|
| |
|
(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 |
| |
it relates to that area; and |
| |
(c) | references to an individual’s employer include a |
| |
| |
Acquisition by property trader in case of relocation of employment |
| 10 |
6 (1) | Where a dwelling is acquired by a property trader from an |
| |
individual (whether alone or with other individuals), the |
| |
acquisition is exempt from charge if the following conditions are |
| |
| |
| 15 |
(a) | that the acquisition is made in the course of a business that |
| |
consists of or includes acquiring dwellings from |
| |
individuals in connection with a change of residence |
| |
resulting from relocation of employment, |
| |
(b) | that the individual occupied the dwelling as his only or |
| 20 |
main residence at some time in the period of two years |
| |
ending with the date of the acquisition, |
| |
(c) | that the acquisition is made in connection with a change of |
| |
residence by the individual resulting from relocation of |
| |
| 25 |
(d) | that the consideration for the acquisition does not exceed |
| |
the market value of the dwelling, |
| |
(e) | that the property trader does not intend— |
| |
(i) | to spend more than the permitted amount on |
| |
refurbishment of the dwelling, or |
| 30 |
(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 |
| |
(f) | that the area of land acquired does not exceed the |
| 35 |
| |
| Paragraph (e)(ii) does not apply to the grant of a 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 (e) are met but the |
| |
area of land acquired exceeds the permitted area, the chargeable |
| 40 |
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. |
| |
(4) | In this paragraph “relocation of employment” means a change of |
| |
the individual’s place of employment due to— |
| 45 |
(a) | his becoming employed by a new employer, |
| |
(b) | an alteration of the duties of his employment, or |
| |
(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 |
| |
individual to have his residence within a reasonable daily |
| |
travelling distance of his new place of employment, and |
| 5 |
(b) | his former residence is not within a reasonable daily |
| |
travelling distance of that place. |
| |
| An individual’s “new place of employment” means the place |
| |
where he normally performs, or is normally to perform, the duties |
| |
of his employment after the relocation. |
| 10 |
| |
(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 |
| 15 |
permitted area are, respectively, to the market value of that |
| |
major interest in the dwelling and of that interest so far as |
| |
| |
Meaning of “dwelling”, “new dwelling” and “the permitted area” |
| |
7 (1) | “Dwelling” includes land occupied and enjoyed with the dwelling |
| 20 |
as its garden or grounds. |
| |
(2) | A building or part of a building is a “new dwelling” if— |
| |
(a) | it has been constructed for use as a single dwelling and has |
| |
not previously been occupied, or |
| |
(b) | it has been adapted for use as a single dwelling and has not |
| 25 |
been occupied since its adaptation. |
| |
(3) | “The permitted area”, in relation to a dwelling, means land |
| |
occupied and enjoyed with the dwelling as its garden or grounds |
| |
| |
(a) | an area (inclusive of the site of the dwelling) of 0.5 of a |
| 30 |
| |
(b) | such larger area as is required for the reasonable |
| |
enjoyment of the dwelling as a dwelling having regard to |
| |
| |
(4) | Where sub-paragraph (3)(b) applies, the permitted area is taken to |
| 35 |
consist of that part of the land that would be the most suitable for |
| |
occupation and enjoyment with the dwelling as its garden or |
| |
grounds if the rest of the land were separately occupied. |
| |
Meaning of “property trader” and “principal” |
| |
8 (1) | A “property trader” means— |
| 40 |
| |
(b) | a limited liability partnership, or |
| |
(c) | a partnership whose members are all either companies or |
| |
limited liability partnerships, |
| |
| that carries on the business of buying and selling dwellings. |
| 45 |
(2) | In relation to a property trader a “principal” means— |
| |
(a) | in the case of a company, a director; |
| |
|
| |
|
| |
|
(b) | in the case of a limited liability partnership, a member; |
| |
(c) | in the case of a partnership whose members are all either |
| |
companies or limited liability partnerships, a member or a |
| |
person who is a principal of a member. |
| |
(3) | For the purposes of this Schedule— |
| 5 |
(a) | anything done by or in relation to a company connected |
| |
with a property trader is treated as done by or in relation |
| |
to that property trader, and |
| |
(b) | references to the principals or employees of a property |
| |
trader include the principals or employees of any such |
| 10 |
| |
Meaning of “refurbishment” and “the permitted amount” |
| |
9 (1) | “Refurbishment” of a dwelling means the carrying out of works |
| |
that enhance or are intended to enhance the value of the dwelling, |
| |
| 15 |
(a) | cleaning the dwelling, or |
| |
(b) | works required solely for the purpose of ensuring that the |
| |
dwelling meets minimum safety standards. |
| |
(2) | The “permitted amount”, in relation to the refurbishment of a |
| |
| 20 |
| |
(b) | 5% of the consideration for the acquisition of the dwelling, |
| |
| whichever is the greater, but subject to a maximum of £20,000. |
| |
| |
10 | Section 839 of the Taxes Act 1988 (connected persons) has effect for |
| 25 |
the purposes of this Schedule. |
| |
Withdrawal of relief under this Schedule |
| |
11 (1) | Relief under this Schedule is withdrawn in the following |
| |
| |
(2) | Relief under paragraph 2 (acquisition by property trader from |
| 30 |
individual acquiring new dwelling) is withdrawn if the property |
| |
| |
(a) | spends more than the permitted amount on refurbishment |
| |
| |
(b) | grants a lease or licence of the old dwelling, or |
| 35 |
(c) | permits any of its principals or employees (or any person |
| |
connected with any of its principals or employees) to |
| |
| |
| Paragraph (b) does not apply to the grant of lease or licence to the |
| |
individual for a period of no more than six months. |
| 40 |
(3) | Relief under paragraph 3 (acquisition by property trader from |
| |
personal representatives) is withdrawn if the property trader— |
| |
(a) | spends more than the permitted amount on refurbishment |
| |
| |
(b) | grants a lease or licence of the dwelling, or |
| 45 |
|
| |
|
| |
|
(c) | permits any of its principals or employees (or any person |
| |
connected with any of its principals or employees) to |
| |
| |
(4) | Relief under paragraph 4 (acquisition by property trader from |
| |
individual where chain of transactions breaks down) is |
| 5 |
withdrawn if the property trader— |
| |
(a) | spends more than the permitted amount on refurbishment |
| |
| |
(b) | grants a lease or licence of the old dwelling, or |
| |
(c) | permits any of its principals or employees (or any person |
| 10 |
connected with any of its principals or employees) to |
| |
| |
| Paragraph (b) does not apply to the grant of lease or licence to the |
| |
individual for a period of no more than six months. |
| |
(5) | Relief under paragraph 6 (acquisition by property trader in case of |
| 15 |
relocation of employment) is withdrawn if the property trader— |
| |
(a) | spends more than the permitted amount on refurbishment |
| |
| |
(b) | grants a lease or licence of the dwelling, or |
| |
(c) | permits any of its principals or employees (or any person |
| 20 |
connected with any of its principals or employees) to |
| |
| |
| 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 |
| 25 |
amount that would have been chargeable in respect of the |
| |
acquisition but for the relief.”. |
| |
(3) | In section 81 (further return where relief withdrawn)— |
| |
(a) | in subsection (1) (obligation to deliver a further return), before |
| |
| 30 |
“(za) | paragraph 11 of Schedule 6A (relief for certain |
| |
acquisitions of residential property),”; and |
| |
(b) | in subsection (4) (meaning of disqualifying event), before paragraph |
| |
| |
“(za) | in relation to the withdrawal of relief under Schedule |
| 35 |
6A, an event mentioned in paragraph (a), (b) or (c) of |
| |
paragraph 11(2), (3), (4) or (5) of that Schedule;”. |
| |
(4) | In section 87 (interest on unpaid tax)— |
| |
(a) | in subsection (3)(a) (relevant date where relief is withdrawn), before |
| |
sub-paragraph (i) insert— |
| 40 |
“(ia) | Schedule 6A (relief for certain acquisitions of |
| |
residential property),”; and |
| |
(b) | in subsection (4) (meaning of disqualifying event), before paragraph |
| |
| |
“(za) | in relation to the withdrawal of relief under Schedule |
| 45 |
6A an event mentioned in paragraph (a), (b) or (c) of |
| |
paragraph 11(2), (3), (4) or (5) of that Schedule;”. |
| |
|
| |
|
| |
|
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. |
| 5 |
(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, |
| 10 |
(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 |
| 15 |
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 |
| 20 |
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 |
| |
the end of the period of 30 days after the effective date of the |
| 25 |
| |
(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 |
| |
rates in force at the effective date of the earlier transaction, |
| 30 |
| |
(d) | the return must be accompanied by payment of the tax or |
| |
| |
(2) | The provisions of Schedule 10 (returns, enquiries, assessments and |
| |
other matters) apply to a return under this section as they apply to a |
| 35 |
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 |
| |
the transaction to which it relates shall be read as requiring |
| 40 |
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. |
| |
(3) | This section does not affect any requirement to make a return under |
| 45 |
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 |
| |
relevant date”), after paragraph (a) insert— |
| |
“(aa) | in the case of an amount payable under section 81A in respect |
| 5 |
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 |
| |
20 | After section 81A (inserted by paragraph 19 above) insert— |
| |
“81B | Declaration by person authorised to act on behalf of individual |
| 10 |
(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). |
| |
(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 |
| 15 |
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 |
| |
authorised to act on behalf of an individual unless he is so authorised |
| |
by a power of attorney in writing, signed by that individual. |
| 20 |
| 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 |
| 25 |
(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— |
| 30 |
“(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.”. |
| 35 |
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.”. |
| 40 |
|
| |
|
| |
|
(2) | After Schedule 17 insert— |
| |
| |
| |
Further provisions relating to leases |
| |
| |
1 | In the application of this Part to England and Wales or Northern |
| 5 |
| |
(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. |
| 10 |
| |
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 |
| 15 |
(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 |
| 20 |
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— |
| |
(a) | in the first instance as if it were a lease for the original fixed |
| |
| 25 |
(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 |
| |
| |
(c) | if the lease continues after the end of the term resulting |
| |
from the application of paragraph (b), as if it were a lease |
| 30 |
for a fixed term two years longer than the original fixed |
| |
| |
| |
(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 |
| 35 |
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 |
| 40 |
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, |
| |
|
| |
|