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Finance Bill
Schedule 16 — Stamp duty land tax: trusts and powers

    234

 

          (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

disability, or

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              (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

another.

          (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

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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

dealt with.

          (4)      In sub-paragraph (2) “minor”, in relation to Scotland, means a person under

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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

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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

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              (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

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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

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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,

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              (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,

 

 

Finance Bill
Schedule 16 — Stamp duty land tax: trusts and powers

    235

 

                   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

time.

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          (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,

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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

payable.

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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

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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-

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certificate—

              (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

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relevant trustees,

              (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.

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                   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

Inland Revenue.

          (4)      A Revenue determination or discovery assessment relating to the

transaction must be made against all of the relevant trustees and is not

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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

the transaction—

              (a)             the appeal may be brought by any of the relevant trustees,

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              (b)             notice of the appeal must be given to any of them by whom it is not

brought,

 

 

Finance Bill
Schedule 17 — Stamp duty land tax: General Commissioners and appeals and other proceedings

    236

 

              (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,

and

              (e)             the decision on the appeal binds all of them.

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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

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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.

Schedule 17

Section 115

 

Stamp duty land tax: General Commissioners and appeals and other

15

proceedings

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.

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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,

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              (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;

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               “relevant Lands Tribunal” means—

                     (a)                    in relation to land in England and Wales, the Lands

Tribunal;

                     (b)                    in relation to land in Scotland, the Lands Tribunal for

Scotland;

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                     (c)                    in relation to land in Northern Ireland, the Lands Tribunal

for Northern Ireland.

 

 

Finance Bill
Schedule 17 — Stamp duty land tax: General Commissioners and appeals and other proceedings

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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

5

              (b)             if both of them are to have the jurisdiction, how it is to be divided

between them.

  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

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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

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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

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  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.

Procedure

  7        The Lord Chancellor may make regulations about the practice and

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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

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relevant matter.

Costs

  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

35

matter;

              (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—

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Finance Bill
Schedule 18 — Stamp duty land tax: consequential amendments

    238

 

                    (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

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questioned.

Supplementary provisions

  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

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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

15

circumstances;

              (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

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Commissioners, means a matter in respect of which they have

jurisdiction;

              (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

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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

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provisions of this Part is to be determined by the Commissioners.

Schedule 18

Section 123

 

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

35

“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”.

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Finance Bill
Schedule 19 — Stamp duty land tax: commencement and transitional provisions

    239

 

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”

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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

land tax”.

          (5)      In section 215 (advance clearance by Board of distributions and payments),

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in subsection (2) for “stamp duty” substitute “stamp duty or stamp duty

land tax”.

          (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—

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                    (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.”.

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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

(q) add—

                    “(r)                      sections 87, 88 and 89 of the Finance Act 2003.”.

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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

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  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”.

Schedule 19

Section 124

 

Stamp duty land tax: commencement and transitional provisions

35

Introduction

  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.

 

 

Finance Bill
Schedule 19 — Stamp duty land tax: commencement and transitional provisions

    240

 

          (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

5

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

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Treasury order as the implementation date for the purposes of stamp duty

land tax.

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

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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

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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

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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

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              (b)             paragraph 3 (contract entered into before first relevant date) does not

apply,

           it is immaterial that the contract for the transaction may have been

substantially performed (within the meaning of section 44) before the

implementation date.

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           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

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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

 

 

 
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