|
| |
|
(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 |
| |
| 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. |
| |
| |
(a) | there is an agreement (including missives of let not |
| 10 |
constituting a lease) under which a lease is to be executed, |
| |
| |
(b) | the agreement is substantially performed without a lease |
| |
| |
| 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 |
| |
| |
(4) | Where sub-paragraph (3) applies and at some later time a lease is |
| 20 |
| |
(a) | the notional lease is treated as if it were surrendered at that |
| |
| |
(b) | the lease itself is treated for the purposes of paragraph 9 as |
| |
if it were granted in consideration of that surrender. |
| 25 |
(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extent) afterwards rescinded or annulled, or is for any other |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 |
| |
| |
“(5) | This section applies in relation to chargeable consideration |
| |
consisting of rent only to the extent that it is applied by paragraph 7 |
| |
| 40 |
(4) | In section 80 (adjustment where contingency ceases or consideration |
| |
| |
(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 |
| |
|
| |
|
| |
|
(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 |
| |
“(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 |
| |
| |
(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) |
| |
| 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 |
| |
| |
(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 |
| |
| |
(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, |
| |
|
| |
|
| |
|
| 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 |
| |
| |
(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 |
| |
| |
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 |
| |
| |
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 |
| |
| |
(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 |
| |
| |
(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 |
| |
| |
(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—”. |
| |
|
| |
|
| |
|
(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 |
| |
| 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 |
| |
| |
(b) | the agreement shall be deemed thereupon to be duly |
| 10 |
| |
(4) | In section 122 (index of defined expressions), at the appropriate place |
| |
| |
|
| 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. |
| |
| |
| |
Stamp duty land tax: claims not included in returns |
| 20 |
| The following is the Schedule inserted after Schedule 11 to the Finance Act |
| |
| |
| |
| |
Stamp duty land tax: claims not included in returns |
| |
| 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. |
| |
| 30 |
2 (1) | A claim must be made in such form as the Inland Revenue may |
| |
| |
(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; |
| |
|
| |
|
| |
|
(b) | such information as is reasonably required for the purpose |
| |
of determining whether and, if so, the extent to which the |
| |
| |
(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 |
| |
(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 |
| |
(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 |
| |
| 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 |
| |
(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 |
| |
(2) | No such amendment may be made— |
| |
(a) | more than twelve months after the day on which the claim |
| |
| |
(b) | if the Inland Revenue give notice under paragraph 7 |
| 45 |
(notice of enquiry), during the period— |
| |
|
| |
|
| |
|
(i) | beginning with the day on which notice is given, |
| |
| |
(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 |
| |
(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, |
| |
| 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. |
| |
| 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— |
| |
|
| |
|
| |
|
(a) | to produce to them such documents in his possession or |
| |
| |
(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 |
| |
| |
(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 |
| |
(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 |
| |
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 |
| |
| 25 |
(2) | Notice of appeal must be given— |
| |
| |
(b) | within 30 days after the issue of the notice appealed |
| |
| |
(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 |
| |
| |
(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 |
| |
(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 |
| |
|
| |
|