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Finance Bill
Schedule 38 — Stamp duty land tax: relief from 15% rate

465

 

(b)   

has ceased to be met.

      (7)  

The requirement is treated as being met if reasonable steps are

being taken to ensure that the requirement begins to be met, or is

again met.

      (8)  

In this paragraph—

5

(a)   

“the relevant interest” has the same meaning as in

paragraph 6D;

(b)   

“the relevant person” means the person (other than the

financial institution) who enters into the arrangements

mentioned in section 71A(1), 72(1), 72A(1) or 73(1);

10

(c)   

references to a major interest in land include an undivided

share in a major interest in land.

      (6)  

In paragraph 9 (interpretation), at the appropriate places insert—

““financial institution” has the same meaning as in sections 71A

to 73B (see section 73BA);”

15

““property development trade” has the meaning given by

paragraph 5(3);”

““property rental business” has the meaning given by section

131(4) of the Finance Act 2013;”

““property trading business” has the meaning given by

20

paragraph 5(3);”

““qualifying farm worker” has the meaning given by paragraph

5F(4);”

““qualifying trade” has the meaning given by paragraph 5B(3);”

““qualifying trade of farming” has the meaning given by

25

paragraph 5F(5);”.

Minor and consequential amendments

3     (1)  

Section 81 (further return where relief withdrawn) is amended as follows.

      (2)  

After subsection (1) insert—

“(1A)   

Where relief is withdrawn to any extent under any of paragraphs 5G

30

to 5K of Schedule 4A (higher rate for certain transactions) the

purchaser must deliver a further return before the end of the period

of 30 days after the relevant date.

(1B)   

In subsection (1A) “the relevant date” means—

(a)   

in the case of relief under paragraph 5 of Schedule 4A

35

(businesses of letting, trading in or redeveloping properties),

the first day in the period mentioned in paragraph 5G(2) on

which a requirement under paragraph 5G(3) was not met in

the case of the chargeable interest in question;

(b)   

in the case of relief under paragraph 5B of that Schedule

40

(trades involving making a dwelling available to the public),

the first day in the period mentioned in paragraph 5H(2) on

which a requirement under paragraph 5H(3) was not met in

the case of the chargeable interest in question;

(c)   

in the case of relief under paragraph 5C of that Schedule

45

(financial institutions acquiring dwellings in the course of

lending), the first day in the period mentioned in paragraph

 
 

Finance Bill
Schedule 38 — Stamp duty land tax: relief from 15% rate

466

 

5I(2) on which a requirement under paragraph 5I(3) was not

met in the case of the chargeable interest in question;

(d)   

in the case of relief under paragraph 5D of that Schedule

(dwellings for occupation by certain employees etc), the first

day in the period mentioned in paragraph 5J(2) on which a

5

requirement under paragraph 5J(3) was not met in the case of

the chargeable interest in question;

(e)   

in the case of relief under paragraph 5F of that Schedule

(farmhouses), the first day in the period mentioned in

paragraph 5K(2) on which a requirement under paragraph

10

5K(3) was not met in the case of the chargeable interest in

question.”

      (3)  

In subsection (2A), for “Tax” substitute “Where subsection (1) applies any

tax”.

      (4)  

In subsection (3) for “this section” substitute “subsection (1)”.

15

      (5)  

After subsection (4) insert—

“(5)   

The provisions of Schedule 10 apply to a return under subsection

(1A) as they apply to a return under section 76, but with the

adaptation that references to the effective date of the transaction are

to be read as references to the relevant date (as defined in subsection

20

(1B)).”

4          

After section 81 insert—

“81ZA   

Alternative finance arrangements: return where relief withdrawn

(1)   

Where relief given in respect of a transaction entered into under

alternative finance arrangements is withdrawn to any extent under

25

any of paragraphs 6D, 6F, 6G or 6H of Schedule 4A (higher rate of

tax: alternative finance arrangements)—

(a)   

the relevant person must deliver a return to HMRC before the

end of the period of 30 days after the date of the disqualifying

event;

30

(b)   

the return must contain a self-assessment of the additional

tax chargeable as a result of the withdrawal of the relief;

(c)   

the tax so chargeable is calculated by reference to the rates in

force at the effective date of the transaction in respect of

which the relief was allowed.

35

(2)   

The provisions of Schedule 10 (returns, enquiries, assessments and

other matters) apply to a return under this section as they apply to a

return under section 76 (general requirement to make land

transaction return), but with the following adaptations—

(a)   

references to the effective date of the transaction are to be

40

read as references to the date of the disqualifying event;

(b)   

references to the purchaser are to be read as references to the

relevant person so far as that is necessary as a result of

subsection (1) of this section or section 85(3) (payment of

additional tax by relevant person where relief withdrawn).

45

(3)   

In this section “the date of the disqualifying event” means the first

day in the control period on which a relevant requirement was not

met.

 
 

Finance Bill
Schedule 38 — Stamp duty land tax: relief from 15% rate

467

 

(4)   

In subsection (3) “relevant requirement” means—

(a)   

where the relief was given under paragraph 5 of Schedule 4A

(businesses of letting, trading in or redeveloping properties),

a requirement under paragraph 5G(3) of that Schedule;

(b)   

where the relief was given under paragraph 5B of that

5

Schedule (trades involving making a dwelling available to

the public), a requirement under paragraph 5H(3) of that

Schedule;

(c)   

where the relief was given under paragraph 5C of that

Schedule (financial institutions acquiring dwellings in the

10

course of lending), a requirement under paragraph 5I(3) of

that Schedule;

(d)   

where the relief was given under paragraph 5D of that

Schedule (dwellings for occupation by certain employees

etc), a requirement under paragraph 5J(3) of that Schedule;

15

(e)   

where the relief was given under paragraph 5F of that

Schedule (farmhouses), a requirement under paragraph

5K(3) of that Schedule.

(5)   

In subsection (3) “the control period” has the same meaning as in

paragraph 5G, 5H, 5I, 5J or 5K (as the case requires) of Schedule 4A.

20

(6)   

In this section—

“alternative finance arrangements” means any arrangements

such as are mentioned in section 71A, 72, 72A or 73;

“the relevant person” means the person (other than the financial

institution) who entered into the arrangements in question.”

25

5          

In section 85 (liability for tax), after subsection (2) insert—

“(3)   

Where relief given in respect of a transaction entered into under

alternative finance arrangements is withdrawn to any extent under

any of paragraphs 6D, 6F, 6G and 6H of Schedule 4A (higher rate:

alternative finance arrangements)—

30

(a)   

subsection (1) does not apply in relation to the additional tax

payable as a result of the withdrawal of the relief, and

(b)   

the relevant person is liable to pay that additional tax.

(4)   

In subsection (3) “the relevant person” means the person (other than

the financial institution) who entered into the arrangements in

35

question.”

6          

In section 86 (payment of tax), after subsection (2) insert—

“(2A)   

Tax payable as a result of a withdrawal of relief under any of

paragraphs 6D, 6F, 6G and 6H of Schedule 4A (higher rate:

alternative finance arrangements) must be paid not later than the

40

filing date for the return relating to the withdrawal (see section

81ZA(1)).”

7          

In the table in section 122 (index of defined expressions), in second column

of the entry for “settlement”, after “paragraph 1(1)” insert “(except as

otherwise expressly provided)”.

45

 
 

Finance Bill
Schedule 38 — Stamp duty land tax: relief from 15% rate

468

 

Application of amendments

8          

The amendments made by paragraphs 1 to 7 have effect in relation to

transactions with an effective date on or after the day on which this Act is

passed.

Transactions to which section 29 of the Scotland Act 2012 applies

5

9     (1)  

In relation to transactions in relation to which section 29 of the Scotland Act

2012 (disapplication of UK stamp duty land tax) has effect, FA 2003 as

amended by this Schedule has effect subject to the following further

amendments.

      (2)  

In section 81ZA, in subsection (6), in the definition of “alternative finance

10

arrangements”, omit “72, 72A”.

      (3)  

In Schedule 4A—

(a)   

in paragraph 6A—

(i)   

in sub-paragraph (1)(a), omit “section 72 (land in Scotland

sold to financial institution and leased to person)”,

15

(ii)   

omit sub-paragraph (2)(b),

(iii)   

in sub-paragraph (4), omit “, 72(3)”, and

(iv)   

in sub-paragraph (6), omit “, 72”,

(b)   

omit paragraph 6B,

(c)   

in paragraph 6C—

20

(i)   

in sub-paragraph (1), omit “or 6B (“the modifying

paragraph”)” and for “in the modifying paragraph”

substitute “in paragraph 6A”, and

(ii)   

accordingly, in the heading omit “and 6B”,

(d)   

in paragraph 6D—

25

(i)   

in sub-paragraph (1), omit “or 6B(3)”,

(ii)   

in sub-paragraph (3)(a), omit “and (6)”,

(iii)   

in sub-paragraph (5)(b), omit “or 72(1)(c)”,

(iv)   

omit sub-paragraph (6), and

(v)   

in sub-paragraph (7), in the definition of “relevant person”,

30

omit “, 72(1), 72A(1)”,

(e)   

in paragraph 6E(4)(b), for “sub-paragraph (5)(a) or (6)(a) of

paragraph 6D (as the case requires)” substitute “paragraph 6D(5)(a)”,

(f)   

in paragraph 6F—

(i)   

in sub-paragraph (1), omit “or 6B(3)”, and

35

(ii)   

in sub-paragraph (7)(a), omit “, 72(1), 72A(1)”,

(g)   

in paragraph 6G—

(i)   

in sub-paragraph (1), omit “or 6B(3)”, and

(ii)   

in sub-paragraph (9)(b), omit “72(1), 72A(1)”, and

(h)   

in paragraph 6H—

40

(i)   

in sub-paragraph (1), omit “or 6B(3), and

(ii)   

in sub-paragraph (8)(b), omit “72(1), 72A(1)”.

 
 

 
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