Part 4Stamp duty land tax
Returns and other administrative matters
F181ZAAlternative finance arrangements: return where relief withdrawn
(1)
Where relief given in respect of a transaction entered into under alternative finance arrangements is withdrawn to any extent under any of paragraphs 6D, 6F, 6G F2, 6H or 6I of Schedule 4A (higher rate of tax: alternative finance arrangements) F3or under Part 3 of Schedule 6C (relief for F4special tax sites) in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies—
(a)
the relevant person must deliver a return to HMRC before the end of the period of 30 days after the date of the disqualifying event;
(b)
the return must contain a self-assessment of the additional tax chargeable as a result of the withdrawal of the relief;
(c)
the tax so chargeable is calculated F5according to the effective date of the transaction in respect of which the relief was allowed.
F6(2)
The provisions of Schedule 10 (returns, assessments and other matters) apply for the purposes of this section with the following modifications—
(a)
references to a return under section 76 (general requirement to deliver land transaction return) are to be read as references to a return under subsection (1);
(b)
references to the transaction to which a return relates are to be read as references to the withdrawal of relief in respect of which the return is required under subsection (1);
(c)
references to a chargeable transaction to which (as yet) no return relates are to be read as references to the withdrawal of relief under any of the provisions mentioned in subsection (1);
(d)
references to the effective date of a transaction are to be read as references to the date of the disqualifying event;
(e)
references to the purchaser are to be read as references to the relevant person so far as that is necessary as a result of subsection (1) of this section or section 85(3) (payment of additional tax by relevant person where relief withdrawn);
(f)
paragraph 36(5A) is to be read as if it also permitted an appeal under paragraph 35(1)(e) on the ground that no further return is required.
(3)
In this section “the date of the disqualifying event” means F7—
(a)
where the relief was given under paragraph 5, 5B, 5C, 5D or 5F of Schedule 4A, the first day in the control period on which a relevant requirement was not met;
(b)
where the relief was given under paragraph 5FA of Schedule 4A, the date determined in accordance with subsection (5A).
(4)
In F10subsection (3)(a) “relevant requirement” means—
(a)
where the relief was given under paragraph 5 of Schedule 4A (businesses of letting, trading in or redeveloping properties), a requirement under paragraph 5G(3) of that Schedule;
(b)
where the relief was given under paragraph 5B of that Schedule (trades involving making a dwelling available to the public), a requirement under paragraph 5H(3) of that Schedule;
(c)
where the relief was given under paragraph 5C of that Schedule (financial institutions acquiring dwellings in the course of lending), a requirement under paragraph 5I(3) of that Schedule;
(d)
where the relief was given under paragraph 5D of that Schedule (dwellings for occupation by certain employees etc), a requirement under paragraph 5J(3) of that Schedule;
(e)
where the relief was given under paragraph 5F of that Schedule (farmhouses), a requirement under paragraph 5K(3) of that Schedule.
(5)
In F11subsection (3)(a) “the control period” has the same meaning as in paragraph 5G, 5H, 5I, 5J or 5K (as the case requires) of Schedule 4A.
F12(5A)
For the purposes of subsection (3)(b) (relief withdrawn because the conditions in paragraph 6I(2) of Schedule 4A are met), the date is—
(a)
where paragraph 6I(3) of Schedule 4A does not apply, the first day in the period mentioned in paragraph 6I(2)(a) of that Schedule on which the relevant person is not a qualifying housing body;
(b)
where paragraph 6I(3) or (6) of that Schedule applies and relief is withdrawn because condition A in paragraph 6I(4) of that Schedule is met, the day of succession of the relevant successor;
(c)
where paragraph 6I(3) or (6) of that Schedule applies and relief is withdrawn because condition B in paragraph 6I(5) of that Schedule is met, the first day in the part of the control period that falls after the day of succession of the relevant successor on which the relevant successor is not a qualifying housing body.
(6)
In this section—
“alternative finance arrangements” means any arrangements such as are mentioned in section 71A, 72, 72A or 73;
F13“the relevant person” means—
(a)
the person (other than the financial institution) who entered into the arrangements in question, or
(b)
where relief is withdrawn to any extent under paragraph 6I of Schedule 4A in a case to which paragraph 6I(3) or (6) applies, the relevant successor;
“the relevant successor” means the person who is the most recent successor in the chain of succession at the time relief is withdrawn (and that person could be the first successor, the second successor or a subsequent successor).
F14(6A)
Terms used in paragraph (c) of subsection (3) which are defined for the purposes of Schedule 6C have the same meaning in that paragraph as they have in that Schedule (as modified by paragraph 11 of that Schedule).
(6B)
Paragraph 10 of Schedule 6C (as modified by paragraph 11 of that Schedule) applies for the purposes of subsection (3)(c) as it applies for the purposes of paragraph 8 of that Schedule.
F15(7)
Terms used in subsection (5A), and in the definition of “the relevant successor” in subsection (6), which are defined for the purposes of paragraph 6I of Schedule 4A have the same meaning in those provisions as they have in that paragraph.