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Finance Bill
Schedule 37 — Stamp duty land tax and stamp duty
Part 2 — Re-enactment, with changes, of amendments made by section 109 regulations

537

 

      (2)  

Where in Scotland there is a lease constituted by concluded

missives of let (“the first lease”) and at some later time a lease is

executed (“the second lease”)—

(a)   

the first lease is treated as if it were surrendered at that

time, and

5

(b)   

the second lease is treated for the purposes of paragraph 9

(rent for overlap period in case of grant of further lease) as

if it were granted in consideration of that surrender.

      (3)  

Where in Scotland—

(a)   

there is an agreement (including missives of let not

10

constituting a lease) under which a lease is to be executed,

and

(b)   

the agreement is substantially performed without a lease

having been executed,

           

the agreement is treated as if it were the grant of a lease in

15

accordance with the agreement (“the notional lease”), beginning

with the date of substantial performance.

           

The effective date of the transaction is when the agreement is

substantially performed.

      (4)  

Where sub-paragraph (3) applies and at some later time a lease is

20

executed—

(a)   

the notional lease is treated as if it were surrendered at that

time, and

(b)   

the lease itself is treated for the purposes of paragraph 9 as

if it were granted in consideration of that surrender.

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      (5)  

References in sub-paragraphs (2) to (4) to the execution of a lease

are to the execution of a lease that either is in conformity with, or

relates to substantially the same property and period as, the

missives of let or other agreement.

      (6)  

Where sub-paragraph (3) applies and the agreement is (to any

30

extent) afterwards rescinded or annulled, or is for any other

reason not carried into effect, the tax paid by virtue of that sub-

paragraph shall (to that extent) be repaid by the Inland Revenue.

           

Repayment must be claimed by amendment of the land

transaction return made in respect of the agreement.”.

35

      (3)  

In section 51 (contingent, uncertain or unascertained consideration), after

subsection (4) add—

“(5)   

This section applies in relation to chargeable consideration

consisting of rent only to the extent that it is applied by paragraph 7

of Schedule 17A.”.

40

      (4)  

In section 80 (adjustment where contingency ceases or consideration

becomes certain)—

(a)   

in subsection (3) for “land transaction return” substitute “return

under section 76 (general requirement to make land transaction

return), subject to the adaptation that references to the effective date

45

of the transaction shall be read as references to the date of the event

as a result of which the return is required”; and

 

 

Finance Bill
Schedule 37 — Stamp duty land tax and stamp duty
Part 2 — Re-enactment, with changes, of amendments made by section 109 regulations

538

 

(b)   

after subsection (4) add—

“(5)   

This section does not apply so far as the consideration

consists of rent (see paragraph 8 of Schedule 17A).”.

      (5)  

In section 87 (interest on unpaid tax), in subsection (3) (meaning of “the

relevant date”), after paragraph (aa) (inserted by paragraph 19(3) above)

5

insert—

“(ab)   

in the case of an amount payable under paragraph 3(3) or 4(3)

of Schedule 17A (leases that continue after a fixed term and

treatment of leases for an indefinite term), the day on which

the lease becomes treated as being for a longer fixed term;”.

10

      (6)  

In section 90 (application to defer payment in case of contingent or uncertain

consideration), after subsection (6) add—

“(7)   

This section does not apply so far as the consideration consists of

rent.”.

      (7)  

In the table in section 122 (index of defined expressions), in the second

15

column of the entry for “lease and related expressions” for “section 120”

substitute “Schedule 17A”.

      (8)  

In paragraph 7 of Schedule 19 (commencement and transitional provisions:

earlier related transactions under stamp duty), after sub-paragraph (3)

add—

20

     “(4)  

For the purposes of paragraph 5 of Schedule 17A (treatment of

successive linked leases) no account shall be taken of any

transaction that is not an SDLT transaction.”.

Abolition of stamp duty: application to duplicates and counterparts

23         

In section 125(5) (abolition of stamp duty except on instruments relating to

25

stock or marketable securities: instruments to which the section applies)—

(a)   

in paragraph (a), after “instrument effecting a land transaction”,

(b)   

in paragraph (b), after “instrument effecting a transaction other than

a land transaction”, and

(c)   

in the second sentence, after “instrument effecting both a land

30

transaction and a transaction other than a land transaction”,

           

insert “(or any duplicate or counterpart of such an instrument)”.

Application of transitional provisions to certain contracts

24         

In Schedule 19 (commencement and transitional provisions), after

paragraph 4 (contracts entered into before the implementation date) insert—

35

“Contracts substantially performed after implementation date

4A         

Where—

(a)   

a transaction is effected in pursuance of a contract entered

into before the first relevant date,

(b)   

the contract is substantially performed, without having

40

been completed, after the implementation date, and

(c)   

there is subsequently an event within paragraph 3(3) by

virtue of which the transaction is an SDLT transaction,

 

 

Finance Bill
Schedule 37 — Stamp duty land tax and stamp duty
Part 2 — Re-enactment, with changes, of amendments made by section 109 regulations

539

 

           

the effective date of the transaction shall be taken to be the date of

the event referred to in paragraph (c) (and not the date of

substantial performance).

Application of provisions in case of transfer of rights

4B    (1)  

This paragraph applies where section 44 (contract and

5

conveyance) has effect in accordance with section 45 (effect of

transfer of rights).

      (2)  

Any reference in paragraph 3, 4 or 4A to the date when a contract

was entered into (or made) shall be read, in relation to a contract

deemed to exist by virtue of section 45(3) (deemed secondary

10

contract with transferee), as a reference to the date of the

assignment, subsale or other transaction in question.”.

Stamping of contract or agreement where transaction on completion or grant of lease subject to

stamp duty land tax

25    (1)  

In Schedule 19 (commencement and transitional provisions), after

15

paragraph 7 (earlier related transactions under stamp duty) insert—

“Stamping of contract where transaction on completion subject to stamp duty land

tax

7A    (1)  

This paragraph applies where—

(a)   

a contract that apart from paragraph 7 of Schedule 13 to the

20

Finance Act 1999 (contracts chargeable as conveyances on

sale) would not be chargeable with stamp duty is entered

into before the implementation date,

(b)   

a conveyance made in conformity with the contract is

effected on or after the implementation date, and

25

(c)   

the transaction effected on completion is an SDLT

transaction or would be but for an exemption or relief from

stamp duty land tax.

      (2)  

If in those circumstances the contract is presented for stamping

together with a Revenue certificate as to compliance with the

30

provisions of this Part of this Act in relation to the transaction

effected on completion—

(a)   

the payment of stamp duty land tax on that transaction or,

as the case may be, the fact that no such tax was payable

shall be denoted on the contract by a particular stamp, and

35

(b)   

the contract shall be deemed thereupon to be duly

stamped.

      (3)  

In this paragraph “conveyance” includes any instrument.”.

      (2)  

In paragraph 8 of Schedule 19 (time for stamping agreement for lease: lease

subject to stamp duty land tax)—

40

(a)   

for the heading substitute “Stamping of agreement for lease where

grant of lease subject to stamp duty land tax”, and

(b)   

in sub-paragraph (1) for the opening words substitute “This

paragraph applies where—”.

 

 

Finance Bill
Schedule 38 — Stamp duty land tax: claims not included in returns

540

 

      (3)  

For sub-paragraph (2) of that paragraph substitute—

     “(2)  

If in those circumstances the agreement is presented for stamping

together with a Revenue certificate as to compliance with the

provisions of this Part of this Act in relation to the grant of the

lease—

5

(a)   

the payment of stamp duty land tax in respect of the grant

of the lease or, as the case may be, the fact that no such tax

was payable shall be denoted on the agreement by a

particular stamp, and

(b)   

the agreement shall be deemed thereupon to be duly

10

stamped.”.

      (4)  

In section 122 (index of defined expressions), at the appropriate place

insert—

 

“Revenue certificate

section 79(3)(a)”.

 

Commencement

15

26         

This Part of this Schedule applies in relation to any transaction of which the

effective date (within the meaning of Part 4 of the Finance Act 2003) is on or

after the day on which this Act is passed.

Schedule 38

Section 284

 

Stamp duty land tax: claims not included in returns

20

           

The following is the Schedule inserted after Schedule 11 to the Finance Act

2003 —

“Schedule 11A

Section 82A

 

Stamp duty land tax: claims not included in returns

Introductory

25

1          

This Schedule applies to a claim under any provision of this Part

other than a claim that is required to be made in, or by amendment

to, a return under this Part.

           

References in this Schedule to a claim shall be read accordingly.

Making of claims

30

2     (1)  

A claim must be made in such form as the Inland Revenue may

determine.

      (2)  

The form of claim must provide for a declaration to the effect that

all the particulars given in the form are correctly stated to the best

of the claimant’s information and belief.

35

      (3)  

The form of claim may require—

(a)   

a statement of the amount of tax that will be required to be

discharged or repaid in order to give effect to the claim;

 

 

Finance Bill
Schedule 38 — Stamp duty land tax: claims not included in returns

541

 

(b)   

such information as is reasonably required for the purpose

of determining whether and, if so, the extent to which the

claim is correct;

(c)   

the delivery with the claim of such statements and

documents, relating to the information contained in the

5

claim, as are reasonably required for the purpose

mentioned in paragraph (b).

      (4)  

A claim for repayment of tax may not be made unless the claimant

has documentary evidence that the tax has been paid.

Duty to keep and preserve records

10

3     (1)  

A person who may wish to make a claim must—

(a)   

keep such records as may be needed to enable him to make

a correct and complete claim, and

(b)   

preserve those records in accordance with this paragraph.

      (2)  

The records must be preserved until the latest of the following

15

times—

(a)   

the end of the period of twelve months beginning with day

on which the claim was made;

(b)   

where there is an enquiry into the claim, or into an

amendment of the claim, the time when the enquiry is

20

completed;

(c)   

where the claim is amended and there is there is no

enquiry into the amendment, the time when the Inland

Revenue no longer have power to enquire into the

amendment.

25

      (3)  

The duty under this paragraph to preserve records may be

satisfied by the preservation of the information contained in them.

      (4)  

Where information is so preserved a copy of any document

forming part of the records is admissible in evidence in any

proceedings before the Commissioners to the same extent as the

30

records themselves.

      (5)  

A person who fails to comply with this paragraph in relation to a

claim that he makes is liable to a penalty not exceeding £3,000,

subject to the following exception.

      (6)  

No penalty is incurred if the Inland Revenue are satisfied that any

35

facts that they reasonably require to be proved, and that would

have been proved by the records, are proved by other

documentary evidence provided to them.

Amendment of claim by claimant

4     (1)  

The claimant may amend his claim by notice to the Inland

40

Revenue.

      (2)  

No such amendment may be made—

(a)   

more than twelve months after the day on which the claim

was made, or

(b)   

if the Inland Revenue give notice under paragraph 7

45

(notice of enquiry), during the period—

 

 

Finance Bill
Schedule 38 — Stamp duty land tax: claims not included in returns

542

 

(i)   

beginning with the day on which notice is given,

and

(ii)   

ending with the day on which the enquiry under

that paragraph is completed.

Correction of claim by Revenue

5

5     (1)  

The Inland Revenue may by notice to the claimant amend a claim

so as to correct obvious errors or omissions in the claim (whether

errors of principle, arithmetical mistakes or otherwise).

      (2)  

No such correction may be made—

(a)   

more than nine months after the day on which the claim

10

was made, or

(b)   

if the Inland Revenue give notice under paragraph 7

(notice of enquiry), during the period—

(i)   

beginning with the day on which notice is given,

and

15

(ii)   

ending with the day on which the enquiry under

that paragraph is completed.

      (3)  

A correction under this paragraph is of no effect if, within three

months from the date of issue of the notice of correction, the

claimant gives notice rejecting the correction.

20

      (4)  

Notice under sub-paragraph (3) must be given to the officer of the

Board by whom the notice of correction was given.

Giving effect to claims and amendments

6     (1)  

As soon as practicable after a claim is made, or is amended under

paragraph 4 or 5, the Inland Revenue shall give effect to the claim

25

or amendment by discharge or repayment of tax.

      (2)  

Where the Inland Revenue enquire into a claim or amendment—

(a)   

sub-paragraph (1) does not apply until a closure notice is

given under paragraph 11 (completion of enquiry), and

then it applies subject to paragraph 13 (giving effect to

30

amendments under paragraph 11), but

(b)   

the Inland Revenue may at any time before then give effect

to the claim or amendment, on a provisional basis, to such

extent as they think fit.

Notice of enquiry

35

7     (1)  

The Inland Revenue may enquire into a person’s claim or

amendment of a claim if they give him notice of their intention to

do so (“notice of enquiry”) before the end of the period of nine

months after the day on which the claim or amendment was made.

      (2)  

A claim or amendment that has been the subject of one notice of

40

enquiry may not be the subject of another.

Notice to produce documents etc for purposes of enquiry

8     (1)  

If the Inland Revenue give a person a notice of enquiry, they may

by notice in writing require him—

 

 

Finance Bill
Schedule 38 — Stamp duty land tax: claims not included in returns

543

 

(a)   

to produce to them such documents in his possession or

power, and

(b)   

to provide them with such information, in such form,

           

as they may reasonably require for the purposes of the enquiry.

      (2)  

A notice given to a person under this paragraph (which may be

5

given at the same time as the notice of enquiry) must specify the

time (which must not be less than 30 days) within which he is to

comply with it.

      (3)  

In complying with a notice under this paragraph copies of

documents may be produced instead of originals, but—

10

(a)   

the copies must be photographic or other facsimiles, and

(b)   

the Inland Revenue may by notice require the original to

be produced for inspection.

           

A notice under paragraph (b) must specify the time (which must

not be less than 30 days) within which the person is to comply

15

with it.

      (4)  

The Inland Revenue may take copies of, or make extracts from,

any documents produced to them under this paragraph.

      (5)  

A notice under this paragraph does not oblige a person to produce

documents or provide information relating to the conduct of any

20

pending appeal by him.

Appeal against notice to produce documents etc

9     (1)  

An appeal may be brought against a requirement imposed by a

notice under paragraph 8 to produce documents or provide

information.

25

      (2)  

Notice of appeal must be given—

(a)   

in writing,

(b)   

within 30 days after the issue of the notice appealed

against,

(c)   

to the officer of the Board by whom that notice was given.

30

      (3)  

An appeal under this paragraph shall be heard and determined in

the same way as an appeal against an assessment.

      (4)  

On an appeal under this paragraph the Commissioners—

(a)   

shall set aside the notice so far as it requires the production

of documents, or the provision of information, that

35

appears to them not reasonably required for the purposes

of the enquiry, and

(b)   

shall confirm the notice so far as it requires the production

of documents, or the provision of information, that

appears to them reasonably required for the purposes of

40

the enquiry.

      (5)  

A notice that is confirmed by the Commissioners (or so far as it is

confirmed) has effect as if the period specified in it for complying

was 30 days from the determination of the appeal.

      (6)  

The decision of the Commissioners on an appeal under this

45

paragraph is final.

 

 

 
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