|
| |
|
(a) | one whose subject-matter consists of all of the interests in |
| |
land that is residential property, and |
| |
(b) | one whose subject-matter consists of all of the interests in |
| |
land that is non-residential property. |
| |
(5) | For that purpose, the chargeable consideration attributable to each of |
| 5 |
those separate transactions (or sets of linked transactions) is the |
| |
chargeable consideration so attributable on a just and reasonable |
| |
| |
(6) | In this paragraph “the relevant rent” means— |
| |
(a) | the annual rent in relation to the transaction in question, or |
| 10 |
(b) | if that transaction is one of a number of linked transactions |
| |
for which the chargeable consideration consists of or includes |
| |
rent, the total of the annual rents in relation to all of those |
| |
| |
(7) | In sub-paragraph (6) the “annual rent” means the average annual |
| 15 |
rent over the term of the lease or, if— |
| |
(a) | different amounts of rent are payable for different parts of the |
| |
| |
(b) | those amounts (or any of them) are ascertainable at the |
| |
effective date of the transaction, |
| 20 |
| the average annual rent over the period for which the highest |
| |
ascertainable rent is payable. |
| |
(8) | In this paragraph “relevant land” has the meaning given in section |
| |
| |
(4) | Each of the following provisions of Schedule 6 to that Act (SDLT: |
| 25 |
disadvantaged areas relief) is amended in accordance with subsection (5)— |
| |
(a) | paragraph 5(4) (residential land wholly situated in disadvantaged |
| |
| |
(b) | paragraph 6(6) (mixed land wholly situated in disadvantaged area), |
| |
(c) | paragraph 9(4) (residential land partly situated in disadvantaged area), |
| 30 |
| |
(d) | paragraph 10(6) (mixed land wholly partly situated in disadvantaged |
| |
| |
| |
(a) | in paragraph (a), omit sub-paragraph (i) (and the “and” after it), and |
| 35 |
| |
(6) | In paragraph 12 of that Schedule (rent and annual rent), for “9(2)” substitute |
| |
| |
(7) | In Schedule 8 to that Act (SDLT: charities relief), in paragraph 3— |
| |
(a) | in sub-paragraph (3)(b), for “does not exceed £600” substitute “is less |
| 40 |
| |
(b) | in sub-paragraph (5), for “9(2)” substitute “9A”. |
| |
(8) | In Schedule 15 to that Act (SDLT: partnerships)— |
| |
(a) | in paragraph 11(2B)(a), for “9(2A)” substitute “9A(6)”, |
| |
(b) | in paragraph 19(2B), for “9(2A)” substitute “9A(6)”, and |
| 45 |
(c) | in paragraph 23(3)(c), for “9(2)” substitute “9A”. |
| |
|
| |
|
| |
|
(9) | In Schedule 17A to that Act (SDLT: further provisions relating to leases) in |
| |
| |
(a) | for “9(2)” substitute “9A”, |
| |
(b) | for “the Tables” substitute “Table B”, and |
| |
(c) | for “the relevant rental figure exceeds £600” substitute “the relevant |
| 5 |
rent attributable to non-residential property is not less than £1,000”. |
| |
(10) | The amendments made by this section have effect in relation to transactions |
| |
with an effective date on or after 12 March 2008. |
| |
93 | Withdrawal of group relief |
| |
(1) | Part 1 of Schedule 7 to FA 2003 (group relief) is amended as follows. |
| 10 |
(2) | In paragraph 3(5), for “paragraph 4” substitute “paragraphs 4 and 4ZA”. |
| |
(3) | In paragraph 4 (cases in which group relief not withdrawn)— |
| |
(a) | omit sub-paragraphs (2) and (3), and |
| |
(b) | in sub-paragraph (5), for “sub-paragraphs (3) and (4)” substitute “sub- |
| |
| 15 |
(4) | After that paragraph insert— |
| |
“Group relief not withdrawn where vendor leaves group |
| |
4ZA (1) | Group relief is not withdrawn under paragraph 3 where the |
| |
purchaser ceases to be a member of the same group as the vendor |
| |
because the vendor leaves the group. |
| 20 |
(2) | The vendor is regarded as leaving the group if the companies cease |
| |
to be members of the same group by reason of a transaction relating |
| |
| |
| |
(b) | another company that— |
| 25 |
(i) | is above the vendor in the group structure, and |
| |
(ii) | as a result of the transaction ceases to be a member of |
| |
the same group as the purchaser. |
| |
(3) | For the purpose of sub-paragraph (2) a company is “above” the |
| |
vendor in the group structure if the vendor, or another company that |
| 30 |
is above the vendor in the group structure, is a 75% subsidiary of the |
| |
| |
(4) | But if there is a change in the control of the purchaser after the |
| |
vendor leaves the group, paragraphs 3, 4(6) and (7), 5 and 6 have |
| |
effect as if the purchaser had then ceased to be a member of the same |
| 35 |
| |
(5) | For the purposes of this paragraph there is a change in the control of |
| |
| |
(a) | a person who controls the purchaser (alone or with others) |
| |
| 40 |
(b) | a person obtains control of the purchaser (alone or with |
| |
| |
(c) | the purchaser is wound up. |
| |
|
| |
|
| |
|
(6) | For the purposes of sub-paragraph (5) a person does not control, or |
| |
obtain control of, the purchaser if that person is under the control of |
| |
another person or other persons. |
| |
(7) | In this paragraph references to “control” shall be interpreted in |
| |
accordance with section 416 of the Taxes Act 1988 (subject to sub- |
| 5 |
| |
(5) | In paragraph 4A(1) (withdrawal of group relief in certain cases involving |
| |
successive transactions), in the words following paragraph (d), for “and 4” |
| |
substitute “, 4 and 4ZA”. |
| |
(6) | The amendments made by this section have effect— |
| 10 |
(a) | in relation to transactions with an effective date on or after 13 March |
| |
| |
(b) | (subject to subsection (7)) in relation to transactions with an effective |
| |
date before that day if, on or after that day, there is a change in the |
| |
control of the purchaser (within the meaning of paragraph 4ZA(5) of |
| 15 |
Schedule 7 to FA 2003, inserted by this section). |
| |
(7) | The amendments made by this section do not have effect by virtue of |
| |
subsection (6)(b) where the change of control takes place in pursuance of a |
| |
contract entered into before 13 March 2008. |
| |
94 | Transfers of interests in property-investment partnerships |
| 20 |
(1) | Schedule 31 contains provision relating to stamp duty land tax chargeable on |
| |
transfers to, and of interests in, property-investment partnerships. |
| |
(2) | Part 1 of that Schedule (transfer of interest in partnership: “relevant |
| |
partnership property”), and this section so far as relating to that Part— |
| |
(a) | have effect in respect of transfers occurring on or after 19 July 2007 |
| 25 |
(subject to subsection (3)), and |
| |
(b) | are treated as having come into force on that day. |
| |
(3) | Subsections (14) and (17) of section 72 of FA 2007 (partnerships) apply in |
| |
relation to the amendments made by Part 1 of that Schedule as they apply in |
| |
relation to the amendments made by subsections (6) and (10) of that section. |
| 30 |
| |
95 | Exemption from ad valorem stamp duty for low value transactions |
| |
(1) | Paragraph 1 of Schedule 13 to FA 1999 (charge to stamp duty on conveyance or |
| |
transfer on sale) is amended as follows. |
| |
(2) | In sub-paragraph (3), for “(4)” substitute “(3A)”. |
| 35 |
(3) | After that sub-paragraph insert— |
| |
“(3A) | Stamp duty is not chargeable under sub-paragraph (1) on a transfer |
| |
of stock or marketable securities where— |
| |
(a) | the amount or value of the consideration for the sale is £1,000 |
| |
| 40 |
(b) | the instrument is certified at £1,000.” |
| |
|
| |
|
| |
|
(4) | In paragraph 6(1) (meaning of instrument being certified at an amount), for |
| |
“paragraph” substitute “paragraphs 1(3A) and”. |
| |
(5) | The amendments made by this section have effect in relation to instruments |
| |
executed on or after 13 March 2008 and not stamped before 19 March 2008. |
| |
(6) | For the purposes of section 14(4) of the Stamp Act 1891 (c. 39) (instruments not |
| 5 |
to be given in evidence etc unless stamped in accordance with the law in force |
| |
at the time of first execution), the law in force at the time of execution of an |
| |
| |
(a) | executed on or after 13 March 2008 but before 19 March 2008, and |
| |
(b) | not stamped before 19 March 2008, |
| 10 |
| shall be deemed to be the law as varied in accordance with this section. |
| |
96 | Abolition of fixed stamp duty on certain instruments |
| |
(1) | Schedule 32 contains provision abolishing fixed stamp duty on certain |
| |
| |
(2) | The amendments and saving made by that Schedule have effect in relation to |
| 15 |
instruments executed on or after 13 March 2008 and not stamped before 19 |
| |
| |
(3) | For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be |
| |
given in evidence etc unless stamped in accordance with the law in force at the |
| |
time of first execution), the law in force at the time of execution of an |
| 20 |
| |
(a) | executed on or after 13 March 2008 but before 19 March 2008, and |
| |
(b) | not stamped before 19 March 2008, |
| |
| shall be deemed to be the law as varied in accordance with Schedule 32. |
| |
| 25 |
(1) | Section 79 of FA 1986 (stamp duty and loan capital) is amended as follows. |
| |
(2) | In subsection (6), for “subsection (7)” substitute “subsections (7) to (7B)”. |
| |
(3) | After subsection (7A) insert— |
| |
“(7B) | Subsection (4) shall not be prevented from applying to a capital market |
| |
instrument by virtue of subsection (6)(b) by reason only that the capital |
| 30 |
market investment concerned carries or has carried a right to interest |
| |
which ceases or reduces if, or to the extent that, the issuer, after meeting |
| |
or providing for other obligations specified in the capital market |
| |
arrangement concerned, has insufficient funds available from that |
| |
capital market arrangement to pay all or part of the interest otherwise |
| 35 |
| |
(4) | After subsection (12) insert— |
| |
| |
“capital market instrument” means an instrument transferring a |
| |
capital market investment issued as part of a capital market |
| 40 |
| |
|
| |
|
| |
|
“capital market investment” and “capital market arrangement” |
| |
have the same meaning as in section 72B of the Insolvency Act |
| |
1986 (see paragraphs 1 to 3 of Schedule 2A to that Act).” |
| |
(5) | The amendments made by this section have effect in relation to any instrument |
| |
executed on or after the day on which this Act is passed. |
| 5 |
| |
| |
| |
98 | Meaning of “participator” |
| |
(1) | In section 12 of OTA 1975 (interpretation of Part 1), the definition of |
| 10 |
“participator” is amended as follows. |
| |
(2) | In the words before paragraph (a), after “chargeable period” insert “(“the |
| |
relevant chargeable period”)”. |
| |
(3) | In paragraphs (a), (b) and (c), for “that chargeable period” substitute “the |
| |
relevant chargeable period”. |
| 15 |
(4) | At the end of paragraph (c) insert “and |
| |
(d) | a former participator to whom an amount is attributed |
| |
under paragraph 2A(2) of Schedule 5 in respect of a |
| |
default payment made in relation to the field in the |
| |
relevant chargeable period; and |
| 20 |
(e) | a former participator to whom an amount was |
| |
attributed under paragraph 2A(2) of Schedule 5 in |
| |
respect of a default payment made in relation to the field |
| |
in either of the two chargeable periods preceding the |
| |
relevant chargeable period; and |
| 25 |
| |
(i) | made a default payment in relation to the field |
| |
(whether the person was then a current |
| |
participator or former participator), |
| |
(ii) | is not a participator during the relevant |
| 30 |
chargeable period under any of paragraphs (a) to |
| |
(e) of this definition, and |
| |
(iii) | receives, in the relevant chargeable period, |
| |
reimbursement expenditure (within the |
| |
meaning of section 108(1)(c) of the Finance Act |
| 35 |
1991) in respect of the default payment; and |
| |
| |
(i) | made a default payment in relation to the field |
| |
(whether the person was then a current |
| |
participator or former participator), |
| 40 |
(ii) | is not a participator during the relevant |
| |
chargeable period under any of paragraphs (a) to |
| |
(f) of this definition, and |
| |
(iii) | received, in either of the two chargeable periods |
| |
preceding the relevant chargeable period, |
| 45 |
|
| |
|
| |
|
reimbursement expenditure (within the |
| |
meaning of section 108(1)(c) of the Finance Act |
| |
1991) in respect of the default payment; |
| |
| and for the purposes of paragraphs (f)(i) and (g)(i), |
| |
“current participator”, “former participator” and |
| 5 |
“default payment” have the same meaning as in |
| |
paragraph 2A of Schedule 5;”. |
| |
(5) | The amendments made by this section have effect in relation to expenditure |
| |
incurred after 30 June 2008. |
| |
99 | Abandonment expenditure: default by participator met by former |
| 10 |
| |
(1) | In Schedule 5 to OTA 1975 (allowance of expenditure, other than abortive |
| |
exploration expenditure), for paragraph 2A substitute— |
| |
“2A (1) | This paragraph applies if— |
| |
(a) | a current participator (“the defaulter”) has defaulted on a |
| 15 |
| |
(i) | a relevant agreement, or |
| |
(ii) | an abandonment programme, |
| |
| to make a payment towards abandonment expenditure, and |
| |
(b) | a current or former participator (“the contributing |
| 20 |
participator”) pays an amount in or towards meeting the |
| |
whole or part of the default (“a default payment”). |
| |
(2) | If a claim is made under this Schedule for the allowance of the |
| |
abandonment expenditure, the amount of the default payment is to |
| |
be attributed to the contributing participator for the purposes of |
| 25 |
paragraphs 2(4)(b) and 3(1)(c). |
| |
(3) | But the amount attributed under sub-paragraph (2) may not |
| |
| |
(a) | so much of the sum in default as the contributing participator |
| |
is required to meet in accordance with— |
| 30 |
(i) | the relevant agreement, or |
| |
(ii) | the abandonment programme, or |
| |
(b) | such other amount as the participator may be required to |
| |
meet in accordance with a direction given under Part 4 of the |
| |
| 35 |
(4) | Sub-paragraph (2) is subject to paragraph 2B. |
| |
(5) | In determining the amount which is to be attributed to the |
| |
contributing participator under sub-paragraph (2), account shall be |
| |
taken of the whole of the defaulter’s interest in the relevant oil field. |
| |
(6) | But in determining the share of the abandonment expenditure to be |
| 40 |
attributed to the defaulter under paragraph 2(4)(b), the amount |
| |
which would be attributed by reference to the defaulter’s interest in |
| |
the relevant oil field is to be reduced or (as the case may be) |
| |
extinguished by the deduction of the aggregate of— |
| |
(a) | the amount attributed to the contributing participator under |
| 45 |
| |
|
| |
|
| |
|
(b) | any other amounts attributed under sub-paragraph (2) to |
| |
other current or former participators who make default |
| |
payments in respect of the defaulter’s default. |
| |
2B (1) | No amount is to be attributed to a contributing participator under |
| |
paragraph 2A(2) unless the following conditions are all met. |
| 5 |
(2) | The first condition is that the contributing participator is not |
| |
connected with the defaulter, applying section 839 of the Taxes Act |
| |
(connected persons) for the purposes of this sub-paragraph. |
| |
(3) | The second condition is that, at the end of the claim period for which |
| |
the claim is made, the defaulter still has an interest in the relevant oil |
| 10 |
field which, under paragraph 2(4)(b), falls to be taken into account in |
| |
determining the shares in the abandonment expenditure. |
| |
(4) | The third condition is that the relevant participators have taken all |
| |
reasonable steps by way of legal remedy— |
| |
(a) | to secure that the defaulter meets the whole of the liability |
| 15 |
referred to in paragraph 2A(1)(a), and |
| |
(b) | to enforce any guarantee or other security provided in |
| |
respect of that liability. |
| |
(5) | In sub-paragraph (4) “relevant participators” means— |
| |
(a) | each current participator (other than the defaulter), and |
| 20 |
(b) | each former participator who makes a default payment in |
| |
respect of the defaulter’s default. |
| |
2C (1) | An amount attributed under paragraph 2A(2) is— |
| |
(a) | in the case of a current participator, to be an addition to the |
| |
share of the abandonment expenditure referable to the |
| 25 |
current participator’s interest in the oil field, or |
| |
(b) | in the case of a former participator, to be the share of the |
| |
abandonment expenditure referable to the former |
| |
participator’s interest in the oil field. |
| |
(2) | In paragraphs 2A and 2B and this paragraph— |
| 30 |
“abandonment expenditure” means expenditure which is |
| |
allowable for an oil field by virtue of section 3(1)(i) or (j); |
| |
“abandonment programme” means an abandonment |
| |
programme approved under Part 4 of the Petroleum Act 1998 |
| |
(including any such programme as revised); |
| 35 |
“current participator” means a person who is, by virtue of |
| |
paragraph (a), (b) or (c) of the definition in section 12, a |
| |
participator in the relevant oil field in the chargeable period |
| |
in which the abandonment expenditure is incurred; |
| |
“former participator” means a person who— |
| 40 |
(a) | is not a current participator, but |
| |
(b) | was, by virtue of paragraph (a), (b) or (c) of the |
| |
definition in section 12, a participator in the relevant |
| |
oil field in any chargeable period before the |
| |
chargeable period in which the abandonment |
| 45 |
| |
“relevant agreement” has the meaning given by section |
| |
104(5)(a) of the Finance Act 1991; |
| |
|
| |
|