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Finance (No. 3) BillPage 360

Commencement

5 (1) Subject to what follows, the amendments made by paragraphs 2 and 4 have
effect in relation to any transaction the effective date of which is on or after
24 March 2011.

(2) 5The amendments do not have effect in relation to any transaction (other than
a notional transaction under section 75A of FA 2003)—

(a) which is effected in pursuance of a contract entered into and
substantially performed before 24 March 2011, or

(b) which is effected in pursuance of a contract entered into before 24
10March 2011 and which is not excluded by sub-paragraph (4).

(3) The amendments do not have effect in relation to any notional transaction
under section 75A of FA 2003 if any scheme transaction—

(a) is completed before 24 March 2011,

(b) is effected in pursuance of a contract entered into and substantially
15performed before 24 March 2011, or

(c) is effected in pursuance of a contract entered into before 24 March
2011 and is not excluded by sub-paragraph (4).

(4) A transaction effected in pursuance of a contract entered into before 24
March 2011 is excluded by this sub-paragraph if—

(a) 20there is any variation of the contract, or assignment of rights under
the contract, on or after 24 March 2011,

(b) the transaction is effected in consequence of the exercise on or after
24 March 2011 of any option, right of pre-emption or similar right, or

(c) on or after 24 March 2011, there is an assignment, sub-sale or other
25transaction relating to the whole or part of the subject-matter of the
contract as a result of which a person other than the purchaser under
the contract becomes entitled to call for a conveyance.

(5) Terms used in this paragraph have the same meaning as in Part 4 of FA 2003.

6 (1) The amendments made by paragraph 3 are treated as having come into force
30on 24 March 2011.

(2) But those amendments—

(a) do not have effect for the purposes of any of sections 71A to 73B of
FA 2003 (other than those provisions mentioned in paragraph (b)
below) if the arrangements referred to in section 71A(1), 72(1), 72A(1)
35or 73(1) (as the case may be) were entered into before 24 March 2011,
and

(b) do not have effect for the purposes of section 71A(2)(b), 72(2)(b),
72A(2)(b) or 73(2)(b) of that Act if the arrangements referred to there
were entered into before 24 March 2011.

Finance (No. 3) BillPage 361

Section 83

SCHEDULE 22 Transfers involving multiple dwellings

New relief

1 Part 4 of FA 2003 (stamp duty land tax) is amended as follows.

2 5After section 58C insert—

58D Transfers involving multiple dwellings

(1) Schedule 6B provides for relief in the case of transfers involving
multiple dwellings.

(2) Any relief under that Schedule must be claimed in a land transaction
10return or an amendment of such a return.

3 After Schedule 6A insert—

Section 58D

Schedule 6B Transfers involving multiple dwellings

Introduction

1 This Schedule is arranged as follows—

(a) 15paragraph 2 identifies the transactions to which this
Schedule applies,

(b) paragraph 3 defines key terms,

(c) paragraphs 4 and 5 describe the relief available if a claim is
made,

(d) 20paragraph 6 provides for adjustments if circumstances
change after a claim is made, and

(e) paragraph 7 contains rules for determining what counts as
a dwelling.

Transactions to which this Schedule applies

2 (1) 25This Schedule applies to a chargeable transaction that is—

(a) within sub-paragraph (2) or sub-paragraph (3), and

(b) not excluded by sub-paragraph (4).

(2) A transaction is within this sub-paragraph if its main subject-
matter consists of—

(a) 30an interest in at least two dwellings, or

(b) an interest in at least two dwellings and other property.

(3) A transaction is within this sub-paragraph if—

(a) its main subject-matter consists of—

(i) an interest in a single dwelling, or

(ii) 35an interest in a single dwelling and other property,

(b) it is one of a number of linked transactions, and

(c) the main subject-matter of at least one of the other linked
transactions consists of—

Finance (No. 3) BillPage 362

(i) an interest in some other dwelling or dwellings, or

(ii) an interest in some other dwelling or dwellings and
other property.

(4) A transaction is excluded by this sub-paragraph if—

(a) 5section 74 or 75 applies to it, or

(b) relief under Schedule 7 or Schedule 8 is available for it or
would be available for it on the making of a claim or has
been withdrawn from it.

(5) A reference in this Schedule to an interest in a dwelling is to any
10chargeable interest in or over a dwelling.

(6) But, in the case of a dwelling subject to a lease granted for an initial
term of more than 21 years, any interest that is a superior interest
in relation to the lease is to be ignored in determining whether a
transaction is a relevant transaction.

15Key terms

3 (1) A chargeable transaction to which this Schedule applies is referred
to in this Schedule as a “relevant transaction”.

(2) A relevant transaction is a “single dwelling transaction” if its main
subject-matter consists of—

(a) 20an interest in a single dwelling, or

(b) an interest in a single dwelling and other property.

(3) In relation to such a transaction, the single dwelling is referred to
as “the dwelling”.

(4) A relevant transaction is a “multiple dwelling transaction” if its
25main subject-matter consists of—

(a) an interest in at least two dwellings, or

(b) an interest in at least two dwellings and other property.

(5) In relation to such a transaction, those dwellings are referred to as
“the dwellings”.

30The relief

4 (1) If relief under this Schedule is claimed for a relevant transaction,
the amount of tax chargeable in respect of the transaction is—

(a) a percentage of the consideration attributable to dwellings,
plus

(b) 35a percentage of the remaining consideration (if any).

(2) “The consideration attributable to dwellings” is—

(a) for a single dwelling transaction, so much of the
chargeable consideration for the transaction as is
attributable to the dwelling,

(b) 40for a multiple dwelling transaction, so much of the
chargeable consideration for the transaction as is
attributable to the dwellings in total.

Finance (No. 3) BillPage 363

(3) “The remaining consideration” is the chargeable consideration for
the transaction less the consideration attributable to dwellings.

(4) The percentages are determined in accordance with paragraph 5.

(5) If the whole or part of the chargeable consideration for a relevant
5transaction is rent, sub-paragraph (1) has effect subject to section
56 and Schedule 5.

(6) “Attributable” means attributable on a just and reasonable basis.

The percentages

5 (1) For the purposes of paragraph 4(1)(a), the percentage is the
10percentage that would be applied under section 55 if—

(a) the relevant land consisted entirely of residential property,
and

(b) the relevant consideration were the fraction produced by
dividing total dwellings consideration by total dwellings.

(2) 15But if that percentage turns out to be 0%, the percentage for the
purposes of paragraph 4(1)(a) is 1%.

(3) For a transaction that is not one of a number of linked transactions,
“total dwellings consideration” is the consideration attributable to
dwellings for that transaction (see paragraph 4(2)).

(4) 20For one of a number of linked transactions, “total dwellings
consideration” is—

(a) the total of the consideration attributable to dwellings for
that transaction and all the other linked transactions that
are relevant transactions, plus

(b) 25so much of the chargeable consideration for any of the
linked transactions (whether or not relevant transactions)
as is not included in the calculation under paragraph (a)
but is attributable to the same dwellings by reference to
which that calculation is made.

(5) 30“Total dwellings” is the total number of dwellings by reference to
which total dwellings consideration is calculated.

(6) In the application of sub-paragraph (1), no account is to be taken
of—

(a) section 116(7), or

(b) 35paragraph 9A(4) of Schedule 5.

(7) For the purposes of paragraph 4(1)(b), the percentage is the
percentage that (but for this Schedule) would be applied under
section 55 to the chargeable consideration for the transaction.

Adjustment for change of circumstances

6 (1) 40This paragraph applies if—

(a) relief under this Schedule is claimed for a relevant
transaction,

(b) an event occurs in the relevant period, and

Finance (No. 3) BillPage 364

(c) had the event occurred immediately before the effective
date of the transaction—

(i) the transaction would not have been a relevant
transaction or the percentage applied by virtue of
5paragraph 4(1)(a) would have been higher, and

(ii) more tax would have been payable in respect of the
transaction as a result.

(2) If this paragraph applies, tax is chargeable on the transaction as if
the event had occurred immediately before the effective date of
10the transaction.

(3) In that case—

(a) the purchaser must make a return to Her Majesty’s
Revenue and Customs before the end of the period of 30
days beginning with the date of the event,

(b) 15the return must contain a self-assessment of the tax
chargeable in respect of the transaction on the basis of the
information contained in the return,

(c) the tax so chargeable is to be calculated by reference to the
rates in force at the effective date of the transaction, and

(d) 20the additional tax payable must be paid not later than the
filing date for the return.

(4) The provisions of section 78A and Schedule 10 apply to a return
under this paragraph as they apply to a return under section 76,
but with references in Schedule 10 to the effective date of the
25transaction being read as references to the date of the event.

(5) “The relevant period” means the shorter of—

(a) the period of 3 years beginning with the effective date of
the transaction, and

(b) the period beginning with the effective date of the
30transaction and ending with the date on which the
purchaser disposes of the dwelling, or the dwellings, to a
person who is not connected with the purchaser.

(6) In relation to a transaction effected on completion of a contract
that was substantially performed before completion, sub-
35paragraph (5) applies as if references to the effective date of the
transaction were to the date on which the contract was
substantially performed.

(7) In this paragraph—

(8) Section 1122 of the Corporation Tax Act 2010 (connected persons)
has effect for the purposes of this paragraph.

Finance (No. 3) BillPage 365

What counts as a dwelling

7 (1) This paragraph sets out rules for determining what counts as a
dwelling for the purposes of this Schedule.

(2) A building or part of a building counts as a dwelling if—

(a) 5it is used or suitable for use as a single dwelling, or

(b) it is in the process of being constructed or adapted for such
use.

(3) Land that is, or is to be, occupied or enjoyed with a dwelling as a
garden or grounds (including any building or structure on such
10land) is taken to be part of that dwelling.

(4) Land that subsists, or is to subsist, for the benefit of a dwelling is
taken to be part of that dwelling.

(5) The main subject-matter of a transaction is also taken to consist of
or include an interest in a dwelling if—

(a) 15substantial performance of a contract constitutes the
effective date of that transaction by virtue of a relevant
deeming provision,

(b) the main subject-matter of the transaction consists of or
includes an interest in a building, or a part of a building,
20that is to be constructed or adapted under the contract for
use as a single dwelling, and

(c) construction or adaptation of the building, or the part of a
building, has not begun by the time the contract is
substantially performed.

(6) 25In sub-paragraph (5)—

(7) Subsections (2) to (5) of section 116 apply for the purposes of this
paragraph as they apply for the purposes of subsection (1)(a) of
that section.

35Other amendments of Part 4 FA 2003

4 In section 57 of FA 2003 (disadvantaged areas relief), insert at the end—

(3) Relief is not available under that Schedule in the case of any
transaction for which relief under Schedule 6B is claimed.

5 In section 87(3) of that Act (interest on unpaid tax), after paragraph (a)
40insert—

(aza) in the case of an amount payable by virtue of paragraph 6 of
Schedule 6B (adjustment for change of circumstances), the
date of the event;.

6 In paragraph 9 of Schedule 5 to that Act (amount of tax chargeable: rent)—

Finance (No. 3) BillPage 366

(a) in sub-paragraph (4), after “section 55” insert “or Schedule 6B”, and

(b) in sub-paragraph (5), after “section” insert “or Schedule”.

7 In paragraph 12(2A) of Schedule 10 to that Act (notice of enquiry into
return), for “or 81A (return or further return in consequence of later linked
5transaction)” substitute “, 81A (return or further return in consequence of
later linked transaction) or paragraph 6 of Schedule 6B (adjustment for
change of circumstances)”.

8 In paragraphs 11(2C) and 19(2C) of Schedule 15 to that Act (partnerships), in
the substituted sub-paragraph (4), for “as it has” substitute “or Schedule 6B
10as they have”.

Commencement

9 (1) The amendments made by this Schedule have effect in relation to relevant
transactions that—

(a) have an effective date on or after the day on which this Act is passed
15(“the commencement day”), and

(b) satisfy sub-paragraph (2).

(2) A relevant transaction satisfies this sub-paragraph if—

(a) it is not linked to a land transaction with an effective date before the
commencement day (a “pre-commencement transaction”), or

(b) 20the only pre-commencement transaction to which it is linked is—

(i) an option binding the grantor to enter into the relevant
transaction, or

(ii) a right of pre-emption restricting the right of the grantor to
enter into it.

Section 86(1)

25SCHEDULE 23 Data-gathering powers

Part 1 Power to obtain data

Power to give notice

1 (1) 30An officer of Revenue and Customs may by notice in writing require a
relevant data-holder to provide relevant data.

(2) Part 2 of this Schedule sets out who is a relevant data-holder.

(3) In relation to a relevant data-holder, “relevant data” means data of a kind
specified for that type of data-holder in regulations made by the Treasury.

(4) 35The data that a relevant data-holder may be required to provide—

(a) may be general data or data relating to particular persons or matters,
and

(b) may include personal data (such as names and addresses of
individuals).

Finance (No. 3) BillPage 367

(5) A notice under this paragraph is referred to as a data-holder notice.

Purpose of power

2 (1) The power in paragraph 1(1) is exercisable to assist with the efficient and
effective discharge of HMRC’s tax functions—

(a) 5whether a particular function or more generally, and

(b) whether involving a particular taxpayer or taxpayers generally.

(2) It is additional to and is not limited by other powers that HMRC may have
to obtain data (for example, in Schedule 36 to FA 2008).

(3) But it may not be used (in place of the power in paragraph 1 of that Schedule)
10to obtain data required for the purpose of checking the relevant data-
holder’s own tax position.

(4) Sub-paragraph (3) does not prevent use of the power in paragraph 1(1) of
this Schedule to obtain data about a matter mentioned in paragraph 14(3)(a)
(beneficial ownership of certain payments etc).

(5) 15Nothing in this paragraph limits the use that may be made of data that have
been obtained under this Schedule (see section 17(1) of CRCA 2005).

Specifying relevant data

3 (1) A data-holder notice must specify the relevant data to be provided.

(2) Relevant data may not be specified in a data-holder notice unless an officer
20of Revenue and Customs has reason to believe that the data could have a
bearing on chargeable or other periods ending on or after the applicable day.

(3) The applicable day is the first day of the period of 4 years ending with the
day on which the notice is given.

Compliance

4 (1) 25Relevant data specified in a data-holder notice must be provided by such
means and in such form as is reasonably specified in the notice.

(2) If the notice specifies that the data are to be provided by sending them
somewhere, the data must be sent to such address and within such period as
is reasonably specified in the notice.

(3) 30If the notice specifies that the data are to be provided by making documents
available for inspection somewhere, the documents must be made available
for inspection at such place and time as is—

(a) reasonably specified in the notice, or

(b) agreed between an officer of Revenue and Customs and the data-
35holder.

(4) A place used solely as a dwelling may not be specified under sub-paragraph
(3)(a).

(5) A data-holder notice requiring the provision of specified documents
requires the documents to be provided only if they are in the data-holder’s
40possession or power.

Finance (No. 3) BillPage 368

(6) A power in this paragraph to specify something in a notice includes power
to specify it in a document referred to in the notice.

Approval by tribunal

5 (1) An officer of Revenue and Customs may ask for the approval of the tribunal
5before giving a data-holder notice.

(2) This does not require an officer to do so (but see paragraph 28(3) for the
effect of obtaining approval).

(3) An application for approval under this paragraph may be made without
notice (except as required under sub-paragraph (4)).

(4) 10The tribunal may not approve the giving of a data-holder notice unless—

(a) the application for approval is made by, or with the agreement of, an
authorised officer,

(b) the tribunal is satisfied that, in the circumstances, the officer giving
the notice is justified in doing so,

(c) 15the data-holder has been told that the data are to be required and
given a reasonable opportunity to make representations to an officer
of Revenue and Customs, and

(d) the tribunal has been given a summary of any representations made
by the data-holder.

(5) 20Paragraphs (c) and (d) of sub-paragraph (4) do not apply to the extent that
the tribunal is satisfied that taking the action specified in those paragraphs
might prejudice any purpose for which the data are required.

(6) A decision by the tribunal under this paragraph is final (despite the
provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement
25Act 2007).

(7) “Authorised officer” means an officer of Revenue and Customs who is, or is
a member of a class of officers who are, authorised by the Commissioners for
the purposes of this paragraph.

Power to copy documents

6 30An officer of Revenue and Customs may take copies of or make extracts
from any document provided pursuant to a data-holder notice.

Power to retain documents

7 (1) If an officer of Revenue and Customs thinks it reasonable to do so, HMRC
may retain documents provided pursuant to a data-holder notice for a
35reasonable period.

(2) While a document is being retained, the data-holder may, if the document is
reasonably required for any purpose, request a copy of it.

(3) The retention of a document under this paragraph is not to be regarded as
breaking any lien claimed on the document.

(4) 40If a document retained under this paragraph is lost or damaged, the
Commissioners are liable to compensate the owner of the document for any
expenses reasonably incurred in replacing or repairing the document.

Finance (No. 3) BillPage 369

Part 2 Relevant data-holders

Introduction

8 (1) This Part of this Schedule sets out who is a relevant data-holder for the
5purposes of this Schedule.

(2) Descriptions of the various types of data-holder are to be read as including
anyone who was previously of such a description.

Salaries, fees, commission etc

9 (1) Each of the following is a relevant data-holder—

(a) 10an employer,

(b) a person who is concerned in making payments to or in respect of
another person’s employees with respect to their employment with
that other person,

(c) an approved agent within the meaning of section 714 of ITEPA 2003
15(which relates to payroll giving), and

(d) a person who carries on a business in connection with which relevant
payments are or are likely to be made.

(2) Relevant payments are—

(a) payments for or in connection with services provided by persons
20who are not employed in the business, or

(b) periodical or lump sum payments in respect of any copyright, public
lending right, right in a registered design or design right.

(3) Payments are taken to be made in connection with a business if they are
made—

(a) 25in the course of carrying on the business or a part of it, or

(b) in connection with the formation, acquisition, development or
disposal of the business or a part of it.

(4) Sub-paragraph (1)(d) applies to the carrying on of any other kind of activity
as it applies to the carrying on of a business, but only if the activity is being
30carried on by a body of persons (and references in sub-paragraphs (2) and
(3) to the business are to be read accordingly).

(5) A reference in this paragraph to the making of payments includes—

(a) the provision of benefits, and

(b) the giving of any other valuable consideration.

10 (1) 35This paragraph applies if—

(a) services that an individual provides or is obliged to provide under an
agency contract are treated under section 44(2) of ITEPA 2003 as the
duties of an employment held by the individual with the agency, or

(b) remuneration receivable under or in consequence of arrangements
40falling within section 45 of that Act is treated as earnings from an
employment held by an individual with the agency.

(2) For the purposes of paragraph 9—

(a) the individual is treated as being employed by the agency, and

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