by a chargeable transaction in respect of which relief under Part 1 of
Schedule 7 to this Act was available but was not claimed.
(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 (c. 23) (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withdrawn) to a transfer at market value by a duly stamped instrument on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, 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
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
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
(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
(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
corresponding election having been in relation to stamp duty under
(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
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.
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,
is acquired before the implementation date and exercised on or after that
(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
(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.
(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
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).
9 In this Schedule “contract” includes any agreement.
Stamp duty: restriction to instruments relating to stock or marketable
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.
(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,
(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
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”.
(a) part of the property referred to in section 58(2) of the Stamp Act 1891
(c. 39) (property contracted to be purchased by two or more persons
etc) 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
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
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
(b) the amount of any distinct consideration set forth in any transfer
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)—
(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.
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
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
(b) in paragraph (b) for “property” substitute “stock or marketable
(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
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
“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
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
House of Commons.
Approved share plans and schemes
Share incentive plans
1 Schedule 2 to the Income Tax (Earnings and Pensions) Act 2003 (c. 1)
(approved share incentive plans) is amended as follows.
Participation in more than one connected plan in a tax year
2 After paragraph 18 insert—
“Participation in more than one connected SIP in a tax year
18A (1) The plan must provide that, if an individual participates in an
award of shares under the plan in a tax year in which he has
already participated in an award of shares under one or more
other approved SIPs established by the company or a connected
(a) paragraph 35 (maximum annual award of free shares),
(b) paragraph 46 (maximum amount of partnership share
money deductions), and
(c) paragraph 64 (limit on amount reinvested),
apply as if the plan and the other plan or plans were a single plan.
(2) In this paragraph “connected company” has the same meaning as
in paragraph 18.”.
3 In paragraph 13 (eligibility of individuals: introduction), for the entry
relating to paragraph 18 substitute—
“paragraph 18 (requirement not to participate
simultaneously in connected SIPs),
paragraph 18A (successive participation in connected SIPs),
4 In paragraph 14(7) (eligibility to participate dependent on certain
requirements of plan being met), for paragraph (b) substitute—
“(b) not participating simultaneously in connected SIPs (see
(ba) successive participation in connected SIPs (see paragraph
5 In paragraph 18 (requirement not to participate in connected SIPs), omit sub-
paragraph (1)(a) (successive participation in connected SIPs).
6 After paragraph 71 insert—
“Duty to monitor participants in connected schemes
71A The trust instrument must require the trustees to maintain records
of participants who have participated in one or more other
approved SIPs established by the company or a connected
7 (1) Paragraph 46 (maximum amount of partnership share money deductions) is
amended as follows.
(2) In sub-paragraph (1), for the words after “must not exceed” substitute
“£1,500 in any tax year.”.
(3) In sub-paragraph (2), for the words after “an employee’s salary” substitute
“for any tax year must not exceed 10% of the employee’s salary for the tax
(4) After that sub-paragraph insert—
“(4A) A limit lower than that specified in sub-paragraph (2) may be
(a) as a proposition substituting a percentage lower than that
so specified, or
(b) as a proposition that a particular description of earnings is
not to be regarded as forming part of an employee’s salary
for the purposes of that sub-paragraph.”.
(5) Sub-paragraphs (2) and (3) have effect for the year 2003-04 and subsequent
years of assessment.
8 In paragraph 47 (minimum amount of deductions)—
(a) for “in any month” substitute “on any occasion”, and
(b) omit sub-paragraph (3).
SAYE option schemes
9 Schedule 3 to the Income Tax (Earnings and Pensions) Act 2003 (c. 1)
(approved SAYE option schemes) is amended as follows.
10 In paragraph 25(3)(a) (limit on contributions under CCS schemes linked to
approved SAYE schemes), after “SAYE” insert “option”.
Exercise of options: scheme-related employment ends because of change of control or transfer
11 (1) Paragraph 34 (exercise of options: scheme-related employment ends) is
amended as follows.
(2) In sub-paragraph (2)(a), after “1996” insert “or ER(NI)O 1996”.
(3) In sub-paragraph (5)—
(a) for “provide that,” substitute “make provision about the time when
the options may be exercised”, and
(b) omit the words following paragraph (b).
(4) After that sub-paragraph insert—
“(5A) If the scheme makes provision by virtue of sub-paragraph (5), the
provision must be either—
(a) that the options may be exercised within 6 months after the
termination date, or
(b) that the options may be exercised within 6 months after the
date (if any) when P ceases to hold the employment which
(before the termination date) was the scheme-related
employment for a reason within sub-paragraph (2)(a) or
Alteration of schemes
12 (1) Paragraph 42 (withdrawal of approval) is amended as follows.
(2) In sub-paragraph (2), after “to be met;” insert—
“(aa) an alteration is made in a key feature of the scheme
without the approval of the Inland Revenue;”.
(3) After that sub-paragraph insert—
“(2A) For the purposes of sub-paragraph (2)(aa) the Inland Revenue
may not withhold their approval unless it appears to them at the
time in question that the scheme as proposed to be altered would
not then be approved on an application under paragraph 40.
(2B) For the purposes of that sub-paragraph a “key feature” of a scheme
is a provision of the scheme which is necessary in order to meet the
requirements of this Schedule.”.
(4) For paragraph 43 (approval ineffective after unapproved alteration and
notice of decisions) and the heading before it substitute—
“Notice of decision about alteration
43 Where the Inland Revenue—
(a) have been requested to approve any alteration in a SAYE
option scheme that has been approved, and
(b) have decided whether or not to approve the alteration,
they must give notice of their decision to the scheme organiser.”.
(5) For paragraph 44(1)(b) (appeal against decision not to approve alteration)
“(b) decide to refuse approval under paragraph 42(2)(aa).”.
13 The Income Tax (Earnings and Pensions) Act 2003 (c. 1) is amended as
Exercise of options: exclusion of income tax liability
14 (1) Section 524 (no charge in respect of exercise of option under CSOP scheme)
is amended as follows.
(2) For subsection (1)(b) substitute—
“(b) Condition A or B is met.”.
(3) For subsections (2) and (3) substitute—
“(2) Condition A is that the option is exercised—
(a) on or after the third anniversary of the date on which it was
(b) not later than the tenth anniversary of that date.
(2A) Condition B is that the option—
(a) is exercised before the third anniversary of the date on which
it was granted, and
(b) is so exercised by virtue of a provision included in the scheme
under paragraph 24 of Schedule 4 (exercise of options after
ceasing to be director or employee) in circumstances in which
subsection (2B) applies.
(2B) This subsection applies if the individual exercising the option—
(a) has ceased to be a full-time director or qualifying employee
of the scheme organiser (or, in the case of a group scheme, a
constituent company) because of injury, disability,
redundancy or retirement, and
(b) exercises the option within 6 months of the day on which he
ceases to be such a director or employee.
(2C) In subsection (2B)—