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(6) “Dwelling” includes land occupied and enjoyed with the dwelling as its garden | |
or grounds. | |
(7) The “permitted area”, in relation to a dwelling, means land occupied and | |
enjoyed with the dwelling as its garden or grounds that does not exceed— | |
(a) an area (inclusive of the site of the dwelling) of 0.5 of a hectare, or | 5 |
(b) such larger area as is required for the reasonable enjoyment of the | |
dwelling as a dwelling having regard to its size and character. | |
(8) Where subsection (7)(b) applies, the permitted area is taken to consist of that | |
part of the dwelling that would be the most suitable for occupation and | |
enjoyment with the dwelling as its garden or grounds if the rest of the land | 10 |
were separately occupied. | |
(9) In this section— | |
(a) references to the acquisition of the dwelling are to the acquisition, by | |
way of transfer, of a major interest in the dwelling; | |
(b) references to the market value of the dwelling, or of an area of land, are | 15 |
to the market value of the major interest in the dwelling, or of that | |
interest so far as it relates to the area in question; | |
(c) references to an employee include a prospective employee (and | |
references to the employer are to be construed accordingly). | |
60 Compulsory purchase facilitating development | 20 |
(1) A compulsory purchase facilitating development is exempt from charge. | |
(2) In this section “compulsory purchase facilitating development” means— | |
(a) in relation to England and Wales or Scotland, the acquisition by a | |
person of a chargeable interest in respect of which that person has made | |
a compulsory purchase order for the purpose of facilitating | 25 |
development by another person; | |
(b) in relation to Northern Ireland, the acquisition by a person of a | |
chargeable interest by means of a vesting order made for the purpose | |
of facilitating development by a person other than the person who | |
acquires the interest. | 30 |
(3) For the purposes of subsection (2)(a) it does not matter how the acquisition is | |
effected (so that provision applies where the acquisition is effected by | |
agreement). | |
(4) In subsection (2)(b) a “vesting order” means an order made under any | |
statutory provision to authorise the acquisition of land otherwise than by | 35 |
agreement. | |
(5) In this section “development”— | |
(a) in relation to England and Wales, has the same meaning as in the Town | |
and Country Planning Act 1990 (c. 8) (see section 55 of that Act); | |
(b) in relation to Scotland, has the same meaning as in the Town and | 40 |
Country Planning (Scotland) Act 1997 (c. 8) (see section 26 of that Act); | |
and | |
(c) in relation to Northern Ireland, has the same meaning as in the | |
Planning (Northern Ireland) Order 1991 (1991/1220 (N.I. 11)) (see | |
Article 11 of that Order). | 45 |
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61 Compliance with planning obligations | |
(1) A land transaction that is entered into in order to comply with a planning | |
obligation or a modification of a planning obligation is exempt from charge if— | |
(a) the planning obligation or modification is enforceable against the | |
vendor, | 5 |
(b) the purchaser is a public authority, and | |
(c) the transaction takes place within the period of five years beginning | |
with the date on which the planning obligation was entered into or | |
modified. | |
(2) In this section— | 10 |
(a) in relation to England and Wales— | |
“planning obligation” means either of the following— | |
(a) a planning obligation within the meaning of section 106 | |
of the Town and Country Planning Act 1990 that is | |
entered into in accordance with subsection (9) of that | 15 |
section, or | |
(b) a planning obligation within the meaning of section | |
299A of that Act that is entered into in accordance with | |
subsection (2) of that section; and | |
“modification” of a planning obligation means modification as | 20 |
mentioned in section 106A(1) of that Act; | |
(b) in relation to Scotland, “planning obligation” means an agreement | |
made under section 75 or section 246 of the Town and Country | |
Planning (Scotland) Act 1997; | |
(c) in relation to Northern Ireland— | 25 |
“planning obligation” means a planning agreement within the | |
meaning of Article 40 of the Planning (Northern Ireland) Order | |
1991 (1991/1220 (N.I. 11)) that is entered into accordance with | |
paragraph (10) of that Article, and | |
“modification” of a planning obligation means modification as | 30 |
mentioned in Article 40A(1) of that Order. | |
(3) The following are public authorities for the purposes of subsection (1)(b)— | |
Government | |
A Minister of the Crown or government department | |
The Scottish Ministers | 35 |
A Northern Ireland department | |
Local government: England and Wales | |
A county council constituted under section 2 of the Local Government Act 1972 | |
(c. 70) | |
A district council constituted under section 2 of that Act | 40 |
The council of a London borough | |
The Common Council of the City of London | |
The Greater London Authority | |
Transport for London | |
The Council of the Isles of Scilly | 45 |
Local government: Scotland | |
A council constituted under section 2 of the Local Government etc. (Scotland) | |
Act 1994 (c. 39) | |
Local government: Northern Ireland | |
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A district council within the meaning of the Local Government Act (Northern | |
Ireland) 1972 (c. 9 (N.I.)) | |
Health: England and Wales | |
A Health Authority established under section 8 of the National Health Service | |
Act 1977 (c. 49) (“the NHS Act”) | 5 |
A National Health Service Trust established under section 5 of the National | |
Health Service and Community Care Act 1990 (c. 19) | |
A Primary Care Trust established under section 16A of the NHS Act | |
A Special Health Authority established under section 11 of the NHS Act | |
A Strategic Health Authority established under section 8 of the NHS Act | 10 |
The National Assembly for Wales | |
Health: Scotland | |
The Common Services Agency established under section 10(1) of the National | |
Health Service (Scotland) Act 1978 (c. 29) | |
A Health Board established under section 2(1)(a) of that Act | 15 |
A National Health Service Trust established under section 12A(1) of that Act | |
A Special Health Board established under section 2(1)(b) of that Act | |
Health: Northern Ireland | |
A Health and Social Services Board established under Article 16 of the Health | |
and Personal Social Services (Northern Ireland) Order 1972 (S.I. 1972/1265 | 20 |
(N.I. 14)) | |
A Health and Social Services Trust established under Article 10 of the Health | |
and Personal Social Services (Northern Ireland) Order 1991 (S.I. 1991/194 | |
(N.I. 1)) | |
Prescribed persons | 25 |
A person prescribed for the purposes of this section by Treasury order | |
62 Group relief and reconstruction or acquisition relief | |
(1) Schedule 7 provides for relief from stamp duty land tax. | |
(2) In that Schedule— | |
Part 1 makes provision for group relief, | 30 |
Part 2 makes provision for reconstruction and acquisition reliefs. | |
(3) Any relief under that Schedule must be claimed in a land transaction return or | |
an amendment of such a return. | |
63 Demutualisation of insurance company | |
(1) A land transaction is exempt from charge if it is entered into for the purposes | 35 |
of or in connection with a qualifying transfer of the whole or part of the | |
business of a mutual insurance company (“the mutual”) to a company that has | |
share capital (“the acquiring company”). | |
(2) A transfer is a qualifying transfer if— | |
(a) it is a transfer of business consisting of the effecting or carrying out of | 40 |
contracts of insurance and takes place under an insurance business | |
transfer scheme, or | |
(b) it is a transfer of business of a general insurance company carried on | |
through a permanent establishment in the United Kingdom and takes | |
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place in accordance with authorisation granted outside the United | |
Kingdom for the purposes of— | |
(i) Article 14 of the life assurance Directive, or | |
(ii) Article 12 of the 3rd non-life insurance Directive, | |
and, in either case, the requirements of subsections (3) and (4) are met in | 5 |
relation to the shares of a company (“the issuing company”) which is either the | |
acquiring company or a company of which the acquiring company is a wholly- | |
owned subsidiary. | |
(3) Shares in the issuing company must be offered, under the scheme, to at least | |
90% of the persons who are members of the mutual immediately before the | 10 |
transfer. | |
(4) Under the scheme all of the shares in the issuing company that will be in issue | |
immediately after the transfer has been made, other than shares that are to be | |
or have been issued pursuant to an offer to the public, must be offered to the | |
persons who (at the time of the offer) are— | 15 |
(a) members of the mutual, | |
(b) persons who are entitled to become members of the mutual, or | |
(c) employees, former employees or pensioners of— | |
(i) the mutual, or | |
(ii) a wholly-owned subsidiary of the mutual. | 20 |
(5) The Treasury may by regulations— | |
(a) amend subsection (3) by substituting a lower percentage for the | |
percentage mentioned there; | |
(b) provide that any or all of the references in subsections (3) and (4) to | |
members shall be construed as references to members of a class | 25 |
specified in the regulations. | |
Regulations under paragraph (b) may make different provision for different | |
cases. | |
(6) For the purposes of this section a company is the wholly-owned subsidiary of | |
another company (“the parent”) if the company has no members except the | 30 |
parent and the parent’s wholly-owned subsidiaries or persons acting on behalf | |
of the parent or the parent’s wholly-owned subsidiaries. | |
(7) In this section— | |
“contract of insurance” has the meaning given by Article 3(1) of the | |
Financial Services and Markets Act 2000 (Regulated Activities) Order | 35 |
2001 (S.I. 2001/544); | |
“employee”, in relation to a mutual insurance company or its wholly- | |
owned subsidiary, includes any officer or director of the company or | |
subsidiary and any other person taking part in the management of the | |
affairs of the company or subsidiary; | 40 |
“general insurance company” means a company that has permission | |
under Part 4 of the Financial Services and Markets Act 2000 (c. 8), or | |
paragraph 15 of Schedule 3 to that Act (as a result of qualifying for | |
authorisation under paragraph 12(1) of that Schedule), to effect or carry | |
out contracts of insurance; | 45 |
“insurance company” means a company that carries on the business of | |
effecting or carrying out contracts of insurance; | |
“insurance business transfer scheme” has the same meaning as in Part 7 of | |
the Financial Services and Markets Act 2000; | |
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“the life assurance Directive” means the Council Directive of 5th | |
November 2002 concerning life assurance (No.2002/83/EC); | |
“mutual insurance company” means an insurance company carrying on | |
business without having any share capital; | |
“the 3rd non-life insurance Directive” means the Council Directive of 18th | 5 |
June 1992 on the co-ordination of laws, regulations and administrative | |
provisions relating to direct insurance other than life insurance and | |
amending Directives 73/239/EEC and 88/357/EEC (No. 92/49/EEC); | |
“pensioner”, in relation to a mutual insurance company or its wholly- | |
owned subsidiary, means a person entitled (whether presently or | 10 |
prospectively) to a pension, lump sum, gratuity or other like benefit | |
referable to the service of any person as an employee of the company or | |
subsidiary. | |
64 Demutualisation of building society | |
A land transaction effected by section 97(6) or (7) of the Building Societies Act | 15 |
1986 (c. 53) (transfer of building society’s business to a commercial company) | |
is exempt from charge. | |
65 Incorporation of limited liability partnership | |
(1) A transaction by which a chargeable interest is transferred by a person (“the | |
transferor”) to a limited liability partnership in connection with its | 20 |
incorporation is exempt from charge if the following three conditions are met. | |
(2) The first condition is that the effective date of the transaction is not more than | |
one year after the date of incorporation of the limited liability partnership. | |
(3) The second condition is that at the relevant time the transferor— | |
(a) is a partner in a partnership comprised of all the persons who are or are | 25 |
to be members of the limited liability partnership (and no-one else), or | |
(b) holds the interest transferred as nominee or bare trustee for one or more | |
of the partners in such a partnership. | |
(4) The third condition is that— | |
(a) the proportions of the interest transferred to which the persons | 30 |
mentioned in subsection (3)(a) are entitled immediately after the | |
transfer are the same as those to which they were entitled at the | |
relevant time, or | |
(b) none of the differences in those proportions has arisen as part of a | |
scheme or arrangement of which the main purpose, or one of the main | 35 |
purposes, is avoidance of liability to any duty or tax. | |
(5) In this section “the relevant time” means— | |
(a) where the transferor acquired the interest after the incorporation of the | |
limited liability partnership, immediately after he acquired it, and | |
(b) in any other case, immediately before its incorporation. | 40 |
(6) In this section “limited liability partnership” means a limited liability | |
partnership formed under the Limited Liability Partnerships Act 2000 (c. 12) or | |
the Limited Liability Partnerships Act (Northern Ireland) 2002 (c. 12 (N. I.)). | |
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