C3C4C7C12Part 4Stamp duty land tax
Pt. 4 modified (coming into force at 2 p.m. on 6.12.2006) by The Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2006 (S.I. 2006/3237), regs. 1, 2, Sch.
Pt. 4 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 194(8)-(12)
Pt. 4 applied (17.7.2014) by Finance Act 2014 (c. 26), ss. 223(8)(9)(d)
Introduction
42I1The tax
1
A tax (to be known as “stamp duty land tax”) shall be charged in accordance with this Part on land transactions.
2
The tax is chargeable—
a
whether or not there is any instrument effecting the transaction,
b
if there is such an instrument, whether or not it is executed in the United Kingdom, and
c
whether or not any party to the transaction is present, or resident, in the United Kingdom.
3
The tax is under the care and management of the Commissioners of Inland Revenue (referred to in this Part as “the Board”).
Land transactions
43I2Land transactions
1
In this Part a “land transaction” means any acquisition of a chargeable interest. As to the meaning of “chargeable interest” see section 48.
2
Except as otherwise provided, this Part applies however the acquisition is effected, whether by act of the parties, by order of a court or other authority, by or under any statutory provision or by operation of law.
3
For the purposes of this Part—
a
the creation of a chargeable interest is—
i
an acquisition by the person becoming entitled to the interest created, and
ii
a disposal by the person whose interest or right is subject to the interest created;
b
the surrender or release of a chargeable interest is—
i
an acquisition of that interest by any person whose interest or right is benefitted or enlarged by the transaction, and
ii
a disposal by the person ceasing to be entitled to that interest; F16...
c
the variation of a chargeable interest F18(other than a lease) is—
i
an acquisition of a chargeable interest F18(other than a lease) by the person benefitting from the variation, and
ii
a disposal of a chargeable interest F18(other than a lease) by the person whose interest is subject to or limited by the variation.
4
References in this Part to the “purchaser” and “vendor”, in relation to a land transaction, are to the person acquiring and the person disposing of the subject-matter of the transaction.
These expressions apply even if there is no consideration given for the transaction.
5
A person is not treated as a purchaser unless he has given consideration for, or is a party to, the transaction.
6
References in this Part to the subject-matter of a land transaction are to the chargeable interest acquired (the “main subject-matter”), together with any interest or right appurtenant or pertaining to it that is acquired with it.
44I3Contract and conveyance
1
This section applies where a contract for a land transaction is entered into under which the transaction is to be completed by a conveyance.
2
A person is not regarded as entering into a land transaction by reason of entering into the contract, but the following provisions have effect.
3
If the transaction is completed without previously having been substantially performed, the contract and the transaction effected on completion are treated as parts of a single land transaction. In this case the effective date of the transaction is the date of completion.
4
If the contract is substantially performed without having been completed, the contract is treated as if it were itself the transaction provided for in the contract.
In this case the effective date of the transaction is when the contract is substantially performed.
5
A contract is “substantially performed” when—
a
the purchaserF23, or a person connected with the purchaser, takes possession of the whole, or substantially the whole, of the subject-matter of the contract, or
b
a substantial amount of the consideration is paid or provided.
6
For the purposes of subsection (5)(a)—
F24a
possession includes receipt of rents and profits or the right to receive them, and
b
it is immaterial whether F25possession is taken under the contract or under a licence or lease of a temporary character.
7
For the purposes of subsection (5)(b) a substantial amount of the consideration is paid or provided—
a
if none of the consideration is rent, where the whole or substantially the whole of the consideration is paid or provided;
b
if the only consideration is rent, when the first payment of rent is made;
c
if the consideration includes both rent and other consideration, when—
i
the whole or substantially the whole of the consideration other than rent is paid or provided, or
ii
the first payment of rent is made.
8
Where subsection (4) applies and the contract is subsequently completed by a conveyance—
a
both the contract and the transaction effected on completion are notifiable transactions, and
b
tax is chargeable on the latter transaction to the extent (if any) that the amount of tax chargeable on it is greater than the amount of tax chargeable on the contract.
9
Where subsection (4) applies and the contract is (to any extent) afterwards rescinded or annulled, or is for any other reason not carried into effect, the tax paid by virtue of that subsection shall (to that extent) be repaid by the Inland Revenue.
Repayment must be claimed by amendment of the land transaction return made in respect of the contract.
F219A
Where—
a
paragraph 12A of Schedule 17A applies (agreement for lease), or
F190b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
it applies in place of subsections (4), (8) and (9).
10
In this section—
a
references to completion are to completion of the land transaction proposed, between the same parties, in substantial conformity with the contract; and
b
“contract” includes any agreement and “conveyance” includes any instrument.
F2211
F153Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this section.
44AF2Contract providing for conveyance to third party
1
This section applies where a contract is entered into under which a chargeable interest is to be conveyed by one party to the contract (A) at the direction or request of the other (B)—
a
to a person (C) who is not a party to the contract, or
b
either to such a person or to B.
2
B is not regarded as entering into a land transaction by reason of entering into the contract, but the following provisions have effect.
3
If the contract is substantially performed B is treated for the purposes of this Part as acquiring a chargeable interest, and accordingly as entering into a land transaction.
The effective date of the transaction is when the contract is substantially performed.
4
Where the contract is (to any extent) afterwards rescinded or annulled, or is for any other reason not carried into effect, the tax paid by virtue of subsection (3) shall (to that extent) be repaid by the Inland Revenue.
Repayment must be claimed by amendment of the land transaction return made in respect of the contract.
5
Subject to subsection (6), section 44 (contract and conveyance) does not apply (except so far as it defines “substantial performance”) in relation to the contract.
6
Where—
a
this section applies by virtue of subsection (1)(b), and
b
by reason of B’s direction or request, A becomes obliged to convey a chargeable interest to B,
section 44 applies to that obligation as it applies to a contract for a land transaction that is to be completed by a conveyance.
7
Section 44 applies in relation to any contract between B and C, in respect of the chargeable interest referred to in subsection (1) above, that is to be completed by a conveyance.
References to completion in that section, as it so applies, include references to conveyance by A to C of the subject matter of the contract between B and C.
8
In this section “contract” includes any agreement and “conveyance” includes any instrument.
45I4F251Transactions entered into before completion of contract
Schedule 2A contains—
a
provision about the application of section 44 (contract and conveyance) in certain cases where an assignment of rights, subsale or other transaction is entered into without the contract having been completed, and
b
other provision about such cases.
45AF3Contract providing for conveyance to third party: effect of transfer of rights
1
This section applies where—
a
a contract (“the original contract”) is entered into under which a chargeable interest is to be conveyed by one party to the contract (A) at the direction or request of the other (B)—
i
to a person (C) who is not a party to the contract, or
ii
either to such a person or to B,
and
b
there is an assignment or other transaction (relating to the whole or part of the subject-matter of the original contract) as a result of which a person (D) becomes entitled to exercise any of B’s rights under the original contract in place of B.
References in the following provisions of this section to a transfer of rights are to any such assignment or other transaction.
2
D is not regarded as entering into a land transaction by reason of the transfer of rights, but section 44A (contract providing for conveyance to third party) has effect in accordance with the following provisions of this section.
3
That section applies as if—
a
D had entered into a contract (a “secondary contract”) in the same terms as the original contract except with D as a party instead of B, and
b
the consideration due from D under the secondary contract were—
i
so much of the consideration under the original contract as is referable to the subject-matter of the transfer of rights and is to be given (directly or indirectly) by D or a person connected with him, and
ii
the consideration given for the transfer of rights.
4
The substantial performance of the original contract shall be disregarded if—
a
it occurs at the same time as, and in connection with, the substantial performance of the secondary contract, or
b
it occurs after the transfer of rights.
5
Where there are successive transfers of rights, subsection (3) has effect in relation to each of them.
6
The substantial performance of the secondary contract arising from an earlier transfer of rights shall be disregarded if—
a
it occurs at the same time as, and in connection with, the substantial performance of the secondary contract arising from a subsequent transfer of rights, or
b
it occurs after that subsequent transfer.
7
Where a transfer of rights relates to only part of the subject matter of the original contract, or to only some of the rights under that contract—
a
a reference in subsection (3)(a) or (4) to the original contract, or a reference in subsection (6) to the secondary contract arising from an earlier transfer, is to that contract so far as relating to that part or those rights, and
b
that contract so far as not relating to that part or those rights shall be treated as a separate contract.
8
The effective date of a land transaction treated as entered into by virtue of subsection (3) is not earlier than the date of the transfer of rights.
9
In relation to a such a transaction—
a
references in Schedule 7 (group relief) to the vendor shall be read as references to A;
b
other references in this Part to the vendor shall be read, where the context permits, as referring to either A or B.
10
F155Section 1122 of the Corporation Tax Act 2010 (connected persons) applies for the purposes of subsection (3)(b).
11
In this section “contract” includes any agreement.
46I5Options and rights of pre-emption
1
The acquisition of—
a
an option binding the grantor to enter into a land transaction, or
b
a right of pre-emption preventing the grantor from entering into, or restricting the right of the grantor to enter into, a land transaction,
is a land transaction distinct from any land transaction resulting from the exercise of the option or right.
They may be “linked transactions” (see section 108).
2
The reference in subsection (1)(a) to an option binding the grantor to enter into a land transaction includes an option requiring the grantor either to enter into a land transaction or to discharge his obligations under the option in some other way.
3
The effective date of the transaction in the case of the acquisition of an option or right such as is mentioned in subsection (1) is when the option or right is acquired (as opposed to when it becomes exercisable).
4
Nothing in this section applies to so much of an option or right of pre-emption as constitutes or forms part of a land transaction apart from this section.
47I6Exchanges
1
Where a land transaction is entered into by the purchaser (alone or jointly) wholly or partly in consideration of another land transaction being entered into by him (alone or jointly) as vendor, this Part applies in relation to each transaction as if each were distinct and separate from the other F91(and they are not linked transactions within the meaning of section 108).
2
A transaction is treated for the purposes of this Part as entered into by the purchaser wholly or partly in consideration of another land transaction being entered into by him as vendor in any case where an obligation to give consideration for a land transaction that a person enters into as purchaser is met wholly or partly by way of that person entering into another transaction as vendor.
3
As to the amount of the chargeable consideration in the case of exchanges and similar transactions, see—
Chargeable interests, chargeable transactions and chargeable consideration
48I7Chargeable interests
1
In this Part “chargeable interest” means—
a
b
the benefit of an obligation, restriction or condition affecting the value of any such estate, interest, right or power,
other than an exempt interest.
F2881A
See section 48A regarding land which is partly in England and partly in Wales.
2
The following are exempt interests—
a
any security interest;
b
a licence to use or occupy land;
3
In subsection (2)—
a
“security interest” means an interest or right (other than a rentcharge) held for the purpose of securing the payment of money or the performance of any other obligation; and
b
“franchise” means a grant from the Crown such as the right to hold a market or fair, or the right to take tolls.
F923A
Section 73B makes additional provision about exempt interests in relation to alternative finance arrangements.
F1884
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
6
The regulations may contain such supplementary, incidental and transitional provision as appears to the Treasury to be appropriate.
F277
This section has effect subject to subsection (3) of section 44A (contract and conveyance to third party) F28and to paragraph 15A of Schedule 17A (reduction of rent or term of lease).
48AF291Interests, transactions and consideration where land in England and Wales
1
This section sets out how this Part applies to a transaction which is the acquisition of—
a
an estate, interest, right or power in or over land, or
b
the benefit of an obligation, restriction or condition affecting the value of any such estate, interest, right or power,
where the land is partly in England and partly in Wales.
2
The transaction is to be treated as if it were two transactions, one relating to the land in England (“the English transaction”) and the other relating to the land in Wales.
3
The consideration for the transaction is to be apportioned between those two transactions on a just and reasonable basis.
4
Accordingly, the English transaction is to be treated as a land transaction within the meaning of this Part (being the acquisition of a chargeable interest relating to the land in England).
5
But subsection (4) does not apply in the case of an exempt interest.
49I8Chargeable transactions
1
A land transaction is a chargeable transaction if it is not a transaction that is exempt from charge.
2
Schedule 3 provides for certain transactions to be exempt from charge.
Other transactions are exempt from charge under other provisions of this Part.
50I9Chargeable consideration
1
Schedule 4 makes provision as to the chargeable consideration for a transaction.
2
The Treasury may by regulations amend or repeal the provisions of this Part relating to chargeable consideration and make such other provision as appears to them appropriate with respect to—
a
what is to count as chargeable consideration, or
b
the determination of the amount of chargeable consideration.
3
The regulations may make different provision in relation to different descriptions of transaction or consideration and different circumstances.
51I10Contingent, uncertain or unascertained consideration
1
Where the whole or part of the chargeable consideration for a transaction is contingent, the amount or value of the consideration shall be determined for the purposes of this Part on the assumption that the outcome of the contingency will be such that the consideration is payable or, as the case may be, does not cease to be payable.
2
Where the whole or part of the chargeable consideration for a transaction is uncertain or unascertained, its amount or value shall be determined for the purposes of this Part on the basis of a reasonable estimate.
3
In this Part—
“contingent”, in relation to consideration, means—
- a
that it is to be paid or provided only if some uncertain future event occurs, or
- b
that it is to cease to be paid or provided if some uncertain future event occurs; and
- a
“uncertain”, in relation to consideration, means that its amount or value depends on uncertain future events.
4
This section has effect subject to—
section 80 (adjustment where contingency ceases or consideration is ascertained), and
section 90 (application to defer payment in case of contingent or uncertain consideration).
F295
This section applies in relation to chargeable consideration consisting of rent only to the extent that it is applied by paragraph 7 of Schedule 17A.
52I11Annuities etc: chargeable consideration limited to twelve years' payments
1
This section applies to so much of the chargeable consideration for a land transaction as consists of an annuity payable—
a
for life, or
b
in perpetuity, or
c
for an indefinite period, or
d
for a definite period exceeding twelve years.
2
For the purposes of this Part the consideration to be taken into account is limited to twelve years' annual payments.
3
Where the amount payable varies, or may vary, from year to year, the twelve highest annual payments shall be taken.
No account shall be taken for the purposes of this Schedule of any provision for adjustment of the amount payable in line with the retail price index.
4
References in this section to annual payments are to payments in respect of each successive period of twelve months beginning with the effective date of the transaction.
5
For the purposes of this section the amount or value of any payment shall be determined (if necessary) in accordance with section 51 (contingent, uncertain or unascertained consideration).
6
References in this section to an annuity include any consideration (other than rent) that falls to be paid or provided periodically. References to payment shall be read accordingly.
7
Where this section applies—
a
section 80 (adjustment where contingency ceases or consideration is ascertained) does not apply, and
b
no application may be made under section 90 (application to defer payment in case of contingent or uncertain consideration).
53I12Deemed market value where transaction involves connected company
F301
This section applies where the purchaser is a company and—
a
the vendor is connected with the purchaser, or
b
some or all of the consideration for the transaction consists of the issue or transfer of shares in a company with which the vendor is connected.
1A
The chargeable consideration for the transaction shall be taken to be not less than—
a
the market value of the subject-matter of the transaction as at the effective date of the transaction, and
b
if the acquisition is the grant of a lease at a rent, that rent.
I752
F156Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this section.
3
In this section—
“company” means any body corporate;
“shares” includes stock and the reference to shares in a company includes a reference to securities issued by a company.
4
Where this section applies paragraph 1 of Schedule 3 (exemption of transactions for which there is no chargeable consideration) does not apply.
But this section has effect subject to any other provision affording exemption or relief from stamp duty land tax.
5
This section is subject to the exceptions provided for in section 54.
54I13Exceptions from deemed market value rule
1
Section 53 (chargeable consideration: transaction with connected company) does not apply in the following cases.
In the following provisions “the company” means the company that is the purchaser in relation to the transaction in question.
2
Case 1 is where immediately after the transaction the company holds the property as trustee in the course of a business carried on by it that consists of or includes the management of trusts.
3
Case 2 is where—
a
immediately after the transaction the company holds the property as trustee, and
b
the vendor is connected with the company only because of F157section 1122(6) of the Corporation Tax Act 2010.
4
Case 3 is where—
a
the vendor is a company and the transaction is, or is part of, a distribution of the assets of that company (whether or not in connection with its winding up), and
b
it is not the case that—
i
the subject-matter of the transaction, or
ii
an interest from which that interest is derived,
has, within the period of three years immediately preceding the effective date of the transaction, been the subject of a transaction in respect of which group relief was claimed by the vendor.
Amount of tax chargeable
55I14Amount of tax chargeable: general
1
F2251A
This section applies to any chargeable transaction other than a transaction to which paragraph 3 of Schedule 4A or step 4 of section 74(1A) (higher rate for certain transactions) applies.
F2721B
If the relevant land consists entirely of residential property and the transaction is not one of a number of linked transactions, the amount of tax chargeable is determined as follows—
Step 1 Apply the rates specified in the second column of Table A below to the parts of the relevant consideration specified in the first column of that Table.
Step 2 Add together the amounts calculated at Step 1 (if there are two or more such amounts).
TABLE A: RESIDENTIALPart of relevant consideration
Rate
So much as does not exceed £125,000
0%
So much as exceeds £125,000 but does not exceed £250,000
2%
So much as exceeds £250,000 but does not exceed £925,000
5%
So much as exceeds £925,000 but does not exceed £1,500,000
10%
The remainder (if any)
12%
1C
If the relevant land consists entirely of residential property and the transaction is one of a number of linked transactions, the amount of tax chargeable in respect of the particular transaction under consideration is determined as follows—
Step 1 Apply the rates specified in the second column of Table A in subsection (1B) to the parts of the relevant consideration specified in the first column of that Table.
Step 2 Add together the amounts calculated at Step 1 (if there are two or more such amounts).
Step 3 Multiply the amount given by Step 1 or Step 2, as the case may be, by—
where—
C is the chargeable consideration for the transaction, and
R is the relevant consideration.
C62
F273If the relevant land consists of or includes land that is not residential property, the amount of tax chargeable is the percentage of the chargeable consideration for the transaction determined in accordance with Table B below by reference to the amount of the relevant consideration.
Relevant consideration | Percentage |
|---|---|
Not more than £150,000 | 0% |
More than £150,000 but not more than £250,000 | 1% |
More than £250,000 but not more than £500,000 | 3% |
More than £500,000 | 4% |
3
For the purposes of F277subsections (1B) and (2) —
a
the relevant land is the land an interest in which is the main subject-matter of the transaction, and
b
the relevant consideration is the chargeable consideration for the transaction,
subject as follows.
C54
F274For the purposes of subsections (1C) and (2), If the transaction in question is one of a number of linked transactions—
a
the relevant land is any land an interest in which is the main subject-matter of any of those transactions, and
b
the relevant consideration is the total of the chargeable consideration for all those transactions.
5
This section has effect subject to—
section F22674(2) and (3) (F140exercise of collective rights by tenants of flats), F199...
F199. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(which F200provides for the rate of tax to be determined by reference to a fraction of the relevant consideration).
6
In the case of a transaction for which the whole or part of the chargeable consideration is rent this section has effect subject to section 56 and Schedule 5 (amount of tax chargeable: rent).
F2767
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
55AF238Amount of tax chargeable: higher rate for certain transactions
Schedule 4A provides for the calculation of the tax chargeable in respect of certain transactions involving higher threshold interests in dwellings.
56I15Amount of tax chargeable: rent
Schedule 5 provides for the calculation of the tax chargeable where the chargeable consideration for a transaction consists of or includes rent.
Reliefs
F23257I16Disadvantaged areas relief
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57AF4Sale and leaseback arrangements
1
The leaseback element of a sale and leaseback arrangement is exempt from charge if the qualifying conditions specified below are met.
2
A “sale and leaseback”arrangement means an arrangement under which—
a
A transfers or grants to B a major interest in land (the “sale”), and
b
out of that interest B grants a lease to A (the “leaseback”).
3
The qualifying conditions are—
a
that the sale transaction is entered into wholly or partly in consideration of the leaseback transaction being entered into,
F31aa
that the sale transaction is entered into wholly or partly in consideration of the leaseback transaction being entered into,
b
that the only other consideration (if any) for the sale is the payment of money or the assumption, satisfaction or release of a debt (or both),
c
d
where A and B are both bodies corporate at the effective date of the leaseback transaction, that they are not members of the same group for the purposes of group relief (see paragraph 1 of Schedule 7) at that date.
F33e
where A and B are both bodies corporate at the effective date of the leaseback transaction, that they are not members of the same group for the purposes of group relief (see paragraph 1 of Schedule 7) at that date.
F324
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57AAF166First-time buyers
1
A land transaction is exempt from charge under section 55 if—
a
it is a relevant acquisition of a major interest in land,
b
the land consists entirely of residential property,
c
the relevant consideration (see section 55) for the transaction (other than any consisting of rent) is more than £125,000 but not more than £250,000,
d
the purchaser, or (if more than one) each of the purchasers, is a first-time buyer who intends to occupy the residential property as the purchaser’s only or main residence, and
e
(subject to subsection (4)) the transaction is not one of a number of linked transactions.
2
In this section “first-time buyer” means a person who—
a
has not previously been a purchaser in relation to a relevant acquisition of a major interest in land which consisted of or included residential property,
b
has not previously acquired an equivalent interest in such land under the law of F206Scotland or a territory outside the United Kingdom,
c
has not previously been, or been one of the persons who was, “the person” for the purposes of section 71A, F207... or 73 in a case where the first transaction within the meaning of the section concerned was a relevant acquisition of a major interest in land which consisted of or included residential property, and
d
would not have been such a person for those purposes in such a case if the provisions mentioned in paragraph (c) had been in force, and had had effect in the territory concerned, at all material times (subject, where required, to appropriate modifications).
3
In this section “relevant acquisition of a major interest in land” means an acquisition of a major interest in land other than—
a
the grant of a lease for a term of less than 21 years, or
b
the assignment of a lease which has less than 21 years to run.
4
Subsection (1)(e) does not prevent a transaction being exempt from charge under section 55 if each of the linked transactions is one the subject-matter of which is land, or an interest in or right over land, which falls within section 116(1)(a), (b) or (c) by reason of its connection with the same building.
58AF8Relief for certain acquisitions of residential property
Schedule 6A provides for relief in the case of certain acquisitions of residential property.
58BF93Relief for new zero-carbon homes
1
The Treasury may make regulations granting relief on the first acquisition of a dwelling which is a “zero-carbon home”.
F1082
For the purposes of this section—
a
a building, or a part of a building, is a dwelling if it is constructed for use as a single dwelling, and
b
“first acquisition”, in relation to a dwelling, means its acquisition when it has not previously been occupied.
3
For the purpose of subsection (2) land occupied or enjoyed with a dwelling as a garden or grounds is part of the dwelling.
4
The regulations shall define “zero-carbon home” by reference to specified aspects of the energy efficiency of a building; for which purpose “energy efficiency” includes—
a
consumption of energy,
b
conservation of energy, and
c
generation of energy.
5
The relief may take the form of—
a
exemption from charge, or
b
a reduction in the amount of tax chargeable.
6
Regulations under this section shall not have effect in relation to acquisitions on or after 1st October 2012.
7
The Treasury may by order—
a
substitute a later date for the date in subsection (6);
b
make transitional provision, or provide savings, in connection with the effect of subsection (6).
58CRelief for new zero-carbon homes: supplemental
1
Regulations under section 58B—
a
shall include provision about the method of claiming relief (including documents or information to be provided), and
b
in particular, shall include provision about the evidence to be adduced to show that a F96dwelling satisfies the definition of “zero-carbon home”.
2
Regulations made by virtue of subsection (1)(b) may, in particular—
a
refer to a scheme or process established by or for the purposes of an enactment about building;
b
establish or provide for the establishment of a scheme or process of certification;
c
specify, or provide for the approval of, one or more schemes or processes for certifying energy efficiency.
F111d
provide for the charging of fees of a reasonable amount in respect of services provided as part of a scheme or process of certification.
3
In defining “zero-carbon home” regulations under section 58B may include requirements which may be satisfied in relation to F97a dwelling either—
a
by features of the F98building which, or part of which, constitutes the dwelling, or
b
by other installations or utilities.
4
Regulations under section 58B may modify the effect of section 108, or another provision of this Part about linked transactions, in relation to a set of transactions of which at least one is the first acquisition of a dwelling which is a zero-carbon home.
5
In determining whether section 116(7) applies, and in the application of section 116(7), a transaction shall be disregarded if or in so far as it involves the first acquisition of a dwelling which is a zero-carbon home.
6
Regulations under section 58B—
a
may provide for relief to be wholly or partly withdrawn if a dwelling ceases to be a zero-carbon home, and
b
may provide for the reduction or withholding of relief where a person acquires more than one zero-carbon home within a specified period.
7
Regulations under section 58B may include provision for relief to be granted in respect of acquisitions occurring during a specified period before the regulations come into force.
58DF171Transfers involving multiple dwellings
1
Schedule 6B provides for relief in the case of transfers involving multiple dwellings.
2
Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.
60I17Compulsory purchase facilitating development
1
A compulsory purchase facilitating development is exempt from charge.
2
In this section “compulsory purchase facilitating development” means—
a
b
in relation to Northern Ireland, the acquisition by a person of a chargeable interest by means of a vesting order made for the purpose of facilitating development by a person other than the person who acquires the interest.
3
For the purposes of subsection (2)(a) it does not matter how the acquisition is effected (so that provision applies where the acquisition is effected by agreement).
4
In subsection (2)(b) a “vesting order” means an order made under any statutory provision to authorise the acquisition of land otherwise than by agreement.
5
In this section “development”—
a
in relation to England F293and Wales, has the same meaning as in the Town and Country Planning Act 1990 (c. 8)
(see section 55 of that Act);
F209b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F299c
in relation to Northern Ireland, has the same meaning as in the Planning Act (Northern Ireland) 2011 (see section 23 of that Act).
61I18Compliance with planning obligations
1
A land transaction that is entered into in order to comply with a planning obligation or a modification of a planning obligation is exempt from charge if—
a
the planning obligation or modification is enforceable against the vendor,
b
the purchaser is a public authority, and
c
the transaction takes place within the period of five years beginning with the date on which the planning obligation was entered into or modified.
2
In this section—
a
in relation to England and Wales—
“planning obligation” means either of the following—
- a
a planning obligation within the meaning of section 106 of the Town and Country Planning Act 1990 that is entered into in accordance with subsection (9) of that section, or
- b
a planning obligation within the meaning of section 299A of that Act that is entered into in accordance with subsection (2) of that section; and
- a
“modification” of a planning obligation means modification as mentioned in section 106A(1) of that Act;
F195b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F300c
in relation to Northern Ireland—
“planning obligation” means a planning agreement within the meaning of section 76 of the Planning Act (Northern Ireland) 2011 that is entered into in accordance with subsection (10) of that section, and
“modification of a planning obligation” means modification as mentioned in section 77(1) of that Act.
3
The following are public authorities for the purposes of subsection (1)(b)—
| |||||||
| |||||||
| |||||||
F192. . . | |||||||
| |||||||
| |||||||
F193. . . | |||||||
| |||||||
| |||||||
|
62I19Group relief and reconstruction or acquisition relief
1
Schedule 7 provides for relief from stamp duty land tax.
2
In that Schedule—
Part 1 makes provision for group relief,
Part 2 makes provision for reconstruction and acquisition reliefs.
3
Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.
63I20Demutualisation of insurance company
1
A land transaction is exempt from charge if it is entered into for the purposes of or in connection with a qualifying transfer of the whole or part of the business of a mutual insurance company (“the mutual”) to a company that has share capital (“the acquiring company”).
2
A transfer is a qualifying transfer if—
a
it is a transfer of business consisting of the effecting or carrying out of contracts of insurance and takes place under an insurance business transfer scheme, or
b
it is a transfer of business of a general insurance company carried on through a permanent establishment in the United Kingdom and takes place in accordance with authorisation granted outside the United Kingdom for the purposes of—
i
Article 14 of the life assurance Directive, or
ii
Article 12 of the 3rd non-life insurance Directive,
and, in either case, the requirements of subsections (3) and (4) are met in relation to the shares of a company (“the issuing company”) which is either the acquiring company or a company of which the acquiring company is a wholly-owned subsidiary.
3
Shares in the issuing company must be offered, under the scheme, to at least 90% of the persons who are members of the mutual immediately before the transfer.
4
Under the scheme all of the shares in the issuing company that will be in issue immediately after the transfer has been made, other than shares that are to be or have been issued pursuant to an offer to the public, must be offered to the persons who (at the time of the offer) are—
a
members of the mutual,
b
persons who are entitled to become members of the mutual, or
c
employees, former employees or pensioners of—
i
the mutual, or
ii
a wholly-owned subsidiary of the mutual.
5
The Treasury may by regulations—
a
amend subsection (3) by substituting a lower percentage for the percentage mentioned there;
b
provide that any or all of the references in subsections (3) and (4) to members shall be construed as references to members of a class specified in the regulations.
Regulations under paragraph (b) may make different provision for different cases.
6
For the purposes of this section a company is the wholly-owned subsidiary of another company (“the parent”) if the company has no members except the parent and the parent’s wholly-owned subsidiaries or persons acting on behalf of the parent or the parent’s wholly-owned subsidiaries.
7
In this section—
“contract of insurance” has the meaning given by Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544);
“employee”, in relation to a mutual insurance company or its wholly-owned subsidiary, includes any officer or director of the company or subsidiary and any other person taking part in the management of the affairs of the company or subsidiary;
“general insurance company” means a company that has permission under F242Part 4A of the Financial Services and Markets Act 2000 (c. 8), or paragraph 15 of Schedule 3 to that Act (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule), to effect or carry out contracts of insurance;
“insurance company” means a company that carries on the business of effecting or carrying out contracts of insurance;
“insurance business transfer scheme” has the same meaning as in Part 7 of the Financial Services and Markets Act 2000;
“the life assurance Directive” means the Council Directive of 5th November 2002 concerning life assurance (No.2002/83/EC);
“mutual insurance company” means an insurance company carrying on business without having any share capital;
“the 3rd non-life insurance Directive” means the Council Directive of 18th June 1992 on the co-ordination of laws, regulations and administrative provisions relating to direct insurance other than life insurance and amending Directives 73/239/EEC and 88/357/EEC (No.92/49/EEC);
“pensioner”, in relation to a mutual insurance company or its wholly-owned subsidiary, means a person entitled (whether presently or prospectively) to a pension, lump sum, gratuity or other like benefit referable to the service of any person as an employee of the company or subsidiary.
64I21Demutualisation of building society
A land transaction effected by section 97(6) or (7) of the Building Societies Act 1986 (c. 53) (transfer of building society’s business to a commercial company) is exempt from charge.
F6664AInitial transfer of assets to trustees of unit trust scheme
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
65I22Incorporation of limited liability partnership
1
A transaction by which a chargeable interest is transferred by a person (“the transferor”) to a limited liability partnership in connection with its incorporation is exempt from charge if the following three conditions are met.
2
The first condition is that the effective date of the transaction is not more than one year after the date of incorporation of the limited liability partnership.
3
The second condition is that at the relevant time the transferor—
a
is a partner in a partnership comprised of all the persons who are or are to be members of the limited liability partnership (and no-one else), or
b
holds the interest transferred as nominee or bare trustee for one or more of the partners in such a partnership.
4
The third condition is that—
a
the proportions of the interest transferred to which the persons mentioned in subsection (3)(a) are entitled immediately after the transfer are the same as those to which they were entitled at the relevant time, or
b
none of the differences in those proportions has arisen as part of a scheme or arrangement of which the main purpose, or one of the main purposes, is avoidance of liability to any duty or tax.
5
In this section “the relevant time” means—
a
where the transferor acquired the interest after the incorporation of the limited liability partnership, immediately after he acquired it, and
b
in any other case, immediately before its incorporation.
6
In this section “limited liability partnership” means a limited liability partnership formed under the Limited Liability Partnerships Act 2000 (c. 12) or the Limited Liability Partnerships Act (Northern Ireland) 2002 (c. 12 (N. I.)).
66C7I23Transfers involving public bodies
1
A land transaction entered into on, or in consequence of, or in connection with, a reorganisation effected by or under a statutory provision is exempt from charge if the purchaser and vendor are both public bodies.
2
The Treasury may by order provide that a land transaction that is not entered into as mentioned in subsection (1) is exempt from charge if—
a
the transaction is effected by or under a prescribed statutory provision, and
b
either the purchaser or the vendor is a public body.
In this subsection “prescribed” means prescribed in an order made under this subsection.
3
A “reorganisation” means changes involving—
a
the establishment, reform or abolition of one or more public bodies,
b
the creation, alteration or abolition of functions to be discharged or discharged by one or more public bodies, or
c
the transfer of functions from one public body to another.
C84
The following are public bodies for the purposes of this section—
Government, Parliament etc
A Minister of the Crown
The Scottish Ministers
A Northern Ireland department
F89The Welsh Ministers, the First Minister for Wales and the Counsel General to the Welsh Government
The Corporate Officer of the House of Lords
The Corporate Officer of the House of Commons
The Scottish Parliamentary Corporate Body
The Northern Ireland Assembly Commission
F90The National Assembly for Wales Commission
Local government: England
A county or district council constituted under section 2 of the Local Government Act 1972 (c. 70)
The council of a London borough
The Greater London Authority
The Common Council of the City of London
The Council of the Isles of Scilly
Local government: Wales
A county or county borough council constituted under section 21 of the Local Government Act 1972
Local government: Scotland
A council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39)
Local government: Northern Ireland
A district council within the meaning of the Local Government Act (Northern Ireland) 1972 (c. 9 (N.I.))
Health: England and Wales
A Strategic Health Authority F80established under section 13 of the National Health Service Act 2006
A Special Health Authority established under F81section 28 of that Act or section 22 of the National Health Service (Wales) Act 2006
A Primary Care Trust established under F82section 18 of the National Health Service Act 2006
A Local Health Board established under F83section 11 of the National Health Service (Wales) Act 2006
A National Health Service Trust established under F84section 25 of the National Health Service Act 2006 or section 18 of the National Health Service (Wales) Act 2006
Health: Scotland
The Common Services Agency established under section 10(1) of the National Health Service (Scotland) Act 1978 (c. 29)
A Health Board established under section 2(1)(a) of that Act
A National Health Service Trust established under section 12A(1) of that Act
A Special Health Board established under section 2(1)(b) of that Act
Health: Northern Ireland
A Health and Social Services Board established under Article 16 of the Health and Personal Social Services (Northern Ireland) Order 1972 (S.I. 1972/1265 (N.I. 14))
A Health and Social Services Trust established under Article 10 of the Health and Personal Social Services (Northern Ireland) Order 1991 (S.I. 1991/194 (N.I. 1))
Other planning authorities
Any other authority that—
- a
is a local planning authority within the meaning of the Town and Country Planning Act 1990 (c. 8), or
- b
is the planning authority for any of the purposes of the planning Acts within the meaning of the Town and Country Planning (Scotland) Act 1997 (c. 8)
- a
F301A strategic planning panel established under section 60D of the Planning and Compulsory Purchase Act 2004
Statutory bodies
A body (other than a company) that is established by or under a statutory provision for the purpose of carrying out functions conferred on it by or under a statutory provision
Prescribed persons
A person prescribed for the purposes of this section by Treasury order
5
In this section references to a public body include—
a
a company in which all the shares are owned by such a body, and
b
a wholly-owned subsidiary of such a company.
F626
67I24Transfer in consequence of reorganisation of parliamentary constituencies
1
Where—
a
an Order in Council is made under the Parliamentary Constituencies Act 1986 (c. 56) (orders specifying new parliamentary constituencies), and
b
an existing local constituency association transfers a chargeable interest to—
i
a new association that is a successor to the existing association, or
ii
a related body that as soon as practicable transfers the interest or right to a new association that is a successor to the existing association,
the transfer, or where paragraph (b)(ii) applies each of the transfers, is exempt from charge.
2
In relation to any such order as is mentioned in subsection (1)(a)—
a
“the date of the change” means the date on which the order comes into operation;
b
“former parliamentary constituency” means an area that, for the purposes of parliamentary elections, was a constituency immediately before that date but is no longer such a constituency after that date;
c
“new parliamentary constituency” means an area that, for the purposes of parliamentary elections, is such a constituency after that date but was not such a constituency immediately before that date.
3
In relation to the date of the change—
a
“existing local constituency association” means a local constituency association whose area was the same, or substantially the same, as the area of a former parliamentary constituency or two or more such constituencies, and
b
“new association” means a local constituency association whose area is the same, or substantially the same, as that of a new parliamentary constituency or two or more such constituencies.
4
In this section—
a
“local constituency association” means an unincorporated association (whether described as an association, a branch or otherwise) whose primary purpose is to further the aims of a political party in an area that at any time is or was the same or substantially the same as the area of a parliamentary constituency or two or more parliamentary constituencies, and
b
“related body”, in relation to such an association, means a body (whether corporate or unincorporated) that is an organ of the political party concerned.
5
For the purposes of this section a new association is a successor to an existing association if any part of the existing association’s area is comprised in the new association’s area.
67AF239Acquisitions by certain health service bodies
1
A land transaction is exempt from charge if the purchaser is any of the following—
a
the National Health Service Commissioning Board;
b
a clinical commissioning group established under section 14D of the National Health Service Act 2006;
c
an NHS foundation trust;
d
a Local Health Board established under section 11 of the National Health Service (Wales) Act 2006;
e
a National Health Service trust established under section 18 of that Act;
f
a Health and Social Services trust established under the Health and Personal Social Services (Northern Ireland) Order 1991.
2
Any relief under this section must be claimed in a land transaction return or an amendment of such a return.
68I25Charities relief
1
Schedule 8 provides for relief from stamp duty land tax for acquisitions by charities.
2
Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.
69I26Acquisition by bodies established for national purposes
A land transaction is exempt from charge if the purchaser is any of the following—
a
the Historic Buildings and Monuments Commission for England;
F175b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
the Trustees of the British Museum;
d
the Trustees of the National Heritage Memorial Fund;
e
the Trustees of the Natural History Museum.
70I27Right to buy transactions, shared ownership leases etc
Schedule 9 makes provision for relief in the case of right to buy transactions, shared ownership leases and certain related transactions.
71I28Certain acquisitions by registered social landlord
F138A1
A land transaction under which the purchaser is a profit-making registered provider of social housing is exempt from charge if the transaction is funded with the assistance of a public subsidy.
1
A land transaction under which the purchaser is a F150relevant housing provider is exempt from charge if—
a
the F150relevant housing provider is controlled by its tenants,
b
the vendor is a qualifying body, or
c
the transaction is funded with the assistance of a public subsidy.
F1491A
In this section “relevant housing provider” means—
a
a non-profit registered provider of social housing, or
b
a registered social landlord.
2
“Board member”, in relation to a F151relevant housing provider, means—
- a
if it is a company, a director of the company,
- b
if it is a body corporate whose affairs are managed by its members, a member,
- c
if it is body of trustees, a trustee,
- d
if it is not within paragraphs (a) to (c), a member of the committee of management or other body to which is entrusted the direction of the affairs of the F151relevant housing provider.
- a
3
In subsection (1)(b) “qualifying body” means—
a
a F152relevant housing provider,
b
a housing action trust established under Part 3 of the Housing Act 1988 (c. 50),
c
a principal council within the meaning of the Local Government Act 1972 (c. 70),
d
the Common Council of the City of London,
e
the Scottish Ministers,
f
a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39),
g
Scottish Homes,
h
the Department for Social Development in Northern Ireland, or
i
the Northern Ireland Housing Executive.
4
In F139this section “public subsidy” means any grant or other financial assistance—
a
made or given by way of a distribution pursuant to section 25 of the National Lottery etc. Act 1993 (c. 39) (application of money by distributing bodies),
b
under section 18 of the Housing Act 1996 (c. 52) (social housing grants),
c
under section 126 of the Housing Grants, Construction and Regeneration Act 1996 (c. 53) (financial assistance for regeneration and development),
F125ca
under section 19 of the Housing and Regeneration Act 2008 (financial assistance by the Homes and Communities Agency),
F176cb
made or given by the Greater London Authority,
d
under section 2 of the Housing (Scotland) Act 1988 (c. 43) (general functions of the Scottish Ministers), or
e
under Article 33 F85or 33A of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15)).
71AF61Alternative property finance: land sold to financial institution and leased to F73person
1
This section applies where arrangements are entered into between F72a person and a financial institution under which—
a
the institution purchases a major interest in land or an undivided share of a major interest in land (“the first transaction”),
b
where the interest purchased is an undivided share, the major interest is held on trust for the institution and the F73person as beneficial tenants in common,
c
the institution (or the person holding the land on trust as mentioned in paragraph (b)) grants to the F73person out of the major interest a lease (if the major interest is freehold) or a sub-lease (if the major interest is leasehold) (“the second transaction”), and
d
the institution and the F73person enter into an agreement under which the F73person has a right to require the institution or its successor in title to transfer to the F73person (in one transaction or a series of transactions) the whole interest purchased by the institution under the first transaction.
2
The first transaction is exempt from charge if the vendor is—
a
the F73person, or
b
another financial institution by whom the interest was acquired under arrangements of the kind mentioned in subsection (1) entered into between it and the F73person.
3
The second transaction is exempt from charge if the provisions of this Part relating to the first transaction are complied with (including the payment of any tax chargeable).
4
Any transfer to the F73person that results from the exercise of the right mentioned in subsection (1)(d) (“a further transaction”) is exempt from charge if—
a
the provisions of this Part relating to the first and second transactions are complied with, and
b
at all times between the second transaction and the further transaction—
i
the interest purchased under the first transaction is held by a financial institution so far as not transferred by a previous further transaction, and
ii
the lease or sub-lease granted under the second transaction is held by the F73person.
5
The agreement mentioned in subsection (1)(d) is not to be treated—
a
as substantially performed unless and until the whole interest purchased by the institution under the first transaction has been transferred (and accordingly section 44(5) does not apply), or
b
as a distinct land transaction by virtue of section 46 (options and rights of pre-emption).
F676
The requirements of subsection (1), or (4)(b)(ii), are not met if—
a
7
A further transaction that is exempt from charge by virtue of subsection (4) is not a notifiable transaction unless the transaction involves the transfer to the F73person of the whole interest purchased by the institution under the first transaction, so far as not transferred by a previous further transaction.
F1708
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
F21010
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F21172Alternative property finance in Scotland: land sold to financial institution and leased to person
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F20572AAlternative property finance in Scotland: land sold to financial institution and person in common
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
73I29Alternative property finance: land sold to financial institution and re-sold to F73person
1
This section applies where arrangements are entered into between F72a person and a financial institution under which—
a
the institution—
i
purchases a major interest in land (“the first transaction”), and
ii
sells that interest to the F73person (“the second transaction”), and
b
the F73person grants the institution a legal mortgage over that interest.
2
The first transaction is exempt from charge if the vendor is—
a
the F73person concerned, or
3
The second transaction is exempt from charge if the financial institution complies with the provisions of this Part relating to the first transaction (including the payment of any tax chargeable F68on a chargeable consideration that is not less than the market value of the interest and, in the case of the grant of a lease at a rent, the rent.).
F694
This section does not apply if—
a
5
In this section—
F173a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
“legal mortgage”—
i
in relation to land in England F294or Wales, means a legal mortgage as defined in section 205(1)(xvi) of the Law of Property Act 1925 (c. 20);
F213ii
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
in relation to land in Northern Ireland, means a mortgage by conveyance of a legal estate or by demise or sub-demise or a charge by way of legal mortgage.
6
73AF74F113Sections 71A to 73: relationship with Schedule 7
Sections 71A to 73 do not apply to arrangements in which the first transaction is exempt from charge by virtue of Schedule 7.
73ABF110F214Section 71A : arrangements to transfer control of financial institution
1
Section 71AF215... does not apply to alternative finance arrangements if those arrangements, or any connected arrangements, include arrangements for a person to acquire control of the relevant financial institution.
2
That includes arrangements for a person to acquire control of the relevant financial institution only if one or more conditions are met (such as the happening of an event or doing of an act).
3
In this section—
“alternative finance arrangements” means the arrangements referred to in section 71A(1)F216...;
“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);
“connected arrangements” means any arrangements entered into in connection with the making of the alternative finance arrangements (including arrangements involving one or more persons who are not parties to the alternative finance arrangements);
“relevant financial institution” means the financial institution which enters into the alternative finance arrangements.
4
F159Section 1124 of the Corporation Tax Act 2010 applies for the purposes of determining who has control of the relevant financial institution.
73BF94Exempt interests
1
An interest held by a financial institution as a result of the first transaction within the meaning of section 71A(1)(a)F178... is an exempt interest for the purposes of stamp duty land tax.
2
That interest ceases to be an exempt interest if—
a
the lease or agreement mentioned in section 71A(1)(c)F179... ceases to have effect, or
b
the right under section 71A(1)(d)F180... ceases to have effect or becomes subject to a restriction.
3
Subsection (1) does not apply if the first transaction is exempt from charge by virtue of Schedule 7.
4
Subsection (1) does not make an interest exempt in respect of—
a
the first transaction itself, or
b
a further transaction or third transaction within the meaning of section 71A(4)F217....
73BAF172Meaning of “financial institution”
1
In sections 71A to 73B “financial institution” has the meaning given by section 564B of the Income Tax Act 2007.
2
For this purpose section 564B(1) applies as if paragraph (d) were omitted.
F2983
In sections 71A, 73AB and 73B, “financial institution” also includes a person with permission under Part 4A of the Financial Services and Markets Act 2000 to carry on the regulated activity specified in Article 63F(1) of the Financial Services and Markets Act (Regulated Activities) Order 2001 (S.I. 2001/544) (entering into regulated home purchase plans as home purchase provider).
73CF142Alternative finance investment bonds
Schedule 61 to the Finance Act 2009 makes provision for relief from charge in the case of arrangements F160to which section 564G of the Income Tax Act 2007 or section 151N of the Taxation of Chargeable Gains Act 1992 (investment bond arrangements) applies.
73CAF167Sections 71A to 73: first-time buyers
1
Where section 71AF218... or 73 applies, the first transaction within the meaning of the section concerned is exempt from charge under section 55 if—
a
the transaction is a relevant acquisition of a major interest in land,
b
the land consists entirely of residential property,
c
the relevant consideration (see section 55) for the transaction (other than any consisting of rent) is more than £125,000 but not more than £250,000,
d
the person (within the meaning of the section concerned), or (if more than one) each of them, is a first-time buyer who intends to occupy the residential property as the person’s only or main residence, and
e
(subject to subsection (3)) the transaction is not one of a number of linked transactions.
2
In subsection (1)—
“first-time buyer”, and
“relevant acquisition of a major interest in land”,
have the same meaning as in section 57AA.
3
Subsection (4) of section 57AA applies for the purposes of this section.
74C6I30F141Exercise of collective rights by tenants of flats
F1361
This section applies where a chargeable transaction is entered into by a person or persons nominated or appointed by qualifying tenants of flats contained in premises in exercise of—
a
a right under Part 1 of the Landlord and Tenant Act 1987 (right of first refusal), or
b
a right under Chapter 1 of Part 1 of the Leasehold Reform, Housing and Urban Development Act 1993 (right to collective enfranchisement).
F2331A
The F266amount of tax is determined as follows.
Step 1 Determine the fraction of the relevant consideration produced by dividing the total amount of that consideration by the number of qualifying flats contained in the premises.
Step 2 If the amount produced by step 1 is F264£500,000 or less, determine the F267amount of tax chargeable in accordance with F268subsection (1B).
Step 3 If the amount produced by step 1 is more than F264£500,000 and the condition in paragraph 3(3) of Schedule 4A is not met with respect to the transaction, determine the F269amount of tax chargeable in accordance with F270subsection (1B).
Step 4 If the amount produced by step 1 is more than F264£500,000 and the condition in paragraph 3(3) of Schedule 4A is met with respect to the transaction, F271subsection (1B) does not apply, and the amount of tax chargeable in respect of the transaction is 15% of the chargeable consideration for the transaction.
F2651B
Where step 2 or 3 of subsection (1A) requires the amount of tax chargeable to be determined in accordance with this subsection, it is determined as follows.
Step 1 Determine the amount of tax chargeable under section 55 as if the relevant consideration for the chargeable transaction were the fraction of the relevant consideration calculated under step 1 of subsection (1A).
Step 2 Multiply the amount determined at step 1 by the number of qualifying flats contained in the premises.
F1374
In this section—
“flat” and “qualifying tenant” have the same meaning as in the Chapter or Part of the Act conferring the right being exercised;
“qualifying flat” means a flat that is held by a qualifying tenant who is participating in the exercise of the right.
5
References in this section to the relevant consideration have the same meaning as in section 55.
F21975Crofting community right to buy
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75AF95Anti-avoidance
1
This section applies where—
a
one person (V) disposes of a chargeable interest and another person (P) acquires either it or a chargeable interest deriving from it,
b
a number of transactions (including the disposal and acquisition) are involved in connection with the disposal and acquisition (“the scheme transactions”), and
c
the sum of the amounts of stamp duty land tax payable in respect of the scheme transactions is less than the amount that would be payable on a notional land transaction effecting the acquisition of V's chargeable interest by P on its disposal by V.
2
In subsection (1) “transaction” includes, in particular—
a
a non-land transaction,
b
an agreement, offer or undertaking not to take specified action,
c
any kind of arrangement whether or not it could otherwise be described as a transaction, and
d
a transaction which takes place after the acquisition by P of the chargeable interest.
3
The scheme transactions may include, for example—
a
the acquisition by P of a lease deriving from a freehold owned or formerly owned by V;
b
a sub-sale to a third person;
c
the grant of a lease to a third person subject to a right to terminate;
d
the exercise of a right to terminate a lease or to take some other action;
e
an agreement not to exercise a right to terminate a lease or to take some other action;
f
the variation of a right to terminate a lease or to take some other action.
4
Where this section applies—
a
any of the scheme transactions which is a land transaction shall be disregarded for the purposes of this Part, but
b
there shall be a notional land transaction for the purposes of this Part effecting the acquisition of V's chargeable interest by P on its disposal by V.
5
The chargeable consideration on the notional transaction mentioned in subsections (1)(c) and (4)(b) is the largest amount (or aggregate amount)—
a
given by or on behalf of any one person by way of consideration for the scheme transactions, or
b
received by or on behalf of V (or a person connected with V within the meaning of F161section 1122 of the Corporation Tax Act 2010) by way of consideration for the scheme transactions.
6
The effective date of the notional transaction is—
a
the last date of completion for the scheme transactions, or
b
if earlier, the last date on which a contract in respect of the scheme transactions is substantially performed.
7
This section does not apply where subsection (1)(c) is satisfied only by reason of—
a
sections 71A to 73, or
b
a provision of Schedule 9.
75BAnti-avoidance: incidental transactions
1
In calculating the chargeable consideration on the notional transaction for the purposes of section 75A(5), consideration for a transaction shall be ignored if or in so far as the transaction is merely incidental to the transfer of the chargeable interest from V to P.
2
A transaction is not incidental to the transfer of the chargeable interest from V to P—
a
if or in so far as it forms part of a process, or series of transactions, by which the transfer is effected,
b
if the transfer of the chargeable interest is conditional on the completion of the transaction, or
c
if it is of a kind specified in section 75A(3).
3
A transaction may, in particular, be incidental if or in so far as it is undertaken only for a purpose relating to—
a
the construction of a building on property to which the chargeable interest relates,
b
the sale or supply of anything other than land, or
c
a loan to P secured by a mortgage, or any other provision of finance to enable P, or another person, to pay for part of a process, or series of transactions, by which the chargeable interest transfers from V to P.
4
In subsection (3)—
a
paragraph (a) is subject to subsection (2)(a) to (c),
b
paragraph (b) is subject to subsection (2)(a) and (c), and
c
paragraph (c) is subject to subsection (2)(a) to (c).
5
The exclusion required by subsection (1) shall be effected by way of just and reasonable apportionment if necessary.
6
In this section a reference to the transfer of a chargeable interest from V to P includes a reference to a disposal by V of an interest acquired by P.
75CAnti-avoidance: supplemental
1
A transfer of shares or securities shall be ignored for the purposes of section 75A if but for this subsection it would be the first of a series of scheme transactions.
2
The notional transaction under section 75A attracts any relief under this Part which it would attract if it were an actual transaction (subject to the terms and restrictions of the relief).
3
The notional transaction under section 75A is a land transaction entered into for the purposes of or in connection with the transfer of an undertaking or part for the purposes of paragraphs 7 and 8 of Schedule 7, if any of the scheme transactions is entered into for the purposes of or in connection with the transfer of the undertaking or part.
4
In the application of section 75A(5) no account shall be taken of any amount paid by way of consideration in respect of a transaction to which any of sections 60, 61, 63, 64, 65, 66, 67, 69, 71 F220and 74 , or a provision of Schedule 6A or 8, applies.
5
In the application of section 75A(5) an amount given or received partly in respect of the chargeable interest acquired by P and partly in respect of another chargeable interest shall be subjected to just and reasonable apportionment.
6
Section 53 applies to the notional transaction under section 75A.
7
Paragraph 5 of Schedule 4 applies to the notional transaction under section 75A.
8
For the purposes of section 75A—
a
an interest in a property-investment partnership (within the meaning of paragraph 14 of Schedule 15) is a chargeable interest in so far as it concerns land owned by the partnership, F165...
F165b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1648A
Nothing in Part 3 of Schedule 15 applies to the notional transaction under section 75A.
9
For the purposes of section 75A a reference to an amount of consideration includes a reference to the value of consideration given as money's worth.
10
Stamp duty land tax paid in respect of a land transaction which is to be disregarded by virtue of section 75A(4)(a) is taken to have been paid in respect of the notional transaction by virtue of section 75A(4)(b).
11
The Treasury may by order provide for section 75A not to apply in specified circumstances.
12
An order under subsection (11) may include incidental, consequential or transitional provision and may make provision with retrospective effect.
Returns and other administrative matters
C7C976C7I31Duty to deliver land transaction return
1
In the case of every notifiable transaction the purchaser must deliver a return (a “land transaction return”) to the Inland Revenue before the end of the period of 30 days after the effective date of the transaction.
2
The Inland Revenue may by regulations amend subsection (1) so as to require a land transaction return to be delivered before the end of such shorter period after the effective date of the transaction as may be prescribed or, if the regulations so provide, on that date.
3
A land transaction return in respect of a chargeable transaction must—
a
include an assessment (a “self-assessment”) of the tax that, on the basis of the information contained in the return, is chargeable in respect of the transaction, F99...
F99b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77F109Notifiable transactions
1
A land transaction is notifiable if it is—
a
an acquisition of a major interest in land that does not fall within one or more of the exceptions in section 77A,
b
an acquisition of a chargeable interest other than a major interest in land where there is chargeable consideration in respect of F283any part of which tax is chargeable at a rate of more than 0% or would be so chargeable but for a relief,
c
a land transaction that a person is treated as entering into by virtue of section 44A(3), F258...
d
a notional land transaction under section 75A F259or
e
a notional or additional land transaction under paragraph 5 of Schedule 2A.
2
This section has effect subject to—
a
sections 71A(7) F221..., and
b
paragraph 30 of Schedule 15.
3
In this section “relief” does not include an exemption from charge under Schedule 3.
77AExceptions for certain acquisitions of major interests in land
1
The exceptions referred to in section 77(1)(a) are as follows.
1
An acquisition which is exempt from charge under Schedule 3.
2
An acquisition (other than the grant, assignment or surrender of a lease) where the chargeable consideration for that acquisition, together with the chargeable consideration for any linked transactions, is less than £40,000.
3
The grant of a lease for a term of 7 years or more where—
a
any chargeable consideration other than rent is less than £40,000, and
b
the relevant rent is less than £1,000.
4
The assignment or surrender of a lease where—
a
the lease was originally granted for a term of 7 years or more, and
b
the chargeable consideration for the assignment or surrender is less than £40,000.
5
The grant of a lease for a term of less than 7 years where the chargeable consideration does not exceed the zero rate threshold.
6
The assignment or surrender of a lease where—
a
the lease was originally granted for a term of less than 7 years, and
b
the chargeable consideration for the assignment or surrender does not exceed the zero rate threshold.
2
Chargeable consideration for an acquisition does not exceed the zero rate threshold if it does not consist of or include—
a
any amount in respect of which tax is chargeable at a rate of F284more than 0%, or
b
any amount in respect of which tax would be so chargeable but for a relief.
3
In this section—
“annual rent” has the meaning given in paragraph 9A of Schedule 5,
“relevant rent” means—
- a
the annual rent, or
- b
in the case of the grant of a lease to which paragraph 11 or 19 of Schedule 15 applies, the relevant chargeable proportion of the annual rent (as calculated in accordance with that paragraph), and
- a
“relief” does not include an exemption from charge under Schedule 3.
78I32Returns, enquiries, assessments and related matters
1
Schedule 10 has effect with respect to land transaction returns, assessments and related matters.
2
In that Schedule—
Part 1 contains general provisions about returns;
Part 2 imposes a duty to keep and preserve records;
Part 3 makes provision for enquiries into returns;
Part 4 provides for a Revenue determination if no return is delivered;
Part 5 provides for Revenue assessments;
Part 6 provides for relief in case of excessive assessment; and
Part 7 provides for appeals against Revenue decisions on tax.
3
The Treasury may by regulations make such amendments of that Schedule, and such consequential amendments of any other provisions of this Part, as appear to them to be necessary or expedient from time to time.
78AF144Disclosure of information contained in land transaction returns
1
Relevant information contained in land transaction returns delivered under section 76 (whether before or after the commencement of this section) is to be available for use—
a
by listing officers appointed under section 20 of the Local Government Finance Act 1992, for the purpose of facilitating the compilation and maintenance by them of valuation lists in accordance with Chapter 2 of Part 1 of that Act,
b
as evidence in an appeal by virtue of section 24(6) of that Act to a valuation tribunal F148...,
c
by the Commissioner of Valuation for Northern Ireland, for the purpose of maintaining a valuation list prepared, and from time to time altered, by him in accordance with Part 3 of the Rates (Northern Ireland) Order 1977, and
d
by such other persons or for such other purposes as the Treasury may by regulations prescribe.
2
In this section, “relevant information” means any information of the kind mentioned in paragraph 1(4) of Schedule 10 (information corresponding to particulars required under previous legislation).
3
The Treasury may by regulations amend the definition of relevant information in subsection (2).
F1474
In this section “valuation tribunal” means—
a
in relation to England: the Valuation Tribunal for England;
b
in relation to Wales: a valuation tribunal established under paragraph 1 of Schedule 11 to the Local Government Finance Act 1988.
79I33Registration of land transactions etc
1
A land transaction to which this section applies, or (as the case may be) a document effecting or evidencing a land transaction to which this section applies, shall not be registered, recorded or otherwise reflected in an entry made—
a
in England and Wales, in the register of title maintained by the Chief Land Registrar,
F196b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
in Northern Ireland, in any register maintained by the Land Registry of Northern Ireland or in the Registry of Deeds for Northern Ireland,
unless there is produced, together with the relevant application, a certificate as to compliance with the requirements of this Part in relation to the transaction F63or such information about compliance as the Commissioners for Her Majesty's Revenue and Customs may specify in regulations.
This does not apply where the entry is required to be made without any application or so far as the entry relates to an interest or right other than the chargeable interest acquired by the purchaser under the land transaction that gives rise to the application.
2
This section applies to every F114notifiable land transaction F55other than a transaction treated as taking place—
a
under subsection (4) of section 44 (contract and conveyance) or under that section as it applies F57by virtue of—
F261i
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ii
paragraph 12B of Schedule 17A (assignment of agreement for lease),
b
under subsection (3) of section 44A (contract providing for conveyance to third party) or under that section as it applies by virtue of section 45A (contract providing for conveyance to third party: effect of transfer of rights).
F260ba
under paragraph 5 of Schedule 2A (transactions entered into before completion of contract),
d
under paragraph 13 (increase of rent) or 15A (reduction of rent or term) of that Schedule.
In this subsection “contract” includes any agreement and “conveyance” includes any instrument.
F542A
Subsection (1), so far as relating to the entry of a notice under section 34 of the Land Registration Act 2002 or section 38 of the Land Registration Act (Northern Ireland) 1970 (notice in respect of interest affecting registered land), does not apply where the land transaction in question is the variation of a lease.
3
a
a certificate by the Inland Revenue (a “Revenue certificate”) that a land transaction return has been delivered in respect of the transaction, F116...
F116b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
The Inland Revenue may make provision by regulations about Revenue certificates. The regulations may, in particular—
a
make provision as to the conditions to be met before a certificate is issued;
b
prescribe the form and content of the certificate;
c
make provision about the issue of duplicate certificates if the original is lost or destroyed;
d
provide for the issue of multiple certificates where a return is made relating to more than one transaction.
F1175
Part 2 of Schedule 11 imposes a duty to keep and preserve records in respect of transactions that are not notifiable.
6
The registrar F198...—
a
shall allow the Inland Revenue to inspect any certificates F118... produced to him under this section and in his possession, and
b
may enter into arrangements for affording the Inland Revenue other information and facilities for verifying that the requirements of this Part have been complied with.
C180I34Adjustment where contingency ceases or consideration is ascertained
1
Where section 51 (contingent, uncertain or unascertained consideration) applies in relation to a transaction and—
a
in the case of contingent consideration, the contingency occurs or it becomes clear that it will not occur, or
b
in the case of uncertain or unascertained consideration, an amount relevant to the calculation of the consideration, or any instalment of consideration, becomes ascertained,
the following provisions have effect to require or permit reconsideration of how this Part applies to the transaction (and to any transaction in relation to which it is a linked transaction).
2
If the effect of the new information is that a transaction becomes notifiable F53..., or that additional tax is payable in respect of a transaction or that tax is payable where none was payable before F278(calculated in either case according to the effective date of the transaction) —
a
the purchaser must make a return to the Inland Revenue within 30 days,
b
the return must contain a self-assessment of the tax chargeable in respect of the transaction on the basis of the information contained in the return,
F280c
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . and
F100d
the tax or additional tax payable must be paid not later than the filing date for the return.
3
The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a F51return under section 76 (general requirement to make land transaction return), subject to the adaptation that references to the effective date of the transaction shall be read as references to the date of the event as a result of which the return is required.
4
If the effect of the new information is that less tax is payable in respect of a transaction F279(calculated according to its effective date) than has already been paid,
F52a
the purchaser may, within the period allowed for amendment of the land transaction return, amend the return accordingly;
b
after the end of that period he may (if the land transaction return is not so amended) make a claim to the Inland Revenue for repayment of the amount overpaid.
F644A
Where the transaction (“the relevant transaction”) is the grant or assignment of a lease, no claim may be made under subsection (4)—
a
in respect of the repayment (in whole or part) of any loan or deposit that is treated by paragraph 18A of Schedule 17A as being consideration given for the relevant transaction, or
b
in respect of the refund of any of the consideration given for the relevant transaction, in a case where the refund—
i
is made under arrangements that were made in connection with the relevant transaction, and
ii
is contingent on the determination or assignment of the lease or on the grant of a chargeable interest out of the lease.
F505
This section does not apply so far as the consideration consists of rent (see paragraph 8 of Schedule 17A).
81I35Further return where relief withdrawn
1
Where relief is withdrawn to any extent under—
F46za
paragraph 11 of Schedule 6A (relief for certain acquisitions of residential property),
a
Part 1 of Schedule 7 (group relief),
b
Part 2 of that Schedule (reconstruction or acquisition relief), or
c
Schedule 8 (charities relief),
the purchaser must deliver a further return before the end of the period of 30 days after the date on which the disqualifying event occurred.
F2541A
Where relief is withdrawn to any extent under any of paragraphs 5G to 5K of Schedule 4A (higher rate for certain transactions) the purchaser must deliver a further return before the end of the period of 30 days after the relevant date.
1B
In subsection (1A) “the relevant date” means—
a
in the case of relief under paragraph 5 of Schedule 4A (businesses of letting, trading in or redeveloping properties), the first day in the period mentioned in paragraph 5G(2) on which a requirement under paragraph 5G(3) was not met in the case of the chargeable interest in question;
b
in the case of relief under paragraph 5B of that Schedule (trades involving making a dwelling available to the public), the first day in the period mentioned in paragraph 5H(2) on which a requirement under paragraph 5H(3) was not met in the case of the chargeable interest in question;
c
in the case of relief under paragraph 5C of that Schedule (financial institutions acquiring dwellings in the course of lending), the first day in the period mentioned in paragraph 5I(2) on which a requirement under paragraph 5I(3) was not met in the case of the chargeable interest in question;
d
in the case of relief under paragraph 5D of that Schedule (dwellings for occupation by certain employees etc), the first day in the period mentioned in paragraph 5J(2) on which a requirement under paragraph 5J(3) was not met in the case of the chargeable interest in question;
e
in the case of relief under paragraph 5F of that Schedule (farmhouses), the first day in the period mentioned in paragraph 5K(2) on which a requirement under paragraph 5K(3) was not met in the case of the chargeable interest in question.
2
The return must—
a
include a self-assessment of the amount of tax chargeable, F101...
F101b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1022A
F257Where subsection (1) applies any tax payable must be paid not later than the filing date for the return.
3
The provisions of Schedule 10 (returns, assessments and other matters) apply to a return under F256subsection (1) as they apply to a F47return under section 76 (general requirement to deliver land transaction return), with the following adaptations—
a
references to the transaction to which the return relates shall be read as references to the disqualifying event;
b
references to the effective date of the transaction shall be read as references to the date on which the disqualifying event occurs.
4
In this section “the disqualifying event” means—
F48za
in relation to the withdrawal of relief under Schedule 6A, an event mentioned in paragraph (a), (b) or (c) of paragraph 11(2), (3), (4) or (5) of that Schedule;
a
in relation to the withdrawal of group relief, the purchaser ceasing to be a member of the same group as the vendor within the meaning of Part 1 of Schedule 7;
b
in relation to the withdrawal of reconstruction or acquisition relief, the change of control of the acquiring company mentioned in paragraph 9(1)(a) of Schedule 7 or, as the case may be, the event mentioned in paragraph 11(1)(a) or (2)(a) of that Schedule;
c
in relation to the withdrawal of charities relief, a disqualifying event as defined in paragraph 2(3) F49or 3(2) of Schedule 8.
F2555
The provisions of Schedule 10 apply to a return under subsection (1A) as they apply to a return under section 76, but with the adaptation that references to the effective date of the transaction are to be read as references to the relevant date (as defined in subsection (1B)).
C1181ZAF246Alternative finance arrangements: return where relief withdrawn
1
Where relief given in respect of a transaction entered into under alternative finance arrangements is withdrawn to any extent under any of paragraphs 6D, 6F, 6G or 6H of Schedule 4A (higher rate of tax: alternative finance arrangements)—
a
the relevant person must deliver a return to HMRC before the end of the period of 30 days after the date of the disqualifying event;
b
the return must contain a self-assessment of the additional tax chargeable as a result of the withdrawal of the relief;
c
the tax so chargeable is calculated F285according to the effective date of the transaction in respect of which the relief was allowed.
2
The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a return under section 76 (general requirement to make land transaction return), but with the following adaptations—
a
references to the effective date of the transaction are to be read as references to the date of the disqualifying event;
b
references to the purchaser are to be read as references to the relevant person so far as that is necessary as a result of subsection (1) of this section or section 85(3) (payment of additional tax by relevant person where relief withdrawn).
3
In this section “the date of the disqualifying event” means the first day in the control period on which a relevant requirement was not met.
4
In subsection (3) “relevant requirement” means—
a
where the relief was given under paragraph 5 of Schedule 4A (businesses of letting, trading in or redeveloping properties), a requirement under paragraph 5G(3) of that Schedule;
b
where the relief was given under paragraph 5B of that Schedule (trades involving making a dwelling available to the public), a requirement under paragraph 5H(3) of that Schedule;
c
where the relief was given under paragraph 5C of that Schedule (financial institutions acquiring dwellings in the course of lending), a requirement under paragraph 5I(3) of that Schedule;
d
where the relief was given under paragraph 5D of that Schedule (dwellings for occupation by certain employees etc), a requirement under paragraph 5J(3) of that Schedule;
e
where the relief was given under paragraph 5F of that Schedule (farmhouses), a requirement under paragraph 5K(3) of that Schedule.
5
In subsection (3) “the control period” has the same meaning as in paragraph 5G, 5H, 5I, 5J or 5K (as the case requires) of Schedule 4A.
6
In this section—
“alternative finance arrangements” means any arrangements such as are mentioned in section 71A, 72, 72A or 73;
“the relevant person” means the person (other than the financial institution) who entered into the arrangements in question.
81AF5Return or further return in consequence of later linked transaction
1
Where the effect of a transaction (“the later transaction”) that is linked to an earlier transaction is that the earlier transaction becomes notifiable, or that additional tax is payable in respect of the earlier transaction or that tax is payable in respect of the earlier transaction where none was payable before F281(calculated in either case according to the effective date of the earlier transaction) —
a
the purchaser under the earlier transaction must deliver a return or further return in respect of that transaction before the end of the period of 30 days after the effective date of the later transaction,
b
the return must include a self-assessment of the amount of tax chargeable as a result of the later transaction,
F282c
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .and
F103d
the tax or additional tax payable must be paid not later than the filing date for the return.
2
The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a return under section 76 (general requirement to deliver land transaction return), with the following adaptations—
a
in paragraph 5 (formal notice to deliver return), the requirement in sub-paragraph (2)(a) that the notice specify the transaction to which it relates shall be read as requiring both the earlier and later transactions to be specified;
b
references to the effective date of the transaction to which the return relates shall be read as references to the effective date of the later transaction.
3
This section does not affect any requirement to make a return under section 76 in respect of the later transaction.
81BF6Declaration by person authorised to act on behalf of individual
1
2
The requirement that an individual make such a declaration (alone or jointly with others) is treated as met if a declaration to that effect is made by a person authorised to act on behalf of that individual in relation to the matters to which the return or certificate relates.
3
For the purposes of this section a person is not regarded as authorised to act on behalf of an individual unless he is so authorised by a power of attorney in writing, signed by that individual.
In this subsection as it applies in Scotland “power of attorney” includes factory and commission.
4
Nothing in this section affects the making of a declaration in accordance with—
a
section 100(2) (persons through whom a company acts), or
F236b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
82I36Loss or destruction of, or damage to, return etc
1
This section applies where—
a
a return delivered to the Inland Revenue, or
b
any other document relating to tax made by or provided to the Inland Revenue,
has been lost or destroyed, or been so defaced or damaged as to be illegible or otherwise useless.
2
The Inland Revenue may treat the return as not having been delivered or the document as not having been made or provided.
3
Anything done on that basis shall be as valid and effective for all purposes as it would have been if the return had not been made or the document had not been made or provided.
4
But if as a result a person is charged with tax and he proves to the satisfaction of the F130tribunal that he has already paid tax in respect of the transaction in question, relief shall be given, by reducing the charge or by repayment as the case may require.
82AF7Claims not included in returns
Schedule 11A has effect with respect to claims not included in returns.
83I37Formal requirements as to assessments, penalty determinations etc
1
An assessment, determination, notice or other document required to be used in assessing, charging, collecting and levying tax or determining a penalty under this Part must be in accordance with the forms prescribed from time to time by the Board and a document in the form so prescribed and supplied or approved by the Board is valid and effective.
2
Any such assessment, determination, notice or other document purporting to be made under this Part is not ineffective—
a
for want of form, or
b
by reason of any mistake, defect or omission in it,
if it is substantially in conformity with this Part and its intended effect is reasonably ascertainable by the person to whom it is directed.
3
The validity of an assessment or determination is not affected—
a
by any mistake in it as to—
i
the name of a person liable, or
ii
the amount of the tax charged, or
b
by reason of any variance between the notice of assessment or determination and the assessment or determination itself.
84I38Delivery and service of documents
1
A notice or other document to be served under this Part on a person may be delivered to him or left at his usual or last known place of abode.
2
A notice or other document to be given, served or delivered under this Part may be served by post.
3
For the purposes of section 7 of the Interpretation Act 1978 (c. 30) (general provisions as to service by post) any such notice or other document to be given or delivered to, or served on, any person by the Inland Revenue is properly addressed if it is addressed to that person—
a
in the case of an individual, at his usual or last known place of residence or his place of business;
b
in the case of a company—
i
at its principal place of business,
ii
if a liquidator has been appointed, at his address for the purposes of the liquidation, or
iii
at any place prescribed by regulations made by the Inland Revenue.
Liability for and payment of tax
85I39Liability for tax
1
The purchaser is liable to pay the tax in respect of a chargeable transaction.
2
As to the liability of purchasers acting jointly see—
section 103(2)(c) (joint purchasers);
Part 2 of Schedule 15 (partners); and
paragraph 5 of Schedule 16 (trustees).
F2453
Where relief given in respect of a transaction entered into under alternative finance arrangements is withdrawn to any extent under any of paragraphs 6D, 6F, 6G and 6H of Schedule 4A (higher rate: alternative finance arrangements)—
a
subsection (1) does not apply in relation to the additional tax payable as a result of the withdrawal of the relief, and
b
the relevant person is liable to pay that additional tax.
4
In subsection (3) “the relevant person” means the person (other than the financial institution) who entered into the arrangements in question.
86I40Payment of tax
1
Tax payable in respect of a land transaction must be paid F104not later than the filing date for the land transaction return relating to the transaction.
2
Tax payable as a result of the withdrawal of relief under—
a
Part 1 of Schedule 7 (group relief),
b
Part 2 of that Schedule (reconstruction or acquisition relief), or
c
Schedule 8 (charities relief),
must be paid F105not later than the filing date for the return relating to the withdrawal (see section 81).
F2442A
Tax payable as a result of a withdrawal of relief under any of paragraphs 6D, 6F, 6G and 6H of Schedule 4A (higher rate: alternative finance arrangements) must be paid not later than the filing date for the return relating to the withdrawal (see section 81ZA(1)).
3
Tax payable as a result of the amendment of a return must be paid forthwith or, if the amendment is made before the filing date for the return, not later than that date.
4
Tax payable in accordance with a determination or assessment by the Inland Revenue must be paid within 30 days after the determination or assessment is issued.
5
The above provisions are subject to—
a
section 90 (application to defer payment of tax in case of contingent or uncertain consideration), and
b
paragraphs 39 and 40 of Schedule 10 (postponement of payment pending determination of appeal).
F1435A
The above provisions are also subject to paragraph 7 of Schedule 61 to the Finance Act 2009 (payment of tax where land ceases to qualify for relief in respect of alternative finance investment bonds).
6
This section does not affect the date from which interest is payable (as to which, see section 87).
87I41Interest on unpaid tax
1
Interest is payable on the amount of any unpaid tax from the end of the period of 30 days after the relevant date until the tax is paid.
2
The Inland Revenue may by regulations amend subsection (1) so as to make interest run from the end of such shorter period after the relevant date as may be prescribed or, if the regulations so provide, from that date.
3
For the purposes of this section “the relevant date” is—
a
in the case of an amount payable because relief is withdrawn under—
F41ia
Schedule 6A (relief for certain acquisitions of residential property),
i
Part 1 of Schedule 7 (group relief),
ii
Part 2 of that Schedule (reconstruction or acquisition relief), or
iii
Schedule 8 (charities relief),
the date of the disqualifying event;
F174aza
in the case of an amount payable by virtue of paragraph 6 of Schedule 6B (adjustment for change of circumstances), the date of the event;
F42aa
in the case of an amount payable under section 81A in respect of an earlier transaction because of the effect of a later linked transaction, the effective date of the later transaction;
F262aaa
in the case of an amount payable under paragraph 3(3) of Schedule 17A (leases that continue after a fixed term) by reason of the continuation of a lease for a period (or further period) under paragraph 3(2) or (6) of that Schedule, the final day of the period (or further period),
F43ab
b
in the case of a deferred payment under section 90, the date when the deferred payment is due;
c
in any other case, the effective date of the transaction.
4
In subsection (3)(a) “the disqualifying event” means—
F44za
in relation to the withdrawal of relief under Schedule 6A an event mentioned in paragraph (a), (b) or (c) of paragraph 11(2), (3), (4) or (5) of that Schedule;
a
in relation to the withdrawal of group relief, the purchaser ceasing to be a member of the same group as the vendor (within the meaning of Part 1 of Schedule 7);
b
in relation to the withdrawal of reconstruction or acquisition relief, the change of control of the acquiring company mentioned in paragraph 9(1)(a) of that Schedule or, as the case may be, the event mentioned in paragraph 11(1)(a) or (2)(a) of that Schedule;
c
in relation to the withdrawal of charities relief, a disqualifying event as defined in paragraph 2(3) F45or 3(2) of Schedule 8.
5
Subsection (3)(c) applies in a case within section 51 (contingent, uncertain or unascertained consideration) if payment is not deferred under section 90, with the result that interest on any tax payable under section 80 (adjustment where contingency ceases or consideration is ascertained) runs from the effective date of the transaction.
6
If an amount is lodged with the Inland Revenue in respect of the tax, the amount on which interest is payable is reduced by that amount.
7
Interest is calculated at the rate applicable under section 178 of the Finance Act 1989 (c. 26) (power of Treasury to prescribe rates of interest).
88I42Interest on penalties
A penalty under this Part shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the date it is determined until payment.
89I43Interest on repayment of tax overpaid etc
1
A repayment by the Inland Revenue to which this section applies shall be made with interest at the rate applicable under section 178 of the Finance Act 1989 for the period between the relevant time (as defined below) and the date when the order for repayment is issued.
2
This section applies to—
a
any repayment of tax, and
b
any repayment of a penalty under this Part.
In that case the relevant time is the date on which the payment of tax or penalty was made.
3
This section also applies to a repayment by the Inland Revenue of an amount lodged with them in respect of the tax payable in respect of a transaction. In that case the relevant time is the date on which the amount was lodged with them.
4
No interest is payable under this section in respect of a payment made in consequence of an order or judgment of a court having power to allow interest on the payment.
5
Interest paid to any person under this section is not income of that person for any tax purposes.
90I44Application to defer payment in case of contingent or uncertain consideration
1
The purchaser may apply to the Inland Revenue to defer payment of tax in a case where the amount payable depends on the amount or value of chargeable consideration that—
a
at the effective date of the transaction is contingent or uncertain, and
b
falls to be paid or provided on one or more future dates of which at least one falls, or may fall, more than six months after the effective date of the transaction.
2
The Inland Revenue may make provision by regulations for carrying this section into effect.
3
The regulations may in particular—
a
specify when an application is to be made;
b
impose requirements as to the form and contents of an application;
c
require the applicant to provide such information as the Inland Revenue may reasonably require for the purposes of determining whether to accept an application;
d
specify the grounds on which an application may be refused;
e
specify the procedure for reaching a decision on an application;
f
make provision for postponing payment of tax when an application has been made;
g
provide for an appeal to the F133tribunal against a refusal to accept an application, and make provision in relation to such an appeal corresponding to any provision made in relation to appeals under Part 7 of Schedule 10 (appeals against Revenue decisions on tax);
h
provide for the effect of accepting an application;
i
require the purchaser to make a return or further return, and to make such payments or further payments of tax as may be specified, in such circumstances as may be specified.
4
The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a land transaction return.
5
An application under this section does not affect the purchaser’s obligations as regards payment of tax in respect of chargeable consideration that has already been paid or provided or is not contingent and whose amount is ascertained or ascertainable at the time the application is made.
This applies as regards both the time of payment and the calculation of the amount payable.
6
Regulations under this section may provide that where—
a
a payment is made as mentioned in subsection (5), and
b
an application under this section is accepted in respect of other chargeable consideration taken into account in calculating the amount of that payment,
section 80 (adjustment where contingency ceases or consideration is ascertained) does not apply in relation to the payment and, instead, any necessary adjustment shall be made in accordance with the regulations.
F97
This section does not apply so far as the consideration consists of rent.
91I45Collection and recovery of tax etc
1
The provisions of Schedule 12 have effect with respect to the collection and recovery of tax.
In that Schedule—
Part 1 contains general provisions, and
Part 2 relates to court proceedings.
2
The provisions of that Schedule have effect in relation to the collection and recovery of any unpaid amount by way of—
a
penalty under this Part, or
b
interest under this Part (on unpaid tax or penalty),
as if it were an amount of unpaid tax.
92I46Payment by cheque
For the purposes of this Part where—
a
payment to the Inland Revenue is made by cheque, and
b
the cheque is paid on its first presentation to the banker on whom it is drawn,
the payment is treated as made on the day on which the cheque was received by the Inland Revenue.
Compliance
93I47Information powers
1
Schedule 13 has effect with respect to the powers of the Inland Revenue to call for documents and information for the purposes of stamp duty land tax.
2
In that Schedule—
F154. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F154. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F240...
F240...
F154. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part 6 provides for an order of a judicial authority for the delivery of documents;
F154. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part 8 relates to falsification etc of documents.
F2413
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2414
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2415
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2416
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F16294Power to inspect premises
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
95I48Offence of fraudulent evasion of tax
1
A person commits an offence if he is knowingly concerned in the fraudulent evasion of tax by him or any other person.
2
A person guilty of an offence under this section is liable—
a
on summary conviction to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum, or both;
b
on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine, or both.
F24396Penalty for assisting in preparation of incorrect return etc
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
97I49Power to allow further time and reasonable excuse for failure
1
For the purposes of this Part a person shall be deemed not to have failed to do anything required to be done within a limited time if he did it within such further time, if any, as the Inland Revenue may allow.
2
Where a person had a reasonable excuse for not doing anything required to be done for the purposes of this Part—
a
he shall be deemed not to have failed to do it unless the excuse ceased, and
b
after the excuse ceased, he shall be deemed not to have failed to do it if he did it without unreasonably delay after the excuse had ceased.
98I50Admissibility of evidence not affected by offer of settlement etc
1
Statements made or documents produced by or on behalf of a person are not inadmissible in proceedings to which this section applies by reason only that it has been drawn to his attention—
a
that where serious tax fraud has been committed the Board may accept a money settlement and that the Board will accept such a settlement, and will not pursue a criminal prosecution, if he makes a full confession of all tax irregularities, or
b
that the extent to which he is helpful and volunteers information is a factor that will be taken into account in determining the amount of any penalty,
and that he was or may have been induced thereby to make the statements or produce the documents.
2
The proceedings to which this section applies are—
a
any criminal proceedings against the person in question for any form of fraudulent conduct in connection with or in relation to tax;
b
any proceedings against him for the recovery of any tax due from him;
c
any proceedings for a penalty or on appeal against the determination of a penalty.
99I51General provisions about penalties
1
Schedule 14 has effect with respect to the determination of penalties under this Part and related appeals.
2
The Board may in their discretion mitigate a penalty under this Part, or stay or compound any proceedings for the recovery of such a penalty.
They may also, after judgment, further mitigate or entirely remit the penalty.
F102A
Where a person is liable to more than one tax-related penalty in respect of the same land transaction, each penalty after the first shall be reduced so that his liability to such penalties, in total, does not exceed the amount of whichever is (or, but for this subsection, would be) the greatest one.
3
Nothing in the provisions of this Part relating to penalties affects any criminal proceedings for an offence.
Application of provisions
100I52Companies
1
In this Part “company”, except as otherwise expressly provided, means any body corporate or unincorporated association, but does not include a partnership.
2
Everything to be done by a company under this Part shall be done by the company acting through—
a
the proper officer of the company, or
b
another person having for the time being having the express, implied or apparent authority of the company to act on its behalf for the purpose.
Paragraph (b) does not apply where a liquidator has been appointed for the company.
3
Service on a company of any document under or in pursuance of this Part may be effected by serving it on the proper officer.
4
Tax due from a company that—
a
is not a body corporate, or
b
is incorporated under the law of a country or territory outside the United Kingdom,
may, without prejudice to any other method of recovery, be recovered from the proper officer of the company.
5
The proper officer may retain out of any money coming into his hands on behalf of the company sufficient sums to pay that tax and, so far as he is not so reimbursed, he is entitled to be indemnified by the company in respect of the liability imposed on him.
6
For the purposes of this Part—
a
the proper officer of a body corporate is the secretary, or person acting as secretary, of the company, and
b
the proper officer of an unincorporated association, or of a body corporate that does not have a proper officer within paragraph (a), is the treasurer, or person acting as treasurer, of the company.
This subsection does not apply if a liquidator or administrator has been appointed for the company.
7
If a liquidator or administrator has been appointed for the company, then, for the purposes of this Part—
a
the liquidator or, as the case may be, the administrator is the proper officer, and
b
if two or more persons are appointed to act jointly or concurrently as the administrator of the company, the proper officer is—
i
such one of them as is specified in a notice given to the Inland Revenue by those persons for the purposes of this section, or
ii
where the Inland Revenue is not so notified, such one or more of those persons as the Inland Revenue may designate as the proper officer for those purposes.
101I53Unit trust schemes
1
This Part (with the exception of the F70provision mentioned in subsection (7) below) applies in relation to a unit trust scheme as if—
a
the trustees were a company, and
b
the rights of the unit holders were shares in the company.
2
Each of the parts of an umbrella scheme is regarded for the purposes of this Part as a separate unit trust scheme and the scheme as a whole is not so regarded.
3
An “umbrella scheme” means a unit trust scheme—
a
that provides arrangements for separate pooling of the contributions of participants and the profits or income out of which payments are to be made for them, and
b
under which the participants are entitled to exchange rights in one pool for rights in another.
A “part” of an umbrella scheme means such of the arrangements as relate to a separate pool.
4
In this Part, subject to any regulations under subsection (5)—
“unit trust scheme” has the same meaning as in the Financial Services and Markets Act 2000 (c. 8), and
“unit holder” means a person entitled to a share of the investments subject to the trusts of a unit trust scheme.
5
The Treasury may by regulations provide that a scheme of a description specified in the regulations is to be treated as not being a unit trust scheme for the purposes of this Part.
Any such regulations may contain such supplementary and transitional provisions as appear to the Treasury to be necessary or expedient.
6
F158Section 620 of the Corporation Tax Act 2010 (court investment funds treated as authorised unit trusts) applies for the purposes of this Part as it applies for the purposes of that Act, with the substitution for references to an authorised unit trust of references to a unit trust scheme.
7
An unit trust scheme is not to be treated as a company for the purposes of—
F71...
Schedule 7 (group relief, reconstruction relief or acquisition relief).
102I54Open-ended investment companies
1
The Treasury may by regulations make such provision as they consider appropriate for securing that the provisions of this Part have effect in relation to—
a
open-ended investment companies of such description as may be prescribed in the regulations, and
b
transactions involving such companies,
in a manner corresponding, subject to such modifications as the Treasury consider appropriate, to the manner in which they have effect in relation to unit trust schemes and transactions involving such trusts.
2
The regulations may, in particular, make provision—
a
modifying the operation of any prescribed provision in relation to open-ended investment companies so as to secure that arrangements for treating the assets of such a company as assets comprised in separate pools are given an effect corresponding to that of equivalent arrangements constituting the separate parts of an umbrella scheme;
b
treating the separate parts of the undertaking of an open-ended investment company in relation to which such provision is made as distinct companies for the purposes of this Part.
3
Regulations under this section may—
a
make different provision for different cases, and
b
contain such incidental, supplementary, consequential and transitional provision as the Treasury think fit.
4
In this section—
“open-ended investment company” has the meaning given by section 236 of the Financial Services and Markets Act 2000 (c. 8);
“prescribed” means prescribed by regulations under this section; and
“unit trust scheme” and “umbrella scheme” have the same meaning as in section 101.
103I55Joint purchasers
1
This section applies to a land transaction where there are two or more purchasers who are or will be jointly entitled to the interest acquired.
2
The general rules are that—
a
any obligation of the purchaser under this Part in relation to the transaction is an obligation of the purchasers jointly but may be discharged by any of them,
b
anything required or authorised by this Part to be done in relation to the purchaser must be done by or in relation to all of them, and
c
any liability of the purchaser under this Part in relation to the transaction (in particular, any liability arising by virtue of the failure to fulfil an obligation within paragraph (a)), is a joint and several liability of the purchasers.
These rules are subject to the following provisions.
3
If the transaction is a notifiable transaction, a single land transaction return is required.
4
5
If the Inland Revenue give notice of an enquiry into the return F120...—
a
the notice must be given to each of the purchasers,
b
the powers of the Inland Revenue as to the production of documents and provision of information for the purposes of the enquiry are exercisable separately (and differently) in relation to each of the purchasers,
c
any of the purchasers may apply for a direction that a closure notice be given (and all of them are entitled to F127to be parties to the application), and
d
the closure notice must be given to each of the purchasers.
6
A Revenue determination or discovery assessment relating to the transaction must be made against all the purchasers and is not effective against any of them unless notice of it is given to each of them whose identity is known to the Inland Revenue.
7
In the case of an appeal arising from proceedings under this Part relating to the transaction—
a
the appeal may be brought by any of the purchasers,
b
notice of the appeal must be given to any of them by whom it is not brought,
c
the agreement of all the purchasers is required if the appeal is to be settled by agreement,
F128d
if it is not settled, and is notified to the tribunal, any of them are entitled to be parties to the appeal, and
F129e
the tribunal’s decision on the appeal binds all of them.
F1267A
In a case where subsection (7) applies and some (but not all) of the purchasers require HMRC to undertake a review under paragraph 36B or 36C of Schedule 10—
a
notification of the review must be given by HMRC to each of the other purchasers whose identity is known to HMRC,
b
any of the other purchasers may be a party to the review if they notify HMRC in writing,
c
the notice of HMRC’s conclusions must be given to each of the other purchasers whose identity is known to HMRC,
d
paragraph 36F of Schedule 10 (effect of conclusions of review) applies in relation to all of the purchasers, and
e
any of the purchasers may notify the appeal to the tribunal under paragraph 36G.
8
This section has effect subject to—
the provisions of Schedule 15 relating to partnerships, and
the provisions of Schedule 16 relating to trustees.
104I56Partnerships
1
Schedule 15 has effect with respect to the application of this Part in relation to partnerships.
2
In that Schedule—
Part 1 defines “partnership” and contains other general provisions, and
Part 2 deals with ordinary partnership transactions, and
Part 3 F40makes special provision for certain transactions.
105I57Trustees
Schedule 16 has effect with respect to the application of this Part in relation to trustees.
106I58Persons acting in a representative capacity etc
F2341
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2352
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
The personal representatives of a person who is the purchaser under a land transaction—
a
are responsible for discharging the obligations of the purchaser under this Part in relation to the transaction, and
b
may deduct any payment made by them under this Part out of the assets and effects of the deceased person.
4
A receiver appointed by a court in the United Kingdom having the direction and control of any property is responsible for discharging any obligations under this Part in relation to a transaction affecting that property as if the property were not under the direction and control of the court.
107I59Crown application
F381
This Part binds the Crown, subject to the following provisions of this section.
2
A land transaction under which the purchaser is any of the following is exempt from charge:
| ||||||
|
3
The powers conferred by Part 7 of Schedule 13 (entry with warrant to obtain information) are not exercisable in relation to premises occupied for the purposes of the Crown.
F394
Nothing in this section shall be read as making the Crown liable to prosecution for an offence.
Supplementary provisions
108I60Linked transactions
I761
Transactions are “linked” for the purposes of this Part if they form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser or, in either case, persons connected with them.
F163Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this subsection
F2221A
A transaction is not a linked transaction if F295—
a
the transaction relates to land in Scotland, or
b
the transaction relates to land in Wales (whether by virtue of section 48A(2) or otherwise).
2
Where there are two or more linked transactions with the same effective date, the purchaser, or all of the purchasers if there is more than one, may make a single land transaction return as if all of those transactions that are notifiable were a single notifiable transaction.
3
Where two or more purchasers make a single return in respect of linked transactions, section 103 (joint purchasers) applies as if—
a
the transactions in question were a single transaction, and
b
those purchasers were purchasers acting jointly.
F1064
This section is subject to section 47(1).
109I61General power to vary this Part by regulations
1
The Treasury may if they consider it expedient in the public interest make provision by regulations for the variation of this Part in its application to land transactions of any description.
2
The power conferred by this section includes, in particular, power to alter—
a
the descriptions of land transaction that are chargeable or notifiable;
b
the descriptions of land transaction in respect of which tax is chargeable at any existing rate or amountF286, or in respect of which tax is calculated in accordance with any particular provision.
F2282A
The power under subsection (2)(b) includes power to alter the conditions for the application to a chargeable transaction of paragraph 3 of Schedule 4A (higher rate for certain transactions), other than the condition that the transaction must be a high-value residential transaction.
3
The power conferred by this section does not, except as mentioned in F229subsections (2)(b) and (2A), include power to vary any threshold, rate or amount specified in—
a
section 55 (amount of tax chargeable: general), F231...
F230aa
section 74(1A) (exercise of collective rights by tenants of flats),
ab
Schedule 4A (amount of tax chargeable: high-value interests in dwellings), or
b
Schedule 5 (amount of tax chargeable: rent).
4
This section has effect subject to section 110 (approval of regulations by House of Commons).
5
Regulations under this section do not apply in relation to any transaction of which the effective date is after the end of—
a
the period of 18 months beginning with the day on which the regulations were made, or
b
such shorter period as may be specified in the regulations.
This does not affect the power to make further provision by regulations under this section to the same or similar effect.
6
Regulations under this section may include such supplementary, transitional and incidental provision as appears to the Treasury to be necessary or expedient.
7
The power conferred by this section may be exercised at any time after the passing of this Act.
110I62Approval of regulations under general power
1
An instrument containing regulations under section 109 (general power to vary this Part by regulations) must be laid before the House of Commons after being made.
2
If the regulations are not approved by the House of Commons before the end of the period of 28 days beginning with the day on which they are made, they shall cease to have effect at the end of that period (if they have not already ceased to have effect under subsection (3)).
3
If on any day during that period of 28 days the House of Commons, in proceedings on a motion that (or to the effect that) the regulations be approved, comes to a decision rejecting the regulations, they shall cease to have effect at the end of that day.
4
In reckoning any such period of 28 days take no account of any time during which—
a
Parliament is prorogued or dissolved, or
b
the House of Commons is adjourned for more than four days.
5
Where regulations cease to have effect under this section, their ceasing to have effect is without prejudice to anything done in reliance on them.
As to claims for repayment, see section 111.
F1686
This section does not apply to regulations containing only provision varying section 57AA or 73CA, or paragraph 15 of Schedule 9, which does not increase any person’s liability to tax.
111I63Claim for repayment if regulations under general power not approved
1
Where regulations cease to have effect under section 110, F37a claim may be made to the Inland Revenue for repayment of any tax, interest or penalty that would not have been payable but for the regulations.
2
Section 89 (interest on repayment of tax overpaid etc) applies to a repayment under this section.
3
A claim for repayment must be made within two years after the effective date of the transaction in question.
4
The Inland Revenue may make provision by regulations—
a
for varying the time limit for making a claim;
b
as to any other conditions that must be met before repayment is made.
112I64Power to amend certain provisions before implementation
1
The Treasury may by regulations amend the following provisions of this Part—
a
Schedule 5 (amount of tax chargeable: rent);
b
subsection (2) of section 55 (amount of tax chargeable: general) so far as relating to the thresholds at which different rates of tax become payable.
F2372
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
A statutory instrument containing regulations under this section shall not be made unless a draft of the instrument has been laid before and approved by resolution of the House of Commons.
4
The power conferred by this section is not exercisable after the implementation date.
113I65Functions conferred on “the Inland Revenue”
1
References in this Part to “the Inland Revenue” are to any officer of the Board, except as otherwise provided.
2
Any power of the Inland Revenue to make regulations is exercisable only by the Board.
3
In Schedule 10 (returns, assessments and other administrative matters)—
a
functions of the Inland Revenue under these provisions are exercisable by the Board or an officer of the Board—
i
paragraph 28 (discovery assessment),
ii
paragraph 29 (assessment to recover excessive repayment);
b
functions of the Inland Revenue under these provisions are functions of the Board—
i
paragraph 33 (relief in case of double assessment),
F169ii
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F113A
The following functions of the Inland Revenue under Schedule 11A (claims not included in returns) are functions of the Board—
a
functions under paragraph 2(1) (form of claims),
b
functions relating to a claim made to the Board.
4
Nothing in this section affects any provision of this Part that expressly confers functions on the Board, an officer of the Board, a collector or a specific officer of the Board.
114I66Orders and regulations made by the Treasury or the Inland Revenue
1
Except as otherwise provided, any power of the Treasury or the Inland Revenue to make an order or regulations under this Part, or under any other enactments relating to stamp duty land tax (including enactments passed after this Act), is exercisable by statutory instrument.
2
Subsection (1) does not apply in relation to the power conferred by—
paragraph 8 of Schedule 5 to this Act (tax chargeable in respect of rent: power to prescribe temporal discount rate),
section 178(5) of the Finance Act 1989 (c. 26) (power to prescribe rates of interest).
C23
Except as otherwise provided, a statutory instrument containing any order or regulations made by the Treasury or the Inland Revenue under this Part, or under any other enactments relating to stamp duty land tax (including enactments passed after this Act), shall be subject to annulment in pursuance of a resolution of the House of Commons.
4
Subsection (3) does not apply to a statutory instrument made under the power conferred by—
section 61(3) (compliance with planning obligations: power to add to list of public authorities);
paragraph 1(3) of Schedule 9 (right to buy transactions: power to add to list of relevant public sector bodies);
paragraph 2(2) of Schedule 19 (commencement and transitional provisions: power to appoint implementation date).
F1075
The first set of regulations under section 58B (new zero-carbon homes) may not be made unless a draft has been laid before and approved by resolution of the House of Commons.
6
An order or regulations under this Part—
a
may make provision having effect generally or only in specified cases or circumstances,
b
may make different provision for different cases or circumstances, and
c
may include incidental, consequential or transitional provision or savings.
F134115General and Special Commissioners, appeals and other proceedings
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interpretation etc
116C7I67Meaning of “residential property”
1
In this Part “residential property” means—
a
a building that is used or suitable for use as a dwelling, or is in the process of being constructed or adapted for such use, and
b
land that is or forms part of the garden or grounds of a building within paragraph (a) (including any building or structure on such land), or
c
an interest in or right over land that subsists for the benefit of a building within paragraph (a) or of land within paragraph (b);
and “non-residential property” means any property that is not residential property.
This is subject to the rule in subsection (7) in the case of a transaction involving six or more dwellings.
2
For the purposes of subsection (1) a building used for any of the following purposes is used as a dwelling—
a
residential accommodation for school pupils;
b
residential accommodation for students, other than accommodation falling with subsection (3)(b);
c
residential accommodation for members of the armed forces;
d
an institution that is the sole or main residence of at least 90% of its residents and does not fall within any of paragraphs (a) to (f) of subsection (3).
3
For the purposes of subsection (1) a building used for any of the following purposes is not used as a dwelling—
a
a home or other institution providing residential accommodation for children;
b
a hall of residence for students in further or higher education;
c
a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder;
d
a hospital or hospice;
e
a prison or similar establishment;
f
a hotel or inn or similar establishment.
4
Where a building is used for a purpose specified in subsection (3), no account shall be taken for the purposes of subsection (1)(a) of its suitability for any other use.
5
Where a building that is not in use is suitable for use for at least one of the purposes specified in subsection (2) and at least one of those specified in subsection (3)—
a
if there is one such use for which it is most suitable, or if the uses for which it is most suitable are all specified in the same sub-paragraph, no account shall be taken for the purposes of subsection (1)(a) of its suitability for any other use,
b
otherwise, the building shall be treated for those purposes as suitable for use as a dwelling.
6
In this section “building” includes part of a building.
7
Where six or more separate dwellings are the subject of a single transaction involving the transfer of a major interest in, or the grant of a lease over, them, then, for the purposes of this Part as it applies in relation to that transaction, those dwellings are treated as not being residential property.
8
The Treasury may by order—
C10a
amend subsections (2) and (3) so as to change or clarify the cases where use of a building is, or is not to be, use of a building as a dwelling for the purposes of subsection (1);
b
amend or repeal subsection (7) and the reference to that subsection in subsection (1).
Any such order may contain such incidental, supplementary, consequential or transitional provision as appears to the Treasury to be necessary or expedient.
117I68Meaning of “major interest” in land
1
References in this Part to a “major interest” in land shall be construed as follows.
2
In relation to land in England F296or Wales, the references are to—
a
an estate in fee simple absolute, or
b
a term of years absolute,
whether subsisting at law or in equity.
F2233
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
In relation to land in Northern Ireland, the references are to—
a
any freehold estate, or
b
any leasehold estate,
whether subsisting at law or in equity.
118I69Meaning of “market value”
For the purposes of this Part “market value” shall be determined as for the purposes of the Taxation of Chargeable Gains Act 1992 (c. 12) (see sections 272 to 274 of that Act).
119I70Meaning of “effective date” of a transaction
1
Except as otherwise provided, the effective date of a land transaction for the purposes of this Part is
F65a
the date of completion, or
b
such alternative date as the Commissioners for Her Majesty's Revenue and Customs may prescribe by regulations.
2
Other provision as to the effective date of certain descriptions of land transaction is made by—
section 44(4) (contract and conveyance: contract substantially performed without having been completed), F14...
F12section 44A(3) (contract providing for conveyance to third party),
section 45A(8) (contract providing for conveyance to third party: effect of transfer of rights),
section 46(3) (options and rights of pre-emption).
F252paragraph 5 of Schedule 2A,
F253paragraph 3(4) of Schedule 17A (leases that continue after a fixed term),
F13paragraph 12A(2) of Schedule 17A (agreement for lease followed by substantial performance),
paragraph 12B(3) of that Schedule (assignment of agreement for lease occurring after agreement substantially performed), and
F224...
120F15Further provisions relating to leases
Schedule 17A contains further provisions relating to leases.
121I71Minor definitions
In this Part—
F181. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F182. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“employee” includes an office-holder and related expressions have a corresponding meaning;
F131“HMRC” means Her Majesty’s Revenue and Customs;
“jointly entitled” means—
“land” includes—
- a
buildings and structures, and
- b
land covered by water;
- a
“registered social landlord” means—
- a
in relation to England and Wales, a body registered as a social landlord in a register maintained under section 1(1) of the Housing Act 1996 (c. 52);
- b
in relation to Scotland, a body registered in the register maintained under F177section 20(1) of the Housing (Scotland) Act 2010 (asp 17) ;
- c
in relation to Northern Ireland, a housing association registered in the register maintained under Article 14 of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15));
- a
F184. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“statutory provision” means any provision made by or under an Act of Parliament, an Act of the Scottish Parliament or any Northern Ireland legislation;
F185. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“tax”, unless the context otherwise requires, means tax under this Part.
F132“tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.
122I72Index of defined expressions
In this Part the expressions listed below are defined or otherwise explained by the provisions indicated—
acquisition relief | Schedule 7, paragraph 8(1) |
F201. . . | F201. . . |
bare trust | Schedule 16, paragraph 1(2) |
the Board (in relation to the Inland Revenue) | section 42(3) |
chargeable consideration | section 50 and Schedule 4 |
chargeable interest | section 48(1) |
chargeable transaction | section 49 |
charities relief | Schedule 8, paragraph 1(1) |
closure notice | Schedule 10, paragraph 23(1) (in relation to a land transaction return); F121... |
company | section 100 (except as otherwise expressly provided) |
F202. . . | F202. . . |
contingent (in relation to consideration) | section 51(3) |
delivery (in relation to a land transaction return) | Schedule 10, paragraph 2(2) |
discovery assessment | Schedule 10, paragraph 28(1) |
effective date (in relation to a land transaction) | section 119 |
employee | section 121 |
exempt interest | section 48(2) to (5) |
filing date (in relation to a land transaction return) | Schedule 10, paragraph 2(1) |
implementation date | Schedule 19, paragraph 2(2) |
the Inland Revenue | section 113 |
jointly entitled | section 121 |
land | section 121 |
land transaction | section 43(1) |
land transaction return | section 76(1) |
lease (and related expressions) | F35Schedule 17A |
linked transactions | section 108 |
main subject-matter (in relation to a land transaction) | section 43(6) |
major interest (in relation to land) | section 117 |
market value | section 118 |
notice of enquiry | Schedule 10, paragraph 12(1) (in relation to a land transaction return); F122... |
notifiable (in relation to a land transaction) | section 77 F60(see too sections 71A(7) and 72A(7))F123and paragraph 30 of Schedule 15 |
partnership (and related expressions) | Schedule 15, paragraphs 1 to 4 |
purchaser | section 43(4) |
F287. . . | F287. . . |
reconstruction relief | Schedule 7, paragraph 7(1) |
registered social landlord | section 121 |
residential property | section 116 |
F36Revenue certificate | section 79(3)(a) |
Revenue determination | Schedule 10, paragraph 25(1) |
self-assessment | section 76(3)(a) |
F124. . . | F124. . . |
settlement | Schedule 16, paragraph 1(1) F250(except as otherwise expressly provided) |
F203. . . | F203. . . |
statutory provision | section 121 |
subject-matter (in relation to a land transaction) | section 43(6) |
substantial performance (in relation to a contract) | section 44(5) to (7) |
F204. . . | F204. . . |
tax | section 121 |
F135tribunal | section 121 |
uncertain (in relation to consideration) | section 51(3) |
unit holder | section 101(4) |
unit trust scheme | section 101(4) |
vendor | section 43(4) F34(see too F249section 45A(9) and paragraphs 8, 10 and 11 of Schedule 2A) |
Final provisions
123I73Consequential amendments
1
Schedule 18 contains certain amendments consequential on the provisions of this Part.
2
The Treasury may by regulations make such other amendments and repeals as appear to them appropriate in consequence of the provisions of this Part.
3
The regulations may, in particular, make such provision as the Treasury think fit for reproducing in relation to stamp duty land tax the effect of enactments providing for exemption from stamp duty.
124I74Commencement and transitional provisions
Schedule 19 makes provision for and in connection with the coming into force of the provisions of this Part.
Pt. 4 construed as one with S.I. 2006/575, reg. 43 (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 43(4)