|
| |
| |
(4) | After that sub-paragraph insert— |
| |
“(5A) | The “relevant partnership property”, in relation to a Type B |
| |
transfer of an interest in a partnership, is every chargeable interest |
| |
held as partnership property immediately after the transfer, other |
| |
| 5 |
(a) | any chargeable interest that was transferred to the |
| |
partnership in connection with the transfer, |
| |
(b) | a lease to which paragraph 15 (exclusion of market rent |
| |
| |
(c) | any chargeable interest that is not attributable |
| 10 |
economically to the interest in the partnership that is |
| |
| |
(d) | any chargeable interest that was transferred to the |
| |
partnership on or before 22 July 2004, |
| |
(e) | any chargeable interest in respect of whose transfer to the |
| 15 |
partnership an election has been made under paragraph |
| |
| |
(f) | any other chargeable interest whose transfer to the |
| |
partnership did not fall within paragraph 10(1)(a), (b) or |
| |
| 20 |
| |
2 | In paragraph 15(1) of that Schedule (exclusion of market rent leases), after |
| |
“14(5)” insert “or (5A)”. |
| |
3 | In paragraph 16(2) of that Schedule (application of provisions about |
| |
exchanges etc), after “14(5)” insert “or (5A) (as appropriate)”. |
| 25 |
4 | In paragraph 26(9) of that Schedule (application of disadvantaged areas |
| |
relief), in the definition of “the relevant partnership property” in the sub- |
| |
paragraph (1A) inserted by that sub-paragraph, after “14(5)” insert “or (5A) |
| |
| |
| 30 |
Elections in respect of interest transferred to partnership |
| |
Election when interest transferred to partnership |
| |
5 | In paragraph 10 of Schedule 15 to FA 2003 (transfer of chargeable interest to |
| |
partnership: general) insert at the end— |
| |
“(8) | This paragraph has effect subject to any election under paragraph |
| 35 |
| |
6 | After paragraph 12 insert— |
| |
“Election by property-investment partnership to disapply paragraph 10 |
| |
12A (1) | Paragraph 10 does not apply to a transfer of a chargeable interest |
| |
to a property-investment partnership if the purchaser in relation |
| 40 |
to the transaction elects for that paragraph not to apply. |
| |
| |
| |
|
| |
| |
(2) | Where an election under this paragraph is made in respect of a |
| |
| |
(a) | paragraph 18 (if relevant) is also disapplied, |
| |
(b) | the chargeable consideration for the transaction shall be |
| |
taken to be the market value of the chargeable interest |
| 5 |
| |
(c) | the transaction falls within Part 2 of this Schedule. |
| |
(3) | An election under this paragraph must be included in the land |
| |
transaction return made in respect of the transaction or in an |
| |
amendment of that return. |
| 10 |
(4) | Such an election is irrevocable and a land transaction return may |
| |
not be amended so as to withdraw the election. |
| |
(5) | Where an election under this paragraph in respect of a transaction |
| |
(the “main transaction”) is made in an amendment of a land |
| |
| 15 |
(a) | the election has effect as if it had been made on the date on |
| |
which the land transaction return was made, and |
| |
(b) | any land transaction return in respect of an affected |
| |
transaction may be amended (within the period allowed |
| |
for amendment of that return) to take account of that |
| 20 |
| |
(6) | In sub-paragraph (5) “affected transaction”, in relation to the main |
| |
transaction, means a transaction— |
| |
(a) | to which paragraph 14 applied, and |
| |
(b) | with an effective date on or after the effective date of the |
| 25 |
| |
(7) | In this paragraph “property-investment partnership” has the |
| |
meaning given in paragraph 14(8).” |
| |
7 | In paragraph 18 of that Schedule (transfer of chargeable interest from a |
| |
partnership) insert at the end— |
| 30 |
“(8) | This paragraph has effect subject to any election under paragraph |
| |
| |
| |
8 | In paragraph 17A(1) of that Schedule (withdrawal of money etc from |
| |
partnership after transfer of chargeable interest), after paragraph (c) insert— |
| 35 |
“(d) | at the time of the qualifying event, an election has not been |
| |
made in respect of the land transfer under paragraph 12A.” |
| |
9 | In paragraph 26(8) of that Schedule (application of disadvantaged areas |
| |
relief), in the substituted paragraph (10)— |
| |
(a) | in sub-paragraph (2), insert at the end “(subject to any election under |
| 40 |
| |
(b) | in sub-paragraph (4), insert at the end “(subject to any election under |
| |
| |
| |
| |
|
| |
| |
| |
| |
10 | Omit section 72(14) of FA 2007 (saving relating to changes to Part 3 of |
| |
| |
11 (1) | This paragraph applies in the case of a transfer of a chargeable interest to a |
| 5 |
partnership falling within paragraph 10(1)(a), (b) or (c) of Schedule 15 to FA |
| |
2003 where the effective date of the transaction is before the day on which |
| |
| |
(2) | The purchaser in relation to the transaction may at any time before the end |
| |
of the period of 12 months beginning with that day amend the land |
| 10 |
transaction return in respect of that transaction so as to make an election |
| |
under paragraph 12A of Schedule 15 to FA 2003 (inserted by this Schedule). |
| |
(3) | An election made in reliance on sub-paragraph (2) has effect as if it had been |
| |
made on the date on which the land transaction return was made, even |
| |
though paragraph 12A of Schedule 15 to FA 2003 was not in force at that |
| 15 |
| |
(4) | Where an election is made in reliance on sub-paragraph (2), the power under |
| |
section 12A(5)(b) of Schedule 15 to FA 2003 to amend a land transaction |
| |
return in respect of an affected transaction to take account of that election |
| |
may be exercised at any time before the end of the period of 12 months |
| 20 |
beginning with the day on which this Act is passed. |
| |
| |
| |
Stamp duty: abolition of fixed duty on certain instruments |
| |
| |
| 25 |
| |
1 | Part 3 of FA 1985 (stamp duty) is amended as follows. |
| |
2 | In section 83 (transfers in connection with divorce, dissolution of civil |
| |
partnership, etc), omit subsection (2) (fixed duty). |
| |
3 | In section 84 (death: varying dispositions, and appropriations)— |
| 30 |
(a) | omit subsections (8) and (9) (fixed duty and adjudication), and |
| |
(b) | in subsection (11) (commencement), omit the words from “and,” to |
| |
| |
| |
4 | Part 3 of FA 1986 (stamp duty) is amended as follows. |
| 35 |
5 | In section 66 (company’s purchase of own shares), omit subsection (2A) |
| |
| |
| |
| |
|
| |
| |
6 | In section 67(9) (transfer of securities between depositary receipt systems), |
| |
for “the stamp duty chargeable on the instrument is £5” substitute “stamp |
| |
duty is not chargeable on the instrument”. |
| |
7 | In section 70(9) (transfer of securities between clearance systems), for “the |
| |
stamp duty chargeable on the instrument is £5” substitute “stamp duty is not |
| 5 |
chargeable on the instrument”. |
| |
8 | In section 72A(1) (transfer of securities between depositary receipt system |
| |
and clearance system), for paragraph (b) substitute— |
| |
“(b) | stamp duty is not chargeable on the instrument.” |
| |
| 10 |
9 | FA 1999 is amended as follows. |
| |
10 (1) | Schedule 13 (instruments chargeable to stamp duty and rates of duty) is |
| |
| |
(2) | In paragraph 1(5) (treasury shares), for the words from “any instrument” to |
| |
the end substitute “sub-paragraph (1) does not apply to any instrument to |
| 15 |
which sub-paragraph (6) applies.” |
| |
(3) | In Part 3 (other instruments chargeable to stamp duty and rates of duty) |
| |
| |
(a) | paragraph 16 (fixed duty on transfer otherwise than on sale) and the |
| |
| 20 |
(b) | paragraph 17 (fixed duty on declaration of use or trust) and the |
| |
| |
(c) | paragraph 18(2) (fixed duty on disposition of certain property in |
| |
| |
(d) | paragraph 19(1) (fixed duty on duplicate or counterpart), |
| 25 |
(e) | paragraph 21(3) (fixed duty on partition or division), |
| |
(f) | paragraph 22 (fixed duty on release or renunciation) and the heading |
| |
| |
(g) | paragraph 23 (fixed duty on surrender) and the heading before it. |
| |
11 (1) | Schedule 15 (stamp duty: bearer instruments) is amended as follows. |
| 30 |
(2) | Omit paragraph 6 (fixed duty on instrument given in substitution for a like |
| |
instrument stamped ad valorem). |
| |
(3) | At the beginning of Part 2 (exemptions) insert— |
| |
| |
12A (1) | Stamp duty is not chargeable on a substitute instrument. |
| 35 |
(2) | A substitute instrument is a bearer instrument given in |
| |
substitution for a like instrument stamped ad valorem (whether |
| |
under this Schedule or otherwise) (“the original instrument”). |
| |
(3) | The substitute instrument shall not be treated as duly stamped |
| |
unless it appears by some stamp impressed on it that the full and |
| 40 |
proper duty has been paid on the original instrument.” |
| |
(4) | In paragraph 20 (variation of original terms or conditions), for paragraph (b) |
| |
| |
| |
|
| |
| |
| |
“(b) | has been stamped in accordance with paragraph 12A, or”. |
| |
(5) | In paragraph 26 (instruments treated as duly stamped), omit paragraph (b) |
| |
(and the “or” before it). |
| |
| 5 |
Consequential provisions and saving |
| |
| |
12 | In section 129(1) of FA 1982 (exemption from duty on grants, transfers to |
| |
charities etc), omit “, or paragraph 16,”. |
| |
| 10 |
13 | Part 3 of FA 1986 (stamp duty) is amended as follows. |
| |
14 (1) | Section 67 (stamp duty on certain transfers to depositary receipt systems) is |
| |
| |
(2) | In subsection (1), after “instrument” insert “(other than a bearer |
| |
| 15 |
(3) | In subsection (3), for the words from the beginning to “then,” substitute “In |
| |
| |
(a) | stamp duty is chargeable on the instrument under this |
| |
| |
| 20 |
(4) | After subsection (9) insert— |
| |
“(9A) | In this section “bearer instrument” has the meaning given in |
| |
paragraph 3 of Schedule 15 to the Finance Act 1999.” |
| |
15 (1) | Section 70 (stamp duty on certain transfers to a clearance system) is |
| |
| 25 |
(2) | In subsection (1), after “instrument” insert “(other than a bearer |
| |
| |
(3) | In subsection (3), for the words from the beginning to “then,” substitute “In |
| |
| |
(a) | stamp duty is chargeable on the instrument under this |
| 30 |
| |
| |
(4) | After subsection (9) insert— |
| |
“(9A) | In this section “bearer instrument” has the meaning given in |
| |
paragraph 3 of Schedule 15 to the Finance Act 1999.” |
| 35 |
| |
16 | Part 3 of FA 1987 (stamp duty and stamp duty reserve tax) is amended as |
| |
| |
| |
| |
|
| |
| |
17 | In section 50(1) (warrants to purchase Government stock, etc), omit “, or |
| |
| |
18 | In section 55(1) (Crown exemption), omit “, or paragraph 16”. |
| |
| |
19 | In section 108(1) of FA 1990 (abolition of stamp duty on transfer of |
| 5 |
securities), insert at the end “or section 67(3) or 70(3) of the Finance Act 1986 |
| |
(stamp duty on certain transfers to depositary receipt systems and clearance |
| |
| |
| |
20 | In Schedule 14 to FA 1999, omit paragraphs 10(b), 11(b), 12(3) and 13(3). |
| 10 |
| |
21 | In Schedule 40 to FA 2003, omit paragraph 2(b). |
| |
Saving for certain land transactions |
| |
22 (1) | The following provisions of this Schedule do not have effect in relation to an |
| |
instrument effecting a land transaction or a duplicate or counterpart of such |
| 15 |
| |
| |
| |
| |
| 20 |
(e) | the repeal of paragraphs 10(b) and 11(b) of Schedule 14 to FA 1999. |
| |
(2) | In sub-paragraph (1) “land transaction” has the same meaning as in Part 4 of |
| |
FA 2003, except that it does not include a transfer of an interest in a property- |
| |
investment partnership (within the meaning of Schedule 15 of that Act). |
| |
| 25 |
23 | If a day is appointed under section 111 of FA 1990 (abolition day), |
| |
paragraphs 14 and 15 of this Schedule cease to have effect in accordance with |
| |
| |
| |
| |
|
