(2) In this Part a “bare trust” means a trust under which property is held by a
person as trustee—
(a) for a person who is absolutely entitled as against the trustee, or who
would be so entitled but for being a minor or other person under a
(b) for two or more persons who are or would be jointly so entitled,
and includes a case in which a person holds property as nominee for
(3) In sub-paragraph (2)(a) and (b) the references to a person being absolutely
entitled to property as against the trustee are references to a case where the
person has the exclusive right, subject only to satisfying any outstanding
charge, lien or other right of the trustee, to resort to the property for payment
of duty, taxes, costs or other outgoings or to direct how the property is to be
(4) In sub-paragraph (2) “minor”, in relation to Scotland, means a person under
legal disability by reason of nonage.
Interests of beneficiaries under certain trusts
2 Where property is held in trust under the law of Scotland, or of a country or
territory outside the United Kingdom, on terms such that, if the trust had
effect under the law of England and Wales, a beneficiary would be regarded
as having an equitable interest in the trust property—
(a) that beneficiary shall be treated for the purposes of this Part as
having such an interest notwithstanding that no such interest is
recognised by the law of Scotland or, as the case may be, the country
or territory outside the United Kingdom, and
(b) an acquisition of the interest of a beneficiary under the trust shall
accordingly be treated as involving the acquisition of an interest in
the trust property.
Acquisition etc by bare trustee attributed to beneficial owner
3 Where a person acquires a chargeable interest as bare trustee, this Part
applies as if the interest were vested in, and the acts of the trustee in relation
to it were the acts of, the person or persons for whom he is trustee.
Acquisition by trustees of settlement
4 Where persons acquire a chargeable interest as trustees of a settlement, they
are treated for the purposes of this Part, as it applies in relation to that
acquisition, as purchasers of the whole of the interest acquired (including
the beneficial interest).
Responsibility of trustees of settlement
5 (1) Where the trustees of a settlement are liable—
(a) to make a payment of tax or interest on unpaid tax,
(b) to make a payment in accordance with an assessment under
paragraph 29 of Schedule 10 (recovery of excessive repayment), or
(c) to a penalty under this Part or to interest on such a penalty,
the payment, penalty or interest may be recovered (but only once) from any
one or more of the responsible trustees.
(2) No amount may be recovered by virtue of sub-paragraph (1)(c) from a
person who did not become a responsible trustee until after the relevant
(3) The responsible trustees, in relation to a land transaction, are the persons
who are trustees at the effective date of the transaction and any person who
subsequently becomes a trustee.
(4) The relevant time for this purpose is—
(a) in relation to so much of a penalty as is payable in respect of any day,
or to interest on so much of a penalty as is so payable, the beginning
of that day;
(b) in relation to any other penalty, or interest on such a penalty, the time
when the act or omission occurred that caused the penalty to become
Relevant trustees for purposes of return etc
6 (1) A return or self-certificate in relation to a land transaction may be made or
given by any one or more of the trustees who are the responsible trustees in
relation to the transaction.
The trustees by whom such a return or self-certificate is made are referred to
below as “the relevant trustees”.
(2) The declaration required by paragraph 1(1)(c) of Schedule 10 or paragraph
2(1)(c) of Schedule 11 (declaration that return or self-certificate is complete
and correct) must be made by all the relevant trustees.
(3) If the Inland Revenue give notice of an enquiry into the return or self-
(a) the notice must be given to each of the relevant trustees,
(b) the powers of the Inland Revenue as to the production of documents
and provision of information for the purposes of the enquiry are
exercisable separately (and differently) in relation to each of the
(c) any of the relevant trustees may apply for a direction that a closure
notice be given (and all of them are entitled to appear and be heard
on the application), and
(d) the closure notice must be given to each of the relevant trustees.
Provided that a notice is not invalidated by virtue of paragraph (a) or (d) if
it is given to each of the relevant trustees whose identity is known to the
(4) A Revenue determination or discovery assessment relating to the
transaction must be made against all of the relevant trustees and is not
effective against any of them unless notice of it is given to each of them
whose identity is known to the Inland Revenue.
(5) In the case of an appeal arising from proceedings under this Part relating to
(a) the appeal may be brought by any of the relevant trustees,
(b) notice of the appeal must be given to any of them by whom it is not
(c) the agreement of all the relevant trustees is required if the appeal is
to be settled by agreement,
(d) if it is not settled, any of them are entitled to appear and be heard,
(e) the decision on the appeal binds all of them.
Consideration for exercise of power of appointment or discretion
7 Where a chargeable interest is acquired by virtue of—
(a) the exercise of a power of appointment, or
(b) the exercise of a discretion vested in trustees of a settlement,
there shall be treated as consideration for the acquisition of the interest or
right by virtue of the exercise of the power or discretion any consideration
given for the person in whose favour the appointment was made or the
discretion was exercised becoming an object of the power or discretion.
Stamp duty land tax: General Commissioners and appeals and other
General Commissioners: powers conferred by this Part
1 Part 1 of the Taxes Management Act 1970 (c. 9) shall apply as if the reference
in section 2(1) of that Act to the powers conferred by the Taxes Acts included
a reference to the powers conferred by the provisions of this Part.
Prescribed matters to be determined by Commissioners or Lands Tribunal
2 (1) The Lord Chancellor may make regulations providing that a question,
dispute, appeal or other matter that is of a prescribed description and arises
in relation to the provisions of this Part is to be determined—
(a) by the General Commissioners,
(b) by the Special Commissioners,
(c) by the General or Special Commissioners, or
(d) by the relevant Lands Tribunal.
(2) In this paragraph
“prescribed” means prescribed in regulations under this paragraph;
“relevant Lands Tribunal” means—
(a) in relation to land in England and Wales, the Lands
(b) in relation to land in Scotland, the Lands Tribunal for
(c) in relation to land in Northern Ireland, the Lands Tribunal
for Northern Ireland.
General or Special Commissioners: jurisdiction
3 Where the General or Special Commissioners have jurisdiction in respect of
a matter, the Lord Chancellor may make regulations for determining—
(a) whether the General or Special Commissioners, or both of them, are
to have the jurisdiction, and
(b) if both of them are to have the jurisdiction, how it is to be divided
4 Where the General Commissioners have jurisdiction in respect of a matter,
the General Commissioners for that division which is determined in
accordance with regulations made by the Lord Chancellor under this
paragraph are to have the jurisdiction.
5 The Lord Chancellor may make regulations—
(a) providing that, in certain circumstances, the Special Commissioners
are to have jurisdiction in respect of a matter instead of the General
Commissioners or the General Commissioners are to have
jurisdiction instead of the Special Commissioners;
(b) providing that, in certain circumstances, the General Commissioners
for one division are have to jurisdiction in respect of a matter instead
of the General Commissioners for another division.
Quorum etc of the Commissioners
6 The Lord Chancellor may make regulations about the number of General or
Special Commissioners required or permitted to perform functions in
relation to a relevant matter.
7 The Lord Chancellor may make regulations about the practice and
procedure to be followed in connection with matters in respect of which the
Special or General Commissioners have jurisdiction.
Consequences of determination by the Commissioners
8 The Lord Chancellor may make regulations prescribing the consequences of
any determination by the General or Special Commissioners in respect of a
9 The Lord Chancellor may make regulations about—
(a) the award by the General or Special Commissioners of the costs of,
or incidental to, a determination by them in respect of a relevant
(b) the recovery of costs so awarded.
Finality of decisions of the Commissioners
10 The Lord Chancellor may make regulations about the following matters—
(a) the circumstances in which—
(i) a determination by the General or Special Commissioners in
respect of a relevant matter, or
(ii) an award of costs under regulations under paragraph 9,
may or may not be questioned;
(b) if a determination or award may be questioned, how it may be
11 (1) Any power to make regulations under this Schedule is exercisable only with
the consent of the Scottish Ministers.
(2) Regulations under this Schedule shall be made by statutory instrument
which shall be subject to annulment in pursuance of a resolution of either
House of Parliament.
(3) Regulations under this Schedule may—
(a) apply any other enactment, with or without modifications;
(b) make different provision for different cases or different
(c) contain such supplementary, incidental, consequential and
transitional provision as the Lord Chancellor thinks appropriate.
(4) In this Schedule—
(a) “relevant matter”, in relation to the General or Special
Commissioners, means a matter in respect of which they have
(b) references to the provisions of this Part include any instrument made
under such a provision;
(c) references to the General or Special Commissioners having
jurisdiction are to the Commissioners having jurisdiction by virtue of
the provisions of this Part;
(d) references to the General or Special Commissioners having
jurisdiction in respect of a matter include cases where a question,
dispute, appeal or other matter that arises in relation to the
provisions of this Part is to be determined by the Commissioners.
Stamp duty land tax: consequential amendments
Provisional Collection of Taxes Act 1968
1 In section 1(1) of the Provisional Collection of Taxes Act 1968 (c. 2), after
“stamp duty reserve tax,” insert “stamp duty land tax,”.
Inheritance Tax Act 1984
2 In section 190(4) of the Inheritance Tax Act 1984 (c. 51) (sale of land from
deceased’s estate: determination of price), after “stamp duty” insert “or
stamp duty land tax”.
Income and Corporation Taxes Act 1988
3 (1) The Income and Corporation Taxes Act 1988 (c. 1) is amended as follows.
(2) In section 209B(4) (hedging arrangements), in subsection (4) for “or stamp
duty” substitute “(including stamp duty or stamp duty land tax)”.
(3) In section 213 (exempt distributions), in subsection (11)(a) for “stamp duty”
substitute “stamp duty or stamp duty land tax”.
(4) In section 214 (chargeable payments connected with exempt distributions),
in subsection (2) for “stamp duty” substitute “stamp duty or stamp duty
(5) In section 215 (advance clearance by Board of distributions and payments),
in subsection (2) for “stamp duty” substitute “stamp duty or stamp duty
(6) In section 827 (penalties and interest not allowed as deductions for tax
purposes), after subsection (1E) insert—
“(1F) Where a person is liable to make a payment by way of—
(a) any penalty under Part 4 of the Finance Act 2003 (stamp duty
land tax), or
(b) interest under any provision of that Part,
the payment shall not be allowed as a deduction in computing any
income, profits or losses for any tax purposes.”.
Finance Act 1989
4 In section 178(2) of the Finance Act 1989 (c. 26) (power of Treasury to set
rates of interest: enactments to which the section applies), after paragraph
“(r) sections 87, 88 and 89 of the Finance Act 2003.”.
Taxation of Chargeable Gains Act 1992
5 In section 38(2) of the Taxation of Chargeable Gains Act 1992 (c. 12)
(incidental costs of acquisition or disposal), after “stamp duty” insert “or
stamp duty land tax”.
Income Tax (Earnings and Pensions) Act 2003
6 In section 277 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1)
(removal benefits and expenses: acquisition of property), in subsection (3)(e)
after “stamp duty” insert “or stamp duty land tax”.
Stamp duty land tax: commencement and transitional provisions
1 (1) Subject to the provisions of this Schedule, the provisions of this Part of this
Act come into force on the passing of this Act.
(2) The following provisions have effect as regards what transactions are SDLT
transactions, that is, are chargeable or notifiable or are transactions in
relation to which section 79 (registration etc) applies.
(3) Nothing in this Schedule shall be read as meaning that other transactions,
whether effected before or after the passing of this Act, are to be disregarded
in applying the provisions of this Part of this Act.
The implementation date
2 (1) A transaction is not an SDLT transaction unless the effective date of the
transaction is on or after the implementation date.
(2) In this Part “the implementation date” means the date appointed by
Treasury order as the implementation date for the purposes of stamp duty
Contract entered into before first relevant date
3 (1) Subject to the following provisions of this paragraph, a transaction is not an
SDLT transaction if it is effected in pursuance of a contract entered into
before the first relevant date.
(2) The “first relevant date” is the day after the passing of this Act.
(3) The exclusion of transactions effected in pursuance of contracts entered into
before the first relevant date does not apply—
(a) if there is any variation of the contract or assignment of rights under
the contract on or after that date;
(b) if the transaction is effected in consequence of the exercise after that
date of any option, right of pre-emption or similar right;
(c) where the purchaser under the transaction is a person other than the
purchaser under the contract because of a further contract made on
or after that date.
Contract substantially performed before implementation date
4 Where a transaction is completed by a conveyance on or after the
implementation date and—
(a) a contract for the transaction was entered into before that date, and
(b) paragraph 3 (contract entered into before first relevant date) does not
it is immaterial that the contract for the transaction may have been
substantially performed (within the meaning of section 44) before the
Accordingly, the effective date of the transaction is the date of completion.
Credit for ad valorem stamp duty paid
5 (1) Where a transaction chargeable to stamp duty land tax is effected in
pursuance of a contract entered into before the implementation date, any ad
valorem stamp duty paid on the contract shall go to reduce the amount of tax
payable (but not so as to give rise to any repayment).
(2) Where the application or operation of any exemption or relief from stamp
duty land tax turns on whether tax was paid or payable in respect of an