- Latest available (Revised)
- Point in Time (19/07/2011)
- Original (As enacted)
Point in time view as at 19/07/2011.
Finance Act 2003, SCHEDULE 6A is up to date with all changes known to be in force on or before 11 September 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 58A
Textual Amendments
F1Sch. 6A inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 17(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)
1(1)Where a dwelling (“the old dwelling”) is acquired by a house-building company from an individual (whether alone or with other individuals), the acquisition is exempt from charge if the following conditions are met.
(2)The conditions are—
(a)that the individual (whether alone or with other individuals) acquires from the house-building company a new dwelling,
(b)that the individual—
(i)occupied the old dwelling as his only or main residence at some time in the period of two years ending with the date of its acquisition, and
(ii)intends to occupy the new dwelling as his only or main residence,
(c)that each acquisition is entered into in consideration of the other, and
(d)that the area of land acquired by the house-building company does not exceed the permitted area.
(3)Where the conditions in sub-paragraph (2)(a) to (c) are met but the area of land acquired by the house-building company exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the old dwelling.
(4)A “house-building company” means a company that carries on the business of constructing or adapting buildings or parts of buildings for use as dwellings.
References in this paragraph to such a company include any company connected with it.
(5)In this paragraph—
(a)references to the acquisition of the new dwelling are to the acquisition, by way of grant or transfer, of a major interest in the dwelling;
(b)references to the acquisition of the old dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; and
(c)references to the market value of the old dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.
2(1)Where a dwelling (“the old dwelling”) is acquired by a property trader from an individual (whether alone or with other individuals), the acquisition is exempt from charge if the following conditions are met.
(2)The conditions are—
(a)that the acquisition is made in the course of a business that consists of or includes acquiring dwellings from individuals who acquire new dwellings from house-building companies,
(b)that the individual (whether alone or with other individuals) acquires a new dwelling from a house-building company,
(c)that the individual—
(i)occupied the old dwelling as his only or main residence at some time in the period of two years ending with the date of its acquisition, and
(ii)intends to occupy the new dwelling as his only or main residence,
(d)that the property trader does not intend—
(i)to spend more than the permitted amount on refurbishment of the old dwelling, or
(ii)to grant a lease or licence of the old dwelling, or
(iii)to permit any of its principals or employees (or any person connected with any of its principals or employees) to occupy the old dwelling, and
(e)that the area of land acquired by the property trader does not exceed the permitted area.
Paragraph (d)(ii) does not apply to the grant of lease or licence to the individual for a period of no more than six months.
(3)Where the conditions in sub-paragraph (2)(a) to (d) are met, but the area of land acquired by the property trader exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the old dwelling.
(4)The provisions of paragraph 1(4) (meaning of “house-building company” etc) also have effect for the purposes of this paragraph.
(5)In this paragraph—
(a)references to the acquisition of a new dwelling are to the acquisition, by way of grant or transfer, of a major interest in the dwelling;
(b)references to the acquisition of the old dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; and
(c)references to the market value of the old dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.
3(1)Where a dwelling is acquired by a property trader from the personal representatives of a deceased individual, the acquisition is exempt from charge if the following conditions are met.
(2)The conditions are—
(a)that the acquisition is made in the course of a business that consists of or includes acquiring dwellings from personal representatives of deceased individuals,
(b)that the deceased individual occupied the dwelling as his only or main residence at some time in the period of two years ending with the date of his death,
(c)that the property trader does not intend—
(i)to spend more than the permitted amount on refurbishment of the dwelling, or
(ii)to grant a lease or licence of the dwelling, or
(iii)to permit any of its principals or employees (or any person connected with any of its principals or employees) to occupy the dwelling, and
(d)that the area of land acquired does not exceed the permitted area.
(3)Where the conditions in sub-paragraph (2)(a) to (c) are met, but the area of land acquired exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the dwelling.
(4)In this paragraph—
(a)references to the acquisition of the dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; and
(b)references to the market value of the dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.
4(1)Where a dwelling (“the old dwelling”) is acquired by a property trader from an individual (whether alone or with other individuals), the acquisition is exempt from charge if—
(a)the individual has made arrangements to sell a dwelling (“the old dwelling”) and acquire another dwelling (“the second dwelling”),
(b)the arrangements to sell the old dwelling fail, and
(c)the acquisition of the old dwelling is made for the purpose of enabling the individual’s acquisition of the second dwelling to proceed,
and the following conditions are met.
(2)The conditions are—
(a)that the acquisition is made in the course of a business that consists of or includes acquiring dwellings from individuals in those circumstances,
(b)that the individual—
(i)occupied the old dwelling as his only or main residence at some time in the period of two years ending with the date of its acquisition, and
(ii)intends to occupy the second dwelling as his only or main residence,
(c)that the property trader does not intend—
(i)to spend more than the permitted amount on refurbishment of the old dwelling, or
(ii)to grant a lease or licence of the old dwelling, or
(iii)to permit any of its principals or employees (or any person connected with any of its principals or employees) to occupy the old dwelling, and
(d)that the area of land acquired does not exceed the permitted area.
Paragraph (c)(ii) does not apply to the grant of a lease or licence to the individual for a period of no more than six months.
(3)Where the conditions in sub-paragraph (2)(a) to (c) are met, but the area of land acquired exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the old dwelling.
(4)In this paragraph—
(a)references to the acquisition of the second dwelling are to the acquisition, by way of grant or transfer, of a major interest in the dwelling;
(b)references to the acquisition of the old dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; and
(c)references to the market value of the old dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.
5(1)Where a dwelling is acquired from an individual (whether alone or with other individuals) by his employer, the acquisition is exempt from charge if the following conditions are met.
(2)The conditions are—
(a)that the individual occupied the dwelling as his only or main residence at some time in the period of two years ending with the date of the acquisition,
(b)that the acquisition is made in connection with a change of residence by the individual resulting from relocation of employment,
(c)that the consideration for the acquisition does not exceed the market value of the dwelling, and
(d)that the area of land acquired does not exceed the permitted area.
(3)Where the conditions in sub-paragraph (2)(a) to (c) are met but the area of land acquired exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the dwelling.
(4)In this paragraph “relocation of employment” means a change of the individual’s place of employment due to—
(a)his becoming an employee of the employer,
(b)an alteration of the duties of his employment with the employer, or
(c)an alteration of the place where he normally performs those duties.
(5)For the purposes of this paragraph a change of residence is one “resulting from” relocation of employment if—
(a)the change is made wholly or mainly to allow the individual to have his residence within a reasonable daily travelling distance of his new place of employment, and
(b)his former residence is not within a reasonable daily travelling distance of that place.
The individual’s “new place of employment” means the place where he normally performs, or is normally to perform, the duties of his employment after the relocation.
(6)In this paragraph—
(a)references to the acquisition of the dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling;
(b)references to the market value of the dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area; and
(c)references to an individual’s employer include a prospective employer.
6(1)Where a dwelling is acquired by a property trader from an individual (whether alone or with other individuals), the acquisition is exempt from charge if the following conditions are met.
(2)The conditions are—
(a)that the acquisition is made in the course of a business that consists of or includes acquiring dwellings from individuals in connection with a change of residence resulting from relocation of employment,
(b)that the individual occupied the dwelling as his only or main residence at some time in the period of two years ending with the date of the acquisition,
(c)that the acquisition is made in connection with a change of residence by the individual resulting from relocation of employment,
(d)that the consideration for the acquisition does not exceed the market value of the dwelling,
(e)that the property trader does not intend—
(i)to spend more than the permitted amount on refurbishment of the dwelling, or
(ii)to grant a lease or licence of the dwelling, or
(iii)to permit any of its principals or employees (or any person connected with any of its principals or employees) to occupy the dwelling, and
(f)that the area of land acquired does not exceed the permitted area.
Paragraph (e)(ii) does not apply to the grant of a lease or licence to the individual for a period of no more than six months.
(3)Where the conditions in sub-paragraph (2)(a) to (e) are met but the area of land acquired exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the dwelling.
(4)In this paragraph “relocation of employment” means a change of the individual’s place of employment due to—
(a)his becoming employed by a new employer,
(b)an alteration of the duties of his employment, or
(c)an alteration of the place where he normally performs those duties.
(5)For the purposes of this paragraph a change of residence is one “resulting from” relocation of employment if—
(a)the change is made wholly or mainly to allow the individual to have his residence within a reasonable daily travelling distance of his new place of employment, and
(b)his former residence is not within a reasonable daily travelling distance of that place.
An individual’s “new place of employment” means the place where he normally performs, or is normally to perform, the duties of his employment after the relocation.
(6)In this paragraph—
(a)references to the acquisition of the dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; and
(b)references to the market value of the dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.
7(1)“Dwelling” includes land occupied and enjoyed with the dwelling as its garden or grounds.
(2)A building or part of a building is a “new dwelling”if—
(a)it has been constructed for use as a single dwelling and has not previously been occupied, or
(b)it has been adapted for use as a single dwelling and has not been occupied since its adaptation.
(3)“The permitted area”, in relation to a dwelling, means land occupied and enjoyed with the dwelling as its garden or grounds that does not exceed—
(a)an area (inclusive of the site of the dwelling) of 0.5 of a hectare, or
(b)such larger area as is required for the reasonable enjoyment of the dwelling as a dwelling having regard to its size and character.
(4)Where sub-paragraph (3)(b) applies, the permitted area is taken to consist of that part of the land that would be the most suitable for occupation and enjoyment with the dwelling as its garden or grounds if the rest of the land were separately occupied.
8(1)A “property trader” means—
(a)a company,
(b)a limited liability partnership, or
(c)a partnership whose members are all either companies or limited liability partnerships,
that carries on the business of buying and selling dwellings.
(2)In relation to a property trader a “principal” means—
(a)in the case of a company, a director;
(b)in the case of a limited liability partnership, a member;
(c)in the case of a partnership whose members are all either companies or limited liability partnerships, a member or a person who is a principal of a member.
(3)For the purposes of this Schedule—
(a)anything done by or in relation to a company connected with a property trader is treated as done by or in relation to that property trader, and
(b)references to the principals or employees of a property trader include the principals or employees of any such company.
9(1)“Refurbishment”of a dwelling means the carrying out of works that enhance or are intended to enhance the value of the dwelling, but does not include—
(a)cleaning the dwelling, or
(b)works required solely for the purpose of ensuring that the dwelling meets minimum safety standards.
(2)The “permitted amount”, in relation to the refurbishment of a dwelling, is—
(a)10,000, or
(b)5% of the consideration for the acquisition of the dwelling,
whichever is the greater, but subject to a maximum of £20,000.
10[F2Section 1122 of the Corporation Tax Act 2010] (connected persons) has effect for the purposes of this Schedule.
Textual Amendments
F2Words in Sch. 6A para. 10 substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 415 (with Sch. 2)
11(1)Relief under this Schedule is withdrawn in the following circumstances.
(2)Relief under paragraph 2 (acquisition by property trader from individual acquiring new dwelling) is withdrawn if the property trader—
(a)spends more than the permitted amount on refurbishment of the old dwelling, or
(b)grants a lease or licence of the old dwelling, or
(c)permits any of its principals or employees (or any person connected with any of its principals or employees) to occupy the old dwelling.
Paragraph (b) does not apply to the grant of lease or licence to the individual for a period of no more than six months.
(3)Relief under paragraph 3 (acquisition by property trader from personal representatives) is withdrawn if the property trader—
(a)spends more than the permitted amount on refurbishment of the dwelling, or
(b)grants a lease or licence of the dwelling, or
(c)permits any of its principals or employees (or any person connected with any of its principals or employees) to occupy the dwelling.
(4)Relief under paragraph 4 (acquisition by property trader from individual where chain of transactions breaks down) is withdrawn if the property trader—
(a)spends more than the permitted amount on refurbishment of the old dwelling, or
(b)grants a lease or licence of the old dwelling, or
(c)permits any of its principals or employees (or any person connected with any of its principals or employees) to occupy the old dwelling.
Paragraph (b) does not apply to the grant of lease or licence to the individual for a period of no more than six months.
(5)Relief under paragraph 6 (acquisition by property trader in case of relocation of employment) is withdrawn if the property trader—
(a)spends more than the permitted amount on refurbishment of the dwelling, or
(b)grants a lease or licence of the dwelling, or
(c)permits any of its principals or employees (or any person connected with any of its principals or employees) to occupy the dwelling.
Paragraph (b) does not apply to the grant of lease or licence to the individual for a period of no more than six months.
(6)Where relief is withdrawn the amount of tax chargeable is the amount that would have been chargeable in respect of the acquisition but for the relief.]
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: