Section 49
1U.K.A land transaction is exempt from charge if there is no chargeable consideration for the transaction.
2(1)The grant of a lease of a dwelling is exempt from charge if the lease—U.K.
(a)is granted by a registered social landlord to one or more individuals in accordance with arrangements to which this paragraph applies, and
(b)is for an indefinite term or is terminable by notice of a month or less.
(2)This paragraph applies to arrangements between a registered social landlord and a housing authority under which the landlord provides, for individuals nominated by the authority in pursuance of its statutory housing functions, temporary rented accommodation which the landlord itself has obtained on a short-term basis.
The reference above to accommodation obtained by the landlord “on a short-term basis” is to accommodation leased to the landlord for a term of five years or less.
(3)A “housing authority” means—
(a)in relation to England and Wales—
(i)a principal council within the meaning of the Local Government Act 1972 (c. 70), or
(ii)the Common Council of the City of London;
(b)in relation to Scotland, a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39);
(c)in relation to Northern Ireland—
(i)the Department for Social Development in Northern Ireland, or
(ii)the Northern Ireland Housing Executive.
3U.K.A transaction between one party to a marriage and the other is exempt from charge if it is effected—
(a)in pursuance of an order of a court made on granting in respect of the parties a decree of divorce, nullity of marriage or judicial separation;
(b)in pursuance of an order of a court made in connection with the dissolution or annulment of the marriage, or the parties' judicial separation, at any time after the granting of such a decree;
(c)in pursuance of—
(i)an order of a court made at any time under section 22A, 23A or 24A of the Matrimonial Causes Act 1973 (c. 18), or
(ii)an incidental order of a court made under section 8(2) of the Family Law (Scotland) Act 1985 (c. 37) by virtue of section 14(1) of that Act;
(d)at any time in pursuance of an agreement of the parties made in contemplation or otherwise in connection with the dissolution or annulment of the marriage, their judicial separation or the making of a separation order in respect of them.
Textual Amendments
F1Sch. 3 para. 3A and cross-heading inserted (with effect in accordance with s. 300(2) of the amending Act) by Finance Act 2004 (c. 12), s. 300(1)
3A(1)The acquisition of property by a person in or towards satisfaction of his entitlement under or in relation to the will of a deceased person, or on the intestacy of a deceased person, is exempt from charge.U.K.
(2)Sub-paragraph (1) does not apply if the person acquiring the property gives any consideration for it, other than the assumption of secured debt.
(3)Where sub-paragraph (1) does not apply because of sub-paragraph (2), the chargeable consideration for the transaction is determined in accordance with paragraph 8A(1) of Schedule 4.
(4)In this paragraph—
“debt” means an obligation, whether certain or contingent, to pay a sum of money either immediately or at a future date, and
“secured debt” means debt that, immediately after the death of the deceased person, is secured on the property.]
Textual Amendments
F2Sch. 3 para. 3A inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1(1), 174
3A.U.K.A transaction between one party to a civil partnership and the other is exempt from charge if it is effected —
(a)in pursuance of an order of a court made on granting in respect of the parties an order or decree for the dissolution or annulment of the civil partnership or their judicial separation;
(b)in pursuance of an order of a court made in connection with the dissolution or annulment of the civil partnership, or the parties' judicial separation, at any time after the granting of such an order or decree for dissolution, annulment or judicial separation as mentioned in paragraph (a);
(c)in pursuance of —
(i)an order of a court made at any time under any provision of Schedule 5 to the Civil Partnership Act 2004 that corresponds to section 22A, 23A or 24A of the Matrimonial Causes Act 1973, or
(ii)an incidental order of a court made under any provision of the Civil Partnership Act 2004 that corresponds to section 8(2) of the Family Law (Scotland) Act 1985 by virtue of section 14(1) of that Act of 1985;
(d)at any time in pursuance of an agreement of the parties made in contemplation of or otherwise in connection with the dissolution or annulment of the civil partnership, their judicial separation or the making of a separation order in respect of them.]
4(1)A transaction following a person’s death that varies a disposition (whether effected by will, under the law relating to intestacy or otherwise) of property of which the deceased was competent to dispose is exempt from charge if the following conditions are met.U.K.
(2)The conditions are—
(a)that the transaction is carried out within the period of two years after a person’s death, and
(b)that no consideration in money or money’s worth other than the making of a variation of another such disposition is given for it.
[F3(2A)Where the condition in sub-paragraph (2)(b) is not met, the chargeable consideration for the transaction is determined in accordance with paragraph 8A(2) of Schedule 4.]
(3)This paragraph applies whether or not the administration of the estate is complete or the property has been distributed in accordance with the original dispositions.
Textual Amendments
F3Sch. 3 para. 4(2A) inserted (with effect in accordance with s. 301(7) of the amending Act) by Finance Act 2004 (c. 12), s. 301(1)
5(1)The Treasury may by regulations provide that any description of land transaction specified in the regulations is exempt from charge.U.K.
(2)The regulations may contain such supplementary, incidental and transitional provision as appears to the Treasury to be appropriate.