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92 | Notification and registration of transactions |
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(1) | Part 4 of FA 2003 (stamp duty land tax) is amended as follows. |
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(2) | For section 77 substitute— |
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“77 | Notifiable transactions |
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(1) | A land transaction is notifiable if it is— |
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(a) | an acquisition of a major interest in land that does not fall |
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within one or more of the exceptions in section 77A, |
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(b) | an acquisition of a chargeable interest other than a major |
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interest in land where there is chargeable consideration in |
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respect of which tax is chargeable at a rate of 1% or higher or |
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would be so chargeable but for a relief, |
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(c) | a land transaction that a person is treated as entering into by |
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virtue of section 44A(3), or |
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(d) | a notional land transaction under section 75A. |
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(2) | This section has effect subject to— |
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(a) | sections 71A(7) and 72A(7), and |
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(b) | paragraph 30 of Schedule 15. |
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(3) | In this section “relief” does not include an exemption from charge |
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77A | Exceptions for certain acquisitions of major interests in land |
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(1) | The exceptions referred to in section 77(1)(a) are as follows. |
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| | An acquisition which is exempt from charge |
| | | | | | | | | | 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. |
| | | | | The grant of a lease for a term of 7 years or more |
| | | | | | | 30 | | | (a) | any chargeable consideration other than |
| | | | | rent is less than £40,000, and |
| | | | | (b) | the relevant rent is less than £1,000. |
| | | | | The assignment or surrender of a lease where— |
| | | | | (a) | the lease was originally granted for a term |
| | 35 | | | | | | | | (b) | the chargeable consideration for the |
| | | | | assignment or surrender is less than |
| | | | | | | | | | 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. |
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| | 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 |
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(2) | Chargeable consideration for an acquisition does not exceed the zero |
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rate threshold if it does not consist of or include— |
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(a) | any amount in respect of which tax is chargeable at a rate of 1% |
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(b) | any amount in respect of which tax would be so chargeable but |
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“annual rent” has the meaning given in paragraph 9A of Schedule |
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(b) | in the case of the grant of a lease to which paragraph 11 |
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or 19 of Schedule 15 applies, the relevant chargeable |
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proportion of the annual rent (as calculated in |
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accordance with that paragraph), and |
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“relief” does not include an exemption from charge under |
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(3) | In section 79(2) (registration of land transactions), after “every” insert |
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(4) | Schedule 30 contains consequential provision. |
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(5) | The amendments made by this section and that Schedule have effect in relation |
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to transactions with an effective date on or after 12 March 2008. |
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93 | Charge where consideration includes rent: 0% band |
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(1) | Schedule 5 to FA 2003 (amount of SDLT chargeable: rent) is amended as |
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(2) | In paragraph 9 (SDLT chargeable in respect of consideration other than rent)— |
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(a) | in sub-paragraph (1), insert at the end “(but see paragraph 9A)”, and |
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(b) | omit sub-paragraphs (2), (2A) and (3), |
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| and, accordingly, in the heading before that paragraph, insert at the end “: |
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(3) | After that paragraph insert— |
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“Tax chargeable in respect of consideration other than rent: 0% band |
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9A (1) | This paragraph applies in the case of a transaction to which this |
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Schedule applies where there is chargeable consideration other than |
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(a) | the relevant land consists entirely of land that is non- |
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residential property, and |
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(b) | the relevant rent is at least £1,000, |
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| the 0% band in Table B in section 55(2) does not apply in relation to |
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the consideration other than rent and any case that would have fallen |
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within that band is treated as falling within the 1% band. |
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(3) | Sub-paragraphs (4) and (5) apply if— |
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(a) | the relevant land is partly residential property and partly |
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non-residential property, and |
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(b) | the relevant rent attributable, on a just and reasonable |
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apportionment, to the land that is non-residential property is |
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(4) | For the purpose of determining the amount of tax chargeable under |
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section 55 in relation to the consideration other than rent, the |
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transaction (or, where it is one of a number of linked transactions, |
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that set of transactions) is treated as if it were two separate |
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transactions (or sets of linked transactions), namely— |
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(a) | one whose subject-matter consists of all of the interests in |
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land that is residential property, and |
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(b) | one whose subject-matter consists of all of the interests in |
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land that is non-residential property. |
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(5) | For that purpose, the chargeable consideration attributable to each of |
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those separate transactions (or sets of linked transactions) is the |
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chargeable consideration so attributable on a just and reasonable |
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(6) | In this paragraph “the relevant rent” means— |
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(a) | the annual rent in relation to the transaction in question, or |
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(b) | if that transaction is one of a number of linked transactions |
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for which the chargeable consideration consists of or includes |
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rent, the total of the annual rents in relation to all of those |
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(7) | In sub-paragraph (6) the “annual rent” means the average annual |
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rent over the term of the lease or, if— |
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(a) | different amounts of rent are payable for different parts of the |
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(b) | those amounts (or any of them) are ascertainable at the |
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effective date of the transaction, |
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| the average annual rent over the period for which the highest |
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ascertainable rent is payable. |
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(8) | In this paragraph “relevant land” has the meaning given in section |
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(4) | Each of the following provisions of Schedule 6 to that Act (SDLT: |
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disadvantaged areas relief) is amended in accordance with subsection (5)— |
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(a) | paragraph 5(4) (residential land wholly situated in disadvantaged |
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(b) | paragraph 6(6) (mixed land wholly situated in disadvantaged area), |
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(c) | paragraph 9(4) (residential land partly situated in disadvantaged area), |
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(d) | paragraph 10(6) (mixed land wholly partly situated in disadvantaged |
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(a) | in paragraph (a), omit sub-paragraph (i) (and the “and” after it), and |
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(6) | In paragraph 12 of that Schedule (rent and annual rent), for “9(2)” substitute |
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(7) | In Schedule 8 to that Act (SDLT: charities relief), in paragraph 3— |
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(a) | in sub-paragraph (3)(b), for “does not exceed £600” substitute “is less |
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(b) | in sub-paragraph (5), for “9(2)” substitute “9A”. |
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(8) | In Schedule 9 to that Act (SDLT: right to buy etc), after paragraph 4A insert— |
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“Shared ownership lease: grant not linked with staircasing transactions etc |
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4B (1) | For the purpose of determining the rate of tax chargeable on the |
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grant of a shared ownership lease of a dwelling, the grant shall be |
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treated as if it were not linked to— |
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(a) | any acquisition of an interest in the dwelling to which |
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(b) | a transfer of the reversion to the lessee or lessees under the |
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(2) | In this paragraph “shared ownership lease” has the same meaning as |
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(9) | In that Schedule, in paragraphs 10(1) and (2) and 11(b) (shared ownership |
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trusts), omit “additional”. |
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(10) | In that Schedule, insert at the end— |
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“Shared ownership trust: declaration not linked with staircasing transactions etc |
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12 | For the purpose of determining the rate of tax chargeable on the |
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declaration of a shared ownership trust, the declaration shall be |
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treated as if it were not linked to— |
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(a) | any equity-acquisition payment under the trust or any |
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consequent increase in the purchaser’s beneficial interest in |
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(b) | a transfer to the purchaser of an interest in the trust property |
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upon the termination of the trust.” |
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(11) | In Schedule 15 to that Act (SDLT: partnerships)— |
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(a) | in paragraph 11(2B)(a), for “9(2A)” substitute “9A(6)”, |
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(b) | in paragraph 19(2B), for “9(2A)” substitute “9A(6)”, and |
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(c) | in paragraph 23(3)(c), for “9(2)” substitute “9A”. |
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(12) | In Schedule 17A to that Act (SDLT: further provisions relating to leases) in |
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(a) | for “9(2)” substitute “9A”, |
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(b) | for “the Tables” substitute “Table B”, and |
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(c) | for “the relevant rental figure exceeds £600” substitute “the relevant |
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rent attributable to non-residential property is not less than £1,000”. |
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(13) | The amendments made by this section have effect in relation to transactions |
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with an effective date on or after 12 March 2008. |
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94 | Withdrawal of group relief |
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(1) | Part 1 of Schedule 7 to FA 2003 (group relief) is amended as follows. |
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(2) | In paragraph 3(5), for “paragraph 4” substitute “paragraphs 4 and 4ZA”. |
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(3) | In paragraph 4 (cases in which group relief not withdrawn)— |
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(a) | omit sub-paragraphs (2) and (3), and |
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(b) | in sub-paragraph (5), for “sub-paragraphs (3) and (4)” substitute “sub- |
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(4) | After that paragraph insert— |
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“Group relief not withdrawn where vendor leaves group |
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4ZA (1) | Group relief is not withdrawn under paragraph 3 where the |
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purchaser ceases to be a member of the same group as the vendor |
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because the vendor leaves the group. |
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(2) | The vendor is regarded as leaving the group if the companies cease |
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to be members of the same group by reason of a transaction relating |
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(b) | another company that— |
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(i) | is above the vendor in the group structure, and |
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(ii) | as a result of the transaction ceases to be a member of |
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the same group as the purchaser. |
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(3) | For the purpose of sub-paragraph (2) a company is “above” the |
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vendor in the group structure if the vendor, or another company that |
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is above the vendor in the group structure, is a 75% subsidiary of the |
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(4) | But if there is a change in the control of the purchaser after the |
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vendor leaves the group, paragraphs 3, 4(6) and (7), 5 and 6 have |
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effect as if the purchaser had then ceased to be a member of the same |
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group as the vendor (but see sub-paragraph (7)). |
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(5) | For the purposes of this paragraph there is a change in the control of |
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(a) | a person who controls the purchaser (alone or with others) |
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(b) | a person obtains control of the purchaser (alone or with |
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(c) | the purchaser is wound up. |
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(6) | For the purposes of sub-paragraph (5) a person does not control, or |
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obtain control of, the purchaser if that person is under the control of |
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another person or other persons. |
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(7) | Sub-paragraph (4) does not apply where— |
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(a) | there is a change in the control of the purchaser because a |
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loan creditor (within the meaning of section 417(7) to (9) of |
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the Taxes Act 1988) obtains control of, or ceases to control, the |
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(b) | the other persons who controlled the purchaser before that |
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change continue to do so. |
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(8) | In this paragraph references to “control” shall be interpreted in |
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accordance with section 416 of the Taxes Act 1988 (subject to sub- |
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(5) | In paragraph 4A (withdrawal of group relief in certain cases involving |
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successive transactions)— |
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(a) | in sub-paragraph (1), in the words following paragraph (d), for “and 4” |
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substitute “, 4 and 4ZA”, |
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(b) | after that sub-paragraph insert— |
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“(1A) | Sub-paragraph (1) has effect subject to sub-paragraph (3A).”, |
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(c) | in sub-paragraph (3)— |
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(i) | for “sub-paragraph (1)(a)” substitute “this paragraph”, and |
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(ii) | for “this sub-paragraph” substitute “this paragraph”, and |
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(d) | after sub-paragraph (3) insert— |
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“(3A) | Sub-paragraph (1) does not apply where— |
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(a) | there is a change in the control of the purchaser |
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because a loan creditor (within the meaning of section |
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417(7) to (9) of the Taxes Act 1988) obtains control of, |
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or ceases to control, the purchaser, and |
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(b) | the other persons who controlled the purchaser |
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before that change continue to do so.” |
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(6) | The amendments made by this section have effect in relation to transactions |
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with an effective date on or after 13 March 2008. |
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95 | Transfers of interests in property-investment partnerships |
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(1) | Schedule 31 contains provision relating to stamp duty land tax chargeable on |
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transfers to, and of interests in, property-investment partnerships. |
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(2) | Part 1 of that Schedule (transfer of interest in partnership: “relevant |
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partnership property”), and this section so far as relating to that Part— |
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(a) | have effect in respect of transfers occurring on or after 19 July 2007 |
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(subject to subsection (3)), and |
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(b) | are treated as having come into force on that day. |
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(3) | Subsections (14) and (17) of section 72 of FA 2007 (partnerships) apply in |
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relation to the amendments made by Part 1 of that Schedule as they apply in |
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relation to the amendments made by subsections (6) and (10) of that section. |
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96 | Exemption from ad valorem stamp duty for low value transactions |
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(1) | Paragraph 1 of Schedule 13 to FA 1999 (charge to stamp duty on conveyance or |
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transfer on sale) is amended as follows. |
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(2) | In sub-paragraph (3), for “(4)” substitute “(3A)”. |
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(3) | After that sub-paragraph insert— |
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“(3A) | Stamp duty is not chargeable under sub-paragraph (1) on a transfer |
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of stock or marketable securities where— |
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(a) | the amount or value of the consideration for the sale is £1,000 |
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(b) | the instrument is certified at £1,000.” |
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(4) | In paragraph 6(1) (meaning of instrument being certified at an amount), for |
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“paragraph” substitute “paragraphs 1(3A) and”. |
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(5) | The amendments made by this section have effect in relation to instruments |
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executed on or after 13 March 2008 and not stamped before 19 March 2008. |
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(6) | For the purposes of section 14(4) of the Stamp Act 1891 (c. 39) (instruments not |
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to be given in evidence etc unless stamped in accordance with the law in force |
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at the time of first execution), the law in force at the time of execution of an |
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(a) | executed on or after 13 March 2008 but before 19 March 2008, and |
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(b) | not stamped before 19 March 2008, |
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| shall be deemed to be the law as varied in accordance with this section. |
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97 | Abolition of fixed stamp duty on certain instruments |
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(1) | Schedule 32 contains provision abolishing fixed stamp duty on certain |
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(2) | The amendments and saving made by that Schedule have effect in relation to |
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instruments executed on or after 13 March 2008 and not stamped before 19 |
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(3) | For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be |
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given in evidence etc unless stamped in accordance with the law in force at the |
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time of first execution), the law in force at the time of execution of an |
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(a) | executed on or after 13 March 2008 but before 19 March 2008, and |
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(b) | not stamped before 19 March 2008, |
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| shall be deemed to be the law as varied in accordance with Schedule 32. |
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(1) | Omit section 82(5) and (9) of FA 1985 (adjudication of certain gifts inter vivos). |
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(2) | Accordingly, omit paragraph 9 of Schedule 14 to FA 1999. |
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(3) | The amendments made by this section have effect in relation to instruments |
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executed on or after 13 March 2008, other than instruments effecting a land |
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transaction (within the meaning of paragraph 22 of Schedule 32). |
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(4) | For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be |
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given in evidence etc unless stamped in accordance with the law in force at the |
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time of first execution), the law in force at the time of execution of such an |
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instrument shall be deemed to be the law as varied in accordance with this |
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