Part 4Stamp duty land tax
Interpretation etc
116Meaning 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—
(a)
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.
117Meaning 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 or 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.
(3)
In relation to land in Scotland, the references are to—
(a)
the interest of an owner of land, or
(b)
the tenant’s right over or interest in a property subject to a lease.
Until the appointed day for the purposes of the Abolition of Feudal Tenure etc. (Scotland) Act 2000 (asp 5), the reference in paragraph (a) to the interest of the owner shall be read, in relation to feudal property, as a reference to the estate or interest of the proprietor of the dominium utile.
(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.
118Meaning 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).
119Meaning 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
F1(a)
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), F2...
F3section 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).
F4paragraph 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
paragraph 19(3) of that Schedule (missives of let etc in Scotland followed by substantial performance).
F5120Further provisions relating to leases
Schedule 17A contains further provisions relating to leases.
121Minor definitions
In this Part—
“assignment”, in Scotland, means assignation;
“completion”, in Scotland, means—
(a)
in relation to a lease, when it is executed by the parties (that is to say, by signing) or constituted by any means;
(b)
in relation to any other transaction, the settlement of the transaction;
“employee” includes an office-holder and related expressions have a corresponding meaning;
“jointly entitled” means—
(a)
in England and Wales, beneficially entitled as joint tenants or tenants in common,
(b)
in Scotland, entitled as joint owners or owners in common,
(c)
in Northern Ireland, beneficially entitled as joint tenants, tenants in common or coparceners;
“land” includes—
(a)
buildings and structures, and
(b)
land covered by water;
“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 section 57 of the Housing (Scotland) Act 2001 (asp 10);
(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));
“standard security” has the meaning given by the Conveyancing and Feudal Reform (Scotland) Act 1970 (c. 35);
“statutory provision” means any provision made by or under an Act of Parliament, an Act of the Scottish Parliament or any Northern Ireland legislation;
“surrender”, in Scotland, means renunciation;
“tax”, unless the context otherwise requires, means tax under this Part.
122Index 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) |
assignment (in Scotland) | section 121 |
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); Schedule 11, paragraph 16(1) (in relation to a self-certificate) |
company | section 100 (except as otherwise expressly provided) |
completion (in Scotland) | section 121 |
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) | F6Schedule 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); Schedule 11, paragraph 7(1) (in relation to a self-certificate) |
notifiable (in relation to a land transaction) | section 77 F7(see too sections 71A(7) and 72A(7)) |
partnership (and related expressions) | Schedule 15, paragraphs 1 to 4 |
purchaser | section 43(4) |
rate of tax | section 55(7) |
reconstruction relief | Schedule 7, paragraph 7(1) |
registered social landlord | section 121 |
residential property | section 116 |
F8Revenue certificate | section 79(3)(a) |
Revenue determination | Schedule 10, paragraph 25(1) |
self-assessment | section 76(3)(a) |
self-certificate | section 79(3)(b) |
settlement | Schedule 16, paragraph 1(1) |
standard security | section 121 |
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) |
surrender (in Scotland) | section 121 |
tax | 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) F9(see too sections 45(5A) and 45A(9)) |