Finance Act 2003

[F1 3 (1) This paragraph applies to— U.K.

(a) a lease for a fixed term and thereafter until determined, or

(b) a lease for a fixed term that may continue beyond the fixed term by operation of law.

(2) For the purposes of this Part (except [F2 sections 77 and 77A] (notifiable transactions)), a lease to which this paragraph applies is treated—

(a) in the first instance as if it were a lease for the original fixed term and no longer,

(b) if the lease continues after the end of that term, as if it were a lease for a fixed term one year longer than the original fixed term,

(c) if the lease continues after the end of the term resulting from the application of paragraph (b), as if it were a lease for a fixed term two years longer than the original fixed term,

and so on.

(3) Where the effect of sub-paragraph (2) in relation to the continuation of the lease [F3 for a period (or further period) of one year] after the end of a fixed term is that additional tax is payable in respect of a transaction or that tax is payable in respect of a transaction where none was payable before [F4 (calculated in either case according to the effective date of the transaction)] —

(a) the purchaser must deliver a return or further return in respect of that transaction before the end of the period of 30 days after the end of [F5 that one year period],

(b) the return must include a self-assessment of the amount of tax chargeable in respect of the transaction on the basis of the information contained in the return,

F6 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . and

[F7 (d) the tax or additional tax payable must be paid not later than the filing date for the return.]

[F8 (3A) But no tax or additional tax is payable in respect of a transaction as a result of the continuation of a lease for a period (or further period) of one year under sub-paragraph (2) if, during that one year period, the tenant under the lease is granted a new lease of the same or substantially the same premises in circumstances where paragraph 9A applies.]

[F9 (3B) Sub-paragraph (2) is subject to paragraph 3A.]

(4) The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this paragraph as they apply to a return under section 76 (general requirement to deliver land transaction return), with the adaptation that references to the effective date of the transaction shall be read as references to [F10 the last day of the one year period for which the lease is continued or (as the case may be) further continued.]

(5) For the purposes of [F11 sections 77 and 77A] (notifiable transactions) a lease to which this paragraph applies is a lease for whatever is its fixed term.

[F12 (6) Where—

(a) a lease would be treated as continuing for a period (or further period) of one year under sub-paragraph (2), but

(b) (ignoring that sub-paragraph) the lease actually terminates at a time during that period,

the lease is to be treated as continuing under sub-paragraph (2) only until that time; and the references in sub-paragraphs (3) and (4) to that one year period are accordingly to be read as references to so much of that year as ends with that time.]]

Textual Amendments

F1 Sch. 17A inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 22(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14) (with Sch. 39 paras. 11, 13(5))

F2 Words in Sch. 17A para. 3(2) substituted (with effect in accordance with s. 94(5) of the amending Act) by Finance Act 2008 (c. 9), Sch. 30 para. 14

F3 Words in Sch. 17A para. 3(3) inserted (with effect in accordance with Sch. 41 para. 8(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 41 para. 2(2)(a)

F4 Words in Sch. 17A para. 3(3) inserted (with effect in accordance with s. 2(2) of the amending Act) by Stamp Duty Land Tax Act 2015 (c. 1), Sch. para. 17(a) (with s. 2(3)-(6))

F5 Words in Sch. 17A para. 3(3)(a) substituted (with effect in accordance with Sch. 41 para. 8(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 41 para. 2(2)(b)

F6 Sch. 17A para. 3(3)(c) omitted (with effect in accordance with s. 2(2) of the amending Act) by virtue of Stamp Duty Land Tax Act 2015 (c. 1), Sch. para. 17(b) (with s. 2(3)-(6))

F7 Sch. 17A para. 3(3)(d) substituted (with effect in accordance with s. 80(9) of the amending Act) by Finance Act 2007 (c. 11), s. 80(8)

F8 Sch. 17A para. 3(3A) inserted (with effect in accordance with Sch. 41 para. 8(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 41 para. 2(3)

F9 Sch. 17A para. 3(3B) inserted (with effect in accordance with Sch. 41 para. 8(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 41 para. 2(4)

F10 Words in Sch. 17A para. 3(4) substituted (with effect in accordance with Sch. 41 para. 8(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 41 para. 2(5)

F11 Words in Sch. 17A para. 3(5) substituted (with effect in accordance with s. 94(5) of the amending Act) by Finance Act 2008 (c. 9), Sch. 30 para. 14

F12 Sch. 17A para. 3(6) inserted (with effect in accordance with Sch. 41 para. 8(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 41 para. 2(6)

Modifications etc. (not altering text)

C1 Sch. 17A para. 3(1)(2) applied (with modifications) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Pensions Schemes (Taxable Property Provisions) Regulations 2006 (S.I. 2006/1958), regs. 1(1), 7