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PART IV |
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STAMP DUTY |
| Rates: conveyance or transfer on sale. |
114. - (1) In Schedule 13 to the Finance Act 1999 (instruments chargeable and rates of duty), in Part I (conveyance or transfer on sale), in the third column of the table in paragraph 4-
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(a) in the third entry, for "2.5%" substitute "3%"; and |
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(b) in the fourth entry, for "3.5%" substitute "4%". |
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(2) This section applies to instruments executed on or after 28th March 2000.
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(3) But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless-
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(a) the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right; or |
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(b) the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract, because of an assignment (or, in Scotland, assignation) or further contract made after that date. |
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(4) This section shall be deemed to have come into force on 28th March 2000.
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| Rates: duty on lease chargeable by reference to rent. |
115. - (1) In Schedule 13 to the Finance Act 1999 (instruments chargeable and rates of duty), in Part II (lease)-
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(a) in paragraph 11, in paragraph 1 of the table, and |
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(b) in paragraph 12(3), in paragraph 1(a) and (b) of the table, |
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for "£500" substitute "£5,000".
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(2) This section has effect in relation to instruments executed on or after 28th March 2000.
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(3) This section shall be deemed to have come into force on 28th March 2000.
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| Rate of duty on seven year leases |
116. - (1) In paragraph 12(3) of Schedule 13 to the Finance Act 1999 (rates of stamp duty on leases where part of consideration is rent), in paragraph 1 of the table, for "less than 7 years" substitute "not more than 7 years".
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(2) This section applies to instruments executed on or after 1st October 1999, subject to Schedule 32 to this Act (which makes transitional provision for instruments executed on or after 1st October 1999 but before 28th March 2000).
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(3) This section shall be deemed to have come into force on 28th March 2000.
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| Power to vary stamp duties. |
117. Schedule 33 to this Act (power to vary stamp duties) has effect.
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| Land transferred etc for other property. |
118. - (1) Subsection (2) applies where-
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(a) an instrument transferring or vesting an estate or interest in land would not, apart from this section, be or fall to be treated as a conveyance or transfer on sale for the purposes of stamp duty; but |
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(b) the transfer or vesting of the estate or interest is for consideration; and |
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(c) the consideration is or includes any property ("the other property"). |
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(2) For the purposes of Part I of Schedule 13 to the Finance Act 1999 (stamp duty on conveyance or transfer on sale) the instrument transferring or vesting the estate or interest shall be taken to be a transfer on sale of the estate or interest.
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(3) If-
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(a) the other property is or includes one or more estates or interests in land, and |
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(b) ad valorem duty is chargeable on the conveyance or transfer of all or any of those estates or interests, |
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the amount of duty that would (apart from this subsection) be chargeable in consequence of subsection (2) on the transfer on sale there mentioned shall be reduced (but not below nil) by the total of the ad valorem duty chargeable as mentioned in paragraph (b).
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(4) If, for the purposes of Part I of Schedule 13 to the Finance Act 1999, the amount or value of the consideration for the transfer on sale mentioned in subsection (2) would (apart from this subsection) exceed the market value of the estate or interest immediately before the execution of the instrument transferring or vesting it, the amount or value of the consideration shall be taken for those purposes to be equal to that market value.
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(5) For the purposes of this section, the market value of property at any time is the price which that property might reasonably be expected to fetch on a sale at that time in the open market.
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(6) Subsection (2) has effect even though-
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(a) the transfer or vesting of the estate or interest is the whole or part of the consideration for a sale of the other property; or |
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(b) the transaction is by way of exchange. |
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(7) Subsection (2) does not affect any charge to stamp duty in respect of the same or any other instrument so far as it relates to the transfer of the other property.
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(8) This section is subject to subsection (5) of section 119.
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(9) This section shall be construed as one with the Stamp Act 1891.
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(10) This section applies to instruments executed on or after 28th March 2000.
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(11) But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless-
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(a) the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right; or |
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(b) the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract, because of an assignment (or, in Scotland, assignation) or further contract made after that date. |
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(12) This section shall be deemed to have come into force on 28th March 2000.
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| Transfer of land to connected company. |
119. - (1) This section applies where an estate or interest in land is transferred to or vested in a company ("A") and-
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(a) the person transferring or vesting the estate or interest ("B") is connected with A; or |
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(b) some or all of the consideration for the transfer or vesting consists of the issue or transfer of shares in a company with which B is connected. |
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(2) For the purposes of Part I of Schedule 13 to the Finance Act 1999 (stamp duty on conveyance or transfer on sale) an instrument transferring or vesting the estate or interest shall be taken to be a transfer on sale of the estate or interest.
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(3) If for those purposes the amount or value of the consideration for the transfer on sale of the estate or interest would, apart from this subsection, be less than the value determined under subsection (4), the consideration shall be taken for those purposes to be the value determined under subsection (4).
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(4) That value is-
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(a) the market value of the estate or interest immediately before the execution of the instrument transferring or vesting it; but |
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(b) reduced by the value of so much of any actual consideration as does not consist of property. |
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(5) Where-
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(a) apart from this section, an instrument would be chargeable to stamp duty in accordance with section 118, and |
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(b) apart from that section, the instrument would be chargeable to stamp duty in accordance with this section, |
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the stamp duty chargeable on the instrument shall be determined in accordance with this section (instead of that section).
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(6) This section applies only if, in consequence of its application, the instrument transferring or vesting the estate or interest is chargeable with a greater amount of stamp duty than it would be apart from this section and section 118.
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(7) For the purposes of this section, the market value of property at any time is the price which that property might reasonably be expected to fetch on a sale at that time in the open market.
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(8) In this section-
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"company" means any body corporate; |
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"shares" includes stock and the reference to shares in a company includes a reference to securities issued by a company. |
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(9) For the purposes of this section, the question whether any person is connected with another shall be determined in accordance with the provisions of section 839 of the Taxes Act 1988.
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(10) This section shall be construed as one with the Stamp Act 1891.
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(11) This section applies to instruments executed on or after 28th March 2000.
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(12) But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless-
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(a) the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right; or |
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(b) the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract, because of an assignment (or, in Scotland, assignation) or further contract made after that date. |
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(13) This section shall be deemed to have come into force on 28th March 2000.
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