SCHEDULES

SCHEDULE 39Stamp duty land tax and stamp duty

Part 1Amendments to Part 4 of the Finance Act 2003: general

Relief for sale and leaseback arrangements

6

F1(1)

Section 57A (sale and leaseback arrangements) (inserted by the Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816)) is amended as follows.

(2)

In subsection (3) (the qualifying conditions), for paragraph (b) substitute—

“(aa)

that the sale transaction is entered into wholly or partly in consideration of the leaseback transaction being entered into,

(b)

that the only other consideration (if any) for the sale is the payment of money or the assumption, satisfaction or release of a debt (or both),”.

(3)

After paragraph (c) of that subsection insert—

“(d)

that the sale is not a transfer of rights within the meaning of section 45 (contract and conveyance: effect of transfer of rights) or 45A (contract providing for conveyance to third party: effect of transfer of rights), and

(e)

where A and B are both bodies corporate at the effective date of the leaseback transaction, that they are not members of the same group for the purposes of group relief (see paragraph 1 of Schedule 7) at that date.”.

(4)

Omit subsection (4) (chargeable consideration for sale taken to be not less than market value).