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

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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

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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

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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stamp duty group relief is withdrawn) to a transfer at market value by a duly

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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.

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          (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which stamp duty company acquisitions relief is withdrawn) to a transfer at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,

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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

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  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

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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

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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

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              (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

 

 

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

    242

 

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

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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.

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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,

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                   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

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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.

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          (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

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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).

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Supplementary

  9        In this Schedule “contract” includes any agreement.

 

 

Finance Bill
Schedule 20 — Stamp duty: restriction to instruments relating to stock or marketable securities
Part 1 — Supplementary provisions

    243

 

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.

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          (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

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              (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

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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)

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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

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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

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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

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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)—

 

 

Finance Bill
Schedule 20 — Stamp duty: restriction to instruments relating to stock or marketable securities
Part 2 — Consequential amendments and repeals

    244

 

              (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

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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

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  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

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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

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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

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“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

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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

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House of Commons.

 

 

 
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Revised 16 April 2003