|
| |
|
| Paragraph (b) does not apply to the grant of lease or licence to the |
| |
individual for a period of no more than six months. |
| |
(6) | Where relief is withdrawn the amount of tax chargeable is the |
| |
amount that would have been chargeable in respect of the |
| |
acquisition but for the relief.”. |
| 5 |
(3) | In section 81 (further return where relief withdrawn)— |
| |
(a) | in subsection (1) (obligation to deliver a further return), before |
| |
| |
“(za) | paragraph 11 of Schedule 6A (relief for certain |
| |
acquisitions of residential property),”; and |
| 10 |
(b) | in subsection (4) (meaning of disqualifying event), before paragraph |
| |
| |
“(za) | in relation to the withdrawal of relief under Schedule |
| |
6A, an event mentioned in paragraph (a), (b) or (c) of |
| |
paragraph 11(2), (3), (4) or (5) of that Schedule;”. |
| 15 |
(4) | In section 87 (interest on unpaid tax)— |
| |
(a) | in subsection (3)(a) (relevant date where relief is withdrawn), before |
| |
sub-paragraph (i) insert— |
| |
“(ia) | Schedule 6A (relief for certain acquisitions of |
| |
residential property),”; and |
| 20 |
(b) | in subsection (4) (meaning of disqualifying event), before paragraph |
| |
| |
“(za) | in relation to the withdrawal of relief under Schedule |
| |
6A an event mentioned in paragraph (a), (b) or (c) of |
| |
paragraph 11(2), (3), (4) or (5) of that Schedule;”. |
| 25 |
Initial transfer of assets to trustees of unit trust scheme |
| |
18 | After section 64 insert— |
| |
“64A | Initial transfer of assets to trustees of unit trust scheme |
| |
(1) | The acquisition of a chargeable interest by trustees of a unit trust |
| |
scheme is exempt from charge if the following conditions are met. |
| 30 |
(2) | The conditions are that— |
| |
(a) | immediately before the acquisition— |
| |
(i) | there were no assets held by the trustees for the |
| |
purposes of the scheme, and |
| |
(ii) | there were no units of the scheme in issue, |
| 35 |
(b) | the only consideration for the acquisition is the issue of units |
| |
in the scheme to the vendor, and |
| |
(c) | immediately after the acquisition the vendor is the only unit |
| |
| |
Return or further return in consequence of later linked transaction |
| 40 |
19 (1) | After section 81 (further return where relief withdrawn) insert— |
| |
“81A | Return or further return in consequence of later linked transaction |
| |
(1) | Where the effect of a transaction (“the later transaction”) that is |
| |
linked to an earlier transaction is that the earlier transaction becomes |
| |
|
| |
|
| |
|
notifiable, or that additional tax is payable in respect of the earlier |
| |
transaction or that tax is payable in respect of the earlier transaction |
| |
where none was payable before— |
| |
(a) | the purchaser under the earlier transaction must deliver a |
| |
return or further return in respect of that transaction before |
| 5 |
the end of the period of 30 days after the effective date of the |
| |
| |
(b) | the return must include a self-assessment of the amount of |
| |
tax chargeable as a result of the later transaction, |
| |
(c) | the tax so chargeable is to be calculated by reference to the |
| 10 |
rates in force at the effective date of the earlier transaction, |
| |
| |
(d) | the return must be accompanied by payment of the tax or |
| |
| |
(2) | The provisions of Schedule 10 (returns, enquiries, assessments and |
| 15 |
other matters) apply to a return under this section as they apply to a |
| |
return under section 76 (general requirement to deliver land |
| |
transaction return), with the following adaptations— |
| |
(a) | in paragraph 5 (formal notice to deliver return), the |
| |
requirement in sub-paragraph (2)(a) that the notice specify |
| 20 |
the transaction to which it relates shall be read as requiring |
| |
both the earlier and later transactions to be specified; |
| |
(b) | references to the effective date of the transaction to which the |
| |
return relates shall be read as references to the effective date |
| |
of the later transaction. |
| 25 |
(3) | This section does not affect any requirement to make a return under |
| |
section 76 in respect of the later transaction.”. |
| |
(2) | In section 81(3) for “land transaction return” substitute “return under section |
| |
76 (general requirement to deliver land transaction return)”. |
| |
(3) | In section 87 (interest on unpaid tax), in subsection (3) (meaning of “the |
| 30 |
relevant date”), after paragraph (a) insert— |
| |
“(aa) | in the case of an amount payable under section 81A in respect |
| |
of an earlier transaction because of the effect of a later linked |
| |
transaction, the effective date of the later transaction;”. |
| |
Declaration by person authorised to act on behalf of purchaser |
| 35 |
20 | After section 81A (inserted by paragraph 19 above) insert— |
| |
“81B | Declaration by person authorised to act on behalf of individual |
| |
(1) | This section applies to the declaration mentioned in paragraph |
| |
1(1)(c) of Schedule 10 or paragraph 2(1)(c) of Schedule 11 |
| |
(declaration that return or self-certificate is correct and complete). |
| 40 |
(2) | The requirement that an individual make such a declaration (alone |
| |
or jointly with others) is treated as met if a declaration to that effect |
| |
is made by a person authorised to act on behalf of that individual in |
| |
relation to the matters to which the return or certificate relates. |
| |
(3) | For the purposes of this section a person is not regarded as |
| 45 |
authorised to act on behalf of an individual unless he is so authorised |
| |
by a power of attorney in writing, signed by that individual. |
| |
|
| |
|
| |
|
| In this subsection as it applies in Scotland “power of attorney” |
| |
includes factory and commission. |
| |
(4) | Nothing in this section affects the making of a declaration in |
| |
| |
(a) | section 100(2) (persons through whom a company acts), or |
| 5 |
(b) | section 106(1) or (2) (person authorised to act on behalf of |
| |
incapacitated person or minor).”. |
| |
| |
21 (1) | Section 107 (Crown application) is amended as follows. |
| |
(2) | For subsection (1) (extent of Crown application) substitute— |
| 10 |
“(1) | This Part binds the Crown, subject to the following provisions of this |
| |
| |
(3) | After subsection (3) add— |
| |
“(4) | Nothing in this section shall be read as making the Crown liable to |
| |
prosecution for an offence.”. |
| 15 |
Further provision relating to leases |
| |
22 (1) | For section 120 (meaning of “lease” and other supplementary provisions) |
| |
| |
“120 | Further provisions relating to leases |
| |
Schedule 17A contains further provisions relating to leases.”. |
| 20 |
(2) | After Schedule 17 insert— |
| |
| |
| |
Further provisions relating to leases |
| |
| |
1 | In the application of this Part to England and Wales or Northern |
| 25 |
| |
(a) | an interest or right in or over land for a term of years |
| |
(whether fixed or periodic), or |
| |
(b) | a tenancy at will or other interest or right in or over land |
| |
terminable by notice at any time. |
| 30 |
| |
2 | In the application of the provisions of this Part to a lease for a fixed |
| |
term, no account shall be taken of— |
| |
(a) | any contingency as a result of which the lease may |
| |
determine before the end of the fixed term, or |
| 35 |
(b) | any right of either party to determine the lease or renew it. |
| |
Leases that continue after a fixed term |
| |
3 (1) | This paragraph applies to— |
| |
|
| |
|
| |
|
(a) | a lease for a fixed term and thereafter until determined, or |
| |
(b) | a lease for a fixed term that may continue beyond the fixed |
| |
term by operation of law. |
| |
(2) | For the purposes of this Part (except section 77 (notifiable |
| |
transactions)), a lease to which this paragraph applies is treated— |
| 5 |
(a) | in the first instance as if it were a lease for the original fixed |
| |
| |
(b) | if the lease continues after the end of that term, as if it were |
| |
a lease for a fixed term one year longer than the original |
| |
| 10 |
(c) | if the lease continues after the end of the term resulting |
| |
from the application of paragraph (b), as if it were a lease |
| |
for a fixed term two years longer than the original fixed |
| |
| |
| 15 |
(3) | Where the effect of sub-paragraph (2) in relation to the |
| |
continuation of the lease after the end of a fixed term is that |
| |
additional tax is payable in respect of a transaction or that tax is |
| |
payable in respect of a transaction where none was payable |
| |
| 20 |
(a) | the purchaser must deliver a return or further return in |
| |
respect of that transaction before the end of the period of |
| |
30 days after the end of that term, |
| |
(b) | the return must include a self-assessment of the amount of |
| |
tax chargeable in respect of the transaction on the basis of |
| 25 |
the information contained in the return, |
| |
(c) | the tax so chargeable is to be calculated by reference to the |
| |
rates in force at the effective date of the transaction, and |
| |
(d) | the return must be accompanied by payment of the tax or |
| |
| 30 |
(4) | The provisions of Schedule 10 (returns, enquiries, assessments and |
| |
other matters) apply to a return under this paragraph as they |
| |
apply to a return under section 76 (general requirement to deliver |
| |
land transaction return), with the adaptation that references to the |
| |
effective date of the transaction shall be read as references to the |
| 35 |
day on which the lease becomes treated as being for a longer fixed |
| |
| |
(5) | For the purposes of section 77 (notifiable transactions) a lease to |
| |
which this paragraph applies is a lease for whatever is its fixed |
| |
| 40 |
Treatment of leases for indefinite term |
| |
4 (1) | For the purposes of this Part (except section 77 (notifiable |
| |
| |
(a) | a lease for an indefinite term is treated in the first instance |
| |
as if it were a lease for a fixed term of a year, |
| 45 |
(b) | if the lease continues after the end of the term resulting |
| |
from the application of paragraph (a), it is treated as if it |
| |
were a lease for a fixed term of two years, |
| |
|
| |
|
| |
|
(c) | if the lease continues after the end of the term resulting |
| |
from the application of paragraph (b), it is treated as if it |
| |
were a lease for a fixed term of three years, |
| |
| |
(2) | No account shall be taken for the purposes of this Part of any other |
| 5 |
statutory provision in England and Wales or Northern Ireland |
| |
deeming a lease for an indefinite period to be a lease for a different |
| |
| |
(3) | Where the effect of sub-paragraph (1) in relation to the |
| |
continuation of the lease after the end of a deemed fixed term is |
| 10 |
that additional tax is payable in respect of a transaction or that tax |
| |
is payable in respect of a transaction where none was payable |
| |
| |
(a) | the purchaser must deliver a return or further return in |
| |
respect of that transaction before the end of the period of |
| 15 |
30 days after the end of that term, |
| |
(b) | the return must include a self-assessment of the amount of |
| |
tax chargeable in respect of the transaction on the basis of |
| |
the information contained in the return, |
| |
(c) | the tax so chargeable is to be calculated by reference to the |
| 20 |
rates in force at the effective date of the transaction, and |
| |
(d) | the return must be accompanied by payment of the tax or |
| |
| |
(4) | The provisions of Schedule 10 (returns, enquiries, assessments and |
| |
other matters) apply to a return under this paragraph as they |
| 25 |
apply to a return under section 76 (general requirement to deliver |
| |
land transaction return), with the adaptation that references to the |
| |
effective date of the transaction shall be read as references to the |
| |
day on which the lease becomes treated as being for a longer fixed |
| |
| 30 |
(4A) | For the purposes of section 77 (notifiable transactions) a lease for |
| |
an indefinite term is a lease for a term of less then seven years. |
| |
(5) | References in this paragraph to a lease for an indefinite period |
| |
| |
(a) | a periodic tenancy or other interest or right terminable by |
| 35 |
| |
(b) | a tenancy at will in England and Wales or Northern |
| |
| |
(c) | any other interest or right terminable by notice at any time. |
| |
Treatment of successive linked leases |
| 40 |
5 (1) | This paragraph applies where— |
| |
(a) | successive leases are granted or treated as granted |
| |
(whether at the same time or at different times) of the same |
| |
or substantially the same premises, and |
| |
(b) | those grants are linked transactions. |
| 45 |
(2) | This Part applies as if the series of leases were a single lease— |
| |
(a) | granted at the time of the grant of the first lease in the |
| |
| |
|
| |
|
| |
|
(b) | for a term equal to the aggregate of the terms of all the |
| |
| |
(c) | in consideration of the rent payable under all of the leases. |
| |
(3) | The grant of later leases in the series is accordingly disregarded for |
| |
the purposes of this Part except section 81A (return or further |
| 5 |
return in consequence of later linked transaction). |
| |
| |
6 (1) | For the purposes of this Part a single sum expressed to be payable |
| |
in respect of rent, or expressed to be payable in respect of rent and |
| |
other matters but not apportioned, shall be treated as entirely rent. |
| 10 |
(2) | Sub-paragraph (1) is without prejudice to the application of |
| |
paragraph 4 of Schedule 4 (chargeable consideration: just and |
| |
reasonable apportionment) where separate sums are expressed to |
| |
be payable in respect of rent and other matters. |
| |
Variable or uncertain rent |
| 15 |
7 (1) | This paragraph applies to determine the amount of rent payable |
| |
under a lease where that amount— |
| |
(a) | varies in accordance with provision in the lease, or |
| |
(b) | is contingent, uncertain or unascertained. |
| |
(2) | As regards rent payable in respect of any period before the end of |
| 20 |
the fifth year of the term of the lease— |
| |
(a) | the provisions of this Part apply as in relation to other |
| |
chargeable consideration, and |
| |
(b) | the provisions of section 51(1) and (2) accordingly apply if |
| |
the amount is contingent, uncertain or unascertained. |
| 25 |
(3) | As regards rent payable in respect of any period after the end of |
| |
the fifth year of the term of the lease, the annual amount is |
| |
assumed for the purposes of this Part to be, in every case, equal to |
| |
the highest amount of rent payable in respect of any consecutive |
| |
twelve month period in the first five years of the term. |
| 30 |
| In determining that amount take into account (if necessary) any |
| |
amounts determined as mentioned in sub-paragraph (2)(b). |
| |
(4) | This paragraph has effect subject to paragraph 8 (adjustment |
| |
where rent payable ceases to be uncertain). |
| |
(5) | No account shall be taken for the purposes of this Part of any |
| 35 |
provision for rent to be adjusted in line with the retail prices index. |
| |
First rent review in final quarter of fifth year |
| |
| |
(a) | a lease contains provision under which the rent may be |
| |
| 40 |
(b) | under that provision the first (or only) such adjustment— |
| |
(i) | is to an amount that (before the adjustment) is |
| |
| |
(ii) | has effect from a date (the “review date”) that is |
| |
expressed as falling five years after a specified date, |
| 45 |
|
| |
|
| |
|
| |
(c) | the specified date falls within the three months before the |
| |
beginning of the term of the lease, |
| |
| this Schedule has effect as if references to the first five years of the |
| |
term of the lease were to the period beginning with the start of the |
| 5 |
term of the lease and ending with the review date. |
| |
| References to the fifth year of the term of the lease shall be read |
| |
| |
Adjustment where rent ceases to be uncertain |
| |
8 (1) | Where the provisions of section 51(1) and (2) (contingent, |
| 10 |
uncertain or unascertained consideration) apply in relation to a |
| |
transaction by virtue of paragraph 7 (uncertain rent) and— |
| |
(a) | the end of the fifth year of the term of the lease is reached, |
| |
| |
(b) | the amount of rent payable in respect of the first five years |
| 15 |
of the term of the lease ceases to be uncertain at an earlier |
| |
| |
| the following provisions have effect to require or permit |
| |
reconsideration of how this Part applies to the transaction (and to |
| |
any transaction in relation to which it is a linked transaction). |
| 20 |
(2) | For the purposes of this paragraph the amount of rent payable |
| |
ceases to be uncertain when— |
| |
(a) | in the case of contingent rent, the contingency occurs or it |
| |
becomes clear that it will not occur, and |
| |
(b) | in the case of uncertain or unascertained rent, the amount |
| 25 |
| |
(3) | If the result as regards the rent paid or payable in respect of the |
| |
first five years of the term of the lease is that a transaction becomes |
| |
notifiable, or that additional tax is payable in respect of a |
| |
transaction or that tax is payable where none was payable |
| 30 |
| |
(a) | the purchaser must make a return to the Inland Revenue |
| |
within 30 days of the date referred to in sub-paragraph |
| |
| |
(b) | the return must contain a self-assessment of the tax |
| 35 |
chargeable in respect of the transaction on the basis of the |
| |
information contained in the return, |
| |
(c) | the tax so chargeable is to be calculated by reference to the |
| |
rates in force at the effective date of the transaction, and |
| |
(d) | the return must be accompanied by payment of any tax or |
| 40 |
| |
(4) | The provisions of Schedule 10 (returns, enquiries, assessment and |
| |
other matters) apply to a return under this paragraph as they |
| |
apply to a return under section 76 (general requirement to make |
| |
land transaction return), subject to the adaptation that references |
| 45 |
to the effective date of the transaction shall be read as references to |
| |
the date referred to in sub-paragraph (1)(a) or (b). |
| |
|
| |
|