SCHEDULES
SCHEDULE 6Stamp duty land tax: disadvantaged areas relief
Part 1Disadvantaged areas
Meaning of “disadvantaged area”
1
1
For the purposes of this Schedule a “disadvantaged area” means an area designated as a disadvantaged area by regulations made by the Treasury.
2
The regulations may—
a
designate specified areas as disadvantaged areas, or
b
provide for areas of a description specified in the regulations to be designated as disadvantaged areas.
3
If the regulations so provide, the designation of an area as a disadvantaged area shall have effect for such period as may be specified by or determined in accordance with the regulations.
4
The regulations may—
a
make different provision for different cases, and
b
contain such incidental, supplementary, consequential or transitional provision as appears to the Treasury to be necessary or expedient.
Continuation of regulations made for purposes of stamp duty
2
Any regulations made by the Treasury—
a
designating areas as disadvantaged areas for the purposes of section 92 of the Finance Act 2001 (c. 9) (stamp duty exemption for land in disadvantaged areas), and
b
in force immediately before the implementation date,
have effect for the purposes of this Schedule as if made under paragraph 1 above and may be varied or revoked accordingly.
Part 2Land wholly situated in a disadvantaged area
Introduction
3
This Part of this Schedule applies to a land transaction if
F3a
the subject matter of the transaction is a chargeable interest in relation to land that is wholly situated in a disadvantaged areaF4, and
b
the land is wholly or partly residential property.
Land all non-residential
F54
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Land all residential
5
1
This paragraph applies where all the land is residential property.
2
If—
a
the consideration for the transaction does not include rent and the relevant consideration does not exceed £150,000, or
b
the consideration for the transaction consists only of rent and the relevant rental value does not exceed £150,000,
the transaction is exempt from charge.
3
If the consideration for the transaction includes rent and the relevant rental value does not exceed £150,000, the rent does not count as chargeable consideration.
4
If the consideration for the transaction includes consideration other than rent, then—
a
if—
i
the annual rent does not exceed £600, and
ii
the relevant consideration does not exceed £150,000,
the consideration other than rent does not count as chargeable consideration;
b
if the annual rent exceeds £600, the 0% band in Table A in subsection (2) of section 55 does not apply in relation to the consideration other than rent and any case that would have fallen within that band is treated as falling within the 1% band.
Land partly non-residential and partly residential
6
1
F8This paragraph applies, where the land is partly non-residential property and partly residential property, in relation to the consideration attributable to land that is residential property.
References in this paragraph to the consideration attributable to F7... land that is residential property (or to the rent or annual rent so attributable) are to the consideration (or rent or annual rent) so attributable on a just and reasonable apportionment.
F62
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F63
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
If—
a
the consideration so attributable does not include rent and the relevant consideration does not exceed £150,000, or
b
the consideration so attributable consists only of rent and the relevant rental value does not exceed £150,000,
none of the consideration so attributable counts as chargeable consideration.
5
If the consideration so attributable includes rent and the relevant rental value does not exceed £150,000, the rent so attributable does not count as chargeable consideration.
6
If the consideration so attributable includes consideration other than rent, then—
a
if—
i
the annual rent so attributable does not exceed £600, and
ii
the relevant consideration does not exceed £150,000,
the consideration other than rent does not count as chargeable consideration;
b
if the annual rent so attributable exceeds £600, the 0% band in the Tables in subsection (2) of section 55 does not apply in relation to the consideration other than rent and any case that would have fallen within that band is treated as falling within the 1% band.
Part 3Land partly situated in a disadvantaged area
Introduction
7
1
This Part of this Schedule applies to a land transaction if
F9a
the subject matter of the transaction is a chargeable interest in relation to land that is partly in a disadvantaged area and partly outside such an areaF10, and
b
the land situated in a disadvantaged area is wholly or partly residential property.
2
References in this Part to the consideration attributable to land situated in a disadvantaged area and to land not so situated (or to the rent or annual rent so attributable) are to the consideration (or rent or annual rent) so attributable on a just and reasonable apportionment.
Land all non-residential
F118
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Land all residential
9
1
This paragraph applies where all the land situated in a disadvantaged area is residential property.
2
If—
a
the consideration attributable to land situated in a disadvantaged area does not include rent and the relevant consideration does not exceed £150,000, or
b
the consideration so attributable consists only of rent and the relevant rental value does not exceed £150,000,
none of the consideration so attributable counts as chargeable consideration.
3
If the consideration attributable to land situated in a disadvantaged area includes rent and the relevant rental value does not exceed £150,000, the rent so attributable does not count as chargeable consideration.
4
If the consideration attributable to land in a disadvantaged area includes consideration other than rent (“non-rent consideration”), then—
a
if—
i
the annual rent so attributable does not exceed £600, and
ii
the relevant consideration does not exceed £150,000,
the non-rent consideration so attributable does not count as chargeable consideration;
b
if the annual rent so attributable exceeds £600, the 0% band in Table A in subsection (2) of section 55 does not apply in relation to the non-rent consideration so attributable and any case that would have fallen within that band is treated as falling within the 1% band.
Land partly non-residential and partly residential
10
1
F12This paragraph applies, where the land situated in a disadvantaged area is partly non-residential property and partly residential property, in relation to the consideration attributable to land that is residential property.
References in this paragraph to the consideration attributable to F13... land that is residential property (or to the rent or annual rent so attributable) are to the consideration (or rent or annual rent) attributable to land in a disadvantaged area that is, on a just and reasonable apportionment, so attributable.
F142
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F143
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
If—
a
the consideration so attributable does not include rent and the relevant consideration does not exceed £150,000, or
b
the consideration so attributable consists only of rent and the relevant rental value does not exceed £150,000,
none of the consideration so attributable counts as chargeable consideration.
5
If the consideration so attributable includes rent and the relevant rental value does not exceed £150,000, the rent so attributable does not count as chargeable consideration.
6
If the consideration so attributable includes consideration other than rent, then—
a
if—
i
the annual rent so attributable does not exceed £600, and
ii
the relevant consideration does not exceed £150,000,
the consideration other than rent does not count as chargeable consideration;
b
if the annual rent so attributable exceeds £600, the 0% band in the Tables in subsection (2) of section 55 does not apply in relation to the consideration other than rent and any case that would have fallen within that band is treated as falling within the 1% band.
Part 4F2Supplementary
Relevant consideration and relevant rental value
11
1
References in this Schedule to the “relevant consideration” in relation to a transaction are to the amount falling to be taken into account for the purposes of section 55(2) in determining the rate of tax chargeable under that section in relation to the transaction apart from any relief under this Schedule (whether in relation to that or any other transaction).
2
References in this Schedule to the “relevant rental value” in relation to a transaction are to the amount falling to be taken into account for the purposes of paragraph 2(3) of Schedule 5 in determining the rate of tax chargeable under that Schedule in relation to the transaction apart from any relief under this Schedule (whether in relation to that or any other transaction).
Rent and annual rent
12
For the purposes of this Schedule “rent” has the same meaning as in Schedule 5 (amount of tax chargeable: rent) and “annual rent” has the same meaning as in paragraph 9(2) of that Schedule.
F1Notification of transactions
Sch. 6 para. 13 and cross-heading inserted (22.7.2004) by Finance Act 2004 (c. 12), s. 298(5)(b)
13
For the purposes of section 77 (which specifies what land transactions are notifiable) no account shall be taken of any provision of this Schedule to the effect that consideration does not count as chargeable consideration.
Sch. 6 Pt. 4 heading substituted (22.7.2004) by Finance Act 2004 (c. 12), s. 298(5)(a)