(2) The following provisions have effect as regards what transactions are SDLT
transactions, that is, are chargeable or notifiable or are transactions in
relation to which section 79 (registration etc) applies.
(3) Nothing in this Schedule shall be read as meaning that other transactions,
whether effected before or after the passing of this Act, are to be disregarded
in applying the provisions of this Part.
The implementation date
2 (1) A transaction is not an SDLT transaction unless the effective date of the
transaction is on or after the implementation date.
(2) In this Part “the implementation date” means the date appointed by
Treasury order as the implementation date for the purposes of stamp duty
Contract entered into before first relevant date
3 (1) Subject to the following provisions of this paragraph, a transaction is not an
SDLT transaction if it is effected in pursuance of a contract entered into
before the first relevant date.
(2) The “first relevant date” is the day after the passing of this Act.
(3) The exclusion of transactions effected in pursuance of contracts entered into
before the first relevant date does not apply—
(a) if there is any variation of the contract or assignment of rights under
the contract on or after that date;
(b) if the transaction is effected in consequence of the exercise after that
date of any option, right of pre-emption or similar right;
(c) where the purchaser under the transaction is a person other than the
purchaser under the contract because of a further contract made on
or after that date.
Contract substantially performed before implementation date
4 (1) This paragraph applies where a transaction—
(a) is completed on or after the implementation date,
(b) is effected in pursuance of a contract entered into and substantially
performed before that date, and
(c) is not excluded from being an SDLT transaction by paragraph 3.
(2) The transaction is not an SDLT transaction if the contract was substantially
performed before the first relevant date.
(3) In any other case, the fact that the contract was substantially performed
before the implementation date does not affect the matter.
Accordingly, the effective date of the transaction is the date of completion.
Credit for ad valorem stamp duty paid
5 (1) Where a transaction chargeable to stamp duty land tax is effected in
pursuance of a contract entered into before the implementation date, any ad
valorem stamp duty paid on the contract shall go to reduce the amount of tax
payable (but not so as to give rise to any repayment).
(2) Where the application or operation of any exemption or relief from stamp
duty land tax turns on whether tax was paid or payable in respect of an
earlier transaction, that requirement is treated as met if ad valorem stamp
duty was paid or (as the case may be) payable in respect of the instrument
by which that transaction was effected.
Effect for stamp duty purposes of stamp duty land tax being paid or chargeable
6 (1) Where in the case of a contract that, apart from paragraph 7 of Schedule 13
to the Finance Act 1999 (c. 16) (contracts chargeable as conveyances on sale),
would not be chargeable with stamp duty—
(a) a conveyance made in conformity with the contract is effected after
the implementation date, and
(b) stamp duty land tax is duly paid in respect of that transaction or no
tax is chargeable because of an exemption or relief,
the contract shall be deemed to be duly stamped.
(2) The references in section 111(1)(c) of, and paragraph 4(3) of Schedule 34 to,
the Finance Act 2002 (c. 23) (which relate to the circumstances in which
stamp duty group relief is withdrawn) to a transfer at market value by a duly
stamped instrument on which ad valorem duty was paid and in respect of
which group relief was not claimed shall be read, on or after the
implementation date, as including a reference to a transfer at market value
by a chargeable transaction in respect of which relief under Part 1 of
Schedule 7 to this Act was available but was not claimed.
(3) The references in section 113(1)(c) of, and in paragraph 3(3) or 4(3) of
Schedule 35 to, the Finance Act 2002 (which relate to the circumstances in
which stamp duty company acquisitions relief is withdrawn) to a transfer at
market value by a duly stamped instrument on which ad valorem duty was
paid and in respect of which section 76 relief was not claimed shall be read,
on or after the implementation date, as including a reference to a transfer at
market value by a chargeable transaction on which stamp duty land tax was
chargeable and in respect of which relief under Part 2 of Schedule 7 to this
Act was available but was not claimed.
Earlier related transactions under stamp duty
7 (1) In relation to a transaction that is not an SDLT transaction but which is
linked to an SDLT transaction and accordingly falls to be taken into account
in determining the rate of stamp duty land tax chargeable on the latter
transaction, any reference in this Part to the chargeable consideration for the
first-mentioned transaction shall be read as a reference to the consideration
by reference to which ad valorem stamp duty was payable in respect of the
instrument by which that transaction was effected.
(2) In paragraph 3 of Schedule 9 (relief for transfer of reversion under shared
ownership lease where election made for market value treatment) as it
applies in a case where the original lease was granted before the
(a) the reference to a lease to which paragraph 2 of that Schedule applies
shall be read as a reference to a lease to which section 97 of the
Finance Act 1980 applied (which made corresponding provision for
stamp duty), and
(b) the reference to an election having been made for tax to be charged
under that paragraph shall be read accordingly as a reference to a
corresponding election having been in relation to stamp duty under
(3) In section 54 (exceptions from deemed market value rule for transactions
with connected company) the reference in subsection (4)(b) to group relief
having been claimed in respect of a transaction shall be read in relation to a
transaction carried out before the implementation date as a reference to
relief having been claimed under section 42 of the Finance Act 1930 (c. 28),
section 11 of the Finance Act (Northern Ireland) 1954 (c. 23 (N. I.)) or section
151 of the Finance Act 1995 (c. 4) in respect of stamp duty on the instrument
by which the transaction was effected.
Time for stamping agreement for lease: lease subject to stamp duty land tax
8 (1) This paragraph makes provision corresponding to section 240 of the Finance
Act 1994 (c. 9) (stamp duty: time for presenting agreement for lease) and
(a) an agreement for a lease is entered into before the implementation
(b) a lease giving effect to the agreement is executed on or after that date,
(c) the transaction effected on completion is an SDLT transaction or
would be but for an exemption or relief from stamp duty land tax.
(2) If in those circumstances—
(a) the lease is produced when the agreement is presented for stamping,
(b) the duty (if any) chargeable on the agreement is paid,
sections 15A and 15B of the Stamp Act 1891 (c. 39) (interest and penalty on
late stamping) apply in relation to the agreement as if it had been executed
on the date on which the lease was executed.
(3) For the purposes of this paragraph a lease gives effect to an agreement if the
lease either is in conformity with the agreement or relates to substantially
the same property and term as the agreement.
(4) References in this paragraph to an agreement for a lease include missives of
let in Scotland.
Exercise of option or right of pre-emption acquired before implementation date
9 (1) This paragraph applies where—
(a) an option binding the grantor to enter into a land transaction, or
(b) a right of pre-emption preventing the grantor from entering into, or
restricting the right of the grantor to enter into, a land transaction,
is acquired before the implementation date and exercised on or after that
(2) Where the option or right was acquired on or after 17th April 2003, any
consideration for the acquisition is treated as part of the chargeable
consideration for the transaction resulting from the exercise of the option or
(3) Where the option or right was varied on or after 17th April 2003 and before
the implementation date, any consideration for the variation is treated as
part of the chargeable consideration for the transaction resulting from the
exercise of the option or right.
(4) Whether or not sub-paragraph (2) or (3) applies, the acquisition of the option
or right and any variation of the option or right is treated as linked with the
land transaction resulting from the exercise of the option or right.
But not so as to require the consideration for the acquisition or variation to
be counted twice in determining the rate of tax chargeable on the land
transaction resulting from the exercise of the option or right.
(5) Where this paragraph applies any ad valorem stamp duty paid on the
acquisition or variation of the option or right shall go to reduce the amount
of tax payable on the transaction resulting from the exercise of the option or
right (but not so as to give rise to any repayment).
10 In this Schedule “contract” includes any agreement.
Stamp duty: restriction to instruments relating to stock or marketable
Reduction of stamp duty where instrument partly relating to stock or marketable securities
1 (1) This paragraph applies where stamp duty under Part 1 of Schedule 13 to the
Finance Act 1999 (c. 16) (transfer on sale) is chargeable on an instrument that
relates partly to stock or marketable securities and partly to property other
than stock or marketable securities.
(2) In such a case—
(a) the consideration in respect of which duty would otherwise be
charged shall be apportioned, on a just and reasonable basis, as
between the stock or marketable securities and the other property,
(b) the instrument shall be charged only in respect of the consideration
attributed to the stock or marketable securities.
Apportionment of consideration for stamp duty purposes
2 (1) Where part of the property referred to in section 58(1) of the Stamp Act 1891
(c. 39) (consideration to be apportioned between different instruments as
parties think fit) consists of stock or marketable securities, that provision
shall have effect as if “the parties think fit” read “is just and reasonable”.
(a) part of the property referred to in section 58(2) of the Stamp Act 1891
(c. 39) (property contracted to be purchased by two or more persons
etc) consists of stock or marketable securities, and
(b) both or (as the case may be) all the relevant persons are connected
with one another,
that provision shall have effect as if the words from “for distinct parts of the
consideration” to the end of the subsection read “, the consideration shall be
apportioned in such manner as is just and reasonable, so that a distinct
consideration for each part of the property transferred is set forth in the
transfer relating to that part, and the transfer shall be charged with ad
valorem duty in respect of that consideration.”.
(3) If in a case where sub-paragraph (1) or (2) applies the consideration is
apportioned in a manner that is not just and reasonable, the enactments
relating to stamp duty shall have effect as if—
(a) the consideration had been apportioned in a manner that is just and
(b) the amount of any distinct consideration set forth in any transfer
relating to a part of the property transferred were such amount as is
found by a just and reasonable apportionment (and not the amount
actually set forth).
(4) For the purposes of sub-paragraph (2)—
(a) a person is a relevant person if he is a person by or for whom the
property is contracted to be purchased;
(b) the question whether persons are connected with one another shall
be determined in accordance with section 839 of the Taxes Act 1988.
Consequential amendments and repeals
Removal of unnecessary references to “conveyance”
3 In the enactments relating to stamp duty for “conveyance or transfer”,
wherever occurring, substitute “transfer”.
Finance Act 1895
4 In section 12 of the Finance Act 1895 (c. 16) (collection of stamp duty in cases
of property vested by Act or purchased under statutory powers)—
(a) in paragraph (a) for “property is” substitute “stock or marketable
(b) in paragraph (b) for “property” substitute “stock or marketable
(c) in the closing words for “conveyance”, in both places where that
word occurs, substitute “transfer”.
Finance Act 1990
5 In section 108 of the Finance Act 1990 (c. 29) (transfer of securities: abolition
of stamp duty), for subsections (1) to (6) substitute—
“(1) Stamp duty shall not be chargeable under Schedule 13 to the Finance
Act 1999 (transfer of securities).”.
Finance Act 1999
6 In paragraph 1(2) of Schedule 13 to the Finance Act 1999 (c. 16) for
“conveyance on sale” substitute “transfer on sale”.
Power to make further consequential amendments or repeals
7 (1) The Treasury may by regulations make such other amendments or repeals
of enactments relating to stamp duty or stamp duty reserve tax as appear to
them appropriate in consequence of the abolition of stamp duty except on
instruments relating to stock or marketable securities.
(2) The regulations may include such transitional provisions and savings as
appear to the Treasury to be appropriate.
(3) Regulations under this paragraph shall be made by statutory instrument
which shall be subject to annulment in pursuance of a resolution of the
House of Commons.
Approved share plans and schemes
Share incentive plans
1 Schedule 2 to the Income Tax (Earnings and Pensions) Act 2003 (c. 1)
(approved share incentive plans) is amended as follows.
Participation in more than one connected plan in a tax year
2 After paragraph 18 insert—
“Participation in more than one connected SIP in a tax year
18A (1) The plan must provide that, if an individual participates in an
award of shares under the plan in a tax year in which he has
already participated in an award of shares under one or more
other approved SIPs established by the company or a connected
(a) paragraph 35 (maximum annual award of free shares),
(b) paragraph 46 (maximum amount of partnership share
money deductions), and
(c) paragraph 64 (limit on amount reinvested),
apply as if the plan and the other plan or plans were a single plan.
(2) In this paragraph “connected company” has the same meaning as
in paragraph 18.”.
3 In paragraph 13 (eligibility of individuals: introduction), for the entry
relating to paragraph 18 substitute—
“paragraph 18 (requirement not to participate
simultaneously in connected SIPs),
paragraph 18A (successive participation in connected SIPs),
4 In paragraph 14(7) (eligibility to participate dependent on certain
requirements of plan being met), for paragraph (b) substitute—
“(b) not participating simultaneously in connected SIPs (see
(ba) successive participation in connected SIPs (see paragraph
5 In paragraph 18 (requirement not to participate in connected SIPs), omit sub-
paragraph (1)(a) (successive participation in connected SIPs).
6 After paragraph 71 insert—
“Duty to monitor participants in connected schemes
71A The trust instrument must require the trustees to maintain records
of participants who have participated in one or more other
approved SIPs established by the company or a connected
7 (1) Paragraph 46 (maximum amount of partnership share money deductions) is
amended as follows.
(2) In sub-paragraph (1), for the words after “must not exceed” substitute
“£1,500 in any tax year.”.
(3) In sub-paragraph (2), for the words after “an employee’s salary” substitute
“for any tax year must not exceed 10% of the employee’s salary for the tax
(4) After that sub-paragraph insert—
“(4A) A limit lower than that specified in sub-paragraph (2) may be
(a) as a proposition substituting a percentage lower than that
so specified, or
(b) as a proposition that a particular description of earnings is
not to be regarded as forming part of an employee’s salary
for the purposes of that sub-paragraph.”.
(5) Sub-paragraphs (2) and (3) have effect for the year 2003-04 and subsequent
years of assessment.
8 In paragraph 47 (minimum amount of deductions)—
(a) for “in any month” substitute “on any occasion”, and
(b) omit sub-paragraph (3).