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Finance Bill (Volume I)
Part 5 — Stamp taxes

53

 

92      

Notification and registration of transactions

(1)   

Part 4 of FA 2003 (stamp duty land tax) is amended as follows.

(2)   

For section 77 substitute—

“77     

Notifiable transactions

(1)   

A land transaction is notifiable if it is—

5

(a)   

an acquisition of a major interest in land that does not fall

within one or more of the exceptions in section 77A,

(b)   

an acquisition of a chargeable interest other than a major

interest in land where there is chargeable consideration in

respect of which tax is chargeable at a rate of 1% or higher or

10

would be so chargeable but for a relief,

(c)   

a land transaction that a person is treated as entering into by

virtue of section 44A(3), or

(d)   

a notional land transaction under section 75A.

(2)   

This section has effect subject to—

15

(a)   

sections 71A(7) and 72A(7), and

(b)   

paragraph 30 of Schedule 15.

(3)   

In this section “relief” does not include an exemption from charge

under Schedule 3.

77A     

Exceptions for certain acquisitions of major interests in land

20

(1)   

The exceptions referred to in section 77(1)(a) are as follows.

 

1.

An acquisition which is exempt from charge

 
  

under Schedule 3.

 
 

2.

An acquisition (other than the grant, assignment

 
  

or surrender of a lease) where the chargeable

 

25

  

consideration for that acquisition, together with

 
  

the chargeable consideration for any linked

 
  

transactions, is less than £40,000.

 
 

3.

The grant of a lease for a term of 7 years or more

 
  

where—

 

30

  

(a)   

any chargeable consideration other than

 
  

rent is less than £40,000, and

 
  

(b)   

the relevant rent is less than £1,000.

 
 

4.

The assignment or surrender of a lease where—

 
  

(a)   

the lease was originally granted for a term

 

35

  

of 7 years or more, and

 
  

(b)   

the chargeable consideration for the

 
  

assignment or surrender is less than

 
  

£40,000.

 
 

5.

The grant of a lease for a term of less than 7 years

 

40

  

where the chargeable consideration does not

 
  

exceed the zero rate threshold.

 
 
 

Finance Bill (Volume I)
Part 5 — Stamp taxes

54

 
 

6.

The assignment or surrender of a lease where—

 
  

(a)   

the lease was originally granted for a term

 
  

of less than 7 years, and

 
  

(b)   

the chargeable consideration for the

 
  

assignment or surrender does not exceed

 

5

  

the zero rate threshold.

 
 

(2)   

Chargeable consideration for an acquisition does not exceed the zero

rate threshold if it does not consist of or include—

(a)   

any amount in respect of which tax is chargeable at a rate of 1%

or higher, or

10

(b)   

any amount in respect of which tax would be so chargeable but

for a relief.

(3)   

In this section—

“annual rent” has the meaning given in paragraph 9A of Schedule

5,

15

“relevant rent” means—

(a)   

the annual rent, or

(b)   

in the case of the grant of a lease to which paragraph 11

or 19 of Schedule 15 applies, the relevant chargeable

proportion of the annual rent (as calculated in

20

accordance with that paragraph), and

“relief” does not include an exemption from charge under

Schedule 3.”

(3)   

In section 79(2) (registration of land transactions), after “every” insert

“notifiable”.

25

(4)   

Schedule 30 contains consequential provision.

(5)   

The amendments made by this section and that Schedule have effect in relation

to transactions with an effective date on or after 12 March 2008.

93      

Charge where consideration includes rent: 0% band

(1)   

Schedule 5 to FA 2003 (amount of SDLT chargeable: rent) is amended as

30

follows.

(2)   

In paragraph 9 (SDLT chargeable in respect of consideration other than rent)—

(a)   

in sub-paragraph (1), insert at the end “(but see paragraph 9A)”, and

(b)   

omit sub-paragraphs (2), (2A) and (3),

   

and, accordingly, in the heading before that paragraph, insert at the end “:

35

general”.

(3)   

After that paragraph insert—

“Tax chargeable in respect of consideration other than rent: 0% band

9A    (1)  

This paragraph applies in the case of a transaction to which this

Schedule applies where there is chargeable consideration other than

40

rent.

      (2)  

If—

 
 

Finance Bill (Volume I)
Part 5 — Stamp taxes

55

 

(a)   

the relevant land consists entirely of land that is non-

residential property, and

(b)   

the relevant rent is at least £1,000,

           

the 0% band in Table B in section 55(2) does not apply in relation to

the consideration other than rent and any case that would have fallen

5

within that band is treated as falling within the 1% band.

      (3)  

Sub-paragraphs (4) and (5) apply if—

(a)   

the relevant land is partly residential property and partly

non-residential property, and

(b)   

the relevant rent attributable, on a just and reasonable

10

apportionment, to the land that is non-residential property is

at least £1,000.

      (4)  

For the purpose of determining the amount of tax chargeable under

section 55 in relation to the consideration other than rent, the

transaction (or, where it is one of a number of linked transactions,

15

that set of transactions) is treated as if it were two separate

transactions (or sets of linked transactions), namely—

(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

20

land that is non-residential property.

      (5)  

For that purpose, the chargeable consideration attributable to each of

those separate transactions (or sets of linked transactions) is the

chargeable consideration so attributable on a just and reasonable

apportionment.

25

      (6)  

In this paragraph “the relevant rent” means—

(a)   

the annual rent in relation to the transaction in question, or

(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

30

transactions.

      (7)  

In sub-paragraph (6) the “annual rent” means the average annual

rent over the term of the lease or, if—

(a)   

different amounts of rent are payable for different parts of the

term, and

35

(b)   

those amounts (or any of them) are ascertainable at the

effective date of the transaction,

           

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

40

55(3) and (4).”

(4)   

Each of the following provisions of Schedule 6 to that Act (SDLT:

disadvantaged areas relief) is amended in accordance with subsection (5)—

(a)   

paragraph 5(4) (residential land wholly situated in disadvantaged

area),

45

(b)   

paragraph 6(6) (mixed land wholly situated in disadvantaged area),

(c)   

paragraph 9(4) (residential land partly situated in disadvantaged area),

and

 
 

Finance Bill (Volume I)
Part 5 — Stamp taxes

56

 

(d)   

paragraph 10(6) (mixed land wholly partly situated in disadvantaged

area).

(5)   

In those provisions—

(a)   

in paragraph (a), omit sub-paragraph (i) (and the “and” after it), and

(b)   

omit paragraph (b).

5

(6)   

In paragraph 12 of that Schedule (rent and annual rent), for “9(2)” substitute

“9A”.

(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

than £1,000”, and

10

(b)   

in sub-paragraph (5), for “9(2)” substitute “9A”.

(8)   

In Schedule 9 to that Act (SDLT: right to buy etc), after paragraph 4A insert—

“Shared ownership lease: grant not linked with staircasing transactions etc

4B    (1)  

For the purpose of determining the rate of tax chargeable on the

grant of a shared ownership lease of a dwelling, the grant shall be

15

treated as if it were not linked to—

(a)   

any acquisition of an interest in the dwelling to which

paragraph 4A applies, or

(b)   

a transfer of the reversion to the lessee or lessees under the

terms of the lease.

20

      (2)  

In this paragraph “shared ownership lease” has the same meaning as

in paragraph 4A.”

(9)   

In that Schedule, in paragraphs 10(1) and (2) and 11(b) (shared ownership

trusts), omit “additional”.

(10)   

In that Schedule, insert at the end—

25

“Shared ownership trust: declaration not linked with staircasing transactions etc

12         

For the purpose of determining the rate of tax chargeable on the

declaration of a shared ownership trust, the declaration shall be

treated as if it were not linked to—

(a)   

any equity-acquisition payment under the trust or any

30

consequent increase in the purchaser’s beneficial interest in

the trust property, or

(b)   

a transfer to the purchaser of an interest in the trust property

upon the termination of the trust.”

(11)   

In Schedule 15 to that Act (SDLT: partnerships)—

35

(a)   

in paragraph 11(2B)(a), for “9(2A)” substitute “9A(6)”,

(b)   

in paragraph 19(2B), for “9(2A)” substitute “9A(6)”, and

(c)   

in paragraph 23(3)(c), for “9(2)” substitute “9A”.

(12)   

In Schedule 17A to that Act (SDLT: further provisions relating to leases) in

paragraph 18A(5)(a)—

40

(a)   

for “9(2)” substitute “9A”,

(b)   

for “the Tables” substitute “Table B”, and

 
 

Finance Bill (Volume I)
Part 5 — Stamp taxes

57

 

(c)   

for “the relevant rental figure exceeds £600” substitute “the relevant

rent attributable to non-residential property is not less than £1,000”.

(13)   

The amendments made by this section have effect in relation to transactions

with an effective date on or after 12 March 2008.

94      

Withdrawal of group relief

5

(1)   

Part 1 of Schedule 7 to FA 2003 (group relief) is amended as follows.

(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-

10

paragraph (4)”.

(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

15

because the vendor leaves the group.

      (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

to shares in—

(a)   

the vendor, or

20

(b)   

another company that—

(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

25

vendor in the group structure if the vendor, or another company that

is above the vendor in the group structure, is a 75% subsidiary of the

company.

      (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

30

effect as if the purchaser had then ceased to be a member of the same

group as the vendor (but see sub-paragraph (7)).

      (5)  

For the purposes of this paragraph there is a change in the control of

the purchaser if—

(a)   

a person who controls the purchaser (alone or with others)

35

ceases to do so,

(b)   

a person obtains control of the purchaser (alone or with

others), or

(c)   

the purchaser is wound up.

      (6)  

For the purposes of sub-paragraph (5) a person does not control, or

40

obtain control of, the purchaser if that person is under the control of

another person or other persons.

      (7)  

Sub-paragraph (4) does not apply where—

 
 

Finance Bill (Volume I)
Part 5 — Stamp taxes

58

 

(a)   

there is a change in the control of the purchaser because a

loan creditor (within the meaning of section 417(7) to (9) of

the Taxes Act 1988) obtains control of, or ceases to control, the

purchaser, and

(b)   

the other persons who controlled the purchaser before that

5

change continue to do so.

      (8)  

In this paragraph references to “control” shall be interpreted in

accordance with section 416 of the Taxes Act 1988 (subject to sub-

paragraph (6)).”

(5)   

In paragraph 4A (withdrawal of group relief in certain cases involving

10

successive transactions)—

(a)   

in sub-paragraph (1), in the words following paragraph (d), for “and 4”

substitute “, 4 and 4ZA”,

(b)   

after that sub-paragraph insert—

   “(1A)  

Sub-paragraph (1) has effect subject to sub-paragraph (3A).”,

15

(c)   

in sub-paragraph (3)—

(i)   

for “sub-paragraph (1)(a)” substitute “this paragraph”, and

(ii)   

for “this sub-paragraph” substitute “this paragraph”, and

(d)   

after sub-paragraph (3) insert—

   “(3A)  

Sub-paragraph (1) does not apply where—

20

(a)   

there is a change in the control of the purchaser

because a loan creditor (within the meaning of section

417(7) to (9) of the Taxes Act 1988) obtains control of,

or ceases to control, the purchaser, and

(b)   

the other persons who controlled the purchaser

25

before that change continue to do so.”

(6)   

The amendments made by this section have effect in relation to transactions

with an effective date on or after 13 March 2008.

95      

Transfers of interests in property-investment partnerships

(1)   

Schedule 31 contains provision relating to stamp duty land tax chargeable on

30

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

(subject to subsection (3)), and

35

(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.

Stamp duty

40

96      

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.

 
 

Finance Bill (Volume I)
Part 5 — Stamp taxes

59

 

(2)   

In sub-paragraph (3), for “(4)” substitute “(3A)”.

(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

5

or under, and

(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

10

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

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

instrument—

15

(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 this section.

97      

Abolition of fixed stamp duty on certain instruments

(1)   

Schedule 32 contains provision abolishing fixed stamp duty on certain

20

instruments.

(2)   

The amendments and saving made by that Schedule have effect in relation to

instruments executed on or after 13 March 2008 and not stamped before 19

March 2008.

(3)   

For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be

25

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

instrument—

(a)   

executed on or after 13 March 2008 but before 19 March 2008, and

(b)   

not stamped before 19 March 2008,

30

   

shall be deemed to be the law as varied in accordance with Schedule 32.

98      

Gifts inter vivos

(1)   

Omit section 82(5) and (9) of FA 1985 (adjudication of certain gifts inter vivos).

(2)   

Accordingly, omit paragraph 9 of Schedule 14 to FA 1999.

(3)   

The amendments made by this section have effect in relation to instruments

35

executed on or after 13 March 2008, other than instruments effecting a land

transaction (within the meaning of paragraph 22 of Schedule 32).

(4)   

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 such an

40

instrument shall be deemed to be the law as varied in accordance with this

section.

 
 

 
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