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applies to money or securities for money collected or received for | |
or on account of VAT if required to be paid to another member | |
State by virtue of the VAT Co-operation Regulation. | |
(2) In sub-paragraph (1) above, “the VAT Co-operation Regulation” | |
means the Council Regulation of 27 January 1992 on | 5 |
administrative co-operation in the field of indirect taxation (VAT) | |
(218/92/EEC), as amended by the Council Regulation of 7 May | |
2002 (792/2002/EC) (which temporarily amends the VAT Co- | |
operation Regulation as regards additional measures regarding | |
electronic commerce). | 10 |
Refund of UK VAT | |
22 (1) The provisions which give effect to the 1986 VAT Refund Directive | |
in the United Kingdom have effect in relation to a participant in | |
the special scheme, but with the following modifications. | |
(2) The provision which gives effect to Article 2(1) of the 1986 VAT | 15 |
Refund Directive (as at 9th April 2003, see regulation 186 of the | |
Value Added Tax Regulations 1995) shall apply in relation to a | |
participant in the special scheme, but only so as to entitle him to a | |
refund of VAT charged on— | |
(a) goods imported by him into the United Kingdom, and | 20 |
(b) supplies made to him in the United Kingdom, | |
in connection with the making by him of qualifying supplies while | |
he is a participant in the special scheme. | |
(3) The following provisions shall be omitted. | |
(4) The first provision is that which gives effect to Article 1(1) of the | 25 |
1986 VAT Refund Directive, so far as it requires a member State to | |
prevent a person who is deemed to have supplied services in that | |
member State during a period from being granted a refund of VAT | |
for that period (as at 9th April 2003, see regulation 188(2)(b) of the | |
Value Added Tax Regulations 1995). | 30 |
(5) The second provision is that which gives effect to Article 2(2) of | |
the 1986 VAT Refund Directive (which permits member States to | |
make refunds conditional upon the granting by third States of | |
comparable advantages regarding turnover taxes: as at 9th April | |
2003, see regulation 188(1) of the Value Added Tax Regulations | 35 |
1995). | |
(6) The third provision is that which gives effect to Article 2(3) of the | |
1986 VAT Refund Directive (which permits member States to | |
require the appointment of a tax representative: as at 9th April | |
2003, see regulation 187 of the Value Added Tax Regulations | 40 |
1995). | |
(7) The fourth provision is that which gives effect to Article 4(2) of the | |
1986 VAT Refund Directive (which permits member States to | |
provide for the exclusion of certain expenditure and to make | |
refunds subject to additional conditions). | 45 |
(8) In this paragraph “the 1986 VAT Refund Directive” means the | |
Thirteenth Council Directive of 17th November 1986 on the | |
harmonisation of the laws of the member States relating to | |
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turnover taxes - arrangements for the refund of value added tax to | |
taxable persons not established in Community territory (86/560/ | |
EEC). | |
Part 5 | |
Supplementary | 5 |
Interpretation | |
23 (1) In this Schedule— | |
“the 1977 VAT Directive” means the Sixth Council Directive | |
of 17 May 1977 on the harmonisation of the laws of the | |
member States relating to turnover taxes - common | 10 |
system of value added tax: uniform basis of assessment | |
(77/388/EEC); | |
“the 2002 VAT Directive” means the Council Directive of 7 | |
May 2002 amending and amending temporarily the 1977 | |
VAT Directive as regards the value added tax | 15 |
arrangements applicable to radio and television | |
broadcasting services and certain electronically supplied | |
services (2002/38/EC); | |
“Article 26c” has the meaning given by paragraph 2(7) | |
above; | 20 |
“the Controller” has the meaning given by paragraph 11(7) | |
above; | |
“participant in the special scheme” has the meaning given | |
by paragraph 16(5) above; | |
“qualifying supply” has the meaning given by paragraph 3 | 25 |
above; | |
“registration number” means the number allocated to a | |
person on his registration under this Schedule in | |
accordance with paragraph 6(a) above; | |
“registration request” is to be construed in accordance with | 30 |
paragraph 4(1)(b) above; | |
“reporting period” is to be construed in accordance with | |
paragraph 11(2) above; | |
“special accounting return” is to be construed in accordance | |
with paragraph 11(1) above. | 35 |
(2) References in this Schedule to a qualifying supply being “treated | |
as made” in a member State are references to its being treated as | |
made— | |
(a) in the United Kingdom, by virtue of any provision which | |
gives effect in the United Kingdom to Article 9(2)(f) of the | 40 |
1977 VAT Directive (which is inserted by Article 1(1)(b) of | |
the 2002 VAT Directive), or | |
(b) in another member State, by virtue of any provision of the | |
law of that member State which gives effect to that Article. | |
(3) The provision which, as at 9th April 2003, is to give effect in the | 45 |
United Kingdom to Article 9(2)(f) of the 1977 VAT Directive (as | |
mentioned in sub-paragraph (2)(a) above) is article 16A of the | |
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Value Added Tax (Place of Supply of Services) Order 1992 (which | |
is prospectively inserted by article 3 of the Value Added Tax (Place | |
of Supply of Services) (Amendment) Order 2003).”. | |
Schedule 3 | |
Section 49 | |
Stamp duty land tax: transactions exempt from charge | 5 |
No chargeable consideration | |
1 A land transaction is exempt from charge if there is no chargeable | |
consideration for the transaction. | |
Grant of certain leases by registered social landlords | |
2 (1) The grant of a lease of a dwelling is exempt from charge if the lease— | 10 |
(a) is granted by a registered social landlord to one or more individuals | |
in accordance with arrangements to which this paragraph applies, | |
and | |
(b) is for an indefinite term or is terminable by notice of a month or less. | |
(2) This paragraph applies to arrangements between a registered social | 15 |
landlord and a housing authority under which the landlord provides, for | |
individuals nominated by the authority in pursuance of its statutory | |
housing functions, temporary rented accommodation which the landlord | |
itself has obtained on a short-term basis. | |
The reference above to accommodation obtained by the landlord “on a short- | 20 |
term basis” is to accommodation leased to the landlord for a term of five | |
years or less. | |
(3) A “housing authority” means— | |
(a) in relation to England and Wales— | |
(i) a principal council within the meaning of the Local | 25 |
Government Act 1972 (c. 70), or | |
(ii) the Common Council of the City of London; | |
(b) in relation to Scotland, a council constituted under section 2 of the | |
Local Government etc. (Scotland) Act 1994 (c. 39); | |
(c) in relation to Northern Ireland— | 30 |
(i) the Department for Social Development in Northern Ireland, | |
or | |
(ii) the Northern Ireland Housing Executive. | |
Transactions in connection with divorce etc | |
3 A transaction between one party to a marriage and the other is exempt from | 35 |
charge if it is effected— | |
(a) in pursuance of an order of a court made on granting in respect of the | |
parties a decree of divorce, nullity of marriage or judicial separation; | |
(b) in pursuance of an order of a court made in connection with the | |
dissolution or annulment of the marriage, or the parties’ judicial | 40 |
separation, at any time after the granting of such a decree; | |
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(c) in pursuance of— | |
(i) an order of a court made at any time under section 22A, 23A | |
or 24A of the Matrimonial Causes Act 1973 (c. 18), or | |
(ii) an incidental order of a court made under section 8(2) of the | |
Family Law (Scotland) Act 1985 (c. 37) by virtue of section | 5 |
14(1) of that Act; | |
(d) at any time in pursuance of an agreement of the parties made in | |
contemplation or otherwise in connection with the dissolution or | |
annulment of the marriage, their judicial separation or the making of | |
a separation order in respect of them. | 10 |
Variation of testamentary dispositions etc | |
4 (1) A transaction following a person’s death that varies a disposition (whether | |
effected by will, under the law relating to intestacy or otherwise) of property | |
of which the deceased was competent to dispose is exempt from charge if the | |
following conditions are met. | 15 |
(2) The conditions are— | |
(a) that the transaction is carried out within the period of two years after | |
a person’s death, and | |
(b) that no consideration in money or money’s worth other than the | |
making of a variation of another such disposition is given for it. | 20 |
(3) This paragraph applies whether or not the administration of the estate is | |
complete or the property has been distributed in accordance with the | |
original dispositions. | |
Power to add further exemptions | |
5 (1) The Treasury may by regulations provide that any description of land | 25 |
transaction specified in the regulations is exempt from charge. | |
(2) The regulations may contain such supplementary, incidental and | |
transitional provision as appears to the Treasury to be appropriate. | |
Schedule 4 | |
Section 50 | |
Stamp duty land tax: chargeable consideration | 30 |
Money or money’s worth | |
1 (1) The chargeable consideration for a transaction is, except as otherwise | |
expressly provided, any consideration in money or money’s worth given for | |
the subject-matter of the transaction, directly or indirectly, by the purchaser | |
or a person connected with him. | 35 |
(2) Section 839 of the Taxes Act 1988 (connected persons) applies for the | |
purposes of sub-paragraph (1). | |
Value added tax | |
2 The chargeable consideration for a transaction shall be taken to include any | |
value added tax chargeable in respect of the transaction, other than value | 40 |
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added tax chargeable by virtue of an election under paragraph 2 of Schedule | |
10 to the Value Added Tax Act 1994 (c. 23) made after the effective date of | |
the transaction. | |
Postponed consideration | |
3 The amount or value of the chargeable consideration for a transaction shall | 5 |
be determined without any discount for postponement of the right to receive | |
it or any part of it. | |
Just and reasonable apportionment | |
4 (1) For the purposes of this Part of this Act consideration attributable— | |
(a) to two or more land transactions, or | 10 |
(b) in part to a land transaction and in part to another matter, or | |
(c) in part to matters making it chargeable consideration and in part to | |
other matters, | |
shall be apportioned on a just and reasonable basis. | |
(2) If the consideration is not so apportioned, this Part of this Act has effect as if | 15 |
it had been so apportioned. | |
(3) For the purposes of this paragraph any consideration given for what is in | |
substance one bargain shall be treated as attributable to all the elements of | |
the bargain, even though— | |
(a) separate consideration is, or purports to be, given for different | 20 |
elements of the bargain, or | |
(b) there are, or purport to be, separate transactions in respect of | |
different elements of the bargain. | |
Exchanges | |
5 (1) This paragraph applies to determine the chargeable consideration where | 25 |
one or more land transactions are entered into by a person as purchaser | |
(alone or jointly) wholly or partly in consideration of one or more other land | |
transactions being entered into by him (alone or jointly) as vendor. | |
(2) In this paragraph— | |
(a) “relevant transaction” means any of those transactions, and | 30 |
(b) “relevant acquisition” means a relevant transaction entered into as | |
purchaser and “relevant disposal” means a relevant transaction | |
entered into as vendor. | |
(3) The following rules apply if the subject-matter of any of the relevant | |
transactions is a major interest in land— | 35 |
(a) where a single relevant acquisition is made, the chargeable | |
consideration for the acquisition is— | |
(i) the market value of the subject-matter of the acquisition, and | |
(ii) if the acquisition is the grant of a lease at a rent, that rent; | |
(b) where two or more relevant acquisitions are made, the chargeable | 40 |
consideration for each relevant acquisition is— | |
(i) the market value of the subject-matter of that acquisition, and | |
(ii) if the acquisition is the grant of a lease at a rent, that rent. | |
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(4) The following rules apply if the subject-matter of none of the relevant | |
transactions is a major interest in land— | |
(a) where a single relevant acquisition is made in consideration of one or | |
more relevant disposals, the chargeable consideration for the | |
acquisition is the amount or value of any chargeable consideration | 5 |
other than the disposal or disposals that is given for the acquisition; | |
(b) where two or more relevant acquisitions are made in consideration | |
of one or more relevant disposals, the chargeable consideration for | |
each relevant acquisition is the appropriate proportion of the | |
amount or value of any chargeable consideration other than the | 10 |
disposal or disposals that is given for the acquisitions. | |
(5) For the purposes of sub-paragraph (4)(b) the appropriate proportion is—
MV
TMV
| |
where— | |
MV is the market value of the subject-matter of the acquisition for | |
which the chargeable consideration is being determined, and | 15 |
TMV is the total market value of the subject-matter of all the relevant | |
acquisitions. | |
(6) This paragraph has effect subject to— | |
paragraph 6 of this Schedule (partition etc: disregard of existing | |
interest), and | 20 |
section 58 (part-exchange of residential property). | |
Partition etc: disregard of existing interest | |
6 In the case of a land transaction giving effect to a partition or division of a | |
chargeable interest to which persons are jointly entitled the share of the | |
interest held by the purchaser immediately before the partition or division | 25 |
does not count as chargeable consideration. | |
Valuation of non-monetary consideration | |
7 Except as otherwise expressly provided, the value of any chargeable | |
consideration for a land transaction, other than— | |
(a) money (whether in sterling or another currency), or | 30 |
(b) debt as defined for the purposes of paragraph 8 (debt as | |
consideration), | |
shall be taken to be its market value at the effective date of the transaction. | |
Debt as consideration | |
8 (1) Where the chargeable consideration for a land transaction consists in whole | 35 |
or in part of— | |
(a) the satisfaction or release of debt due to the purchaser or owed by the | |
vendor, or | |
(b) the assumption of existing debt by the purchaser, | |
the amount of debt satisfied, released or assumed shall be taken to be the | 40 |
whole or, as the case may be, part of the chargeable consideration for the | |
transaction. | |
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(2) If the effect of sub-paragraph (1) would be that the amount of the chargeable | |
consideration for the transaction exceeded the market value of the subject- | |
matter of the transaction, the amount of the chargeable consideration is | |
treated as limited to that value. | |
(3) In this paragraph— | 5 |
(a) “debt” means an obligation, whether certain or contingent, to pay a | |
sum of money either immediately or at a future date, | |
(b) “existing debt”, in relation to a transaction, means debt created or | |
arising before the effective date of, and otherwise than in connection | |
with, the transaction, and | 10 |
(c) references to the amount of a debt are to the principal amount | |
payable or, as the case may be, the total of the principal amounts | |
payable, together with the amount of any interest that has accrued | |
due on or before the effective date of the transaction. | |
Conversion of amounts in foreign currency | 15 |
9 (1) References in this Part to the amount or value of the consideration for a | |
transaction are to its amount or value in sterling. | |
(2) For the purposes of this Part the sterling equivalent of an amount expressed | |
in another currency shall be ascertained by reference to the London closing | |
exchange rate on the effective date of the transaction (unless the parties have | 20 |
used a different rate for the purposes of the transaction). | |
Carrying out of works | |
10 (1) Where the whole or part of the consideration for a land transaction consists | |
of the carrying out of works of construction, improvement or repair of a | |
building or other works to enhance the value of land, then— | 25 |
(a) to the extent that the conditions specified in sub-paragraph (2) are | |
met, the value of the works does not count as chargeable | |
consideration, and | |
(b) to the extent that those conditions are not met, the value of the works | |
shall be taken into account as chargeable consideration. | 30 |
(2) The conditions referred to in sub-paragraph (1)(a) are— | |
(a) that the works are carried out after the effective date of the | |
transaction, | |
(b) that the works are carried out on land acquired or to be acquired | |
under the transaction or on other land held by the purchaser or a | 35 |
person connected with him, and | |
(c) that it is not a condition of the transaction that the works are carried | |
out by the vendor or a person connected with him. | |
(3) In this paragraph— | |
(a) references to the acquisition of land are to the acquisition of a major | 40 |
interest in it; | |
(b) the value of the works shall be taken to be the amount that would | |
have to be paid in the open market for the carrying out of the works | |
in question. | |
(4) Section 839 of the Taxes Act 1988 (connected persons) has effect for the | 45 |
purposes of this paragraph. | |
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