- Latest available (Revised)
- Point in Time (01/12/2003)
- Original (As enacted)
Version Superseded: 19/12/2003
Point in time view as at 01/12/2003.
Finance Act 2003, SCHEDULE 4 is up to date with all changes known to be in force on or before 23 December 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Changes and effects yet to be applied by the editorial team are only applicable when viewing the latest version or prospective version of legislation. They are therefore not accessible when viewing legislation as at a specific point in time. To view the ‘Changes to Legislation’ information for this provision return to the latest version view using the options provided in the ‘What Version’ box above.
Section 50
1(1)The chargeable consideration for a transaction is, except as otherwise expressly provided, any consideration in money or money’s worth given for the subject-matter of the transaction, directly or indirectly, by the purchaser or a person connected with him.U.K.
(2)Section 839 of the Taxes Act 1988 (connected persons) applies for the purposes of sub-paragraph (1).
2U.K.The chargeable consideration for a transaction shall be taken to include any value added tax chargeable in respect of the transaction, other than value added tax chargeable by virtue of an election under paragraph 2 of Schedule 10 to the Value Added Tax Act 1994 (c. 23) made after the effective date of the transaction.
3U.K.The amount or value of the chargeable consideration for a transaction shall be determined without any discount for postponement of the right to receive it or any part of it.
4(1)For the purposes of this Part consideration attributable—U.K.
(a)to two or more land transactions, or
(b)in part to a land transaction and in part to another matter, or
(c)in part to matters making it chargeable consideration and in part to other matters,
shall be apportioned on a just and reasonable basis.
(2)If the consideration is not so apportioned, this Part has effect as if it had been so apportioned.
(3)For the purposes of this paragraph any consideration given for what is in substance one bargain shall be treated as attributable to all the elements of the bargain, even though—
(a)separate consideration is, or purports to be, given for different elements of the bargain, or
(b)there are, or purport to be, separate transactions in respect of different elements of the bargain.
5(1)This paragraph applies to determine the chargeable consideration where one or more land transactions are entered into by a person as purchaser (alone or jointly) wholly or partly in consideration of one or more other land transactions being entered into by him (alone or jointly) as vendor.U.K.
(2)In this paragraph—
(a)“relevant transaction” means any of those transactions, and
(b)“relevant acquisition” means a relevant transaction entered into as purchaser and “relevant disposal” means a relevant transaction entered into as vendor.
(3)The following rules apply if the subject-matter of any of the relevant transactions is a major interest in land—
(a)where a single relevant acquisition is made, the chargeable consideration for the acquisition is—
(i)the market value of the subject-matter of the acquisition, and
(ii)if the acquisition is the grant of a lease at a rent, that rent;
(b)where two or more relevant acquisitions are made, the chargeable consideration for each relevant acquisition is—
(i)the market value of the subject-matter of that acquisition, and
(ii)if the acquisition is the grant of a lease at a rent, that rent.
(4)The following rules apply if the subject-matter of none of the relevant transactions is a major interest in land—
(a)where a single relevant acquisition is made in consideration of one or more relevant disposals, the chargeable consideration for the acquisition is the amount or value of any chargeable consideration other than the disposal or disposals that is given for the acquisition;
(b)where two or more relevant acquisitions are made in consideration of one or more relevant disposals, the chargeable consideration for each relevant acquisition is the appropriate proportion of the amount or value of any chargeable consideration other than the disposal or disposals that is given for the acquisitions.
(5)For the purposes of sub-paragraph (4)(b) the appropriate proportion is—
where—
MV is the market value of the subject-matter of the acquisition for which the chargeable consideration is being determined, and
TMV is the total market value of the subject-matter of all the relevant acquisitions.
(6)This paragraph has effect subject to—
Textual Amendments
F1Words in Sch. 4 para. 5(6) omitted (1.12.2003) by virtue of The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), reg. 1, Sch. para. 3(5)
6U.K.In the case of a land transaction giving effect to a partition or division of a chargeable interest to which persons are jointly entitled, the share of the interest held by the purchaser immediately before the partition or division does not count as chargeable consideration.
7U.K.Except as otherwise expressly provided, the value of any chargeable consideration for a land transaction, other than—
(a)money (whether in sterling or another currency), or
(b)debt as defined for the purposes of paragraph 8 (debt as consideration),
shall be taken to be its market value at the effective date of the transaction.
8(1)Where the chargeable consideration for a land transaction consists in whole or in part of—U.K.
(a)the satisfaction or release of debt due to the purchaser or owed by the vendor, or
(b)the assumption of existing debt by the purchaser,
the amount of debt satisfied, released or assumed shall be taken to be the whole or, as the case may be, part of the chargeable consideration for the transaction.
(2)If the effect of sub-paragraph (1) would be that the amount of the chargeable consideration for the transaction exceeded the market value of the subject-matter of the transaction, the amount of the chargeable consideration is treated as limited to that value.
(3)In this paragraph—
(a)“debt” means an obligation, whether certain or contingent, to pay a sum of money either immediately or at a future date,
(b)“existing debt”, in relation to a transaction, means debt created or arising before the effective date of, and otherwise than in connection with, the transaction, and
(c)references to the amount of a debt are to the principal amount payable or, as the case may be, the total of the principal amounts payable, together with the amount of any interest that has accrued due on or before the effective date of the transaction.
9(1)References in this Part to the amount or value of the consideration for a transaction are to its amount or value in sterling.U.K.
(2)For the purposes of this Part the sterling equivalent of an amount expressed in another currency shall be ascertained by reference to the London closing exchange rate on the effective date of the transaction (unless the parties have used a different rate for the purposes of the transaction).
10(1)Where the whole or part of the consideration for a land transaction consists of the carrying out of works of construction, improvement or repair of a building or other works to enhance the value of land, then—U.K.
(a)to the extent that the conditions specified in sub-paragraph (2) are met, the value of the works does not count as chargeable consideration, and
(b)to the extent that those conditions are not met, the value of the works shall be taken into account as chargeable consideration.
(2)The conditions referred to in sub-paragraph (1) are—
(a)that the works are carried out after the effective date of the transaction,
(b)that the works are carried out on land acquired or to be acquired under the transaction or on other land held by the purchaser or a person connected with him, and
(c)that it is not a condition of the transaction that the works are carried out by the vendor or a person connected with him.
(3)In this paragraph—
(a)references to the acquisition of land are to the acquisition of a major interest in it;
(b)the value of the works shall be taken to be the amount that would have to be paid in the open market for the carrying out of the works in question.
(4)Section 839 of the Taxes Act 1988 (connected persons) has effect for the purposes of this paragraph.
11U.K.Where the whole or part of the consideration for a land transaction consists of the provision of services (other than the carrying out of works to which paragraph 10 applies), the value of that consideration shall be taken to be the amount that would have to be paid in the open market to obtain those services.
12(1)Where a land transaction is entered into by reason of the purchaser’s employment, or that of a person connected with him, then—U.K.
(a)if the transaction gives rise to a charge to tax under Chapter 5 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (taxable benefits: living accommodation) and—
(i)no rent is payable by the purchaser, or
(ii)the rent payable by the purchaser is less than the cash equivalent of the benefit calculated under section 105 or 106 of that Act,
there shall be taken to be payable by the purchaser as rent an amount equal to the cash equivalent chargeable under those sections;
(b)if the transaction would give rise to a charge under that Chapter but for section 99 of that Act (accommodation provided for performance of duties), the consideration for the transaction is the actual consideration (if any);
(c)if neither paragraph (a) nor paragraph (b) applies, the consideration for the transaction shall be taken to be not less than the market value of the subject-matter of the transaction as at the effective date of the transaction.
(2)Section 839 of the Taxes Act 1988 (connected persons) has effect for the purposes of this paragraph.
F213U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F2Sch. 4 paras. 13-15 repealed (1.12.2003) by The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), reg. 1, Sch. para. 8(11)
F214U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F2Sch. 4 paras. 13-15 repealed (1.12.2003) by The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), reg. 1, Sch. para. 8(11)
F215U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F2Sch. 4 paras. 13-15 repealed (1.12.2003) by The Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), reg. 1, Sch. para. 8(11)
16U.K.Where the purchaser agrees to indemnify the vendor in respect of liability to a third party arising from breach of an obligation owed by the vendor in relation to the land that is the subject of the transaction, neither the agreement nor any payment made in pursuance of it counts as chargeable consideration.
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: