|
| |
| |
(b) if the annual rent exceeds £600, the 0% band in Table A in subsection | |
(2) of section 55 does not apply in relation to the consideration other | |
than rent and any case that would have fallen within that band is | |
treated as falling within the 1% band. | |
Land partly non-residential and partly residential | 5 |
6 (1) This paragraph applies where the land is partly non-residential property | |
and partly residential property. | |
References in this paragraph to the consideration attributable to land that is | |
non-residential property or land that is residential property (or to the rent or | |
annual rent so attributable) are to the consideration (or rent or annual rent) | 10 |
so attributable on a just and reasonable apportionment. | |
(2) The consideration attributable to land that is non-residential property does | |
not count as chargeable consideration. | |
(3) The following provisions apply in relation to the consideration attributable | |
to land that is residential property. | 15 |
(4) If— | |
(a) the consideration so attributable does not include rent and the | |
relevant consideration does not exceed £150,000, or | |
(b) the consideration so attributable consists only of rent and the | |
relevant rental value does not exceed £150,000, | 20 |
none of the consideration so attributable counts as chargeable consideration. | |
(5) If the consideration so attributable includes rent and the relevant rental | |
value does not exceed £150,000, the rent so attributable does not count as | |
chargeable consideration. | |
(6) If the consideration so attributable includes consideration other than rent, | 25 |
then— | |
(a) if— | |
(i) the annual rent so attributable does not exceed £600, and | |
(ii) the relevant consideration does not exceed £150,000, | |
the consideration other than rent does not count as chargeable | 30 |
consideration; | |
(b) if the annual rent so attributable exceeds £600, the 0% band in the | |
Tables in subsection (2) of section 55 does not apply in relation to the | |
consideration other than rent and any case that would have fallen | |
within that band is treated as falling within the 1% band. | 35 |
Part 3 | |
Land partly situated in a disadvantaged area | |
Introduction | |
7 (1) This Part of this Schedule applies to a land transaction if the subject matter | |
of the transaction is a chargeable interest in relation to land that is partly in | 40 |
a disadvantaged area and partly outside such an area. | |
(2) References in this Part to the consideration attributable to land situated in a | |
disadvantaged area and to land not so situated (or to the rent or annual rent | |
| |
| |
|
| |
| |
so attributable) are to the consideration (or rent or annual rent) so | |
attributable on a just and reasonable apportionment. | |
Land all non-residential | |
8 If all of the land situated in a disadvantaged area is non-residential property, | |
the consideration attributable to the land situated in the disadvantaged area | 5 |
does not count as chargeable consideration. | |
Land all residential | |
9 (1) This paragraph applies where all the land situated in a disadvantaged area | |
is residential property. | |
(2) If— | 10 |
(a) the consideration attributable to land situated in a disadvantaged | |
area does not include rent and the relevant consideration does not | |
exceed £150,000, or | |
(b) the consideration so attributable consists only of rent and the | |
relevant rental value does not exceed £150,000, | 15 |
none of the consideration so attributable counts as chargeable consideration. | |
(3) If the consideration attributable to land situated in a disadvantaged area | |
includes rent and the relevant rental value does not exceed £150,000, the rent | |
so attributable does not count as chargeable consideration. | |
(4) If the consideration attributable to land in a disadvantaged area includes | 20 |
consideration other than rent (“non-rent consideration”), then— | |
(a) if— | |
(i) the annual rent so attributable does not exceed £600, and | |
(ii) the relevant consideration does not exceed £150,000, | |
the non-rent consideration so attributable does not count as | 25 |
chargeable consideration; | |
(b) if the annual rent so attributable exceeds £600, the 0% band in Table | |
A in subsection (2) of section 55 does not apply in relation to the non- | |
rent consideration so attributable and any case that would have | |
fallen within that band is treated as falling within the 1% band. | 30 |
Land partly non-residential and partly residential | |
10 (1) This paragraph applies where the land situated in a disadvantaged area is | |
partly non-residential property and partly residential property. | |
References in this paragraph to the consideration attributable to land that is | |
non-residential property or land that is residential property (or to the rent or | 35 |
annual rent so attributable) are to the consideration (or rent or annual rent) | |
attributable to land in a disadvantaged area that is, on a just and reasonable | |
apportionment, so attributable. | |
(2) The consideration attributable to land that is non-residential property does | |
not count as chargeable consideration. | 40 |
(3) The following provisions apply in relation to the consideration attributable | |
to land that is residential property. | |
(4) If— | |
| |
| |
|
| |
| |
(a) the consideration so attributable does not include rent and the | |
relevant consideration does not exceed £150,000, or | |
(b) the consideration so attributable consists only of rent and the | |
relevant rental value does not exceed £150,000, | |
none of the consideration so attributable counts as chargeable consideration. | 5 |
(5) If the consideration so attributable includes rent and the relevant rental | |
value does not exceed £150,000, the rent so attributable does not count as | |
chargeable consideration. | |
(6) If the consideration so attributable includes consideration other than rent, | |
then— | 10 |
(a) if— | |
(i) the annual rent so attributable does not exceed £600, and | |
(ii) the relevant consideration does not exceed £150,000, | |
the consideration other than rent does not count as chargeable | |
consideration; | 15 |
(b) if the annual rent so attributable exceeds £600, the 0% band in the | |
Tables in subsection (2) of section 55 does not apply in relation to the | |
consideration other than rent and any case that would have fallen | |
within that band is treated as falling within the 1% band. | |
Part 4 | 20 |
Interpretation | |
Relevant consideration and relevant rental value | |
11 (1) References in this Schedule to the “relevant consideration” in relation to a | |
transaction are to the amount falling to be taken into account for the | |
purposes of section 55(2) in determining the rate of tax chargeable under that | 25 |
section in relation to the transaction apart from any relief under this | |
Schedule (whether in relation to that or any other transaction). | |
(2) References in this Schedule to the “relevant rental value” in relation to a | |
transaction are to the amount falling to be taken into account for the | |
purposes of paragraph 2(3) of Schedule 5 in determining the rate of tax | 30 |
chargeable under that Schedule in relation to the transaction apart from any | |
relief under this Schedule (whether in relation to that or any other | |
transaction). | |
Rent and annual rent | |
12 For the purposes of this Schedule “rent” has the same meaning as in | 35 |
Schedule 5 (amount of tax chargeable: rent) and “annual rent” has the same | |
meaning as in paragraph 9(2) of that Schedule. | |
| |
| |
|
| |
| |
Schedule 7 | |
Section 62 | |
Stamp duty land tax: group relief and reconstruction and acquisition reliefs | |
Part 1 | |
Group relief | |
Group relief | 5 |
1 (1) A transaction is exempt from charge if the vendor and purchaser are | |
companies that at the effective date of the transaction are members of the | |
same group. | |
(2) For the purposes of group relief— | |
(a) “company” means a body corporate, and | 10 |
(b) companies are members of the same group if one is the 75% | |
subsidiary of the other or both are 75% subsidiaries of a third | |
company. | |
(3) For the purposes of group relief a company (“company A”) is the 75% | |
subsidiary of another company (“company B”) if company B— | 15 |
(a) is beneficial owner of not less than 75% of the ordinary share capital | |
of company A, | |
(b) is beneficially entitled to not less than 75% of any profits available for | |
distribution to equity holders of company A, and | |
(c) would be beneficially entitled to not less than 75% of any assets of | 20 |
company A available for distribution to its equity holders on a | |
winding-up. | |
(4) The ownership referred to in sub-paragraph (3)(a) is ownership either | |
directly or through another company or companies. | |
For the purposes of that provision the amount of ordinary share capital of | 25 |
company A owned by company B through another company or companies | |
shall be determined in accordance with section 838(5) to (10) of the Taxes Act | |
1988. | |
(5) In sub-paragraphs (3)(a) and (4) above “ordinary share capital”, in relation | |
to a company, means all the issued share capital (by whatever name called) | 30 |
of the company, other than capital the holders of which have a right to a | |
dividend at a fixed rate but have no other right to share in the profits of the | |
company. | |
(6) Schedule 18 to the Taxes Act 1988 (equity holders and profits or assets | |
available for distribution) applies for the purposes of subsection (3)(b) and | 35 |
(c) above as it applies for the purposes of section 413(7)(a) and (b) of that Act, | |
but with the omission of paragraphs 5(3) and 5B to 5E. | |
(7) This paragraph is subject to paragraph 2 (restrictions on availability of group | |
relief) and paragraph 3 (withdrawal of group relief). | |
Restrictions on availability of group relief | 40 |
2 (1) Group relief is not available if at the effective date of the transaction there are | |
arrangements in existence by virtue of which, at that or some later time, a | |
person has or could obtain, or any persons together have or could obtain, | |
control of the purchaser but not of the vendor. | |
| |
| |
|
| |
| |
(2) Group relief is not available if the transaction is effected in pursuance of, or | |
in connection with, arrangements under which— | |
(a) the consideration, or any part of the consideration, for the | |
transaction is to be provided or received (directly or indirectly) by a | |
person other than a group company, or | 5 |
(b) the vendor and the purchaser are to cease to be members of the same | |
group by reason of the purchaser ceasing to be a 75% subsidiary of | |
the vendor or a third company. | |
(3) Arrangements are within sub-paragraph (2)(a) if under them the vendor or | |
the purchaser, or another group company, is to be enabled to provide any of | 10 |
the consideration, or is to part with any of it, by or in consequence of the | |
carrying out of a transaction or transactions involving, or any of them | |
involving, a payment or other disposition by a person other than a group | |
company. | |
(4) In sub-paragraphs (2)(a) and (3) a “group company” means a company that | 15 |
at the effective date of the transaction is a member of the same group as the | |
vendor or the purchaser. | |
(5) In this paragraph— | |
“arrangements” includes any scheme, agreement or understanding, | |
whether or not legally enforceable; and | 20 |
“control” has the meaning given by section 840 of the Taxes Act 1988. | |
Withdrawal of group relief | |
3 (1) Where in the case of a transaction (“the relevant transaction”) that is exempt | |
from charge by virtue of paragraph 1 (group relief)— | |
(a) the purchaser ceases to be a member of the same group as the | 25 |
vendor— | |
(i) before the end of the period of three years beginning with the | |
effective date of the transaction, or | |
(ii) in pursuance of, or in connection with, arrangements made | |
before the end of that period, | 30 |
and | |
(b) at the time the purchaser ceases to be a member of the same group as | |
the vendor (“the relevant time”), it or a relevant associated company | |
holds a chargeable interest— | |
(i) that was acquired by the purchaser under the relevant | 35 |
transaction, or | |
(ii) that is derived from a chargeable interest so acquired, | |
and that has not subsequently been acquired at market value under | |
a chargeable transaction for which group relief was available but was | |
not claimed, | 40 |
group relief in relation to the relevant transaction, or an appropriate | |
proportion of it, is withdrawn and tax is chargeable in accordance with this | |
paragraph. | |
(2) The amount chargeable is the tax that would have been chargeable in respect | |
of the relevant transaction but for group relief if the chargeable | 45 |
consideration for that transaction had been an amount equal to the market | |
value of the subject matter of the transaction or, as the case may be, an | |
appropriate proportion of the tax that would have been so chargeable. | |
| |
| |
|
| |
| |
(3) In sub-paragraphs (1) and (2) “an appropriate proportion” means an | |
appropriate proportion having regard to the subject matter of the relevant | |
transaction and what is held at the relevant time by the transferee company | |
or, as the case may be, by that company and its relevant associated | |
companies. | 5 |
(4) In this paragraph— | |
“arrangements” includes any scheme, agreement or understanding, | |
whether or not legally enforceable; and | |
“relevant associated company”, in relation to the purchaser, means a | |
company that— | 10 |
(a) is a member of the same group as the purchaser | |
immediately before the purchaser ceases to be a member of | |
the same group as the vendor, and | |
(b) ceases to be a member of the same group as the vendor in | |
consequence of the purchaser so ceasing. | 15 |
(5) This paragraph has effect subject to paragraph 4 (cases in which group relief | |
not withdrawn). | |
Cases in which group relief not withdrawn | |
4 (1) Group relief is not withdrawn under paragraph 3 in the following cases. | |
(2) The first case is where the purchaser ceases to be a member of the same | 20 |
group as the vendor because the vendor leaves the group. | |
(3) The vendor is regarded as leaving the group if the companies cease to be | |
members of the same group by reason of a transaction relating to shares in— | |
(a) the vendor, or | |
(b) another company that as a result of the transaction ceases to be a | 25 |
member of the same group as the purchaser. | |
(4) The second case is where the purchaser ceases to be a member of the same | |
group as the vendor by reason of anything done for the purposes of, or in the | |
course of, winding up the vendor or another company that is above the | |
vendor in the group structure. | 30 |
(5) For this purpose a company is “above” the vendor in the group structure if | |
the vendor, or another company that is above the vendor in the group | |
structure, is a 75% subsidiary of the company. | |
(6) The third case is where— | |
(a) the purchaser ceases to be a member of the same group as the vendor | 35 |
as a result of an acquisition of shares by another company (“the | |
acquiring company”) in relation to which— | |
(i) section 75 of the Finance Act 1986 (c. 41) applies (stamp duty: | |
acquisition relief), and | |
(ii) the conditions for relief under that section are met, | 40 |
and | |
(b) the purchaser is immediately after that acquisition a member of the | |
same group as the acquiring company. | |
(7) But if in a case within sub-paragraph (6)— | |
(a) the purchaser ceases to be a member of the same group as the | 45 |
acquiring company— | |
| |
| |
|
| |
| |
(i) before the end of the period of three years beginning with the | |
effective date of the relevant transaction, or | |
(ii) in pursuance of, or in connection with, arrangements made | |
before the end of that period, | |
and | 5 |
(b) at the time the purchaser ceases to be a member of the same group as | |
the acquiring company, it or a relevant associated company holds a | |
chargeable interest— | |
(i) that was acquired by the purchaser under the relevant | |
transaction, or | 10 |
(ii) that is derived from an interest so acquired, | |
and that has not subsequently been acquired at market value under | |
a chargeable transaction for which group relief was available but was | |
not claimed, | |
the provisions of this Part relating to group relief apply as if the purchaser | 15 |
had then ceased to be a member of the same group as the vendor. | |
(8) In sub-paragraph (7)— | |
“arrangements” includes any scheme, agreement or understanding, | |
whether or not legally enforceable; and | |
“relevant associated company”, in relation to the purchaser, means a | 20 |
company that is a member of the same group as the purchaser that | |
ceases to be a member of the same group as the acquiring company | |
in consequence of the purchaser so ceasing. | |
Recovery of group relief from another group company or controlling director | |
5 (1) This paragraph applies where— | 25 |
(a) tax is chargeable under paragraph 3 (withdrawal of group relief), | |
(b) the amount so chargeable has been finally determined, and | |
(c) the whole or part of the amount so chargeable is unpaid six months | |
after the date on which it became payable. | |
(2) The following persons may, by notice under paragraph 6, be required to pay | 30 |
the unpaid tax— | |
(a) the vendor; | |
(b) any company that at any relevant time was a member of the same | |
group as the purchaser and was above it in the group structure; | |
(c) any person who at any relevant time was a controlling director of the | 35 |
purchaser or a company having control of the purchaser. | |
(3) For the purposes of sub-paragraph (2)(b)— | |
(a) a “relevant time” means any time between effective date of the | |
relevant transaction and the purchaser ceasing to be a member of the | |
same group as the vendor; and | 40 |
(b) a company (“company A”) is “above” another company (“company | |
B”) in a group structure if company B, or another company that is | |
above company B in the group structure, is a 75% subsidiary of | |
company A. | |
(4) In sub-paragraph (2)(c)— | 45 |
“director”, in relation to a company, has the meaning given by section | |
67(1) of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) | |
| |
| |
|
