|
| |
|
| 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 |
| |
| |
(a) | the notional lease is treated as if it were surrendered at that |
| 5 |
| |
(b) | the lease itself is treated for the purposes of paragraph 9 as |
| |
if it were granted in consideration of that surrender. |
| |
(5) | References in sub-paragraphs (2) to (4) to the execution of a lease |
| |
are to the execution of a lease that either— |
| 10 |
(a) | is in conformity with the missives of let, or |
| |
(b) | relates to substantially the same property and period as the |
| |
| |
(6) | Where sub-paragraph (3) applies and the agreement is (to any |
| |
extent) afterwards rescinded or annulled, or is for any other |
| 15 |
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.”. |
| |
Transfer of rights after 10th July 2003 relating to earlier contract: applicability of SDLT regime |
| 20 |
12 | In Schedule 19 (commencement and transitional provisions), in paragraph 3 |
| |
(contract entered into before first relevant date), for paragraph (c) of sub- |
| |
paragraph (3) substitute— |
| |
“(c) | if on or after that date there is an assignment, subsale or |
| |
other transaction (relating to the whole or part of the |
| 25 |
subject-matter of the contract) as a result of which a person |
| |
other than the purchaser under the contract becomes |
| |
entitled to call for a conveyance to him.”. |
| |
| |
13 (1) | Paragraph 4, and paragraphs 7 and 8 so far as relating to the section 44A |
| 30 |
inserted by that paragraph, apply in relation to any contract entered into |
| |
| |
(2) | Paragraph 5, and paragraphs 7 and 8 so far as relating to the section 45A |
| |
inserted by that paragraph, apply in relation to any transfer of rights |
| |
occurring after that date. |
| 35 |
(3) | Subject to sub-paragraphs (4) and (5), the amendments made by the other |
| |
provisions of this Part of this Schedule apply in relation to any transaction |
| |
of which the effective date is after 17th March 2004. |
| |
(4) | Paragraph 12 does not apply in relation to a contract that was substantially |
| |
performed before 17th March 2004. |
| 40 |
(5) | Paragraphs 6 and 11 (which contain amendments the effect of which is |
| |
reproduced in Part 2 of this Schedule) do not apply in relation to any |
| |
transaction of which the effective date is on or after the day on which this Act |
| |
| |
| 45 |
|
| |
|
| |
|
| “effective date” and “substantially performed” have the same |
| |
meaning as in Part 4 of the Finance Act 2003 (as amended by this |
| |
| |
| “transfer of rights” has the same meaning as in section 45 of that Act |
| |
or, as the case may require, section 45A of that Act (inserted by |
| 5 |
| |
| |
Re-enactment, with changes, of amendments made by section 109 regulations |
| |
Introduction and revocation |
| |
14 (1) | This Part of this Schedule contains amendments to Parts 4 and 5 of the |
| 10 |
Finance Act 2003 (c. 14) (stamp duty land tax and stamp duty) |
| |
corresponding, subject to certain changes, to those made by the Stamp Duty |
| |
and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) |
| |
Regulations 2003 (S.I. 2003/2816) (made under section 109 of that Act). |
| |
(2) | Those regulations are revoked. |
| 15 |
Meaning of taking possession |
| |
15 (1) | Section 44 (contract and conveyance) is amended as follows. |
| |
(2) | In subsection (5)(a) (meaning of “substantial performance”: purchaser |
| |
taking possession), after “the purchaser” insert “, or a person connected with |
| |
| 20 |
(3) | In subsection (6) (meaning of taking possession)— |
| |
(a) | for paragraph (a) substitute— |
| |
“(a) | possession includes receipt of rents and profits or the |
| |
right to receive them, and”; and |
| |
(b) | in paragraph (b), for “the purchaser takes possession” substitute |
| 25 |
| |
(4) | After subsection (10) add— |
| |
“(11) | Section 839 of the Taxes Act 1988 (connected persons) has effect for |
| |
the purposes of this section.”. |
| |
Relief for sale and leaseback arrangements |
| 30 |
16 | After section 57 (disadvantaged areas relief) insert— |
| |
“57A | Sale and leaseback arrangements |
| |
(1) | The leaseback element of a sale and leaseback arrangement is exempt |
| |
from charge if the qualifying conditions specified below are met. |
| |
(2) | A “sale and leaseback” arrangement means an arrangement under |
| 35 |
| |
(a) | A transfers or grants to B a major interest in land (the “sale”), |
| |
| |
(b) | out of that interest B grants a lease to A (the “leaseback”). |
| |
(3) | The qualifying conditions are— |
| 40 |
|
| |
|
| |
|
(a) | that the sale transaction is entered into wholly or partly in |
| |
consideration of the leaseback transaction being entered into, |
| |
(b) | that the only other consideration (if any) for the sale is the |
| |
payment of money or the assumption, satisfaction or release |
| |
| 5 |
(c) | that the sale is not a transfer of rights within the meaning of |
| |
section 45 (contract and conveyance: effect of transfer of |
| |
rights) or 45A (contract providing for conveyance to third |
| |
party: effect of transfer of rights), and |
| |
(d) | where A and B are both bodies corporate at the effective date |
| 10 |
of the leaseback transaction, that they are not members of the |
| |
same group for the purposes of group relief (see paragraph 1 |
| |
of Schedule 7) at that date. |
| |
| |
| “debt” means an obligation, whether certain or contingent, to |
| 15 |
pay a sum of money either immediately or at a future date; |
| |
| |
| “money” means money in sterling or another currency.”. |
| |
Relief for certain acquisitions of residential property |
| |
17 (1) | For sections 58 and 59 (relief for certain exchanges of residential property |
| 20 |
and relocation relief) substitute— |
| |
“58A | Relief for certain acquisitions of residential property |
| |
Schedule 6A provides for relief in the case of certain acquisitions of |
| |
| |
(2) | After Schedule 6 insert— |
| 25 |
| |
| |
Relief for certain acquisitions of residential property |
| |
Acquisition by house-building company from individual acquiring new dwelling |
| |
1 (1) | Where a dwelling (“the old dwelling”) is acquired by a house- |
| |
building company from an individual (whether alone or with |
| 30 |
other individuals), the acquisition is exempt from charge if the |
| |
following conditions are met. |
| |
| |
(a) | that the individual (whether alone or with other |
| |
individuals) acquires from the house-building company a |
| 35 |
| |
| |
(i) | occupied the old dwelling as his only or main |
| |
residence at some time in the period of two years |
| |
ending with the date of its acquisition, and |
| 40 |
(ii) | intends to occupy the new dwelling as his only or |
| |
| |
(c) | that each acquisition is entered into in consideration of the |
| |
| |
|
| |
|
| |
|
(d) | that the area of land acquired by the house-building |
| |
company does not exceed the permitted area. |
| |
(3) | Where the conditions in sub-paragraph (2)(a) to (c) are met but the |
| |
area of land acquired by the house-building company exceeds the |
| |
permitted area, the chargeable consideration for the acquisition is |
| 5 |
taken to be the amount calculated by deducting the market value |
| |
of the permitted area from the market value of the old dwelling. |
| |
(4) | A “house-building company” means a company that carries on the |
| |
business of constructing or adapting buildings or parts of |
| |
buildings for use as dwellings. |
| 10 |
| References in this paragraph to such a company include any |
| |
company connected with it. |
| |
| |
(a) | references to the acquisition of the new dwelling are to the |
| |
acquisition, by way of grant or transfer, of a major interest |
| 15 |
| |
(b) | references to the acquisition of the old dwelling are to the |
| |
acquisition, by way of transfer, of a major interest in the |
| |
| |
(c) | references to the market value of the old dwelling and of |
| 20 |
the permitted area are, respectively, to the market value of |
| |
that major interest in the dwelling and of that interest so far |
| |
as it relates to that area. |
| |
Acquisition by property trader from individual acquiring new dwelling |
| |
2 (1) | Where a dwelling (“the old dwelling”) is acquired by a property |
| 25 |
trader from an individual (whether alone or with other |
| |
individuals), the acquisition is exempt from charge if the |
| |
following conditions are met. |
| |
| |
(a) | that the acquisition is made in the course of a business that |
| 30 |
consists of or includes acquiring dwellings from |
| |
individuals who acquire new dwellings from house- |
| |
| |
(b) | that the individual (whether alone or with other |
| |
individuals) acquires a new dwelling from a house- |
| 35 |
| |
| |
(i) | occupied the old dwelling as his only or main |
| |
residence at some time in the period of two years |
| |
ending with the date of its acquisition, and |
| 40 |
(ii) | intends to occupy the new dwelling as his only or |
| |
| |
(d) | that the property trader does not intend— |
| |
(i) | to spend more than the permitted amount on |
| |
refurbishment of the old dwelling, or |
| 45 |
(ii) | to grant a lease or licence of the old dwelling, or |
| |
(iii) | to permit any of its principals or employees (or any |
| |
person connected with any of its principals or |
| |
employees) to occupy the old dwelling, and |
| |
|
| |
|
| |
|
(e) | that the area of land acquired by the property trader does |
| |
not exceed the permitted area. |
| |
| Paragraph (d)(ii) does not apply to the grant of lease or licence to |
| |
the individual for a period of no more than six months. |
| |
(3) | Where the conditions in sub-paragraph (2)(a) to (d) are met, but |
| 5 |
the area of land acquired by the property trader exceeds the |
| |
permitted area, the chargeable consideration for the acquisition is |
| |
taken to be the amount calculated by deducting the market value |
| |
of the permitted area from the market value of the old dwelling. |
| |
(4) | The provisions of paragraph 1(4) (meaning of “house-building |
| 10 |
company” etc) also have effect for the purposes of this paragraph. |
| |
| |
(a) | references to the acquisition of a new dwelling are to the |
| |
acquisition, by way of grant or transfer, of a major interest |
| |
| 15 |
(b) | references to the acquisition of the old dwelling are to the |
| |
acquisition, by way of transfer, of a major interest in the |
| |
| |
(c) | references to the market value of the old dwelling and of |
| |
the permitted area are, respectively, to the market value of |
| 20 |
that major interest in the dwelling and of that interest so far |
| |
as it relates to that area. |
| |
Acquisition by property trader from personal representatives |
| |
3 (1) | Where a dwelling is acquired by a property trader from the |
| |
personal representatives of a deceased individual, the acquisition |
| 25 |
is exempt from charge if the following conditions are met. |
| |
| |
(a) | that the acquisition is made in the course of a business that |
| |
consists of or includes acquiring dwellings from personal |
| |
representatives of deceased individuals, |
| 30 |
(b) | that the deceased individual occupied the dwelling as his |
| |
only or main residence at some time in the period of two |
| |
years ending with the date of his death, |
| |
(c) | that the property trader does not intend— |
| |
(i) | to spend more than the permitted amount on |
| 35 |
refurbishment of the dwelling, or |
| |
(ii) | to grant a lease or licence of the dwelling, or |
| |
(iii) | to permit any of its principals or employees (or any |
| |
person connected with any of its principals or |
| |
employees) to occupy the dwelling, and |
| 40 |
(d) | that the area of land acquired does not exceed the |
| |
| |
(3) | Where the conditions in sub-paragraph (2)(a) to (c) are met, but the |
| |
area of land acquired exceeds the permitted area, the chargeable |
| |
consideration for the acquisition is taken to be the amount |
| 45 |
calculated by deducting the market value of the permitted area |
| |
from the market value of the dwelling. |
| |
| |
|
| |
|
| |
|
(a) | references to the acquisition of the dwelling are to the |
| |
acquisition, by way of transfer, of a major interest in the |
| |
| |
(b) | references to the market value of the dwelling and of the |
| |
permitted area are, respectively, to the market value of that |
| 5 |
major interest in the dwelling and of that interest so far as |
| |
| |
Acquisition by property trader from individual where chain of transactions breaks |
| |
| |
4 (1) | Where a dwelling (“the old dwelling”) is acquired by a property |
| 10 |
trader from an individual (whether alone or with other |
| |
individuals), the acquisition is exempt from charge if— |
| |
(a) | the individual has made arrangements to sell a dwelling |
| |
(“the old dwelling”) and acquire another dwelling (“the |
| |
| 15 |
(b) | the arrangements to sell the old dwelling fail, and |
| |
(c) | the acquisition of the old dwelling is made for the purpose |
| |
of enabling the individual’s acquisition of the second |
| |
| |
| and the following conditions are met. |
| 20 |
| |
(a) | that the acquisition is made in the course of a business that |
| |
consists of or includes acquiring dwellings from |
| |
individuals in those circumstances, |
| |
| 25 |
(i) | occupied the old dwelling as his only or main |
| |
residence at some time in the period of two years |
| |
ending with the date of its acquisition, and |
| |
(ii) | intends to occupy the second dwelling as his only |
| |
| 30 |
(c) | that the property trader does not intend— |
| |
(i) | to spend more than the permitted amount on |
| |
refurbishment of the old dwelling, or |
| |
(ii) | to grant a lease or licence of the old dwelling, or |
| |
(iii) | to permit any of its principals or employees (or any |
| 35 |
person connected with any of its principals or |
| |
employees) to occupy the old dwelling, and |
| |
(d) | that the area of land acquired does not exceed the |
| |
| |
| Paragraph (c)(ii) does not apply to the grant of a lease or licence to |
| 40 |
the individual for a period of no more than six months. |
| |
(3) | Where the conditions in sub-paragraph (2)(a) to (c) are met, but the |
| |
area of land acquired exceeds the permitted area, the chargeable |
| |
consideration for the acquisition is taken to be the amount |
| |
calculated by deducting the market value of the permitted area |
| 45 |
from the market value of the old dwelling. |
| |
| |
|
| |
|
| |
|
(a) | references to the acquisition of the second dwelling are to |
| |
the acquisition, by way of grant or transfer, of a major |
| |
interest in the dwelling; |
| |
(b) | references to the acquisition of the old dwelling are to the |
| |
acquisition, by way of transfer, of a major interest in the |
| 5 |
| |
(c) | references to the market value of the old dwelling and of |
| |
the permitted area are, respectively, to the market value of |
| |
that major interest in the dwelling and of that interest so far |
| |
as it relates to that area. |
| 10 |
Acquisition by employer in case of relocation of employment |
| |
5 (1) | Where a dwelling is acquired from an individual (whether alone |
| |
or with other individuals) by his employer, the acquisition is |
| |
exempt from charge if the following conditions are met. |
| |
| 15 |
(a) | that the individual occupied the dwelling as his only or |
| |
main residence at some time in the period of two years |
| |
ending with the date of the acquisition, |
| |
(b) | that the acquisition is made in connection with a change of |
| |
residence by the individual resulting from relocation of |
| 20 |
| |
(c) | that the consideration for the acquisition does not exceed |
| |
the market value of the dwelling, and |
| |
(d) | that the area of land acquired does not exceed the |
| |
| 25 |
(3) | Where the conditions in sub-paragraph (2)(a) to (c) are met but the |
| |
area of land acquired exceeds the permitted area, the chargeable |
| |
consideration for the acquisition is taken to be the amount |
| |
calculated by deducting the market value of the permitted area |
| |
from the market value of the dwelling. |
| 30 |
(4) | In this paragraph “relocation of employment” means a change of |
| |
the individual’s place of employment due to— |
| |
(a) | his becoming an employee of the employer, |
| |
(b) | an alteration of the duties of his employment with the |
| |
| 35 |
(c) | an alteration of the place where he normally performs |
| |
| |
(5) | For the purposes of this paragraph a change of residence is one |
| |
“resulting from” relocation of employment if— |
| |
(a) | the change is made wholly or mainly to allow the |
| 40 |
individual to have his residence within a reasonable daily |
| |
travelling distance of his new place of employment, and |
| |
(b) | his former residence is not within a reasonable daily |
| |
travelling distance of that place. |
| |
| The individual’s “new place of employment” means the place |
| 45 |
where he normally performs, or is normally to perform, the duties |
| |
of his employment after the relocation. |
| |
| |
|
| |
|