Part 5Stamp taxes

Stamp duty land tax

80Exercise of collective rights by tenants of flats

(1)

Section 74 of FA 2003 (collective enfranchisement by leaseholders) is amended as follows.

(2)

For subsection (1) substitute—

“(1)

This section applies where a chargeable transaction is entered into by a person or persons nominated or appointed by qualifying tenants of flats contained in premises in exercise of—

(a)

a right under Part 1 of the Landlord and Tenant Act 1987 (right of first refusal), or

(b)

a right under Chapter 1 of Part 1 of the Leasehold Reform, Housing and Urban Development Act 1993 (right to collective enfranchisement).”

(3)

In subsection (2)—

(a)

omit “In that case,”, and

(b)

for “flats in respect of which the right of collective enfranchisement is being exercised” substitute “ qualifying flats contained in the premises ”.

(4)

For subsection (4) substitute—

“(4)

In this section—

“flat” and “qualifying tenant” have the same meaning as in the Chapter or Part of the Act conferring the right being exercised;

“qualifying flat” means a flat that is held by a qualifying tenant who is participating in the exercise of the right.”

(5)

For the heading substitute “Exercise of collective rights by tenants of flats”.

(6)

Accordingly, in section 55(5) of that Act (amount of tax chargeable), for “collective enfranchisement by leaseholders” substitute “ exercise of collective rights by tenants of flats ”.

(7)

The amendments made by this section have effect in relation to transactions with an effective date on or after 22 April 2009.