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Make
provision for a lower rate of stamp duty land tax to be charged
on |
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residential properties where
energy efficiency measures are undertaken by or |
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on behalf of the purchaser. |
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Be
it enacted by the Queen’s most Excellent Majesty,
by and with the advice and |
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consent of the Lords Spiritual
and Temporal, and Commons, in this present |
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Parliament assembled, and
by the authority of the same, as follows:— |
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1 |
Amendment
of the Finance Act 2003 |
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(1) |
The Finance
Act 2003 (c. 14) is amended as follows. |
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(2) |
After section 92 insert— |
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“92A |
Lower
rate where notice given relating to energy efficiency measures |
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(1) |
This section applies where— |
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(a) |
the purchaser is liable
to pay the tax in respect of a chargeable |
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(b) |
the relevant land consists
entirely of residential property, and |
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(c) |
the purchaser has given
notice of an intention to undertake or to |
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have
undertaken relevant energy efficiency measures within |
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(2) |
Where this section applies,
regulations shall prescribe a lower rate of |
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tax
chargeable in respect of the transaction, and different lower
rates |
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may
apply to the undertaking of different relevant energy efficiency
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15 |
(3) |
The lower rate in regulations
under subsection (2) may be expressed |
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(a) |
a percentage of the chargeable
consideration, |
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(b) |
a percentage of the amount
of the tax in respect of the |
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chargeable
transaction that would be payable if this section |
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20 |
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(c) |
a specified monetary reduction
in the amount of tax payable. |
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(4) |
In
determining the lower rate in regulations under subsection (2),
the |
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Treasury
shall have regard to— |
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(a) |
any energy efficiency aims
for residential accommodation |
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designated
under section 2 or 3 of the Sustainable Energy Act |
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2003
(energy efficiency in residential accommodation: |
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5 |
designation
by Secretary of State and by the National Assembly |
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(b) |
the duty of the Secretary
of State under section 217(1) of the |
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Housing
Act 2004 (duty in relation to increase in energy |
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efficiency
of residential accommodation in England). |
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(5) |
Notice for the purpose
of subsection (1)(c) shall be given in writing in |
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such
terms as may be prescribed by regulations. |
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(a) |
prescribe ‘relevant
energy efficiency measures’ for the |
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purposes
of this section, and |
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(b) |
specify the extent to which
the lower rate prescribed under |
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regulations
under this section is payable in relation to different |
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energy
efficiency measures undertaken. |
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(7) |
The prescribed definition
under subsection (6) shall include— |
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(a) |
measures to improve the
thermal insulation of the property, |
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20 |
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(b) |
other measures to improve
the energy efficiency of the |
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92B |
Arrangements
in relation to lower rate under s. 92A |
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(1) |
Where section 92A applies,
regulations may require a person or body |
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other
than the purchaser to retain the relevant amount until a decision
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is
made that the relevant energy efficiency measures have been |
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undertaken
by or on behalf of the purchaser. |
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(2) |
Regulations may prescribe
the person or body who is to decide whether |
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or
not the relevant energy efficiency measures have been undertaken. |
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(3) |
Any such decision must
be taken within, or as soon as practicable after, |
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(4) |
Where it is decided that
the relevant energy efficiency measures have |
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been
taken within the relevant period, the relevant amount, and any
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interest
payable on it, shall be paid to the purchaser. |
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(5) |
Where it is decided that
the relevant energy efficiency measures have |
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not
been taken within the relevant period, the relevant amount, and
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any
interest payable on it, shall be payable in the same manner as
the |
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(6) |
Interest payable under
subsections (4) and (5) shall be determined in |
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accordance
with the provisions of section 87. |
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(7) |
Regulations may amend Schedules
10 and 12 so as to provide for— |
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(a) |
the making of returns in
relation to the provisions of section |
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92A
and of this section and regulations made under them, |
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(b) |
duties to keep and preserve
records in relation to those |
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provisions
and regulations, |
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(c) |
appeals
against decisions under those provisions and |
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(d) |
the recovery of relevant
amounts and interest payable on them. |
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(8) |
The powers to make regulations
under section 92A and this section are |
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exercisable
by the Treasury. |
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(9) |
In section 92A and this
section— |
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‘the relevant amount’
means an amount that is the difference |
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(a) |
the amount of the
tax in respect of the chargeable |
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transaction that would
be payable if section 92A were |
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(b) |
the amount of the
tax in respect of the chargeable |
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transaction that is
payable under the lower rate |
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prescribed in regulations
under section 92A; |
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‘the relevant period’
means a period to be specified in regulations |
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beginning with the date
on which the tax becomes payable.” |
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(3) |
In section 114 (orders and
regulations made by the Treasury or Inland |
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Revenue), in subsection (4),
at the end, insert— |
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“paragraph 9A(1)
of Schedule 19 (commencement of sections 92A |
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20 |
(4) |
In Schedule 19 (Stamp duty
land tax: commencement and transitional |
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provisions), after paragraph
9, insert— |
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“Commencement
of sections 92A and 92B |
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9A (1) |
Sections 92A and
92B shall come into force in accordance with the |
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provisions
of an order made by the Treasury. |
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(2) |
No order may
be made under sub-paragraph (1) before the coming |
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into
force of section 155 of the Housing Act 2004 (duty to have a |
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There
shall be paid out of money provided by Parliament any increase
attributable to |
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this
Act in the sums payable out of money so provided under any other
enactment. |
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This Act may be cited as
the Stamp Duty (Lower Rate for Energy Efficiency |
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