Law

Finance Act 2003

United Kingdom · statute

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In force since 2026-05-01, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 301 provisions

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301 provisions

34 Time limit and right to further review

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35 Powers of Commissioners on a review

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36 Appeals to a tribunal

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37 Appeal tribunals

Section 85 of the Value Added Tax Act 1994 (settling appeals by agreement) has effect as if the reference to section 83 of that Act included a reference to section 33 above.

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38 Admissibility of certain statements and documents

(1) Statements made or documents produced by or on behalf of a person are not inadmissible in— (a) any criminal proceedings against that person in respect of any offence in connection with or in relation to any relevant tax or duty, or (b) any proceedings against that person for the recovery of any sum due from him in connection with or in relation to any relevant tax or duty, by reason only that any of the matters specified in subsection (2) has been drawn to his attention and that he was, or may have been, induced by that matter having been brought to his attention to make the statements or produce the documents. (2) The matters mentioned in subsection (1) are— (a) that the Commissioners have power, in relation to any relevant tax or duty, to demand by means of a written notice an amount by way of a civil penalty, instead of instituting criminal proceedings; (b) that it is the Commissioners' practice, without being able to give an undertaking as to whether they will make such a demand in any case, to be influenced in determining whether to make such a demand by the fact (where it is the case) that a person has made a full confession of any dishonest conduct to which he has been a party and has given full facilities for an investigation; (c) that the Commissioners or, on appeal, an appeal tribunal have power to reduce a penalty under section 25, as provided in subsection (1) of section 29; and (d) that, in determining the extent of such a reduction in the case of any person, the Commissioners or tribunal will have regard to the extent of the co-operation which he has given to the Commissioners in their investigation. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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39 Service of notices

Any notice to be given to any person for the purposes of this Part may be given by sending it by post in a letter addressed to that person or his representative at the last or usual residence or place of business of that person or representative.

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40 Penalties not to be deducted for income tax or corporation tax purposes

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41 Regulations and orders

(1) Any power conferred on the Treasury by this Part to make regulations or an order includes power— (a) to make different provision for different cases, and (b) to make incidental, consequential, supplemental or transitional provision or savings. (2) Any power conferred on the Treasury by this Part to make regulations or an order shall be exercisable by statutory instrument. (3) Any statutory instrument containing regulations under this Part shall be subject to annulment in pursuance of a resolution of the House of Commons.

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42 The tax

(1) A tax (to be known as “stamp duty land tax”) shall be charged in accordance with this Part on land transactions. (2) The tax is chargeable— (a) whether or not there is any instrument effecting the transaction, (b) if there is such an instrument, whether or not it is executed in the United Kingdom, and (c) whether or not any party to the transaction is present, or resident, in the United Kingdom. (3) The tax is under the care and management of the Commissioners of Inland Revenue (referred to in this Part as “the Board”).

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43 Land transactions

(1) In this Part a “land transaction” means any acquisition of a chargeable interest. As to the meaning of “chargeable interest” see section 48. (2) Except as otherwise provided, this Part applies however the acquisition is effected, whether by act of the parties, by order of a court or other authority, by or under any statutory provision or by operation of law. (3) For the purposes of this Part— (a) the creation of a chargeable interest is— (i) an acquisition by the person becoming entitled to the interest created, and (ii) a disposal by the person whose interest or right is subject to the interest created; (b) the surrender or release of a chargeable interest is— (i) an acquisition of that interest by any person whose interest or right is benefitted or enlarged by the transaction, and (ii) a disposal by the person ceasing to be entitled to that interest; ... (c) the variation of a chargeable interest (other than a lease) is— (i) an acquisition of a chargeable interest (other than a lease) by the person benefitting from the variation, and (ii) a disposal of a chargeable interest (other than a lease) by the person whose interest is subject to or limited by the variation. (d) the variation of a lease is an acquisition and disposal of a chargeable interest only where (i) it takes effect, or is treated for the purposes of this Part, as the grant of a new lease, or (ii) paragraph 15A of Schedule 17A (reduction of rent or term) applies. (4) References in this Part to the “purchaser” and “vendor”, in relation to a land transaction, are to the person acquiring and the person disposing of the subject-matter of the transaction. These expressions apply even if there is no consideration given for the transaction. (5) A person is not treated as a purchaser unless he has given consideration for, or is a party to, the transaction. (6) References in this Part to the subject-matter of a land transaction are to the chargeable interest acquired (the “main subject-matter”), together with any interest or right appurtenant or pertaining to it that is acquired with it.

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44 Contract and conveyance

(1) This section applies where a contract for a land transaction is entered into under which the transaction is to be completed by a conveyance. (2) A person is not regarded as entering into a land transaction by reason of entering into the contract, but the following provisions have effect. (3) If the transaction is completed without previously having been substantially performed, the contract and the transaction effected on completion are treated as parts of a single land transaction. In this case the effective date of the transaction is the date of completion. (4) If the contract is substantially performed without having been completed, the contract is treated as if it were itself the transaction provided for in the contract. In this case the effective date of the transaction is when the contract is substantially performed. (5) A contract is “substantially performed” when— (a) the purchaser, or a person connected with the purchaser, takes possession of the whole, or substantially the whole, of the subject-matter of the contract, or (b) a substantial amount of the consideration is paid or provided. (6) For the purposes of subsection (5)(a)— (a) possession includes receipt of rents and profits or the right to receive them, and (b) it is immaterial whether possession is taken under the contract or under a licence or lease of a temporary character. (7) For the purposes of subsection (5)(b) a substantial amount of the consideration is paid or provided— (a) if none of the consideration is rent, where the whole or substantially the whole of the consideration is paid or provided; (b) if the only consideration is rent, when the first payment of rent is made; (c) if the consideration includes both rent and other consideration, when— (i) the whole or substantially the whole of the consideration other than rent is paid or provided, or (ii) the first payment of rent is made. (8) Where subsection (4) applies and the contract is subsequently completed by a conveyance— (a) both the contract and the transaction effected on completion are notifiable transactions, and (b) tax is chargeable on the latter transaction to the extent (if any) that the amount of tax chargeable on it is greater than the amount of tax chargeable on the contract. (9) Where subsection (4) applies and the contract is (to any extent) afterwards rescinded or annulled, or is for any other reason not carried into effect, the tax paid by virtue of that subsection shall (to that extent) be repaid by the Inland Revenue. Repayment must be claimed by amendment of the land transaction return made in respect of the contract. (9A) Where— (a) paragraph 12A of Schedule 17A applies (agreement for lease), or (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . it applies in place of subsections (4), (8) and (9). (10) In this section— (a) references to completion are to completion of the land transaction proposed, between the same parties, in substantial conformity with the contract; and (b) “contract” includes any agreement and “conveyance” includes any instrument. (11) Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this section.

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44A Contract providing for conveyance to third party

(1) This section applies where a contract is entered into under which a chargeable interest is to be conveyed by one party to the contract (A) at the direction or request of the other (B)— (a) to a person (C) who is not a party to the contract, or (b) either to such a person or to B. (2) B is not regarded as entering into a land transaction by reason of entering into the contract, but the following provisions have effect. (3) If the contract is substantially performed B is treated for the purposes of this Part as acquiring a chargeable interest, and accordingly as entering into a land transaction. The effective date of the transaction is when the contract is substantially performed. (4) Where the contract is (to any extent) afterwards rescinded or annulled, or is for any other reason not carried into effect, the tax paid by virtue of subsection (3) shall (to that extent) be repaid by the Inland Revenue. Repayment must be claimed by amendment of the land transaction return made in respect of the contract. (5) Subject to subsection (6), section 44 (contract and conveyance) does not apply (except so far as it defines “substantial performance”) in relation to the contract. (6) Where— (a) this section applies by virtue of subsection (1)(b), and (b) by reason of B’s direction or request, A becomes obliged to convey a chargeable interest to B, section 44 applies to that obligation as it applies to a contract for a land transaction that is to be completed by a conveyance. (7) Section 44 applies in relation to any contract between B and C, in respect of the chargeable interest referred to in subsection (1) above, that is to be completed by a conveyance. References to completion in that section, as it so applies, include references to conveyance by A to C of the subject matter of the contract between B and C. (8) In this section “contract” includes any agreement and “conveyance” includes any instrument.

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45 Transactions entered into before completion of contract

Schedule 2A contains— (a) provision about the application of section 44 (contract and conveyance) in certain cases where an assignment of rights, subsale or other transaction is entered into without the contract having been completed, and (b) other provision about such cases.

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45A Contract providing for conveyance to third party: effect of transfer of rights

(1) This section applies where— (a) a contract (“the original contract”) is entered into under which a chargeable interest is to be conveyed by one party to the contract (A) at the direction or request of the other (B)— (i) to a person (C) who is not a party to the contract, or (ii) either to such a person or to B, and (b) there is an assignment or other transaction (relating to the whole or part of the subject-matter of the original contract) as a result of which a person (D) becomes entitled to exercise any of B’s rights under the original contract in place of B. References in the following provisions of this section to a transfer of rights are to any such assignment or other transaction. (2) D is not regarded as entering into a land transaction by reason of the transfer of rights, but section 44A (contract providing for conveyance to third party) has effect in accordance with the following provisions of this section. (3) That section applies as if— (a) D had entered into a contract (a “secondary contract”) in the same terms as the original contract except with D as a party instead of B, and (b) the consideration due from D under the secondary contract were— (i) so much of the consideration under the original contract as is referable to the subject-matter of the transfer of rights and is to be given (directly or indirectly) by D or a person connected with him, and (ii) the consideration given for the transfer of rights. (4) The substantial performance of the original contract shall be disregarded if— (a) it occurs at the same time as, and in connection with, the substantial performance of the secondary contract, or (b) it occurs after the transfer of rights. (5) Where there are successive transfers of rights, subsection (3) has effect in relation to each of them. (6) The substantial performance of the secondary contract arising from an earlier transfer of rights shall be disregarded if— (a) it occurs at the same time as, and in connection with, the substantial performance of the secondary contract arising from a subsequent transfer of rights, or (b) it occurs after that subsequent transfer. (7) Where a transfer of rights relates to only part of the subject matter of the original contract, or to only some of the rights under that contract— (a) a reference in subsection (3)(a) or (4) to the original contract, or a reference in subsection (6) to the secondary contract arising from an earlier transfer, is to that contract so far as relating to that part or those rights, and (b) that contract so far as not relating to that part or those rights shall be treated as a separate contract. (8) The effective date of a land transaction treated as entered into by virtue of subsection (3) is not earlier than the date of the transfer of rights. (9) In relation to a such a transaction— (a) references in Schedule 7 (group relief) to the vendor shall be read as references to A; (b) other references in this Part to the vendor shall be read, where the context permits, as referring to either A or B. (10) Section 1122 of the Corporation Tax Act 2010 (connected persons) applies for the purposes of subsection (3)(b). (11) In this section “contract” includes any agreement.

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46 Options and rights of pre-emption

(1) The acquisition of— (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 a land transaction distinct from any land transaction resulting from the exercise of the option or right. They may be “linked transactions” (see section 108). (2) The reference in subsection (1)(a) to an option binding the grantor to enter into a land transaction includes an option requiring the grantor either to enter into a land transaction or to discharge his obligations under the option in some other way. (3) The effective date of the transaction in the case of the acquisition of an option or right such as is mentioned in subsection (1) is when the option or right is acquired (as opposed to when it becomes exercisable). (4) Nothing in this section applies to so much of an option or right of pre-emption as constitutes or forms part of a land transaction apart from this section.

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47 Exchanges

(1) Where a land transaction is entered into by the purchaser (alone or jointly) wholly or partly in consideration of another land transaction being entered into by him (alone or jointly) as vendor, this Part applies in relation to each transaction as if each were distinct and separate from the other (and they are not linked transactions within the meaning of section 108). (2) A transaction is treated for the purposes of this Part as entered into by the purchaser wholly or partly in consideration of another land transaction being entered into by him as vendor in any case where an obligation to give consideration for a land transaction that a person enters into as purchaser is met wholly or partly by way of that person entering into another transaction as vendor. (3) As to the amount of the chargeable consideration in the case of exchanges and similar transactions, see— paragraphs 5 and 6 of Schedule 4 (exchanges, partition etc),... paragraph 17 of that Schedule (arrangements involving public or educational bodies), and ...

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48 Chargeable interests

(1) In this Part “chargeable interest” means— (a) an estate, interest, right or power in or over land in England ... or Northern Ireland, or (b) the benefit of an obligation, restriction or condition affecting the value of any such estate, interest, right or power, other than an exempt interest. (1A) See section 48A regarding land which is partly in England and partly in Wales. (2) The following are exempt interests— (a) any security interest; (b) a licence to use or occupy land; (c) ...— (i) a tenancy at will; (ii) an advowson, franchise or manor. (3) In subsection (2)— (a) “security interest” means an interest or right (other than a rentcharge) held for the purpose of securing the payment of money or the performance of any other obligation; and (b) “franchise” means a grant from the Crown such as the right to hold a market or fair, or the right to take tolls. (3A) Section 73B makes additional provision about exempt interests in relation to alternative finance arrangements. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) The Treasury may by regulations provide that any other description of interest or right in relation to land in England ... or Northern Ireland is an exempt interest. (6) The regulations may contain such supplementary, incidental and transitional provision as appears to the Treasury to be appropriate. (7) This section has effect subject to subsection (3) of section 44A (contract and conveyance to third party) and to paragraph 15A of Schedule 17A (reduction of rent or term of lease).

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48A Interests, transactions and consideration where land in England and Wales

(1) This section sets out how this Part applies to a transaction which is the acquisition of— (a) an estate, interest, right or power in or over land, or (b) the benefit of an obligation, restriction or condition affecting the value of any such estate, interest, right or power, where the land is partly in England and partly in Wales. (2) The transaction is to be treated as if it were two transactions, one relating to the land in England (“the English transaction”) and the other relating to the land in Wales. (3) The consideration for the transaction is to be apportioned between those two transactions on a just and reasonable basis. (4) Accordingly, the English transaction is to be treated as a land transaction within the meaning of this Part (being the acquisition of a chargeable interest relating to the land in England). (5) But subsection (4) does not apply in the case of an exempt interest. (6) See section 9 of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 0) as to the application of that Act to the transaction relating to the land in Wales.

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49 Chargeable transactions

(1) A land transaction is a chargeable transaction if it is not a transaction that is exempt from charge. (2) Schedule 3 provides for certain transactions to be exempt from charge. Other transactions are exempt from charge under other provisions of this Part.

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50 Chargeable consideration

(1) Schedule 4 makes provision as to the chargeable consideration for a transaction. (2) The Treasury may by regulations amend or repeal the provisions of this Part relating to chargeable consideration and make such other provision as appears to them appropriate with respect to— (a) what is to count as chargeable consideration, or (b) the determination of the amount of chargeable consideration. (3) The regulations may make different provision in relation to different descriptions of transaction or consideration and different circumstances.

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51 Contingent, uncertain or unascertained consideration

(1) Where the whole or part of the chargeable consideration for a transaction is contingent, the amount or value of the consideration shall be determined for the purposes of this Part on the assumption that the outcome of the contingency will be such that the consideration is payable or, as the case may be, does not cease to be payable. (2) Where the whole or part of the chargeable consideration for a transaction is uncertain or unascertained, its amount or value shall be determined for the purposes of this Part on the basis of a reasonable estimate. (3) In this Part— “contingent”, in relation to consideration, means— that it is to be paid or provided only if some uncertain future event occurs, or that it is to cease to be paid or provided if some uncertain future event occurs; and “uncertain”, in relation to consideration, means that its amount or value depends on uncertain future events. (4) This section has effect subject to— section 80 (adjustment where contingency ceases or consideration is ascertained), and section 90 (application to defer payment in case of contingent or uncertain consideration). (5) This section applies in relation to chargeable consideration consisting of rent only to the extent that it is applied by paragraph 7 of Schedule 17A.

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52 Annuities etc: chargeable consideration limited to twelve years' payments

(1) This section applies to so much of the chargeable consideration for a land transaction as consists of an annuity payable— (a) for life, or (b) in perpetuity, or (c) for an indefinite period, or (d) for a definite period exceeding twelve years. (2) For the purposes of this Part the consideration to be taken into account is limited to twelve years' annual payments. (3) Where the amount payable varies, or may vary, from year to year, the twelve highest annual payments shall be taken. No account shall be taken for the purposes of this Schedule of any provision for adjustment of the amount payable in line with the retail price index. (4) References in this section to annual payments are to payments in respect of each successive period of twelve months beginning with the effective date of the transaction. (5) For the purposes of this section the amount or value of any payment shall be determined (if necessary) in accordance with section 51 (contingent, uncertain or unascertained consideration). (6) References in this section to an annuity include any consideration (other than rent) that falls to be paid or provided periodically. References to payment shall be read accordingly. (7) Where this section applies— (a) section 80 (adjustment where contingency ceases or consideration is ascertained) does not apply, and (b) no application may be made under section 90 (application to defer payment in case of contingent or uncertain consideration).

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53 Deemed market value where transaction involves connected company

(1) This section applies where the purchaser is a company and— (a) the vendor is connected with the purchaser, or (b) some or all of the consideration for the transaction consists of the issue or transfer of shares in a company with which the vendor is connected. (1A) The chargeable consideration for the transaction shall be taken to be not less than— (a) the market value of the subject-matter of the transaction as at the effective date of the transaction, and (b) if the acquisition is the grant of a lease at a rent, that rent. (2) Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this section. (3) In this section— “company” means any body corporate; “shares” includes stock and the reference to shares in a company includes a reference to securities issued by a company. (4) Where this section applies paragraph 1 of Schedule 3 (exemption of transactions for which there is no chargeable consideration) does not apply. But this section has effect subject to any other provision affording exemption or relief from stamp duty land tax. (5) This section is subject to the exceptions provided for in section 54.

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54 Exceptions from deemed market value rule

(1) Section 53 (chargeable consideration: transaction with connected company) does not apply in the following cases. In the following provisions “the company” means the company that is the purchaser in relation to the transaction in question. (2) Case 1 is where immediately after the transaction the company holds the property as trustee in the course of a business carried on by it that consists of or includes the management of trusts. (3) Case 2 is where— (a) immediately after the transaction the company holds the property as trustee, and (b) the vendor is connected with the company only because of section 1122(6) of the Corporation Tax Act 2010. (4) Case 3 is where— (a) the vendor is a company and the transaction is, or is part of, a distribution of the assets of that company (whether or not in connection with its winding up), and (b) it is not the case that— (i) the subject-matter of the transaction, or (ii) an interest from which that interest is derived, has, within the period of three years immediately preceding the effective date of the transaction, been the subject of a transaction in respect of which group relief was claimed by the vendor.

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55 Amount of tax chargeable: general

(1) The amount of tax chargeable in respect of a chargeable transaction to which this section applies is determined in accordance with subsections (1B) and (1C). (1A) This section applies to any chargeable transaction other than a transaction to which paragraph 3 of Schedule 4A or step 4 of section 74(1A) (higher rate for certain transactions) applies. (1B) If ... the transaction is not one of a number of linked transactions, the amount of tax chargeable is determined as follows— Step 1 Apply the rates specified in the second column of the appropriate table below to the parts of the relevant consideration specified in the first column of the appropriate table. “The “appropriate table” is— (a) Table A, if the relevant land consists entirely of residential property, and (b) Table B, if the relevant land consists of or includes land that is not residential property. Step 2 Add together the amounts calculated at Step 1 (if there are two or more such amounts). TABLE A: RESIDENTIAL Part of relevant consideration | Rate So much as does not exceed £125,000 | 0% So much as exceeds £125,000 but does not exceed £250,000 | 2% So much as exceeds £250,000 but does not exceed £925,000 | 5% So much as exceeds £925,000 but does not exceed £1,500,000 | 10% The remainder (if any) | 12% Table B: Non-residential or mixed Relevant consideration | Percentage So much as does not exceed £150,000 | 0% So much as exceeds £150,000 but does not exceed £250,000 | 2% The remainder (if any) | 5% (1C) If ... the transaction is one of a number of linked transactions, the amount of tax chargeable in respect of the particular transaction under consideration is determined as follows— Step 1 Apply the rates specified in the second column of the appropriate table in subsection (1B) to the parts of the relevant consideration specified in the first column of the appropriate table. “The “appropriate table” is— (a) Table A, if the relevant land consists entirely of residential property, and (b) Table B, if the relevant land consists of or includes land that is not residential property. Step 2 Add together the amounts calculated at Step 1 (if there are two or more such amounts). Step 3 Multiply the amount given by Step 1 or Step 2, as the case may be, by— C R where— C is the chargeable consideration for the transaction, and R is the relevant consideration. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) For the purposes of subsection (1B) — (a) the relevant land is the land an interest in which is the main subject-matter of the transaction, and (b) the relevant consideration is the chargeable consideration for the transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) For the purposes of subsection (1C) — (a) the relevant land is any land an interest in which is the main subject-matter of any of the linked transactions, and (b) the relevant consideration is the total of the chargeable consideration for all those transactions. (4A) Schedule 4ZA (higher rates for additional dwellings and dwellings purchased by companies) modifies this section as it applies for the purpose of determining the amount of tax chargeable in respect of certain transactions involving major interests in dwellings. (5) This section has effect subject to— section 74(1B) (exercise of collective rights by tenants of flats), ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (which provides for the amount of tax to be determined by reference to a fraction of the relevant consideration). (6) In the case of a transaction for which the whole or part of the chargeable consideration is rent this section has effect subject to section 56 and Schedule 5 (amount of tax chargeable: rent). (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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55A Amount of tax chargeable: higher rate for certain transactions

Schedule 4A provides for the calculation of the tax chargeable in respect of certain transactions involving higher threshold interests in dwellings.

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56 Amount of tax chargeable: rent

Schedule 5 provides for the calculation of the tax chargeable where the chargeable consideration for a transaction consists of or includes rent.

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57 Disadvantaged areas relief

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57A Sale and leaseback arrangements

(1) The leaseback element of a sale and leaseback arrangement is exempt from charge if the qualifying conditions specified below are met. (2) A “sale and leaseback”arrangement means an arrangement under which— (a) A transfers or grants to B a major interest in land (the “sale”), and (b) out of that interest B grants a lease to A (the “leaseback”). (3) The qualifying conditions are— (a) that the sale transaction is entered into wholly or partly in consideration of the leaseback transaction being entered into, (aa) that the sale transaction is entered into wholly or partly in consideration of the leaseback transaction being entered into, (b) that the only other consideration (if any) for the sale is the payment of money or the assumption, satisfaction or release of a debt (or both), (c) that the sale is not a transfer of rights within the meaning of ... 45A (contract providing for conveyance to third party: effect of transfer of rights) or a pre-completion transaction within the meaning of Schedule 2A (transactions entered into before completion of contract), and (d) where A and B are both bodies corporate at the effective date of the leaseback transaction, that they are not members of the same group for the purposes of group relief (see paragraph 1 of Schedule 7) at that date. (e) where A and B are both bodies corporate at the effective date of the leaseback transaction, that they are not members of the same group for the purposes of group relief (see paragraph 1 of Schedule 7) at that date. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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57AA First-time buyers

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57B First-time buyers

(1) Schedule 6ZA provides relief for first-time buyers. (2) Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.

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58A Relief for certain acquisitions of residential property

Schedule 6A provides for relief in the case of certain acquisitions of residential property.

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58B Relief for new zero-carbon homes

(1) The Treasury may make regulations granting relief on the first acquisition of a dwelling which is a “zero-carbon home”. (2) For the purposes of this section— (a) a building, or a part of a building, is a dwelling if it is constructed for use as a single dwelling, and (b) “first acquisition”, in relation to a dwelling, means its acquisition when it has not previously been occupied. (3) For the purpose of subsection (2) land occupied or enjoyed with a dwelling as a garden or grounds is part of the dwelling. (4) The regulations shall define “zero-carbon home” by reference to specified aspects of the energy efficiency of a building; for which purpose “energy efficiency” includes— (a) consumption of energy, (b) conservation of energy, and (c) generation of energy. (5) The relief may take the form of— (a) exemption from charge, or (b) a reduction in the amount of tax chargeable. (6) Regulations under this section shall not have effect in relation to acquisitions on or after 1st October 2012. (7) The Treasury may by order— (a) substitute a later date for the date in subsection (6); (b) make transitional provision, or provide savings, in connection with the effect of subsection (6).

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58C Relief for new zero-carbon homes: supplemental

(1) Regulations under section 58B— (a) shall include provision about the method of claiming relief (including documents or information to be provided), and (b) in particular, shall include provision about the evidence to be adduced to show that a dwelling satisfies the definition of “zero-carbon home”. (2) Regulations made by virtue of subsection (1)(b) may, in particular— (a) refer to a scheme or process established by or for the purposes of an enactment about building; (b) establish or provide for the establishment of a scheme or process of certification; (c) specify, or provide for the approval of, one or more schemes or processes for certifying energy efficiency. (d) provide for the charging of fees of a reasonable amount in respect of services provided as part of a scheme or process of certification. (3) In defining “zero-carbon home” regulations under section 58B may include requirements which may be satisfied in relation to a dwelling either— (a) by features of the building which, or part of which, constitutes the dwelling, or (b) by other installations or utilities. (4) Regulations under section 58B may modify the effect of section 108, or another provision of this Part about linked transactions, in relation to a set of transactions of which at least one is the first acquisition of a dwelling which is a zero-carbon home. (5) In determining whether section 116(7) applies, and in the application of section 116(7), a transaction shall be disregarded if or in so far as it involves the first acquisition of a dwelling which is a zero-carbon home. (6) Regulations under section 58B— (a) may provide for relief to be wholly or partly withdrawn if a dwelling ceases to be a zero-carbon home, and (b) may provide for the reduction or withholding of relief where a person acquires more than one zero-carbon home within a specified period. (7) Regulations under section 58B may include provision for relief to be granted in respect of acquisitions occurring during a specified period before the regulations come into force.

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58D Transfers involving multiple dwellings

(1) Schedule 6B provides for relief in the case of transfers involving multiple dwellings. (2) Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.

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60 Compulsory purchase facilitating development

(1) A compulsory purchase facilitating development is exempt from charge. (2) In this section “compulsory purchase facilitating development” means— (a) in relation to England ... ..., the acquisition by a person of a chargeable interest in respect of which that person has made a compulsory purchase order for the purpose of facilitating development by another person; (b) in relation to Northern Ireland, the acquisition by a person of a chargeable interest by means of a vesting order made for the purpose of facilitating development by a person other than the person who acquires the interest. (3) For the purposes of subsection (2)(a) it does not matter how the acquisition is effected (so that provision applies where the acquisition is effected by agreement). (4) In subsection (2)(b) a “vesting order” means an order made under any statutory provision to authorise the acquisition of land otherwise than by agreement. (5) In this section “development”— (a) in relation to England ..., has the same meaning as in the Town and Country Planning Act 1990 (c. 8) (see section 55 of that Act); (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) in relation to Northern Ireland, has the same meaning as in the Planning Act (Northern Ireland) 2011 (see section 23 of that Act).

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61 Compliance with planning obligations

(1) A land transaction that is entered into in order to comply with a planning obligation or a modification of a planning obligation is exempt from charge if— (a) the planning obligation or modification is enforceable against the vendor, (b) the purchaser is a public authority, and (c) the transaction takes place within the period of five years beginning with the date on which the planning obligation was entered into or modified. (2) In this section— (a) in relation to England and Wales— “planning obligation” means either of the following— a planning obligation within the meaning of section 106 of the Town and Country Planning Act 1990 that is entered into in accordance with subsection (9) of that section, or a planning obligation within the meaning of section 299A of that Act that is entered into in accordance with subsection (2) of that section; and “modification” of a planning obligation means modification as mentioned in section 106A(1) of that Act; (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) in relation to Northern Ireland— “planning obligation” means a planning agreement within the meaning of section 76 of the Planning Act (Northern Ireland) 2011 that is entered into in accordance with subsection (10) of that section, and “modification of a planning obligation” means modification as mentioned in section 77(1) of that Act. (3) The following are public authorities for the purposes of subsection (1)(b)— Government A Minister of the Crown or government department . . . A Northern Ireland department The Welsh Ministers, the First Minister for Wales and the Counsel General to the Welsh Government Local government: England A county or district council constituted under section 2 of the Local Government Act 1972 (c. 70) The council of a London borough The Common Council of the City of London The Greater London Authority Transport for London The Council of the Isles of Scilly Local government: Wales A county or county borough council constituted under section 21 of the Local Government Act 1972 . . . Local government: Northern Ireland A district council within the meaning of the Local Government Act (Northern Ireland) 1972 (c. 9 (N.I.)) Health: England and Wales A Strategic Health Authority established under section 13 of the National Health Service Act 2006 A Special Health Authority established under section 28 of that Act or section 22 of the National Health Service (Wales) Act 2006 A Primary Care Trust established under section 18 of the National Health Service Act 2006 A Local Health Board established under section 11 of the National Health Service (Wales) Act 2006 A National Health Service Trust established under section 25 of the National Health Service Act 2006 or section 18 of the National Health Service (Wales) Act 2006 . . . Health: Northern Ireland The Regional Agency for Public Health and Social Well-being A Health and Social Care trust established under Article 10 of the Health and Personal Social Services (Northern Ireland) Order 1991 (S.I. 1991/194 (N.I. 1)) Other planning authorities Any other authority that— is a local planning authority within the meaning of the Town and Country Planning Act 1990 (c. 8), ... ... Prescribed persons A person prescribed for the purposes of this section by Treasury order

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61A Relief for special tax sites

(1) Schedule 6C provides for relief in the case of transactions relating to land in a special tax site. (2) In that Schedule— (a) Part 1 contains definitions, (b) Part 2 makes provision about the relief, (c) Part 3 makes provision about the withdrawal of the relief, (d) Part 4 makes provision about cases involving alternative finance arrangements, and (e) Part 5 confers power to change the cases in which the relief is available. (3) Relief under that Schedule is available only in relation to a land transaction with an effective date falling on or before the applicable sunset date in relation to the special tax site concerned (as to which see section 332(4) and (5) of the Finance (No.2) Act 2023). (4) Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return. (5) A claim for relief under that Schedule must— (a) be made on or before the period of one year and 14 days beginning with the end of the applicable sunset date in relation to the special tax site in which the transaction land is situated, and (b) include, or be accompanied by, such information as HMRC may require. (6) In this section and Schedule 6C, “special tax site” means an area for the time being designated under section 113 of the Finance Act 2021.

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62 Group relief and reconstruction or acquisition relief

(1) Schedule 7 provides for relief from stamp duty land tax. (2) In that Schedule— Part 1 makes provision for group relief, Part 2 makes provision for reconstruction and acquisition reliefs. (3) Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.

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63 Demutualisation of insurance company

(1) A land transaction is exempt from charge if it is entered into for the purposes of or in connection with a qualifying transfer of the whole or part of the business of a mutual insurance company (“the mutual”) to a company that has share capital (“the acquiring company”). (2) A transfer is a qualifying transfer if— (a) it is a transfer of business consisting of the effecting or carrying out of contracts of insurance and takes place under an insurance business transfer scheme, or (b) it is a transfer of business of a general insurance company carried on through a permanent establishment in the United Kingdom and takes place in accordance with authorisation granted outside the United Kingdom for the purposes of the Solvency 2 Directive, and the requirements of subsection (3) and (4) are met in relation to the shares of a company (“the issuing company”) which is either the acquiring company or a company of which the acquiring company is a wholly-owned subsidiary. (3) Shares in the issuing company must be offered, under the scheme, to at least 90% of the persons who are members of the mutual immediately before the transfer. (4) Under the scheme all of the shares in the issuing company that will be in issue immediately after the transfer has been made, other than shares that are to be or have been issued pursuant to an offer to the public, must be offered to the persons who (at the time of the offer) are— (a) members of the mutual, (b) persons who are entitled to become members of the mutual, or (c) employees, former employees or pensioners of— (i) the mutual, or (ii) a wholly-owned subsidiary of the mutual. (5) The Treasury may by regulations— (a) amend subsection (3) by substituting a lower percentage for the percentage mentioned there; (b) provide that any or all of the references in subsections (3) and (4) to members shall be construed as references to members of a class specified in the regulations. Regulations under paragraph (b) may make different provision for different cases. (6) For the purposes of this section a company is the wholly-owned subsidiary of another company (“the parent”) if the company has no members except the parent and the parent’s wholly-owned subsidiaries or persons acting on behalf of the parent or the parent’s wholly-owned subsidiaries. (7) In this section— “contract of insurance” has the meaning given by Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544); “employee”, in relation to a mutual insurance company or its wholly-owned subsidiary, includes any officer or director of the company or subsidiary and any other person taking part in the management of the affairs of the company or subsidiary; “general insurance company” means a company that has permission under Part 4A of the Financial Services and Markets Act 2000 (c. 8) ... to effect or carry out contracts of insurance; “insurance company” means a company that carries on the business of effecting or carrying out contracts of insurance; “insurance business transfer scheme” has the same meaning as in Part 7 of the Financial Services and Markets Act 2000; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “mutual insurance company” means an insurance company carrying on business without having any share capital; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “pensioner”, in relation to a mutual insurance company or its wholly-owned subsidiary, means a person entitled (whether presently or prospectively) to a pension, lump sum, gratuity or other like benefit referable to the service of any person as an employee of the company or subsidiary. “the Solvency 2 Directive” means Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II).

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