Documents subject to legal privilege

25(1) A notice under Part 2 or 3 of this...

Documents belonging to auditor or tax adviser

26(1) A notice under Part 2 of this Schedule—

Documents belonging to auditor or tax adviser: information to be disclosed

27(1) This paragraph applies where a notice is given under...

Part 5Powers of board to call for documents or information

Notice requiring delivery of documents or provision of information

28(1) The Board may by notice in writing require a...

Contents of notice

29A notice under paragraph 28 must— (a) specify or describe...

Power to take copies of documents etc

30The person to whom documents are delivered, or to whom...

Exclusion of personal records or journalistic material

31(1) This Part of this Schedule does not apply to...

Part 6Order of judicial authority for the delivery of documents

Order for the delivery of documents

32(1) The appropriate judicial authority may make an order under...

Notice of application for order

33(1) A person is entitled— (a) to notice of the...

Obligations of person given notice of application

34(1) A person who has been given notice of intention...

Exception of items subject to legal privilege

35(1) This Part of this Schedule does not apply to...

Resolution of disputes as to legal privilege

36(1) The Inland Revenue may make provision by regulations for...

Complying with an order

37(1) The Inland Revenue may make provision by regulations as...

Document not to be retained if photograph or copy sufficient

38Where a document delivered to an officer of the Board...

Access to or supply of photograph or copy of documents delivered

39(1) If a request for permission to be granted access...

Sanction for failure to comply with order

40(1) A person who fails to comply with an order...

Notice of order, etc

41The Inland Revenue may make provision by regulations as to...

General provisions about regulations

42Regulations under this Part of this Schedule may contain such...

Part 7Entry with warrant to obtain evidence of offence

Power to issue warrant

43(1) The appropriate judicial authority, if satisfied on information on...

Meaning of offence involving serious fraud

44(1) An offence that involves fraud is for the purposes...

Approval of application by Board

45(1) The Board shall not approve an application for a...

Extent of powers conferred by warrant

46The powers conferred by a warrant under this Part of...

Exercise of powers conferred by warrant

47(1) An officer of the Board seeking to exercise the...

Items subject to legal privilege

48(1) Nothing in this Part of this Schedule authorises the...

Procedure where documents etc are removed

49(1) An officer of the Board who removes anything in...

Document not to be retained if photograph or copy sufficient

50Where anything that has been removed by an officer of...

Access to or supply of photograph or copy of items removed

51(1) If a request for permission to be granted access...

Endorsement and custody etc of warrant

52(1) Where entry has been made with a warrant under...

Part 8Falsification etc of documents

Falsification etc of documents

53(1) A person commits an offence if he intentionally—

SCHEDULE 14Stamp duty land tax: determination of penalties and related appeals

Determination of penalties and appeals

1The provisions of this Schedule apply in relation to penalties...

Determination of penalty by officer of the Board

2(1) An officer of the Board authorised for the purposes...

Alteration of penalty determination

3(1) After notice has been served of the determination of...

Liability of personal representatives

4If a person liable to a penalty has died—

Appeal against penalty determination

5(1) An appeal may be made against the determination of...

Further appeal

6(1) In addition to any right of appeal on a...

Penalty proceedings before the court

7(1) Where in the opinion of the Board the liability...

Time limit for determination of penalties

8(1) The following time limits apply in relation to the...

SCHEDULE 15Stamp duty land tax: partnerships

Part 1General provisions

Partnerships

1In this Part of this Act a “partnership” means—

Legal personality of partnership disregarded

2(1) For the purposes of this Part of this Act—...

Continuity of partnership

3For the purposes of this Part of this Act a...

Partnership not to be regarded as unit trust scheme etc

4A partnership is not to be regarded for the purposes...

Part 2Ordinary partnership transactions

Introduction

5(1) This Part of this Schedule applies to transactions entered...

Responsibility of partners

6(1) Anything required or authorised to be done under this...

Joint and several liability of responsible partners

7(1) Where the responsible partners are liable—

Representative partners

8(1) Anything required or authorised to be done by or...

Part 3Transactions to which special provisions apply

9Introduction

10Transfer of chargeable interest to a partnership: general

11Transfer of chargeable interest to a partnership: chargeable consideration including rent

12Transfer of chargeable interest to a partnership: sum of the lower proportions

12AElection by property-investment partnership to disapply paragraph 10

13Transfer of chargeable interest to a partnership consisting wholly of bodies corporate

14Transfer ... of interest in property-investment partnership

15Exclusion of market rent leases

16Partnership interests: application of provisions about exchanges etc.

17Transfer of partnership interest pursuant to earlier arrangements

Withdrawal of money etc from partnership after transfer of chargeable interest

17A(1) This paragraph applies where— (a) there is a transfer...

18Transfer of chargeable interest from a partnership: general

19Transfer of chargeable interest from a partnership: chargeable consideration including rent

20Transfer of chargeable interest from a partnership: sum of the lower proportions

21Transfer of chargeable interest from a partnership: partnership share attributable to partner

22(1) Where this paragraph applies, the partnership share attributable to...

23Transfer of chargeable interest from a partnership to a partnership

24Transfer of chargeable interest from a partnership consisting wholly of bodies corporate

25Application of exemptions and reliefs

26Application of disadvantaged areas relief

27Application of group relief

27A

28Application of charities relief

29Acquisition of interest in partnership not chargeable except as specially provided

30Transactions that are not notifiable

31Stamp duty on transfers of partnership interests: continued application

32Stamp duty on transfers of partnership interests: modification

33(1) This paragraph applies where stamp duty under Part 1...

34Interpretation: partnership property and partnership share

35Interpretation: transfer of chargeable interest to a partnership

36Interpretation: transfer of interest in a partnership

37Interpretation: transfer of chargeable interest from a partnership

38Interpretation: market value of leases

39Interpretation: connected persons

40Interpretation: arrangements

SCHEDULE 16Stamp duty land tax: trusts and powers

Meaning of “settlement” and “bare trust”

1(1) In this Part “settlement” means a trust that is...

Interests of beneficiaries under certain trusts

2Where property is held in trust under the law of...

Bare trustee

3(1) Subject to sub-paragraph (2), where a person acquires a...

Acquisition by trustees of settlement

4Where persons acquire a chargeable interest as trustees of a...

Responsibility of trustees of settlement

5(1) Where the trustees of a settlement are liable—

Relevant trustees for purposes of return etc

6(1) A return or self-certificate in relation to a land...

Consideration for exercise of power of appointment or discretion

7Where a chargeable interest is acquired by virtue of—

8Reallocation of trust property as between beneficiaries

SCHEDULE 17Stamp duty land tax: General and Special Commissioners, appeals and other proceedings

General and Special Commissioners: application of general provisions

1Part 1 of the Taxes Management Act 1970 (c. 9)...

Prescribed matters to be determined by Commissioners or Lands Tribunal

2(1) The Lord Chancellor may make regulations providing that a...

General or Special Commissioners: jurisdiction

3(1) Where the General or Special Commissioners have jurisdiction in...

Proceedings brought out of time

4(1) An appeal under this Part to the General or...

Quorum etc of the Commissioners

5(1) The Lord Chancellor may make regulations about the number...

Procedure

6(1) The Lord Chancellor may make regulations about the practice...

Consequences of determination by the Commissioners

7The Lord Chancellor may make regulations prescribing the consequences of...

Costs

8The Lord Chancellor may make regulations about—

Finality of decisions of the Commissioners

9(1) The Lord Chancellor may make regulations about the following...

Publication of reports of decisions

10(1) The Lord Chancellor may make regulations authorising the Special...

Supplementary provisions

11(1) Any power to make regulations under this Schedule is...

SCHEDULE 17AFurther provisions relating to leases

1Meaning of “lease”

2Leases for a fixed term

3Leases that continue after a fixed term

4Treatment of leases for indefinite term

5Treatment of successive linked leases

6Rent

7Variable or uncertain rent

First rent review in final quarter of fifth year

7AWhere— (a) a lease contains provision under which the rent...

Adjustment where rent ceases to be uncertain

8(1) Where the provisions of section 51 (1) and (2)...

Rent for overlap period in case of grant of further lease

9(1) This paragraph applies where— (a) A surrenders an existing...

Backdated lease granted to tenant holding over

9A(1) This paragraph applies where— (a) the tenant under a...

Tenants' obligations etc that do not count as chargeable consideration

10(1) In the case of the grant of a lease...

Cases where assignment of lease treated as grant of lease

11(1) This paragraph applies where the grant of a lease...

Assignment of lease: responsibility of assignee for returns etc

12(1) Where a lease is assigned, anything that but for...

Agreement for lease

12A(1) This paragraph applies where in England and Wales or...

Assignment of agreement for lease

12B(1) This paragraph applies, in place of section 45 (contract...

Increase of rent treated as grant of new lease: variation of lease in first five years

13(1) Where a lease is varied so as to increase...

Increase of rent treated as grant of new lease: abnormal increase after fifth year

14(1) This paragraph applies if, after the end of the...

Increase of rent after fifth year: whether regarded as abnormal

15Whether an increase in rent is to be regarded for...

Reduction of rent or term or other variation of lease

15A(1) Where a lease is varied so as to reduce...

Surrender of existing lease in return for new lease

16Where a lease is granted in consideration of the surrender...

Assignment of lease: assumption of obligations by assignee

17In the case of an assignment of a lease the...

Reverse premium

18(1) In the case of the grant, assignment or surrender...

Loan or deposit in connection with grant or assignment of lease

18A(1) Where, under arrangements made in connection with the grant...

Provisions relating to leases in Scotland

19(1) In the application of this Part to Scotland—

SCHEDULE 18Stamp duty land tax: consequential amendments

Provisional Collection of Taxes Act 1968

1In section 1(1) of the Provisional Collection of Taxes Act...

Inheritance Tax Act 1984

2In section 190(4) of the Inheritance Tax Act 1984 (c....

Income and Corporation Taxes Act 1988

3(1) The Income and Corporation Taxes Act 1988 (c. 1)...

Finance Act 1989

4In section 178(2) of the Finance Act 1989 (c. 26)...

Taxation of Chargeable Gains Act 1992

5In section 38(2) of the Taxation of Chargeable Gains Act...

Income Tax (Earnings and Pensions) Act 2003

6In section 277 of the Income Tax (Earnings and Pensions)...

SCHEDULE 19Stamp duty land tax: commencement and transitional provisions

Introduction

1(1) Subject to the provisions of this Schedule, the provisions...

The implementation date

2(1) A transaction is not an SDLT transaction unless the...

Contract entered into before first relevant date

3(1) Subject to the following provisions of this paragraph, a...

Contract substantially performed before implementation date

4(1) This paragraph applies where a transaction—

Contracts substantially performed after implementation date

4AWhere— (a) a transaction is effected in pursuance of a...

Application of provisions in case of transfer of rights

4B(1) This paragraph applies where section 44 (contract and conveyance)...

Credit for ad valorem stamp duty paid

5(1) Where a transaction chargeable to stamp duty land tax...

Effect for stamp duty purposes of stamp duty land tax being paid or chargeable

6(1) Where in the case of a contract that, apart...

7(1) In relation to a transaction that is not an...

Stamping of contract where transaction on completion subject to stamp duty land tax

7A(1) This paragraph applies where— (a) a contract that apart...

Stamping of agreement for lease where grant of lease subject to stamp duty land tax

8(1) This paragraph applies where— (a) an agreement for a...

Exercise of option or right of pre-emption acquired before implementation date

9(1) This paragraph applies where— (a) an option binding the...

Supplementary

10In this Schedule “contract” includes any agreement.

SCHEDULE 20Stamp duty: restriction to instruments relating to stock or marketable securities

Part 1Supplementary provisions

Reduction of stamp duty where instrument partly relating to stock or marketable securities

1(1) This paragraph applies where stamp duty under Part 1...

Apportionment of consideration for stamp duty purposes

2(1) Where part of the property referred to in section...

Part 2Consequential amendments and repeals

Removal of unnecessary references to “conveyance”

3In the enactments relating to stamp duty for “conveyance or...

Finance Act 1895

4In section 12 of the Finance Act 1895 (c. 16)...

Finance Act 1990

5In section 108 of the Finance Act 1990 (c. 29)...

Finance Act 1999

6In paragraph 1(2) of Schedule 13 to the Finance Act...

Power to make further consequential amendments or repeals

7(1) The Treasury may by regulations make such other amendments...

SCHEDULE 21Approved share plans and schemes

Part 1Share incentive plans

Introductory

1Schedule 2 to the Income Tax (Earnings and Pensions) Act...

Participation in more than one connected plan in a tax year

2After paragraph 18 insert— Participation in more than one connected...

3In paragraph 13 (eligibility of individuals: introduction), for the entry...

4In paragraph 14(7) (eligibility to participate dependent on certain requirements...

5In paragraph 18 (requirement not to participate in connected SIPs),...

6After paragraph 71 insert— Duty to monitor participants in connected...

Partnership shares

7(1) Paragraph 46 (maximum amount of partnership share money deductions)...

8In paragraph 47 (minimum amount of deductions)—

Part 2SAYE option schemes

Introductory

9Schedule 3 to the Income Tax (Earnings and Pensions) Act...

Minor correction

10In paragraph 25(3)(a) (limit on contributions under CCS schemes linked...

Exercise of options: scheme-related employment ends because of change of control or transfer

11(1) Paragraph 34 (exercise of options: scheme-related employment ends) is...

Alteration of schemes

12(1) Paragraph 42 (withdrawal of approval) is amended as follows....

Part 3CSOP schemes

Introductory

13The Income Tax (Earnings and Pensions) Act 2003 (c. 1)...

Exercise of options: exclusion of income tax liability

14(1) Section 524 (no charge in respect of exercise of...

15(1) Schedule 4 (approved CSOP schemes) is amended as follows....

Meaning of “material interest”

16(1) In paragraphs 10(2) and (3), 11(3) and (4) and...

Alteration of schemes

17(1) Paragraph 30 (withdrawal of approval) is amended as follows....

PAYE

18(1) Section 701(2)(c) (PAYE: exclusions from meaning of “asset”) is...

SCHEDULE 22Employee securities and options

Introductory

1The Income Tax (Earnings and Pensions) Act 2003 (c. 1)...

Main provisions

2(1) For Chapter 1 of Part 7 (and the heading...

3(1) For Chapter 2 of Part 7 substitute— Chapter 2...

4(1) For Chapter 3 of Part 7 substitute— Chapter 3...

5(1) After Chapter 3 of Part 7 insert— Chapter 3A...

6(1) After Chapter 3A of Part 7 (inserted by paragraph...

7(1) After Chapter 3B of Part 7 (inserted by paragraph...

8(1) After Chapter 3C of Part 7 (inserted by paragraph...

9(1) For Chapter 4 of Part 7 substitute— Chapter 4...

10(1) For Chapter 5 of Part 7 substitute— Chapter 5...

PAYE

11(1) Section 509 (modification of section 696 where charge on...

12(1) For sections 698 and 699 (PAYE: conditional interests in...

13(1) For section 700 (PAYE: gains from share options) substitute—...

14(1) In section 701(2)(b) (“asset” not to include vouchers or...

15(1) Section 702 (meaning of “readily convertible asset”) is amended...

Consequential amendments

16(1) In section 3(1) (structure of employment income Parts), in...

17(1) In section 7(6)(b) (employment income), for “(share-related income and...

18(1) In section 19(2) (year in which earnings treated as...

19(1) In section 32(2) (receipt of non-money earnings), omit the...

20(1) In section 63(1) (the benefits code), omit the entries...

21(1) In section 64 (relationship between earnings and benefits code),...

22(1) Omit Chapter 8 of Part 3.

23(1) Omit Chapter 9 of Part 3.

24(1) Section 216 (provisions not applicable to lower-paid employments) is...

25(1) Section 227(4) (employment income: exemptions) is amended as follows....

26(1) Omit section 491 (no charge under Chapter 8 of...

27(1) Omit section 494 (no charge on removal of restrictions...

28(1) Omit section 495 (approved share incentive plan shares: value...

29(1) Omit section 518 (no charge in respect of acquisition...

30(1) In section 519 (no charge in respect of exercise...

31(1) Omit section 520 (approved SAYE option schemes: no charge...

32(1) Omit section 523 (no charge in respect of acquisition...

33(1) In section 524 (no charge in respect of exercise...

34(1) Omit section 525 (approved CSOP schemes: no charge in...

35(1) In section 526(4) (charge where approved CSOP scheme option...

36(1) Omit section 528 (enterprise management incentives: no charge in...

37(1) In section 531(4) (enterprise management incentives: limitation of charge...

38(1) In section 532(5) (enterprise management incentives: modified tax consequences...

39(1) In section 538 (share conversions excluded for purposes of...

40(1) In section 540(1) (enterprise management incentives: notional loan provisions...

41(1) In section 541 (enterprise management incentives: effect on other...

42(1) Part 2 of Schedule 1 (index of defined expressions)...

43(1) In paragraph 35 of Schedule 2 (approved share incentive...

44(1) In paragraph 42(3) of Schedule 3 (approved SAYE option...

45(1) Schedule 5 (enterprise management incentives) is amended as follows....

46(1) Schedule 7 (transitionals and savings) is amended as follows....

Consequential amendments of other enactments

47(1) In section 98 of the Taxes Management Act 1970...

48(1) In section 4(4)(a) of— (a) the Social Security Contributions...

49The Taxation of Chargeable Gains Act 1992 (c. 12) is...

50(1) After section 119 insert— Increase in expenditure by reference...

51In section 120 (increase in expenditure by reference to tax...

52(1) After section 149A insert— Restricted and convertible employment-related securities...

53In section 149B (employee incentive schemes: conditional interests in shares),...

54(1) In section 288 (interpretation), after subsection (1) insert—

55(1) The Social Security Contributions (Share Options) Act 2001 (c....

56In section 2(3)(b) (effect of notice under section 1), insert...

57(1) Section 3 (special provision for roll-overs) is amended as...

58In section 5(2)(c) (interpretation), for “483(1)” substitute “ 477(6) ”....

59Schedule 23 to this Act (corporation tax relief for employee...

60(1) Paragraph 1 is amended as follows.

61(1) For paragraph 5(2) substitute— (2) Where the shares acquired...

62(1) For paragraph 11(2) substitute— (2) Where the shares acquired...

63(1) In paragraph 12, for “in exercise of” substitute “...

64(1) Paragraph 13 is amended as follows.

65(1) For paragraph 14 substitute— Income tax position of the...

66(1) Paragraph 15 is amended as follows.

67(1) In paragraph 17(1), for “in exercise of” substitute “...

68(1) For Part 4 substitute— Part 4 Provisions applying in...

69(1) After Part 4 insert— Part 4A Provisions applying in...

70(1) In paragraph 23(2)(a), for “or 22” substitute “ ,...

71(1) In paragraph 26 before paragraph (a) insert—

72(1) For paragraph 27 substitute— Acquisition of shares pursuant to...

73(1) Paragraph 31 is amended as follows.

SCHEDULE 23Corporation tax relief for employee share acquisition

Part 1General provisions

Introduction

1(1) This Schedule provides for corporation tax relief for a...

Requirements for relief

2Relief under this Schedule is available only if the requirements...

Business must be within the charge to corporation tax

3(1) The business for the purposes of which the award...

Kind of shares acquired

4(1) The shares acquired must meet the following requirements.

Part 2Award of shares

Introduction

5(1) The provisions of this Part of this Schedule apply...

The company whose shares are acquired

6(1) The shares acquired must be shares in—

Income tax position of employee

7(1) It must be the case that the employee—

Amount of relief

8(1) The amount of the relief is equal to the...

How relief is given

9(1) The amount of the relief is allowed as a...

Timing of relief

10(1) The relief is given for the accounting period in...

Part 3Grant of option

Introduction

11(1) The provisions of this Part of this Schedule apply...

The company whose shares are acquired

12The company whose shares are acquired pursuant to the option...

Takeover of company whose shares are subject of option

13(1) This paragraph applies where— (a) there is a takeover...

Income tax position of the employee

14(1) It must be the case that the acquisition of...

Amount of relief

15(1) The amount of the relief is equal to the...

How relief is given

16(1) The amount of the relief is allowed as a...

Timing of relief

17(1) The relief is given for the accounting period in...

Part 4Provisions applying in case of restricted shares

18Introduction

19Meaning of “restricted shares”

20Income tax position of employee in case of restricted shares

21Amount of relief in case of restricted shares

22Timing of relief in case of restricted shares

Part 4AProvisions applying in case of convertible shares

22AIntroduction

22BMeaning of “convertible shares”

22CAmount of relief in case of convertible shares

22DTiming of relief in case of convertible shares

Part 5Supplementary provisions

Transfer of business within a group

23(1) This paragraph applies where— (a) between the time when...

Relationship between relief and other deductions: priority of deductions under SIP code

24(1) Deductions available under any of the following provisions of...

Relationship between relief and other deductions: exclusion of other deductions

25(1) Where relief under this Schedule is (or, apart from...

Meaning of “employment”

26For the purposes of this Schedule— (za) “ employment ”...

Acquisition of shares pursuant to option after death of employee or recipient

27(1) Where after the employee’s death shares are acquired by...

Meaning of “group company” and “parent company”

28For the purposes of this Schedule— (a) a company is...

Meaning of “consortium” and “commercial association of companies”

29(1) For the purposes of this Schedule a company is...

Minor definitions

30In this Schedule— “the Contributions and Benefits Act” means— the...

Index of defined expressions

31In this Schedule the following expressions are defined or otherwise...

Part 6Commencement and transitional provisions

Commencement

32This Schedule applies to accounting periods of the employing company...

Transitional provisions

33(1) Relief is not available under this Schedule in respect...

SCHEDULE 24Restriction of deductions for employee benefit contributions

Restriction of deductions

1(1) This Schedule applies if, in calculating for corporation tax...

“Provision of qualifying benefits”

2(1) For the purposes of this Schedule qualifying benefits are...

“Qualifying expenses”

3In this Schedule “qualifying expenses”— (a) does not include expenses...

Payment “out of” employee benefit contributions

4(1) For the purposes of paragraph 1(3)(a) any qualifying benefits...

Transfer of asset to employee

5(1) This paragraph applies where the provision of a qualifying...

Provisional calculation of profits

6Where the calculation referred to in paragraph 1(1) is made...

Life assurance business

7(1) In the case of a company in relation to...

Deductions to which Schedule does not apply

8This Schedule does not apply to any deduction that is...

Interpretation

9(1) In this Schedule— “accident benefit scheme” means an employee...

Consequential amendments

10(1) In section 43 (Schedule D) and section 44 (investment...

Commencement and transitory provisions

11(1) This Schedule has effect in relation to deductions that...

SCHEDULE 25Determination of profits attributable to permanent establishment: supplementary provisions

The Schedule inserted in the Taxes Act 1988 as Schedule...

SCHEDULE 26Non-resident companies: transactions through broker, investment manager or Lloyd’s agent

Introduction

1(1) This Schedule makes provision about transactions carried out on...

Brokers

2(1) In relation to a transaction carried out on behalf...

Investment managers

3(1) In relation to an investment transaction carried out on...

Investment managers: the 20% rule

4(1) The requirements of the 20% rule are—

Investment managers: application of 20% rule to collective investment schemes

5(1) This paragraph applies where amounts arise or accrue to...

Profits attributable to permanent establishment: disregard of profits of certain investment transactions

5A(1) This paragraph applies if— (a) an investment manager carries...

Lloyd’s agents

6(1) Where a non-resident company is a member of Lloyd’s...

General supplementary provisions

7(1) For the purposes of this Schedule a person is...

SCHEDULE 27Permanent establishment etc: consequential amendments

Taxes Act 1988

1(1) The Taxes Act 1988 is amended as follows.

Taxation of Chargeable Gains Act 1992

2(1) The Taxation of Chargeable Gains Act 1992 (c. 12)...

Finance Act 1993

3(1) In sections 93 and 93A of the Finance Act...

Finance Act 1995

4(1) Section 126 of the Finance Act 1995 (c. 4)...

5(1) Section 127 of the Finance Act 1995 (persons not...

6In section 128 of the Finance Act 1989 (limit on...

7Omit section 129 of the Finance Act 1995 (c. 4)...

Finance Act 1996

8In Schedule 15 to the Finance Act 1996 (c. 8)...

Finance Act 2000

9In Schedule 15 to the Finance Act 2000 (c. 17)...

SCHEDULE 28Capital gains tax: reporting limits and annual exempt amount

Part 1Reporting limits

1After section 3 of the Taxation of Chargeable Gains Act...

2(1) In the heading to Schedule 1 to that Act...

Part 2Annual exempt amount

3(1) Section 3 of the Taxation of Chargeable Gains Act...

4(1) Paragraph 1 of Schedule 1 to that Act is...

5(1) Paragraph 2 of that Schedule is amended as follows....

6In the first column of the Table in section 98...

Part 3Commencement

7The amendments in paragraphs 1, 2, 3(2) and (3), 4(2)(a)...

8The amendments in paragraphs 3(4), 4(2)(b), (3) and (4)(b) and...

9The amendments in paragraphs 4(5), 5(6) and 6 of this...

SCHEDULE 29Transfers of value: attribution of gains to beneficiaries

Introduction

1Schedule 4C to the Taxation of Chargeable Gains Act 1992...

Scope and scheme of Schedule

2For paragraphs 1 and 2 (introduction and general scheme of...

Other gains to be brought into Schedule 4C pool

3After paragraph 7 insert— Outstanding section 87/89 gains (1) The amount of outstanding section 87/89 gains of a...

Attribution of gains to beneficiaries

4(1) For paragraphs 8 and 9 (attribution of gains to...

Gains attributed to settlor

5(1) Paragraph 6 is amended as follows.

Minor and consequential amendments

6(1) In paragraph 10(1) for “of the transferor settlement, or...

SCHEDULE 30First-year allowances for expenditure on environmentally beneficial plant or machinery

Introductory

1The Capital Allowances Act 2001 (c. 2) is amended as...

Types of expenditure for which first-year allowances available

2In section 39— (a) after “under” insert “ any of...

First-year qualifying expenditure on environmentally beneficial plant or machinery

3After section 45G insert— Expenditure on environmentally beneficial plant or...

General exclusions affecting first-year qualifying expenditure

4(1) In section 46(1)— (a) after “under” insert “ any...

Amount of first-year allowances

5In section 52(3), in the Table, after the entries relating...

Penalty for failure to provide information etc

6In the second column of the Table in section 98...

Transitory provision: expenditure incurred etc before first order made

7(1) For the purposes of section 45H(2) of the Capital...

SCHEDULE 31Tax relief for expenditure on research and development

Part 1Small and medium-sized enterprises: Schedule 20 to Finance Act 2000

Introductory

1Schedule 20 to the Finance Act 2000 (c. 17) (tax...

Required minimum aggregate expenditure: reduction from £25,000 to £10,000

2(1) Paragraph 1 (entitlement to R&D tax relief) is amended...

Required minimum aggregate expenditure: inclusion of new class of expenditure

3(1) Paragraph 1 is also amended as follows.

Qualifying R&D expenditure: expenditure on externally provided workers

4In paragraph 3 (qualifying R&D expenditure) for sub-paragraph (4) (the...

Staffing costs: persons partly engaged directly and actively in relevant R&D

5(1) In paragraph 5 (staffing costs) sub-paragraph (3) (person partly...

Qualifying expenditure on externally provided workers

6After paragraph 8 (subsidised expenditure) insert— Qualifying expenditure on externally...

Qualifying expenditure on sub-contracted R&D: externally provided workers

7(1) Paragraph 10 (treatment of qualifying expenditure on sub-contracted research...

Part 2Large companies: Part 1 of Schedule 12 to Finance Act 2002

Introductory

8Part 1 of Schedule 12 to the Finance Act 2002...

Required minimum aggregate expenditure: reduction from £25,000 to £10,000

9(1) Paragraph 1 (entitlement to relief under Part 1 of...

Qualifying expenditure on externally provided workers

10In paragraph 4 (qualifying expenditure on direct research and development)...

Part 3Work sub-contracted to SMEs: Part 2 of Schedule 12 to Finance Act 2002

Introductory

11Part 2 of Schedule 12 to the Finance Act 2002...

Required minimum aggregate expenditure: reduction from £25,000 to £10,000

12(1) Paragraph 7 (entitlement to relief under Part 2 of...

Required minimum aggregate expenditure: inclusion of new class of expenditure

13(1) Paragraph 7 is also amended as follows.

R&D directly undertaken by SME: qualifying expenditure on externally provided workers

14In paragraph 9 (expenditure on research and development directly undertaken...

Part 4Entitlement of SME to certain relief available to large companies

Insertion of Part 2A of Schedule 12 to the Finance Act 2002

15After Part 2 of Schedule 12 to the Finance Act...

Part 5Supplementary: amendments to Parts 3 to 6 of Schedule 12 to Finance Act 2002

Introductory

16Parts 3 to 6 of Schedule 12 to the Finance...

Deduction in computing profits of trade

17(1) Paragraph 11 is amended as follows.

Refunds of contributions to independent research and development

18In paragraph 15(1) (refunds of certain payments) omit the word...

Meaning of “qualifying expenditure on externally provided workers”

19(1) Paragraph 17 (which applies certain definitions from Schedule 20...

Part 6Expenditure on vaccine research etc: Schedule 13 to Finance Act 2002

Introductory

20Schedule 13 to the Finance Act 2002 (tax relief for...

Reduction of required qualifying expenditure from £25,000 to £10,000

21(1) Paragraph 1 (entitlement to relief under the Schedule) is...

Direct research and development: qualifying expenditure on externally provided workers

22In paragraph 3 (qualifying expenditure on direct research and development)...

Meaning of “qualifying expenditure on externally provided workers”

23(1) Paragraph 5(3) (which applies certain definitions in Schedule 20...

Relevant expenditure of sub-contractor: qualifying expenditure on externally provided workers

24In paragraph 9 (relevant expenditure of sub-contractor) for sub-paragraph (3)...

SCHEDULE 32Tonnage tax: restrictions on capital allowances for lessors of ships

The ring fence: amendments to the provisions about capital allowances and ship leasing

1(1) In Schedule 22 to the Finance Act 2000 (c....

Consequential amendments

2(1) In paragraph 41(4) of that Schedule (the requirement not...

Commencement and temporary provision

3(1) Subject to paragraph 4(2), the amendments made by paragraphs...

4(1) This paragraph applies in relation to any lease entered...

5In paragraphs 3 and 4 “lease” means any arrangements that...

SCHEDULE 33Insurance companies

Case I profits

1(1) For section 82 of the Finance Act 1989 (c....

2(1) Section 83 of the Finance Act 1989 (receipts etc...

3(1) In the Finance Act 1989 (c. 26), after section...

4(1) In section 83AA of the Finance Act 1989 (c....

5(1) In section 83AB(1)(c) of the Finance Act 1989 (treatment...

6(1) In section 88 of the Finance Act 1989 (c....

7(1) In section 89(7) of the Finance Act 1989 (which...

8(1) In section 76(1) of the Taxes Act 1988 (expenses...

9(1) In section 432D of the Taxes Act 1988 (section...

10(1) Section 432E of the Taxes Act 1988 (apportionment of...

11(1) In section 804B(7) of the Taxes Act 1988 (double...

12(1) In section 76(2B)(b) of the Taxes Act 1988 (expenses...

Rate of tax on policy holders' share of life assurance profits

13(1) The Finance Act 1989 is amended as follows.

Chargeable gains

14(1) In the Taxation of Chargeable Gains Act 1992 (c....

15(1) In the Taxation of Chargeable Gains Act 1992 (c....

16(1) Section 213 of the Taxation of Chargeable Gains Act...

17(1) Section 171A of the Taxation of Chargeable Gains Act...

Transfers of business

18(1) In the Taxes Act 1988, after section 444A insert—...

19(1) In the Taxes Act 1988, after section 444AA (inserted...

20(1) In the Taxes Act 1988, after section 444AB (inserted...

21(1) In the Taxation of Chargeable Gains Act 1992 (c....

22(1) In section 431 of the Taxes Act 1988 (interpretative...

23(1) Section 442A of the Taxes Act 1988 (investment return...

24(1) Section 444A of the Taxes Act 1988 (transfers of...

Meaning of “investment reserve” etc

25In section 431(2) of the Taxes Act 1988 (interpretative provisions...

26In section 432A(9A) of the Taxes Act 1988 (apportionment of...

27In paragraph 4(5) of Schedule 19AA to the Taxes Act...

28Paragraphs 25 to 27 have effect in relation to periods...

Meaning of “period of account”

29In section 431(2) of the Taxes Act 1988 (interpretative provisions...

Rationalisation of interpretation provisions

30In section 84(2) and (3) of the Finance Act 1989...

31In the Finance Act 1989, after section 90 insert— Interpretation...

32In the Taxation of Chargeable Gains Act 1992 (c. 12),...

SCHEDULE 34Policies of life insurance etc: miscellaneous amendments

Part 1Group life policies

Exception of certain group life policies from Chapter 2 of Part 13

1(1) Section 539 of the Taxes Act 1988 (introductory) is...

Excepted group life policies

2After section 539 of the Taxes Act 1988 insert— The...

Retrospective exception of past and present pure protection group life policies

3(1) For the purposes of Chapter 2 of Part 13...

Existing group life policies: time for compliance with the conditions in section 539A

4(1) Where— (a) on 9th April 2003 a policy of...

Deaths before 6th April 2004: period for insurer to give certificate under section 552(1)(a)

5(1) If any death giving rise to benefits under a...

Part 2Charitable and non-charitable trusts

Interpretation

6In section 539 of the Taxes Act 1988 (introductory) in...

Method of charging gain to tax

7(1) Section 547 of the Taxes Act 1988 is amended...

Method of charging gain to tax: multiple interests

8(1) Section 547A of the Taxes Act 1988 is amended...

Deemed surrender of certain loans

9(1) Section 548(1) of the Taxes Act 1988 is amended...

Right of individual to recover tax from trustees

10In section 551 of the Taxes Act 1988, in subsection...

Right of company to recover tax from trustees

11In section 551A of the Taxes Act 1988, in subsection...

Section 547(1)(cc) and (d)(ia): exception for certain old policies and contracts

12(1) Paragraph 7(1) of Schedule 14 to the Finance Act...

Part 3Meaning of “life annuity”

Restriction of “life annuity” to contracts to which section 656 of the Taxes Act 1988 applies

13In section 539 of the Taxes Act 1988 (introductory) in...

Part 4Rollover of gain on maturity into new policy

Repeal of section 540(2) of the Taxes Act 1988

14(1) Section 540(2) of the Taxes Act 1988 (maturity not...

Saving for certain policies maturing on or after 9th April 2003

15(1) The maturity of a policy of life insurance (“the...

SCHEDULE 35Gains on policies of life insurance etc: rate of tax

Application of the lower rate

1(1) Section 1A of the Taxes Act 1988 (application of...

Method of charging gains from policies of life insurance etc to tax

2(1) Section 547 of the Taxes Act 1988 is amended...

Relief where gain charged at a higher rate

3In section 550(3) of the Taxes Act 1988 (rates of...

Gains included in aggregate income of estate of deceased

4In section 699A(4)(b) of the Taxes Act 1988 (sums included...

Income to be disregarded in determining highest part of person’s income

5In section 833(3)(b) of the Taxes Act 1988 (which provides...

SCHEDULE 36Foster carers

Part 1Introduction

Introductory

1(1) This Schedule provides relief on income from the provision...

Individuals qualifying for relief

2(1) An individual qualifies for relief under this Schedule for...

Meaning of “foster care receipts”

3(1) For the purposes of this Schedule, receipts are “foster...

Meaning of “provision of foster care”

4(1) In this Schedule, the “provision of foster care” means...

Meaning of “total foster care receipts”

5(1) For the purposes of this Schedule, an individual’s “total...

The individual’s limit

6The individual’s limit for a year of assessment is the...

The individual’s share of the fixed amount

7(1) The fixed amount is £10,000. (2) If, in a...

The amount per child

8(1) An individual’s amount per child for a year of...

Power to alter amounts

9The Treasury may by order amend the amounts for the...

Part 2The exemption and the alternative methods of calculation

The exemption

10(1) This paragraph applies to an individual for a year...

Alternative calculation of profits where amount is above the limit

11The alternative method of calculating profits given in paragraphs 12...

Alternative calculation of profits: income from trade etc

12(1) This paragraph applies if— (a) the alternative method of...

Alternative calculation of profits: income charged under Case VI of Schedule D

13(1) This paragraph applies if— (a) the alternative method of...

Election for alternative method

14(1) An individual may elect— (a) for the alternative method...

Periods of account ending otherwise than on 5th April

15(1) This paragraph applies to an individual for a year...

Part 3Capital allowances

Introductory

16(1) Paragraphs 17 to 19 make provision for the application...

Provisions applying in relation to carried forward unrelieved qualifying expenditure

17(1) This paragraph applies in any case where—

Expenditure incurred in a relevant chargeable period not qualifying expenditure

18Capital expenditure (“excluded capital expenditure”) which is incurred—

Excluded capital expenditure: subsequent treatment of asset

19Where a relevant individual incurs excluded capital expenditure in a...

Interpretation of this Part

20Expressions which— (a) are used in this Part, and

Part 4Supplementary

Interpretation

21In this Schedule— “CAA 2001” means the Capital Allowances Act...

SCHEDULE 37Loan relationships: amendments

Part 1Amendments to Schedule 9 to the Finance Act 1996

Introductory

1Schedule 9 to the Finance Act 1996 (c. 8) (loan...

Late interest

2(1) Paragraph 2 is amended as follows.

Continuity of treatment: groups etc

3(1) Paragraph 12 is amended as follows.

Discounted securities where companies have a connection

4(1) In paragraph 17, for sub-paragraph (8) (reference to person...

Discounted securities of close companies

5(1) Paragraph 18 is amended as follows.

Part 2Transitional provisions

Transitional provisions

6(1) In Schedule 25 to the Finance Act 2002 (c....

SCHEDULE 38Sale and repurchase of securities etc

Increase of repurchase price of UK securities by amount of deemed manufactured dividend

1In section 737C of the Taxes Act 1988 (deemed manufactured...

Deemed manufactured payment where transferor or connected person makes payment representative of dividend

2(1) Section 737A of the Taxes Act 1988 (deemed manufactured...

3In section 737C of the Taxes Act 1988 (deemed manufactured...

Provisions to cover both “put” and “call” options

4In section 727A(1) of the Taxes Act 1988 (accrued income...

5In section 730A(1) of the Taxes Act 1988 (treatment of...

6In section 731(2D) of the Taxes Act 1988 (provisions about...

7In section 737A(1) of the Taxes Act 1988 (deemed manufactured...

8In section 737E(8) of the Taxes Act 1988 (power to...

9In paragraph 12(4) of Schedule 7AC to the Taxation of...

Option premium to be reflected in sale price unless brought into account under derivative contracts provisions

10In section 730A of the Taxes Act 1988 (treatment of...

Exchange gains and losses

11(1) Section 730A of the Taxes Act 1988 (treatment of...

12After section 730B of the Taxes Act 1988 insert— Exchange...

13(1) Section 737E of the Taxes Act 1988 (power to...

14In section 100 of the Finance Act 1996 (c. 8)...

Exceptions

15In section 727A(1) of the Taxes Act 1988 (accrued income...

16In section 730A(8)(b) of the Taxes Act 1988 (treatment of...

17In section 737C(11A) of the Taxes Act 1988 (purposes for...

18(1) Paragraph 15 of Schedule 9 to the Finance Act...

Connected persons

19In paragraph 15(3)(b) of Schedule 9 to the Finance Act...

Correction of section 730A(6B) of the Taxes Act 1988

20In section 730A(6B) of the Taxes Act 1988 (trading loan...

Commencement

21(1) Paragraph 1 has effect in relation to repurchase prices...

SCHEDULE 39Relevant discounted securities: withdrawal of relief for costs and losses, etc

Withdrawal of relief for incidental costs

1(1) In Schedule 13 to the Finance Act 1996 (discounted...

Withdrawal of relief for losses

2Omit paragraph 2 of that Schedule (income tax relief for...

Withdrawal of loss relief: exception for strips of government securities

3After paragraph 14 of that Schedule (gilt strips) insert— Strips...

Extension of provisions about strips to strips of foreign government securities

4In the definition of “strip” in paragraph 15(1) of that...

Consequential amendments

5(1) In paragraph 6 of that Schedule (trustees and personal...

Commencement and transitional provisions

6(1) Subject to sub-paragraph (2)— (a) the amendments made by...

SCHEDULE 40Acquisition by company of its own shares

Venture capital trusts

1In Schedule 15B to the Taxes Act 1988 (venture capital...

Stamp duty and stamp duty reserve tax

2In section 66 of the Finance Act 1986 (c. 41)...

3In section 90 of that Act (exemptions from stamp duty...

4(1) Section 92 of that Act (stamp duty reserve tax:...

5In Schedule 13 to the Finance Act 1999 (c. 16)...

SCHEDULE 41Companies in administration

Accounting period for company in administration

1(1) Section 12 of the Taxes Act 1988 (corporation tax:...

Responsibility of officers of company in administration

2(1) Section 108 of the Taxes Management Act 1970 (c....

Tax on companies in administration

3After section 342 of the Taxes Act 1988 (tax on...

Debit for bad debt where parties connected and creditor insolvent

4(1) Paragraph 6A of Schedule 9 to the Finance Act...

Commencement

5(1) Subject to sub-paragraph (2), this Schedule has effect in...

SCHEDULE 42Controlled foreign companies: exempt activities

Introductory

1Part 2 of Schedule 25 to the Taxes Act 1988...

Companies engaged in wholesale, distributive, financial or service business

2(1) Paragraph 6 (meaning of “engaged in exempt activities”) is...

Companies engaged in business of banking etc

3(1) Paragraph 11 (provisions relating to wholesale, distributive, financial or...

Interpretation of paragraph 6(2B)

4After paragraph 11 insert— (1) This paragraph has effect for the interpretation of paragraph...

SCHEDULE 43Repeals

Part 1Excise duties

1The repeal of section 5A has effect in accordance with...

2The repeals in section 5C have effect in accordance with...

Part 2Value added tax

Part 3Income tax, corporation tax and capital gains tax

1The repeals in sections 432A, 436, 439B and 441(4)(a) of...

2The repeals in section 432E of the Taxes Act 1988...

3The repeals in section 438B of, and in Schedule 28AA...

4The repeal in section 442A of the Taxes Act 1988...

5The repeal in section 83(8) of the Finance Act 1989...

6The repeals in section 87 of the Finance Act 1989,...

7The repeal of section 45(5) of the Finance Act 1990...

8The repeals in section 213 of the Taxation of Chargeable...

1The repeal in section 1A of the Taxes Act 1988...

2The repeal of section 540(2) of that Act has effect...

3The repeal in Schedule 15 to that Act has effect...

1The repeals in the Taxes Act 1988 have effect in...

2The repeal in the Finance Act 1996 has effect in...

Part 4Other taxes

Part 5Miscellaneous

Finance Act 2003

2003 c. 14

An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance.

[10th July 2003]

Most Gracious Sovereign,

We, Your Majesty’s most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty’s public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—C1

Annotations:

Modifications etc. (not altering text)

Act modified (21.2.2009) by The Banking Act 2009 (Parts 2 and 3 Consequential Amendments) Order 2009 (S.I. 2009/317), arts. 1, 3, Sch.