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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— | 5 |
(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 | 10 |
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 | 15 |
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 | 20 |
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 | 25 |
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 | 30 |
person who did not become a responsible trustee until after the relevant | |
time. | |
(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. | 35 |
(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 | 40 |
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 | 5 |
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- | 10 |
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 | 15 |
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. | 20 |
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 | 25 |
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, | 30 |
(b) notice of the appeal must be given to any of them by whom it is not | |
brought, | |
(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, | 35 |
and | |
(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 | 40 |
(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. | 45 |
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Schedule 17 | |
Section 115 | |
Stamp duty land tax: General Commissioners and appeals and other | |
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 | 5 |
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 | 10 |
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. | 15 |
(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 | |
Tribunal; | 20 |
(b) in relation to land in Scotland, the Lands Tribunal for | |
Scotland; | |
(c) in relation to land in Northern Ireland, the Lands Tribunal | |
for Northern Ireland. | |
General or Special Commissioners: jurisdiction | 25 |
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 | 30 |
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 | |
paragraph are to have the jurisdiction. | 35 |
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; | 40 |
(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. | |
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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. | |
Procedure | 5 |
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 | 10 |
any determination by the General or Special Commissioners in respect of a | |
relevant matter. | |
Costs | |
9 The Lord Chancellor may make regulations about— | |
(a) the award by the General or Special Commissioners of the costs of, | 15 |
or incidental to, a determination by them in respect of a relevant | |
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— | 20 |
(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; | 25 |
(b) if a determination or award may be questioned, how it may be | |
questioned. | |
Supplementary provisions | |
11 (1) Any power to make regulations under this Schedule is exercisable only with | |
the consent of the Scottish Ministers. | 30 |
(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; | 35 |
(b) make different provision for different cases or different | |
circumstances; | |
(c) contain such supplementary, incidental, consequential and | |
transitional provision as the Lord Chancellor thinks appropriate. | |
(4) In this Schedule— | 40 |
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(a) “relevant matter”, in relation to the General or Special | |
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; | 5 |
(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, | 10 |
dispute, appeal or other matter that arises in relation to the | |
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 | 15 |
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 | 20 |
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)”. | 25 |
(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 | |
land tax”. | 30 |
(5) In section 215 (advance clearance by Board of distributions and payments), | |
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— | 35 |
“(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, | |
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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 | 5 |
(q) add— | |
“(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 | 10 |
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”. | 15 |
Schedule 19 | |
Section 124 | |
Stamp duty land tax: commencement and transitional provisions | |
Introduction | |
1 (1) Subject to the provisions of this Schedule, the provisions of this Part come | |
into force on the passing of this Act. | 20 |
(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 | 25 |
in applying the provisions of this Part. | |
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 | 30 |
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 | 35 |
before the first relevant date. | |
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(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; | 5 |
(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. | 10 |
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 | 15 |
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. | |
Accordingly, the effective date of the transaction is the date of completion. | 20 |
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). | 25 |
(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 | |
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. | 30 |
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 | |
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 | 35 |
the implementation date, and | |
(b) stamp duty land tax is duly paid in respect of that transaction or no | |
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, | 40 |
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 | |
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 | 45 |
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