2

For the purposes of this section—

a

a building, or a part of a building, is a dwelling if it is constructed for use as a single dwelling, and

b

“first acquisition”, in relation to a dwelling, means its acquisition when it has not previously been occupied.

d

provide for the charging of fees of a reasonable amount in respect of services provided as part of a scheme or process of certification.

77Notifiable transactions

1

A land transaction is notifiable if it is—

a

an acquisition of a major interest in land that does not fall within one or more of the exceptions in section 77A,

b

an acquisition of a chargeable interest other than a major interest in land where there is chargeable consideration in respect of which tax is chargeable at a rate of 1% or higher or would be so chargeable but for a relief,

c

a land transaction that a person is treated as entering into by virtue of section 44A(3), or

d

a notional land transaction under section 75A.

2

This section has effect subject to—

a

sections 71A(7) and 72A(7), and

b

paragraph 30 of Schedule 15.

3

In this section “relief” does not include an exemption from charge under Schedule 3.

77AExceptions for certain acquisitions of major interests in land

1

The exceptions referred to in section 77(1)(a) are as follows.

1

An acquisition which is exempt from charge under Schedule 3.

2

An acquisition (other than the grant, assignment or surrender of a lease) where the chargeable consideration for that acquisition, together with the chargeable consideration for any linked transactions, is less than £40,000.

3

The grant of a lease for a term of 7 years or more where—

a

any chargeable consideration other than rent is less than £40,000, and

b

the relevant rent is less than £1,000.

4

The assignment or surrender of a lease where—

a

the lease was originally granted for a term of 7 years or more, and

b

the chargeable consideration for the assignment or surrender is less than £40,000.

5

The grant of a lease for a term of less than 7 years where the chargeable consideration does not exceed the zero rate threshold.

6

The assignment or surrender of a lease where—

a

the lease was originally granted for a term of less than 7 years, and

b

the chargeable consideration for the assignment or surrender does not exceed the zero rate threshold.

2

Chargeable consideration for an acquisition does not exceed the zero rate threshold if it does not consist of or include—

a

any amount in respect of which tax is chargeable at a rate of 1% or higher, or

b

any amount in respect of which tax would be so chargeable but for a relief.

3

In this section—

• “annual rent” has the meaning given in paragraph 9A of Schedule 5,

• “relevant rent” means—

  1. a

     the annual rent, or

  2. b

     in the case of the grant of a lease to which paragraph 11 or 19 of Schedule 15 applies, the relevant chargeable proportion of the annual rent (as calculated in accordance with that paragraph), and

• “relief” does not include an exemption from charge under Schedule 3.

9ATax chargeable in respect of consideration other than rent: 0% band

1

This paragraph applies in the case of a transaction to which this Schedule applies where there is chargeable consideration other than rent.

2

If—

a

the relevant land consists entirely of land that is non-residential property, and

b

the relevant rent is at least £1,000,

the 0% band in Table B in section 55(2) 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.

3

Sub-paragraphs (4) and (5) apply if—

a

the relevant land is partly residential property and partly non-residential property, and

b

the relevant rent attributable, on a just and reasonable apportionment, to the land that is non-residential property is at least £1,000.

4

For the purpose of determining the amount of tax chargeable under section 55 in relation to the consideration other than rent, the transaction (or, where it is one of a number of linked transactions, that set of transactions) is treated as if it were two separate transactions (or sets of linked transactions), namely—

a

one whose subject-matter consists of all of the interests in land that is residential property, and

b

one whose subject-matter consists of all of the interests in land that is non-residential property.

5

For that purpose, the chargeable consideration attributable to each of those separate transactions (or sets of linked transactions) is the chargeable consideration so attributable on a just and reasonable apportionment.

6

In this paragraph “the relevant rent” means—

a

the annual rent in relation to the transaction in question, or

b

if that transaction is one of a number of linked transactions for which the chargeable consideration consists of or includes rent, the total of the annual rents in relation to all of those transactions.

7

In sub-paragraph (6) the “annual rent” means the average annual rent over the term of the lease or, if—

a

different amounts of rent are payable for different parts of the term, and

b

those amounts (or any of them) are ascertainable at the effective date of the transaction,

the average annual rent over the period for which the highest ascertainable rent is payable.

8

In this paragraph “relevant land” has the meaning given in section 55(3) and (4).

4BShared ownership lease: grant not linked with staircasing transactions etc

1

For the purpose of determining the rate of tax chargeable on the grant of a shared ownership lease of a dwelling, the grant shall be treated as if it were not linked to—

a

any acquisition of an interest in the dwelling to which paragraph 4A applies, or

b

a transfer of the reversion to the lessee or lessees under the terms of the lease.

2

In this paragraph “shared ownership lease” has the same meaning as in paragraph 4A.

12Shared ownership trust: declaration not linked with staircasing transactions etc

For the purpose of determining the rate of tax chargeable on the declaration of a shared ownership trust, the declaration shall be treated as if it were not linked to—

a

any equity-acquisition payment under the trust or any consequent increase in the purchaser's beneficial interest in the trust property, or

b

a transfer to the purchaser of an interest in the trust property upon the termination of the trust.

4ZAGroup relief not withdrawn where vendor leaves group

1

Group relief is not withdrawn under paragraph 3 where the purchaser ceases to be a member of the same group as the vendor because the vendor leaves the group.

2

The vendor is regarded as leaving the group if the companies cease to be members of the same group by reason of a transaction relating to shares in—

a

the vendor, or

b

another company that—

i

is above the vendor in the group structure, and

ii

as a result of the transaction ceases to be a member of the same group as the purchaser.

3

For the purpose of sub-paragraph (2) a company is “above” the vendor in the group structure if the vendor, or another company that is above the vendor in the group structure, is a 75% subsidiary of the company.

4

But if there is a change in the control of the purchaser after the vendor leaves the group, paragraphs 3, 4(6) and (7), 5 and 6 have effect as if the purchaser had then ceased to be a member of the same group as the vendor (but see sub-paragraph (7)).

5

For the purposes of this paragraph there is a change in the control of the purchaser if—

a

a person who controls the purchaser (alone or with others) ceases to do so,

b

a person obtains control of the purchaser (alone or with others), or

c

the purchaser is wound up.

6

For the purposes of sub-paragraph (5) a person does not control, or obtain control of, the purchaser if that person is under the control of another person or other persons.

7

Sub-paragraph (4) does not apply where—

a

there is a change in the control of the purchaser because a loan creditor (within the meaning of section 417(7) to (9) of the Taxes Act 1988) obtains control of, or ceases to control, the purchaser, and

b

the other persons who controlled the purchaser before that change continue to do so.

8

In this paragraph references to “control” shall be interpreted in accordance with section 416 of the Taxes Act 1988 (subject to sub-paragraph (6)).