| Previous Section | Index | Home Page |
(a) a lease contains provision under which the rent may be adjusted,
(b) under that provision the first (or only) such adjustment—
(i) is to an amount that (before the adjustment) is uncertain, and
(ii) has effect from a date (the "review date") that is expressed as falling five years after a specified date,
and
(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 term of the lease and ending with the review date.
References to the fifth year of the term of the lease shall be read accordingly.".
(16) In paragraph 9(1) of that Schedule, at the end of paragraph (b) there shall be inserted ", or
(c) a person claiming relief against re-entry or forfeiture as under-lessee in relation to the original sub-lease ("the old lease") is granted a lease ("the new lease") in pursuance of an order of a court.".
(17) After paragraph 12 of that Schedule there shall be inserted—
- 12A(1) This paragraph applies where in England and Wales or Northern Ireland—
(a) an agreement for a lease is entered into, and
(b) the agreement is substantially performed without having been completed.
(2) The agreement is treated as if it were the grant of a lease in accordance with the agreement ("the notional lease"), beginning with the date of substantial performance.
The effective date of the transaction is that date.
(3) Where a lease is subsequently granted in pursuance of the agreement—
(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 (rent for overlap period in case of grant of further lease) as if it were granted in consideration of that surrender.
(4) Where sub-paragraph (1) applies and the agreement is (to any extent) afterwards rescinded or annulled, or is for any other reason not carried into effect, the tax paid by virtue of that sub-paragraph shall (to that extent) be repaid by the Inland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.
(5) In this paragraph "substantially performed" and "completed" have the same meanings as in section 44 (contract and conveyance).
- 12B (1) This paragraph applies, in place of section 45 (contract and conveyance: effect of transfer of rights) where in England and Wales or Northern Ireland a person assigns his interest as lessee under an agreement for a lease.
(2) If the assignment occurs without the agreement having been substantially performed, section 44 (contract and conveyance) has effect as if—
(a) the contract were with the assignee and not the assignor, and
(b) the consideration given by the assignee for entering into the contract included any consideration given by him for the assignment.
(3) If the assignment occurs after the agreement has been substantially performed—
(a) the assignment is a separate land transaction, and
(b) the effective date of that transaction is the date of the assignment.
(4) Where there are successive assignments, this paragraph has effect in relation to each of them.".
(18) At the end of paragraph 16 of that Schedule there shall be inserted—
"Paragraph 5 (exchanges) of Schedule 4 (chargeable consideration) does not apply in such a case.".
(19) For paragraph 19(2) of that Schedule there shall be substituted—
"(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
(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 are concluded missives of let that do not constitute a lease, and
(b) the agreement represented by the missives of let is substantially performed without a lease having been executed,
the missives of let are treated as if they did constitute a lease ("the notional lease").
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 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.
(5) References in sub-paragraphs (2) to (4) to the execution of a lease are to the execution of a lease that either—
(a) is in conformity with the missives of let, or
(b) relates to substantially the same property and period as the missives of let.
(6) Where subsection (3) applies and the agreement is (to any 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.".
(20) For paragraph 3(3)(c) of Schedule 19 there shall be substituted—
"(c) if on or after that date there is an assignment, subsale or other transaction (relating to the whole or part of the 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.".
(21) Paragraphs (4), (7) and (8) of this Resolution, and paragraphs (10) and (11) so far as relating to the section 44A inserted by paragraph (4), shall apply in relation to any contract entered into after 17th March 2004.
(22) Paragraphs (5), (6) and (12) of this Resolution, and paragraphs (10) and (11) so far as relating to the section 45A inserted by paragraph (6), shall apply in relation to any transfer of rights occurring after that date.
(23) Subject to paragraph (24) of this Resolution, the amendments made by the other provisions of this Resolution shall apply in relation to any transaction of which the effective date is after 17th March 2004.
(24) Paragraph (20) of this Resolution shall not apply in relation to a contract that was substantially performed before 17th March 2004.
(25) In this Resolution—
"effective date" and "substantially performed" have the same meaning as in Part 4 of the Finance Act 2003 (as amended by this Resolution);
"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 paragraph (6) of this Resolution).
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
65. Stamp duty land tax (shared ownership leases)
- That—
(1) After paragraph 4 of Schedule 9 to the Finance Act 2003 there shall be inserted—
- 4A (1) This paragraph applies where under a shared ownership lease—
(a) the lessee or lessees have the right, on the payment of a sum, to require the terms of the lease to be altered so that the rent payable under it is reduced, and
(b) by exercising that right the lessee or lessees acquire an interest, additional to one already held, calculated by reference to the market value of the dwelling and expressed as a percentage of the dwelling or its value (a "share of the dwelling").
(2) Such an acquisition is exempt from charge if—
(a) an election was made for tax to be charged in accordance with paragraph 2 or, as the case may be, paragraph 4 and any tax chargeable in respect of the grant of the lease has been paid, or
(b) immediately after the acquisition the total share of the dwelling held by the lessee or lessees does not exceed 80%.
(3) In this paragraph "shared ownership lease" means a lease granted—
(a) by a qualifying body, or
(b) in pursuance of the preserved right to buy,
in relation to which the conditions in paragraph 2(2) or 4(2) are met.
(4) Section 118 (meaning of "market value") does not apply in relation to the references in this paragraph to the market value of the dwelling.".
(2) In sub-paragraph (1) of paragraph 5 of that Schedule, for "2 and 4" there shall be substituted "2, 4 and 4A".
(3) In Schedule 19 to that Act, for sub-paragraph (2) of paragraph 7 there shall be substituted—
"(2) In paragraph 3 of Schedule 9 (relief for transfer of reversion under shared ownership lease where election made for market value treatment) and paragraph 4A of that Schedule (shared ownership lease: treatment of staircasing transaction) as they apply in a case where the original lease was granted before the implementation date—
(a) a reference to a lease to which paragraph 2 of that Schedule applies shall be read as a reference to a lease to which section 97 of the Finance Act 1980 applied (which made provision for stamp duty corresponding to that paragraph), and
(b) a reference to an election having been made for tax to be charged in accordance with paragraph 2 or 4 of that Schedule shall be read as a reference to the lease having contained a statement of the parties' intention such as is mentioned in section 97(2)(d) of the Finance Act 1980 or, as the case may be, paragraph (d) of section 108(5) of the Finance Act 1981 (which made provision for stamp duty corresponding to paragraph 4).".
(4) The amendments made by paragraphs (1) and (2) of this Resolution shall apply in relation to an acquisition after 17th March 2004.
(5) Paragraph (3) of this Resolution shall be deemed to have come into force on 1st December 2003.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
66. Period within which certain claims may be made
- That provision (including provision having retrospective effect) may be made as to the period within which a claim may be made in respect of a mistake of law relating to a taxation matter under the care and management of the Commissioners of Inland Revenue.
| Next Section
| Index | Home Page |