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

F11

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).