(i) a vehicle for which a vehicle licence taken out at a
rate of duty reduced in accordance with sub-
paragraph (1) is in force, or

(ii) an exempt vehicle under paragraph 19 of Schedule
52 or paragraph 7 of Schedule 4.

(3) This paragraph has effect as if a person were in receipt of personal
independence payment by virtue of entitlement to the mobility
component at the standard rate in any case where the person
would be in receipt of that payment by virtue of that entitlement
10but for—

(a) regulations under section 86(1) of the Welfare Reform Act
2012 (treatment as in-patient in hospital or similar
institution), or

(b) corresponding provision having effect in Northern
15Ireland.

(4) For the purposes of sub-paragraph (2), a vehicle is to be treated as
registered under this Act in the name of a person in receipt of
personal independence payment by virtue of entitlement to the
mobility component at the standard rate if it is so registered in the
20name of—

(a) an appointee, or

(b) a person nominated for the purposes of this paragraph by
the person or an appointee.

(5) In sub-paragraph (4) “appointee” means a person appointed
25pursuant to regulations made under (or having effect as if made
under) the Social Security Administration Act 1992 or the Social
Security Administration (Northern Ireland) Act 1992 to exercise
any of the rights and powers of a person in receipt of personal
independence payment.”

6 (1) 30In Schedule 2 (exempt vehicles), paragraph 19 is amended as follows.

(2) In sub-paragraph (1), for paragraph (b) substitute—

“(b) no other vehicle registered in his or her name under this Act
is—

(i) a vehicle for which a vehicle licence taken out at a rate
35of vehicle excise duty reduced in accordance with
paragraph 1ZA(1) of Schedule 1 is in force, or

(ii) an exempt vehicle under this paragraph or paragraph
7 of Schedule 4.”

(3) In sub-paragraph (2), after paragraph (a) insert—

“(aa) 40he or she is in receipt of personal independence payment
by virtue of entitlement to the mobility component at the
enhanced rate,

(ab) he or she is in receipt of armed forces independence
payment,”.

(4) 45After sub-paragraph (2A) insert—

“(2B) This paragraph has effect as if a person were in receipt of personal
independence payment by virtue of entitlement to the mobility
component at the enhanced rate in any case where the person

would be in receipt of that payment by virtue of that entitlement
but for—

(a) regulations under section 86(1) of the Welfare Reform Act
2012 (treatment as in-patient in hospital or similar
5institution), or

(b) corresponding provision having effect in Northern
Ireland.”

(5) In sub-paragraph (3), for “person in receipt of a disability living allowance
by virtue of entitlement to the mobility component at the higher rate, or of a
10mobility supplement,” substitute “disabled person who satisfies sub-
paragraph (2) by virtue of paragraph (a), (aa), (ab) or (b) of that sub-
paragraph”.

(6) In sub-paragraph (4)(a), after “disability living allowance,” insert “personal
independence payment or armed forces independence payment,”.

7 15The amendments made by this Schedule are treated as having come into
force on 8 April 2013.

Section 190

SCHEDULE 36 Valuation of certain supplies of fuel

Introductory

1 20VATA 1994 is amended as follows.

Valuation of supplies for private use

2 In Schedule 6 (valuation: special cases), before paragraph 1 insert—

“ Part 1 Valuation of supplies of fuel for private use

A1 25Option for valuation on flat-rate basis

(1) This paragraph applies if, in a prescribed accounting period,
supplies of goods by a taxable person (“P”) arise by virtue of
paragraph 5(1) of Schedule 4 (but otherwise than for a
consideration) where road fuel which is or has previously been
30supplied to or imported or manufactured by P in the course of P’s
business is provided for, or appropriated to, private use.

(2) For this purpose “road fuel is provided for, or appropriated to,
private use” if—

(a) it is provided or to be provided by P—

(i) 35to an individual for private use in the individual’s
own car or a car allocated to the individual, and

(ii) by reason of the individual’s employment,

(b) where P is an individual, it is appropriated or to be
appropriated by P for private use in P’s own car, or

(c) where P is a partnership, it is provided or to be provided
to any of the individual partners for private use in that
partner’s own car.

(3) P may opt for all supplies of goods within sub-paragraph (1) made
5by P in the prescribed accounting period to be valued on the flat-
rate basis.

(4) On the flat-rate basis, the value of all supplies made to any one
individual in respect of any one car is that determined in
accordance with an order under paragraph B1.

(1) 10The Treasury must, by order, make provision about the valuation
of supplies on the flat-rate basis.

(2) In particular, an order under this paragraph must—

(a) set out a table (“the base valuation table”) by reference to
which the value of supplies is to be determined until such
15time as the base valuation table is replaced under
paragraph (b),

(b) provide that at regular intervals—

(i) the amounts specified in the base valuation table
are to be revalorised by the Commissioners in
20accordance with the order, and

(ii) a table (an “updated valuation table”) containing
the revalorised amounts is to take effect (and
replace any existing table) in accordance with the
order, and

(c) 25require the Commissioners to publish any updated
valuation table before it takes effect, together with a
statement specifying the date from which it has effect.

(3) An order under this paragraph may provide for the base valuation
table and any updated valuation table to be implemented or
30supplemented by either or both of the following—

(a) rules set out in the order which explain how the value is to
be determined by reference to any table;

(b) notes set out in the order with respect to the interpretation
or application of any table or any rules or notes.

(4) 35Rules or notes may make different provision for different
circumstances or cases.

C1 Interpretation

(1) For the purposes of this Part of this Schedule—

(a) any reference to an individual’s own car is to be construed
40as including any car of which for the time being the
individual has the use, other than a car allocated to the
individual,

(b) subject to sub-paragraph (2), a car is at any time to be taken
to be allocated to an individual if at that time it is made
45available (without any transfer of the property in it) either
to the individual or to any other person, and is so made
available by reason of the individual’s employment and
for private use, and

(c) fuel provided by an employer to an employee and fuel
provided to any person for private use in a car which, by
virtue of paragraph (b), is for the time being taken to be
allocated to the employee is to be taken to be provided to
5the employee by reason of the employee’s employment.

(2) For the purposes of this Part of this Schedule, in any prescribed
accounting period a car is not regarded as allocated to an
individual by reason of the individual’s employment if—

(a) in that period it was made available to, and actually used
10by, more than one of the employees of one or more
employers and, in the case of each of them, it—

(i) was made available to that employee by reason of
the employment, but

(ii) was not in that period ordinarily used by any one
15of them to the exclusion of the others,

(b) in the case of each of the employees, any private use of the
car made by the employee in that period was merely
incidental to the employee’s other use of it in that period,
and

(c) 20in that period it was not normally kept overnight on or in
the vicinity of any residential premises where any of the
employees was residing, except while being kept
overnight on premises occupied by the person making the
car available to them.

(3) 25In this Part of this Schedule—

• “employment” includes any office, and related expressions
  are to be construed accordingly;

• “car” means a motor car as defined by paragraph 1A(4) and
  (5);

• 30“road fuel” means hydrocarbon oil as defined by the
  Hydrocarbon Oil Duties Act 1979 (see section 1(2) of that
  Act) on which duty has been or is required to be paid in
  accordance with that Act.

(4) The Treasury may, by order, amend the definition of “road fuel”
35in sub-paragraph (3).”.

3 In paragraph 6 of that Schedule (valuation of supplies of goods by virtue of
paragraph 5(1) of Schedule 4 etc), in sub-paragraph (1), after “except where”
insert “the person making the supply opts under paragraph A1(3) above for
valuation on the flat-rate basis or”.

4 40Omit sections 56 and 57 (fuel for private use).

5 In section 97(4) (orders subject to affirmative procedure), in paragraph (f)—

(a) after “paragraph” insert “B1, C1(4),”, and

(b) after “1A(7)” insert “, 2A(4)”.

Supplies to employees etc at less than open market value

6 After paragraph 2 of Schedule 6 insert—

“2A (1) This paragraph applies if—

(a) a taxable person (“P”) makes a supply of road fuel for a
5consideration,

(b) the recipient of the supply is—

(i) connected with P, or

(ii) an employee or partner of P or a person who is
connected with such an employee or partner,

(c) 10the value of the supply would (in the absence of this
paragraph) be less than its open market value, and

(d) the recipient of the supply is not entitled to credit for the
whole of the input tax arising on the supply.

(2) The value of the supply is to be taken to be an amount equal to its
15open market value.

(3) For the purposes of this paragraph—

(a) “road fuel” means hydrocarbon oil as defined by the
Hydrocarbon Oil Duties Act 1979 (see section 1(2) of that
Act) on which duty has been or is required to be paid in
20accordance with that Act, and

(b) any question whether a person is connected with another
is to be determined in accordance with section 1122 of the
Corporation Tax Act 2010.

(4) The Treasury may, by order, amend the definition of “road fuel”
25in sub-paragraph (3)(a).”

Commencement and transitional provision

7 (1) The amendments made by paragraphs 2 to 4 come into force in relation to
prescribed accounting periods beginning on or after 1 February 2014.

(2) Subject to that, section 56 of VATA 1994 has effect on and after 11 December
302012 as if in subsection (2) of that section for the words after “it is supplied”
there were substituted “for consideration.”

8 (1) The amendment made by paragraph 6 is to be treated as coming into force
on 11 December 2012 and has effect in relation to—

(a) supplies of goods on or after the commencement day, and

(b) 35supplies of goods in the period beginning with 11 December 2012
and ending immediately before the commencement day, if and to the
extent that the goods are not made available before the end of that
period to the person to whom they are supplied.

(2) “The commencement day” means the day on which this Act is passed.

Section 193

SCHEDULE 37 Stamp duty land tax: transactions entered into before completion of
contract

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

2 5For section 45 (contract and conveyance: effect of transfer of rights)
substitute—

“45 Transactions entered into before completion of contract

Schedule 2A contains—

(a) provision about the application of section 44 (contract and
10conveyance) in certain cases where an assignment of rights,
subsale or other transaction is entered into without the
contract having been completed, and

(b) other provision about such cases.”

3 After Schedule 2 insert—

“Schedule 2A 15Transactions entered into before completion of contract

Pre-completion transactions

1 (1) This Schedule applies where—

(a) a person (“the original purchaser”) enters into a contract
(“the original contract”) for the acquisition by that person
20of a chargeable interest under which the acquisition is to be
completed by a conveyance, and

(b) there is a pre-completion transaction.

(2) A transaction is a “pre-completion transaction” for the purposes of
sub-paragraph (1) if—

(a) 25as a result of the transaction a person other than the
original purchaser (“the transferee”) becomes entitled to
call for a conveyance to that person of the whole or part of
the subject-matter of the original contract, and

(b) immediately before the transaction took place a person
30was entitled under the original contract to call for a
conveyance of the whole or part of that subject-matter.

(3) A transaction that effects a person’s acquisition of the whole or
part of the subject-matter of the original contract is not a pre-
completion transaction.

(4) 35The grant or assignment of an option is not a pre-completion
transaction.

(5) The fact that a transaction has the effect of discharging the original
contract does not prevent that transaction from being a pre-
completion transaction.

(6) The reference in sub-paragraph (1)(a) to a contract does not
include a contract that is an assignment of rights in relation to
another contract.

(7) In this Schedule references to “part of the subject-matter of the
5original contract”—

(a) are to a chargeable interest that is the same as the
chargeable interest referred to in sub-paragraph (1)(a)
except that it relates to part only of the land concerned, and

(b) also include, so far as is appropriate, interests or rights
10appurtenant or pertaining to the chargeable interest.

(8) This Schedule does not apply where paragraph 12B of Schedule
17A (assignment of agreement for lease) applies.

Other key expressions

2 (1) A pre-completion transaction is an “assignment of rights” if the
15entitlement of the transferee referred to in paragraph 1(2)(a) is an
entitlement to exercise rights under the original contract.

(2) A pre-completion transaction other than an assignment of rights is
referred to in this Schedule as a “free-standing transfer”.

(3) In this Schedule “the transferor”, in relation to a pre-completion
20transaction, means a party to the pre-completion transaction who
immediately before the pre-completion transaction took place was
entitled to call for a conveyance of (what became) the subject-
matter of the pre-completion transaction.

(4) References in this Schedule to the “subject-matter” of a pre-
25completion transaction—

(a) are to the chargeable interest the conveyance of which the
transferee is entitled to call for as a result of the pre-
completion transaction, and

(b) include, so far as appropriate, any interest or right
30appurtenant or pertaining to the chargeable interest.

Tax not charged on transferee by reason of the pre-completion transaction

3 The transferee is not regarded as entering into a land transaction
by reason of the pre-completion transaction.

Assignments of rights: application of rules about completion and consideration

4 (1) 35This paragraph applies if the pre-completion transaction is an
assignment of rights.

(2) If the subject-matter of the original contract is conveyed to the
transferee, the conveyance is taken to effect the completion of the
original contract (despite section 44(10)).

(3) 40Sub-paragraphs (4) to (6) apply if—

(a) the subject-matter of the original contract is conveyed to
the transferee, or

(b) the original contract is substantially performed by the
transferee.

(4) The transferee is taken to be the purchaser under the land
transaction effected as mentioned in section 44(3), or treated as
5effected under section 44(4).

(5) For the purpose of determining the chargeable consideration for
that land transaction, the land transaction is taken to give effect to
a contract the consideration under which is—

(a) the consideration under the original contract, and

(b) 10the consideration for the assignment of rights.

Paragraph 1 of Schedule 4 has effect accordingly (but this sub-
paragraph does not allow any amount of consideration given by a
person to be counted twice in determining the chargeable
consideration).

(6) 15In any case in which there is a relevant connection between parties
as mentioned in paragraph 12(2) (minimum consideration rule),
the chargeable consideration for the land transaction mentioned in
sub-paragraph (4) of this paragraph is calculated (regardless of
whether the consideration is taken to be the amount in paragraph
20(a), (b) or (c) of sub-paragraph 12(2)), as if in paragraph 1(1) of
Schedule 4 the words, “or a person connected with him” were
omitted.

(7) The original contract is said to be “substantially performed by the
transferee” where a land transaction is treated under section 44(4)
25as effected by reason of—

(a) the transferee under the assignment of rights, or a person
connected with the transferee, taking possession of the
whole, or substantially the whole, of the subject-matter of
the original contract, or

(b) 30a substantial amount of the consideration being paid or
provided by the transferee or a person connected with the
transferee, or

(c) consideration paid or provided by a person within
paragraph (b) amounting, when taken together with
35consideration paid or provided by another person, to a
substantial amount of the consideration.

(8) References in sub-paragraph (7) to possession and to the payment
or provision of a substantial amount of the consideration are to be
read in accordance with section 44(6) and (7).

(9) 40In sub-paragraph (5) “the consideration”—

(a) in relation to the land transaction, means (what is to be
taken to be) the consideration for the acquisition of the
subject-matter of the land transaction;

(b) in relation to the original contract, means the consideration
45for the acquisition of the subject-matter of that contract;

(c) in relation to the assignment of rights, means the
consideration for the transferee’s acquisition of the rights
to which that contract relates.

Assignment of rights: transferor treated as making separate acquisition

5 (1) Where paragraph 4(4) to (6) applies (assignment of rights: original
contract completed or substantially performed) this Part of this
Act has effect as if—

(a) 5the effective date of the land transaction mentioned in
paragraph 4(4) (“the transferee’s land transaction”) were
also the effective date of another land transaction (a
“notional land transaction”), and

(b) the original purchaser were the purchaser under that
10notional land transaction.

The notional land transaction is referred to below as “associated
with” the assignment of rights under which the original purchaser
is the transferor.

(2) Where sub-paragraph (1) applies and the assignment of rights
15mentioned in paragraph 4(1) (“the implemented assignment of
rights”) was preceded by one or more related assignments of
rights, then for the purposes of this Part of this Act there is taken
to be, for each assignment of rights (other than the first) in the
chain formed by the implemented assignment of rights and those
20preceding assignments of rights, an additional land transaction in
the case of which—

(a) the effective date is the effective date of the transferee’s
land transaction, and

(b) the purchaser is the transferor under that assignment of
25rights.

The additional land transaction is referred to below as “associated
with” the assignment of rights.

(3) For the purpose of determining the chargeable consideration for
the notional land transaction, Schedule 4 has effect as if paragraph
301(1) of that Schedule provided that the chargeable consideration is
(except as otherwise expressly provided) the total of amounts A
and B.

(4) For the purpose of determining the chargeable consideration for
any additional land transaction, Schedule 4 has effect as if
35paragraph 1(1) of that Schedule provided that the chargeable
consideration is (except as otherwise expressly provided) the total
of amounts A, B and C.

(5) For the purposes of sub-paragraphs (3) and (4)—

A is the total amount of any consideration in money or money’s
40worth given (whether directly or indirectly) by any of the
following as consideration under the original contract—

• (a)

  the transferee under the assignment of rights with
  which the notional land transaction or (as the case
  requires) the additional land transaction is associated;

  (b)

  45where that assignment of rights is one in a chain of
  successive transactions that are pre-completion
  transactions in relation to the original contract (all
  having at least part of their subject-matter in
  common), the transferee under any subsequent pre-
  50completion transaction in that chain;

  Finance (No. 2) BillPage 429

  (c)

  a person connected with a person falling within
  paragraph (a) or (b);

B is the total amount of any other consideration in money or
money’s worth given as consideration under the original contract
5(directly or indirectly) by—

• (a)

  the purchaser (under the notional land transaction or,
  as the case requires, the additional land transaction),
  or

  (b)

  a person connected with the purchaser;

10C is the amount of any consideration in money or money’s worth
given for the preceding assignment of rights by—

• (a)

  the purchaser (under the additional land transaction),
  or

  (b)

  a person connected with the purchaser.

(6) 15In the definition of amount C, “the preceding assignment of
rights” means the assignment of rights as a result of which the
purchaser became entitled to call for a conveyance of (what
became) the subject-matter of the assignment of rights associated
with the additional land transaction.

(7) 20In sub-paragraph (2) “related assignment of rights” means a
transaction that is an assignment of rights in relation to the
original contract and has some subject-matter in common with the
implemented assignment of rights.

Paragraph 5: effect of rescission etc following substantial performance

6 (1) 25This paragraph applies where paragraph 5(1) (transferor treated
as making separate acquisition) applies by virtue of the substantial
performance by the transferee of the original contract.

(2) If the original contract is (to any extent) subsequently rescinded or
annulled, or is for any other reason not carried into effect, the tax
30paid by virtue of paragraph 5(1), and any tax paid by virtue of
paragraph 5(2), must (to that extent) be repaid by HMRC.

(3) Repayment under sub-paragraph (2) must be claimed by
amendment of the land transaction return made in respect of the
notional or additional land transaction.

35Assignment of rights relating to part only of subject-matter of original contract

7 Where the transferee under the assignment of rights referred to in
paragraph 4(1) is entitled to call for the conveyance of part, but not
the whole, of the subject-matter of the original contract—

(a) paragraph 4 applies as if the original contract, so far as
40relating to that part of its subject-matter, were a separate
contract, and

(b) the references in paragraph 5 to the original contract are to
be read accordingly.

Assignment of rights: references to “the vendor”

8 (1) 45This paragraph applies where—