Part 5Stamp taxes
Stamp duty land tax
95Charge where consideration includes rent: 0% band
1
Schedule 5 to FA 2003 (amount of SDLT chargeable: rent) is amended as follows.
2
In paragraph 9 (SDLT chargeable in respect of consideration other than rent)—
a
in sub-paragraph (1), insert at the end “
(but see paragraph 9A)
”
, and
b
omit sub-paragraphs (2), (2A) and (3),
and, accordingly, in the heading before that paragraph, insert at the end “
: general
”
.
3
After that paragraph insert—
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).
4
Each of the following provisions of Schedule 6 to that Act (SDLT: disadvantaged areas relief) is amended in accordance with subsection (5)—
a
paragraph 5(4) (residential land wholly situated in disadvantaged area),
b
paragraph 6(6) (mixed land wholly situated in disadvantaged area),
c
paragraph 9(4) (residential land partly situated in disadvantaged area), and
d
paragraph 10(6) (mixed land wholly partly situated in disadvantaged area).
5
In those provisions—
a
in paragraph (a), omit sub-paragraph (i) (and the “and” after it), and
b
omit paragraph (b).
F16
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7
In Schedule 8 to that Act (SDLT: charities relief), in paragraph 3—
a
in sub-paragraph (3)(b), for “does not exceed £600” substitute “
is less than £1,000
”
, and
b
in sub-paragraph (5), for “9(2)” substitute “
9A
”
.
8
In Schedule 9 to that Act (SDLT: right to buy etc), after paragraph 4A insert—
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.
9
In that Schedule, in paragraphs 10(1) and (2) and 11(b) (shared ownership trusts), omit “additional”.
10
In that Schedule, insert at the end—
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.
11
In Schedule 15 to that Act (SDLT: partnerships)—
a
in paragraph 11(2B)(a), for “9(2A)” substitute “
9A(6)
”
,
b
in paragraph 19(2B), for “9(2A)” substitute “
9A(6)
”
, and
c
in paragraph 23(3)(c), for “9(2)” substitute “
9A
”
.
12
In Schedule 17A to that Act (SDLT: further provisions relating to leases), in paragraph 18A(5)(a)—
a
for “9(2)” substitute “
9A
”
,
b
for “the Tables” substitute “
Table B
”
, and
c
for “the relevant rental figure exceeds £600” substitute “
the relevant rent attributable to non-residential property is not less than £1,000
”
.
13
The amendments made by this section have effect in relation to transactions with an effective date on or after 12 March 2008.