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earlier transaction, that requirement is treated as met if ad valorem stamp | |
duty was paid or (as the case may be) payable in respect of the instrument | |
by which that transaction was effected. | |
Effect for stamp duty purposes of stamp duty land tax being paid or chargeable | |
6 (1) Where in the case of a contract that, apart from paragraph 7 of Schedule 13 | 5 |
to the Finance Act 1999 (c. 16) (contracts chargeable as conveyances on sale), | |
would not be chargeable with stamp duty— | |
(a) a conveyance made in conformity with the contract is effected after | |
the implementation date, and | |
(b) stamp duty land tax is duly paid in respect of that transaction or no | 10 |
tax is chargeable because of an exemption or relief, | |
the contract shall be deemed to be duly stamped. | |
(2) The references in section 111(1)(c) of, and paragraph 4(3) of Schedule 34 to, | |
the Finance Act 2002 (c. 23) (which relate to the circumstances in which | |
stamp duty group relief is withdrawn) to a transfer at market value by a duly | 15 |
stamped instrument on which ad valorem duty was paid and in respect of | |
which group relief was not claimed shall be read, on or after the | |
implementation date, as including a reference to a transfer at market value | |
by a chargeable transaction in respect of which relief under Part 1 of | |
Schedule 7 to this Act was available but was not claimed. | 20 |
(3) The references in section 113(1)(c) of, and in paragraph 3(3) or 4(3) of | |
Schedule 35 to, the Finance Act 2002 (which relate to the circumstances in | |
which stamp duty company acquisitions relief is withdrawn) to a transfer at | |
market value by a duly stamped instrument on which ad valorem duty was | |
paid and in respect of which section 76 relief was not claimed shall be read, | 25 |
on or after the implementation date, as including a reference to a transfer at | |
market value by a chargeable transaction on which stamp duty land tax was | |
chargeable and in respect of which relief under Part 2 of Schedule 7 to this | |
Act was available but was not claimed. | |
Earlier related transactions under stamp duty | 30 |
7 (1) In relation to a transaction that is not an SDLT transaction but which is | |
linked to an SDLT transaction and accordingly falls to be taken into account | |
in determining the rate of stamp duty land tax chargeable on the latter | |
transaction, any reference in this Part to the chargeable consideration for the | |
first-mentioned transaction shall be read as a reference to the consideration | 35 |
by reference to which ad valorem stamp duty was payable in respect of the | |
instrument by which that transaction was effected. | |
(2) In paragraph 3 of Schedule 9 (relief for transfer of reversion under shared | |
ownership lease where election made for market value treatment) as it | |
applies in a case where the original lease was granted before the | 40 |
implementation date— | |
(a) the reference to a lease to which paragraph 2 of that Schedule applies | |
shall be read as a reference to a lease to which section 97 of the | |
Finance Act 1980 applied (which made corresponding provision for | |
stamp duty), and | 45 |
(b) the reference to an election having been made for tax to be charged | |
under that paragraph shall be read accordingly as a reference to a | |
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corresponding election having been in relation to stamp duty under | |
that section. | |
(3) In section 54 (exceptions from deemed market value rule for transactions | |
with connected company) the reference in subsection (4)(b) to group relief | |
having been claimed in respect of a transaction shall be read in relation to a | 5 |
transaction carried out before the implementation date as a reference to | |
relief having been claimed under section 42 of the Finance Act 1930 (c. 28), | |
section 11 of the Finance Act (Northern Ireland) 1954 (c. 23 (N. I.)) or section | |
151 of the Finance Act 1995 (c. 4) in respect of stamp duty on the instrument | |
by which the transaction was effected. | 10 |
Exercise of option or right of pre-emption acquired before implementation date | |
8 (1) This paragraph applies where— | |
(a) an option binding the grantor to enter into a land transaction, or | |
(b) a right of pre-emption preventing the grantor from entering into, or | |
restricting the right of the grantor to enter into, a land transaction, | 15 |
is acquired before the implementation date and exercised on or after that | |
date. | |
(2) Where the option or right was acquired on or after 17th April 2003, any | |
consideration for the acquisition is treated as part of the chargeable | |
consideration for the transaction resulting from the exercise of the option or | 20 |
right. | |
(3) Where the option or right was varied on or after 17th April 2003 and before | |
the implementation date, any consideration for the variation is treated as | |
part of the chargeable consideration for the transaction resulting from the | |
exercise of the option or right. | 25 |
(4) Whether or not sub-paragraph (2) or (3) applies, the acquisition of the option | |
or right and any variation of the option or right is treated as linked with the | |
land transaction resulting from the exercise of the option or right. | |
But not so as to require the consideration for the acquisition or variation to | |
be counted twice in determining the rate of tax chargeable on the land | 30 |
transaction resulting from the exercise of the option or right. | |
(5) Where this paragraph applies any ad valorem stamp duty paid on the | |
acquisition or variation of the option or right shall go to reduce the amount | |
of tax payable on the transaction resulting from the exercise of the option or | |
right (but not so as to give rise to any repayment). | 35 |
Supplementary | |
9 In this Schedule “contract” includes any agreement. | |
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Schedule 20 | |
Section 125 | |
Stamp duty: restriction to instruments relating to stock or marketable | |
securities | |
Part 1 | |
Supplementary provisions | 5 |
Reduction of stamp duty where instrument partly relating to stock or marketable securities | |
1 (1) This paragraph applies where stamp duty under Part 1 of Schedule 13 to the | |
Finance Act 1999 (c. 16) (transfer on sale) is chargeable on an instrument that | |
relates partly to stock or marketable securities and partly to property other | |
than stock or marketable securities. | 10 |
(2) In such a case— | |
(a) the consideration in respect of which duty would otherwise be | |
charged shall be apportioned, on a just and reasonable basis, as | |
between the stock or marketable securities and the other property, | |
and | 15 |
(b) the instrument shall be charged only in respect of the consideration | |
attributed to the stock or marketable securities. | |
Apportionment of consideration for stamp duty purposes | |
2 (1) Where part of the property referred to in section 58(1) of the Stamp Act 1891 | |
(c. 39) (consideration to be apportioned between different instruments as | 20 |
parties think fit) consists of stock or marketable securities, that provision | |
shall have effect as if “the parties think fit” read “is just and reasonable”. | |
(2) Where— | |
(a) part of the property referred to in section 58(2) of the Stamp Act 1891 | |
(property contracted to be purchased by two or more persons etc) | 25 |
consists of stock or marketable securities, and | |
(b) both or (as the case may be) all the relevant persons are connected | |
with one another, | |
that provision shall have effect as if the words from “for distinct parts of the | |
consideration” to the end of the subsection read “, the consideration shall be | 30 |
apportioned in such manner as is just and reasonable, so that a distinct | |
consideration for each part of the property transferred is set forth in the | |
transfer relating to that part, and the transfer shall be charged with ad | |
valorem duty in respect of that consideration.”. | |
(3) If in a case where sub-paragraph (1) or (2) applies the consideration is | 35 |
apportioned in a manner that is not just and reasonable, the enactments | |
relating to stamp duty shall have effect as if— | |
(a) the consideration had been apportioned in a manner that is just and | |
reasonable, and | |
(b) the amount of any distinct consideration set forth in any transfer | 40 |
relating to a part of the property transferred were such amount as is | |
found by a just and reasonable apportionment (and not the amount | |
actually set forth). | |
(4) For the purposes of sub-paragraph (2)— | |
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(a) a person is a relevant person if he is a person by or for whom the | |
property is contracted to be purchased; | |
(b) the question whether persons are connected with one another shall | |
be determined in accordance with section 839 of the Taxes Act 1988. | |
Part 2 | 5 |
Consequential amendments and repeals | |
Removal of unnecessary references to “conveyance” | |
3 In the enactments relating to stamp duty for “conveyance or transfer”, | |
wherever occurring, substitute “transfer”. | |
Finance Act 1895 | 10 |
4 In section 12 of the Finance Act 1895 (c. 16) (collection of stamp duty in cases | |
of property vested by Act or purchased under statutory powers)— | |
(a) in paragraph (a) for “property is” substitute “stock or marketable | |
securities are”; | |
(b) in paragraph (b) for “property” substitute “stock or marketable | 15 |
securities”; | |
(c) in the closing words for “conveyance”, in both places where that | |
word occurs, substitute “transfer”. | |
Finance Act 1990 | |
5 In section 108 of the Finance Act 1990 (c. 29) (transfer of securities: abolition | 20 |
of stamp duty), for subsections (1) to (6) substitute— | |
“(1) Stamp duty shall not be chargeable under Schedule 13 to the Finance | |
Act 1999 (transfer of securities).”. | |
Finance Act 1999 | |
6 In paragraph 1(2) of Schedule 13 to the Finance Act 1999 (c. 16) for | 25 |
“conveyance on sale” substitute “transfer on sale”. | |
Power to make further consequential amendments or repeals | |
7 (1) The Treasury may by regulations make such other amendments or repeals | |
of enactments relating to stamp duty or stamp duty reserve tax as appear to | |
them appropriate in consequence of the abolition of stamp duty except on | 30 |
instruments relating to stock or marketable securities. | |
(2) The regulations may include such transitional provisions and savings as | |
appear to the Treasury to be appropriate. | |
(3) Regulations under this paragraph shall be made by statutory instrument | |
which shall be subject to annulment in pursuance of a resolution of the | 35 |
House of Commons. | |
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