(b) under which the participants are entitled to exchange rights in one pool
for rights in another.
A “part” of an umbrella scheme means such of the arrangements as relate to a
(4) In this Part, subject to any regulations under subsection (5)—
“unit trust scheme” has the same meaning as in the Financial Services and
Markets Act 2000 (c. 8), and
“unit holder” means a person entitled to a share of the investments subject
to the trusts of a unit trust scheme.
(5) The Treasury may by regulations provide that a scheme of a description
specified in the regulations is to be treated as not being a unit trust scheme for
the purposes of this Part.
Any such regulations may contain such supplementary and transitional
provisions as appear to the Treasury to be necessary or expedient.
(6) Section 469A of the Taxes Act 1988 (court common investment funds treated as
authorised unit trusts) applies for the purposes of this Part as it applies for the
purposes of that Act, with the substitution for references to an authorised unit
trust of references to a unit trust scheme.
(7) An unit trust scheme is not to be treated as a company for the purposes of—
section 53 (deemed market value rule for transactions with connected
Schedule 7 (group relief, reconstruction relief or acquisition relief).
102 Open-ended investment companies
(1) The Treasury may by regulations make such provision as they consider
appropriate for securing that the provisions of this Part have effect in relation
(a) open-ended investment companies of such description as may be
prescribed in the regulations, and
(b) transactions involving such companies,
in a manner corresponding, subject to such modifications as the Treasury
consider appropriate, to the manner in which they have effect in relation to unit
trust schemes and transactions involving such trusts.
(2) The regulations may, in particular, make provision—
(a) modifying the operation of any prescribed provision in relation to
open-ended investment companies so as to secure that arrangements
for treating the assets of such a company as assets comprised in
separate pools are given an effect corresponding to that of equivalent
arrangements constituting the separate parts of an umbrella scheme;
(b) treating the separate parts of the undertaking of an open-ended
investment company in relation to which such provision is made as
distinct companies for the purposes of this Part.
(3) Regulations under this section may—
(a) make different provision for different cases, and
(b) contain such incidental, supplementary, consequential and transitional
provision as the Treasury think fit.
(4) In this section—
“open-ended investment company” has the meaning given by section 236
of the Financial Services and Markets Act 2000 (c. 8);
“prescribed” means prescribed by regulations under this section; and
“unit trust scheme” and “umbrella scheme” have the same meaning as in
103 Joint purchasers
(1) This section applies to a land transaction where there are two or more
purchasers who are or will be jointly entitled to the interest acquired.
(2) The general rules are that—
(a) any obligation of the purchaser under this Part in relation to the
transaction is an obligation of the purchasers jointly but may be
discharged by any of them,
(b) anything required or authorised by this Part to be done in relation to
the purchaser must be done by or in relation to all of them, and
(c) any liability of the purchaser under this Part in relation to the
transaction (in particular, any liability arising by virtue of the failure to
fulfil an obligation within paragraph (a)), is a joint and several liability
of the purchasers.
These rules are subject to the following provisions.
(3) If the transaction is a notifiable transaction, a single land transaction return is
(4) 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 purchasers.
(5) If the Inland Revenue give notice of an enquiry into the return or self-
(a) the notice must be given to each of the purchasers,
(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
(c) any of the purchasers may apply for a direction that a closure notice be
given (and all of them are entitled to appear and be heard on the
(d) the closure notice must be given to each of the purchasers.
(6) A Revenue determination or discovery assessment relating to the transaction
must be made against all the purchasers and is not effective against any of
them unless notice of it is given to each of them whose identity is known to the
(7) In the case of an appeal arising from proceedings under this Part relating to the
(a) the appeal may be brought by any of the purchasers,
(b) notice of the appeal must be given to any of them by whom it is not
(c) the agreement of all the purchasers 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, and
(e) the decision on the appeal binds all of them.
(8) This section has effect subject to—
the provisions of Schedule 15 relating to partnerships, and
the provisions of Schedule 16 relating to trustees.
(1) Schedule 15 has effect with respect to the application of this Part in relation to
(2) In that Schedule—
Part 1 defines “partnership” and contains other general provisions, and
Part 2 deals with ordinary partnership transactions, and
Part 3 excludes certain transactions from stamp duty land tax.
Schedule 16 has effect with respect to the application of this Part in relation to
106 Persons acting in a representative capacity etc
(1) The person having the direction, management or control of the property of an
(a) is responsible for discharging any obligations under this Part, in
relation to a transaction affecting that property, to which the
incapacitated person would be subject if he were not incapacitated, and
(b) may retain out of money coming into his hands on behalf of the
incapacitated person sums sufficient to meet any payment he is liable
to make under this Part, and, so far as he is not so reimbursed, is
entitled to be indemnified in respect of any such payment.
(2) The parent or guardian of a minor is responsible for discharging any
obligations of the minor under this Part that are not discharged by the minor
(3) The personal representatives of a person who is the purchaser under a land
(a) are responsible for discharging the obligations of the purchaser under
this Part in relation to the transaction, and
(b) may deduct any payment made by them under this Part out of the
assets and effects of the deceased person.
(4) A receiver appointed by a court in the United Kingdom having the direction
and control of any property is responsible for discharging any obligations
under this Part in relation to a transaction affecting that property as if the
property were not under the direction and control of the court.
107 Crown application
(1) Subject to the following provisions of this section, this Part applies in relation
to public offices and departments of the Crown.
But nothing in this Part shall require the payment by any such office or
department of tax that would ultimately be borne by the Crown.
(2) A land transaction under which the purchaser is any of the following is exempt
A Minister of the Crown
The Scottish Ministers
A Northern Ireland department
The Corporate Officer of the House of Lords
The Corporate Officer of the House of Commons
The Scottish Parliamentary Corporate Body
The Northern Ireland Assembly Commission
The National Assembly for Wales
(3) The powers conferred by Part 7 of Schedule 13 (entry with warrant to obtain
information) are not exercisable in relation to premises occupied for the
purposes of the Crown.
108 Linked transactions
(1) Transactions are “linked” for the purposes of this Part if they form part of a
single scheme, arrangement or series of transactions between the same vendor
and purchaser or, in either case, persons connected with them.
Section 839 of the Taxes Act 1988 (connected persons) has effect for the
purposes of this subsection
(2) Where there are two or more linked transactions with the same effective date,
the purchaser, or all of the purchasers if there is more than one, may make a
single land transaction return as if all of those transactions that are notifiable
were a single notifiable transaction.
(3) Where two or more purchasers make a single return in respect of linked
transactions, section 103 (joint purchasers) applies as if—
(a) the transactions in question were a single transaction, and
(b) those purchasers were purchasers acting jointly.
109 General power to vary this Part by regulations
(1) The Treasury may if they consider it expedient in the public interest make
provision by regulations for the variation of this Part in its application to land
transactions of any description.
(2) The power conferred by this section includes, in particular, power to alter—
(a) the descriptions of land transaction that are chargeable or notifiable;
(b) the descriptions of land transaction in respect of which tax is chargeable
at any existing rate or amount.
(3) The power conferred by this section does not, except as mentioned in
subsection (2)(b), include power to vary any threshold, rate or amount
(a) section 55 (amount of tax chargeable: general), or
(b) Schedule 5 (amount of tax chargeable: rent).
(4) This section has effect subject to section 110 (approval of regulations by House
(5) Regulations under this section do not apply in relation to any transaction of
which the effective date is after the end of—
(a) the period of 18 months beginning with the day on which the
regulations were made, or
(b) such shorter period as may be specified in the regulations.
This does not affect the power to make further provision by regulations under
this section to the same or similar effect.
(6) Regulations under this section may include such supplementary, transitional
and incidental provision as appears to the Treasury to be necessary or
(7) The power conferred by this section may be exercised at any time after the
passing of this Act.
110 Approval of regulations under general power
(1) An instrument containing regulations under section 109 (general power to
vary this Part by regulations) must be laid before the House of Commons after
(2) If the regulations are not approved by the House of Commons before the end
of the period of 28 days beginning with the day on which they are made, they
shall cease to have effect at the end of that period (if they have not already
ceased to have effect under subsection (3)).
(3) If on any day during that period of 28 days the House of Commons, in
proceedings on a motion that (or to the effect that) the regulations be approved,
comes to a decision rejecting the regulations, they shall cease to have effect at
the end of that day.
(4) In reckoning any such period of 28 days take no account of any time during
(a) Parliament is prorogued or dissolved, or
(b) the House of Commons is adjourned for more than four days.
(5) Where regulations cease to have effect under this section, their ceasing to have
effect is without prejudice to anything done in reliance on them.
As to claims for repayment, see section 111.
111 Claim for repayment if regulations under general power not approved
(1) Where regulations cease to have effect under section 110, any amount paid by
way of tax, or interest or penalty, that would not have been payable but for the
regulations shall, on a claim, be repaid by the Inland Revenue.
(2) Section 89 (interest on repayment of tax overpaid etc) applies to a repayment
under this section.
(3) A claim for repayment must be made within two years after the effective date
of the transaction in question.
(4) The Inland Revenue may make provision by regulations—
(a) for varying the time limit for making a claim;
(b) as to any other conditions that must be met before repayment is made.
112 Power to amend certain provisions before implementation
(1) The Treasury may by regulations amend the following provisions of this
(a) Schedule 5 (amount of tax chargeable: rent);
(b) subsection (2) of section 55 (amount of tax chargeable: general) so far as
relating to the thresholds at which different rates of tax become
(2) The regulations may make such consequential amendments of Schedule 6
(disadvantaged areas relief) as appear to the Treasury to be appropriate.
(3) A statutory instrument containing regulations under this section shall not be
made unless a draft of the instrument has been laid before and approved by
resolution of the House of Commons.
(4) The power conferred by this section is not exercisable after the implementation
113 Functions conferred on “the Inland Revenue”
(1) References in this Part to “the Inland Revenue” are to any officer of the Board,
except as otherwise provided.
(2) Any power of the Inland Revenue to make regulations is exercisable only by
(3) In Schedule 10 (returns, assessments and other administrative matters)—
(a) functions of the Inland Revenue under these provisions are exercisable
by the Board or an officer of the Board—
(i) paragraph 28 (discovery assessment),
(ii) paragraph 29 (assessment to recover excessive repayment);
(b) functions of the Inland Revenue under these provisions are functions of
(i) paragraph 33 (relief in case of double assessment),
(ii) paragraph 34 (relief in case of mistake in return).
(4) Nothing in this section affects any provision of this Part that expressly confers
functions on the Board, an officer of the Board, a collector or a specific officer
of the Board.
114 Orders and regulations made by the Treasury or the Inland Revenue
(1) Except as otherwise provided, any power of the Treasury or the Inland
Revenue to make an order or regulations under this Part, or under any other
enactments relating to stamp duty land tax (including enactments passed after
this Act), is exercisable by statutory instrument.
(2) Subsection (1) does not apply in relation to the power conferred by—
paragraph 8 of Schedule 5 to this Act (tax chargeable in respect of rent:
power to prescribe temporal discount rate),
section 178(5) of the Finance Act 1989 (c. 26) (power to prescribe rates of
(3) Except as otherwise provided, a statutory instrument containing any order or
regulations made by the Treasury or the Inland Revenue under this Part, or
under any other enactments relating to stamp duty land tax (including
enactments passed after this Act), shall be subject to annulment in pursuance
of a resolution of the House of Commons.
(4) Subsection (3) does not apply to a statutory instrument made under the power
section 61(3) (compliance with planning obligations: power to add to list
of public authorities);
paragraph 1(3) of Schedule 9 (right to buy transactions: power to add to
list of relevant public sector bodies);
paragraph 2(2) of Schedule 19 (commencement and transitional
provisions: power to appoint implementation date).
115 General Commissioners and appeals and other proceedings
Schedule 17 makes provision about the General Commissioners and appeals
and other proceedings.
116 Meaning of “residential property”
(1) In this Part “residential property” means—
(a) a building that is used or suitable for use as a dwelling, or is in the
process of being constructed or adapted for such use, and
(b) land that is or forms part of the garden or grounds of a building within
paragraph (a) (including any building or structure on such land), or
(c) an interest in or right over land that subsists for the benefit of a building
within paragraph (a) or of land within paragraph (b);
and “non-residential property” means any property that is not residential
This is subject to the rule in subsection (7) in the case of a transaction involving
six or more dwellings.
(2) For the purposes of subsection (1) a building used for any of the following
purposes is used as a dwelling—
(a) residential accommodation for school pupils;
(b) residential accommodation for students, other than accommodation
falling with subsection (3)(b);
(c) residential accommodation for members of the armed forces;