Law

Finance Act 2003

United Kingdom · statute

Ask the law about this More laws of United Kingdom For machines: Markdown

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.

sha256 94f476e680b2b18859eda717a5e8463f3c6b8c6deb1cf768c6db2c03688a8c06

Contents: 301 provisions

Proposed changes to this act

No one has proposed a change to this act yet.

301 provisions

64 Demutualisation of building society

A land transaction effected by section 97(6) or (7) of the Building Societies Act 1986 (c. 53) (transfer of building society’s business to a commercial company) is exempt from charge.

Propose a change

64A Initial transfer of assets to trustees of unit trust scheme

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

65 Incorporation of limited liability partnership

(1) A transaction by which a chargeable interest is transferred by a person (“the transferor”) to a limited liability partnership in connection with its incorporation is exempt from charge if the following three conditions are met. (2) The first condition is that the effective date of the transaction is not more than one year after the date of incorporation of the limited liability partnership. (3) The second condition is that at the relevant time the transferor— (a) is a partner in a partnership comprised of all the persons who are or are to be members of the limited liability partnership (and no-one else), or (b) holds the interest transferred as nominee or bare trustee for one or more of the partners in such a partnership. (4) The third condition is that— (a) the proportions of the interest transferred to which the persons mentioned in subsection (3)(a) are entitled immediately after the transfer are the same as those to which they were entitled at the relevant time, or (b) none of the differences in those proportions has arisen as part of a scheme or arrangement of which the main purpose, or one of the main purposes, is avoidance of liability to any duty or tax. (5) In this section “the relevant time” means— (a) where the transferor acquired the interest after the incorporation of the limited liability partnership, immediately after he acquired it, and (b) in any other case, immediately before its incorporation. (6) In this section “limited liability partnership” means a limited liability partnership formed under the Limited Liability Partnerships Act 2000 (c. 12) or the Limited Liability Partnerships Act (Northern Ireland) 2002 (c. 12 (N. I.)).

Propose a change

65A Seeding relief

(1) Schedule 7A provides for relief from stamp duty land tax. (2) In that Schedule— (a) Part 1 makes provision for relief for property authorised investment funds (PAIF seeding relief), and (b) Part 2 makes provision for relief for co-ownership authorised contractual schemes and Reserved Investor Funds (Contractual Schemes) (co-ownership scheme seeding relief). (3) Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return, and must be accompanied by a notice to HMRC referring to the claim. (4) In the case of a claim for PAIF seeding relief, the notice must confirm that the purchaser is— (a) a property AIF as defined in paragraph 2(2) of Schedule 7A, or (b) a company treated as a property AIF by virtue of paragraph 2(5) of Schedule 7A (equivalent EEA funds). (5) In the case of a claim for co-ownership scheme seeding relief, the notice must confirm that the purchaser is— (a) a co-ownership authorised contractual scheme or a Reserved Investor Fund (Contractual Scheme) as defined in section 102A(8), or (b) an entity treated as a co-ownership authorised contractual scheme by virtue of section 102A(7) (equivalent EEA schemes). (6) The notice must be in such form, and contain such further information, as HMRC may require. (7) Co-ownership scheme seeding relief may not be claimed where the purchaser is a Reserved Investor Fund (Contractual Scheme) if the scheme— (a) has previously claimed such relief, and (b) following that claim ceased, at any time, to be a Reserved Investor Fund (Contractual Scheme).

Propose a change

66 Transfers involving public bodies

(1) A land transaction entered into on, or in consequence of, or in connection with, a reorganisation effected by or under a statutory provision is exempt from charge if the purchaser and vendor are both public bodies. (2) The Treasury may by order provide that a land transaction that is not entered into as mentioned in subsection (1) is exempt from charge if— (a) the transaction is effected by or under a prescribed statutory provision, and (b) either the purchaser or the vendor is a public body. In this subsection “prescribed” means prescribed in an order made under this subsection. (3) A “reorganisation” means changes involving— (a) the establishment, reform or abolition of one or more public bodies, (b) the creation, alteration or abolition of functions to be discharged or discharged by one or more public bodies, or (c) the transfer of functions from one public body to another. (4) The following are public bodies for the purposes of this section— Government, Parliament etc A Minister of the Crown The Scottish Ministers A Northern Ireland department The Welsh Ministers, the First Minister for Wales and the Counsel General to the Welsh Government The Corporate Officer of the House of Lords The Corporate Officer of the House of Commons The Scottish Parliamentary Corporate Body The Northern Ireland Assembly Commission The National Assembly for Wales Commission 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 Greater London Authority The Common Council of the City of 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: Scotland A council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39) 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: Scotland The Common Services Agency established under section 10(1) of the National Health Service (Scotland) Act 1978 (c. 29) A Health Board established under section 2(1)(a) of that Act A National Health Service Trust established under section 12A(1) of that Act A Special Health Board established under section 2(1)(b) of that Act 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), or is the planning authority for any of the purposes of the planning Acts within the meaning of the Town and Country Planning (Scotland) Act 1997 (c. 8) ... Statutory bodies A body (other than a company) that is established by or under a statutory provision for the purpose of carrying out functions conferred on it by or under a statutory provision Prescribed persons A person prescribed for the purposes of this section by Treasury order (5) In this section references to a public body include— (a) a company in which all the shares are owned by such a body, and (b) a wholly-owned subsidiary of such a company. (6) In this section “company” means a company as defined by section 1 of the Companies Act 2006 ....

Propose a change

66A Resolution of financial institutions

(1) A land transaction is exempt from charge if it is effected by— (a) an instrument listed in subsection (2), or (b) an instrument made under an instrument listed in subsection (2). (2) The instruments are— (a) a property transfer instrument made in accordance with section 12(2) of the Banking Act 2009 (transfer to a bridge bank), (b) a property transfer instrument made in accordance with section 12ZA(3) of that Act (transfer to asset management vehicle), (c) a supplemental property transfer instrument made in accordance with section 42(2) of that Act where the original instrument was made in accordance with section 12(2), 12ZA(3) or 41A(2) of that Act, (d) a property transfer instrument made in accordance with section 41A(2) of that Act (transfer of property subsequent to resolution instrument), (e) a bridge bank supplemental property transfer instrument made in accordance with section 44D(2) of that Act, (f) a property transfer order made in accordance with section 45(2) of that Act (temporary public ownership: property transfer), ... (g) a third-country instrument made in accordance with section 89H(2) or 89I(4) of that Act. (h) a property transfer instrument made in accordance with paragraph 29(3) (bridge central counterparty) of Schedule 11 to the Financial Services and Markets Act 2023 (central counterparties), (i) a property transfer instrument made in accordance with paragraph 66(2) of that Schedule (transfer of property subsequent to resolution instrument), (j) a supplemental property transfer instrument made in accordance with paragraph 67(2) of that Schedule (supplemental instruments) where the original instrument was made in accordance with paragraph 29(3) of that Schedule, (k) a property transfer instrument made in accordance with paragraph 71(2) (transfer of ownership and private sector purchaser: property transfer) where the original instrument was made in accordance with paragraph 30(2) of that Schedule (transfer of ownership), or (l) a third-country instrument made in accordance with paragraph 145(2) (third-country resolution actions) or 146(4) (effects of recognition on third-country resolution action) of that Schedule. (3) References in subsection (2) to a provision of the Banking Act 2009 include references to that provision as applied by or under any other provision of that Act (including where it is applied with modifications or in a substituted form).

Propose a change

67 Transfer in consequence of reorganisation of parliamentary constituencies

(1) Where— (a) an Order in Council is made under the Parliamentary Constituencies Act 1986 (c. 56) (orders specifying new parliamentary constituencies), and (b) an existing local constituency association transfers a chargeable interest to— (i) a new association that is a successor to the existing association, or (ii) a related body that as soon as practicable transfers the interest or right to a new association that is a successor to the existing association, the transfer, or where paragraph (b)(ii) applies each of the transfers, is exempt from charge. (2) In relation to any such order as is mentioned in subsection (1)(a)— (a) “the date of the change” means the date on which the order comes into operation; (b) “former parliamentary constituency” means an area that, for the purposes of parliamentary elections, was a constituency immediately before that date but is no longer such a constituency after that date; (c) “new parliamentary constituency” means an area that, for the purposes of parliamentary elections, is such a constituency after that date but was not such a constituency immediately before that date. (3) In relation to the date of the change— (a) “existing local constituency association” means a local constituency association whose area was the same, or substantially the same, as the area of a former parliamentary constituency or two or more such constituencies, and (b) “new association” means a local constituency association whose area is the same, or substantially the same, as that of a new parliamentary constituency or two or more such constituencies. (4) In this section— (a) “local constituency association” means an unincorporated association (whether described as an association, a branch or otherwise) whose primary purpose is to further the aims of a political party in an area that at any time is or was the same or substantially the same as the area of a parliamentary constituency or two or more parliamentary constituencies, and (b) “related body”, in relation to such an association, means a body (whether corporate or unincorporated) that is an organ of the political party concerned. (5) For the purposes of this section a new association is a successor to an existing association if any part of the existing association’s area is comprised in the new association’s area.

Propose a change

67A Acquisitions by certain health service bodies

(1) A land transaction is exempt from charge if the purchaser is any of the following— (a) NHS England; (b) an integrated care board established under section 14Z25 of the National Health Service Act 2006; (ba) an NHS trust established under section 25 of the National Health Service Act 2006; (c) an NHS foundation trust; (d) a Local Health Board established under section 11 of the National Health Service (Wales) Act 2006; (e) a National Health Service trust established under section 18 of that Act; (f) a Health and Social Services trust established under the Health and Personal Social Services (Northern Ireland) Order 1991. (2) Any relief under this section must be claimed in a land transaction return or an amendment of such a return.

Propose a change

68 Charities relief

(1) Schedule 8 provides for relief from stamp duty land tax for acquisitions by charities. (2) Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.

Propose a change

69 Acquisition by bodies established for national purposes

A land transaction is exempt from charge if the purchaser is any of the following— (a) the Historic Buildings and Monuments Commission for England; (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) the Trustees of the British Museum; (d) the Trustees of the National Heritage Memorial Fund; (e) the Trustees of the Natural History Museum.

Propose a change

70 Right to buy transactions, shared ownership leases etc

Schedule 9 makes provision for relief in the case of right to buy transactions, shared ownership leases and certain related transactions.

Propose a change

71 Certain acquisitions by registered providers of social housing etc

(A1) A land transaction under which the purchaser is a profit-making registered provider of social housing is exempt from charge if the transaction is funded with the assistance of a public subsidy. (1) A land transaction under which the purchaser is a relevant housing provider is exempt from charge if— (a) the purchaser is a non-profit registered provider of social housing controlled by its tenants, (b) the vendor is a qualifying body, or (c) the transaction is funded with the assistance of a public subsidy. (1A) In this section “relevant housing provider” means— (a) a non-profit registered provider of social housing, ... (b) a housing association registered in the register maintained under Article 14 of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15)), or (c) an English local authority that is a registered provider of social housing. (2) The reference in subsection (1)(a) to a non-profit registered provider of social housing “controlled by its tenants” is to a non-profit registered provider of social housing the majority of whose board members are tenants occupying properties owned or managed by it. “Board member”, in relation to a non-profit registered provider of social housing, means— if it is a company, a director of the company, if it is a body corporate whose affairs are managed by its members, a member, if it is body of trustees, a trustee, if it is not within paragraphs (a) to (c), a member of the committee of management or other body to which is entrusted the direction of the affairs of the non-profit registered provider of social housing. (3) In subsection (1)(b) “qualifying body” means— (a) a relevant housing provider, (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) a principal council within the meaning of the Local Government Act 1972 (c. 70), (d) the Common Council of the City of London, (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (h) the Department for Communities in Northern Ireland, or (i) the Northern Ireland Housing Executive. (4) In this section “public subsidy” means any grant or other financial assistance— (a) made or given by way of a distribution pursuant to section 25 of the National Lottery etc. Act 1993 (c. 39) (application of money by distributing bodies), (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) under section 126 of the Housing Grants, Construction and Regeneration Act 1996 (c. 53) (financial assistance for regeneration and development), (ca) under section 19 of the Housing and Regeneration Act 2008 (financial assistance by the Homes and Communities Agency), (cb) made or given by the Greater London Authority, (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or (e) under Article 33 or 33A of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15)). (5) In this section “public subsidy” also means — (a) any amount that is receipts of the disposal of social housing, provided the purchaser is entitled to use the amount for the purpose of the provision of social housing, or (b) any grant under section 31 of the Local Government Act 2003 (grants towards expenditure incurred or to be incurred by local authorities) towards expenditure incurred or to be incurred on the provision of social housing .... (6) In subsection (5) “social housing” has the meaning it has in Part 2 of the Housing and Regeneration Act 2008 (see, in particular, section 68 of that Act). (7) In this section “English local authority” means— (a) a principal council within the meaning of the Local Government Act 1972, or (b) the Common Council of the City of London.

Propose a change

71A Alternative property finance: land sold to financial institution and leased to person

(1) This section applies where arrangements are entered into between a person and a financial institution under which— (a) the institution purchases a major interest in land or an undivided share of a major interest in land (“the first transaction”), (b) where the interest purchased is an undivided share, the major interest is held on trust for the institution and the person as beneficial tenants in common, (c) the institution (or the person holding the land on trust as mentioned in paragraph (b)) grants to the person out of the major interest a lease (if the major interest is freehold) or a sub-lease (if the major interest is leasehold) (“the second transaction”), and (d) the institution and the person enter into an agreement under which the person has a right to require the institution or its successor in title to transfer to the person (in one transaction or a series of transactions) the whole interest purchased by the institution under the first transaction. (2) The first transaction is exempt from charge if the vendor is— (a) the person, or (b) another financial institution by whom the interest was acquired under arrangements of the kind mentioned in subsection (1) entered into between it and the person. (3) The second transaction is exempt from charge if the provisions of this Part relating to the first transaction are complied with (including the payment of any tax chargeable). (4) Any transfer to the person that results from the exercise of the right mentioned in subsection (1)(d) (“a further transaction”) is exempt from charge if— (a) the provisions of this Part relating to the first and second transactions are complied with, and (b) at all times between the second transaction and the further transaction— (i) the interest purchased under the first transaction is held by a financial institution so far as not transferred by a previous further transaction, and (ii) the lease or sub-lease granted under the second transaction is held by the person. (5) The agreement mentioned in subsection (1)(d) is not to be treated— (a) as substantially performed unless and until the whole interest purchased by the institution under the first transaction has been transferred (and accordingly section 44(5) does not apply), or (b) as a distinct land transaction by virtue of section 46 (options and rights of pre-emption). (6) The requirements of subsection (1), or (4)(b)(ii), are not met if— (a) the person enters into the arrangement, or holds the lease or sub-lease, as trustee and any beneficiary of the trust is not a person, or (b) the person enters into the arrangements, or holds the lease or sub-lease, as partner and any of the other partners is not a person. (7) A further transaction that is exempt from charge by virtue of subsection (4) is not a notifiable transaction unless the transaction involves the transfer to the person of the whole interest purchased by the institution under the first transaction, so far as not transferred by a previous further transaction. (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9) References in this section to a person shall be read, in relation to times after the death of the person concerned, as references to his personal representatives. (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

72 Alternative property finance in Scotland: land sold to financial institution and leased to person

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

72A Alternative property finance in Scotland: land sold to financial institution and person in common

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

73 Alternative property finance: land sold to financial institution and re-sold to person

(1) This section applies where arrangements are entered into between a person and a financial institution under which— (a) the institution— (i) purchases a major interest in land (“the first transaction”), and (ii) sells that interest to the person (“the second transaction”), and (b) the person grants the institution a legal mortgage over that interest. (2) The first transaction is exempt from charge if the vendor is— (a) the person concerned, or (b) another financial institution by whom the interest was acquired under other arrangements of the kind mentioned in section 71A(1)... entered into between it and the person. (3) The second transaction is exempt from charge if the financial institution complies with the provisions of this Part relating to the first transaction (including the payment of any tax chargeable on a chargeable consideration that is not less than the market value of the interest and, in the case of the grant of a lease at a rent, the rent.). (4) This section does not apply if— (a) the person enters into the arrangements as trustee and any beneficiary of the trust is not a person, or (b) the person enters into the arrangements as partner and any of the other partners is not a person. (5) In this section— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) “legal mortgage”— (i) in relation to land in England ..., means a legal mortgage as defined in section 205(1)(xvi) of the Law of Property Act 1925 (c. 20); (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (iii) in relation to land in Northern Ireland, means a mortgage by conveyance of a legal estate or by demise or sub-demise or a charge by way of legal mortgage. (6) References in this section to a person shall be read, in relation to times after the death of the person concerned, as references to his personal representatives.

Propose a change

73A Sections 71A to 73: relationship with Schedule 7

Sections 71A to 73 do not apply to arrangements in which the first transaction is exempt from charge by virtue of Schedule 7.

Propose a change

73AB Section 71A : arrangements to transfer control of financial institution

(1) Section 71A... does not apply to alternative finance arrangements if those arrangements, or any connected arrangements, include arrangements for a person to acquire control of the relevant financial institution. (2) That includes arrangements for a person to acquire control of the relevant financial institution only if one or more conditions are met (such as the happening of an event or doing of an act). (3) In this section— “alternative finance arrangements” means the arrangements referred to in section 71A(1)...; “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable); “connected arrangements” means any arrangements entered into in connection with the making of the alternative finance arrangements (including arrangements involving one or more persons who are not parties to the alternative finance arrangements); “relevant financial institution” means the financial institution which enters into the alternative finance arrangements. (4) Section 1124 of the Corporation Tax Act 2010 applies for the purposes of determining who has control of the relevant financial institution.

Propose a change

73B Exempt interests

(1) An interest held by a financial institution as a result of the first transaction within the meaning of section 71A(1)(a)... is an exempt interest for the purposes of stamp duty land tax. (2) That interest ceases to be an exempt interest if— (a) the lease or agreement mentioned in section 71A(1)(c)... ceases to have effect, or (b) the right under section 71A(1)(d)... ceases to have effect or becomes subject to a restriction. (3) Subsection (1) does not apply if the first transaction is exempt from charge by virtue of Schedule 7. (4) Subsection (1) does not make an interest exempt in respect of— (a) the first transaction itself, or (b) a further transaction or third transaction within the meaning of section 71A(4)....

Propose a change

73BA Meaning of “financial institution”

(1) In sections 71A to 73B “financial institution” has the meaning given by section 564B of the Income Tax Act 2007. (2) For this purpose section 564B(1) applies as if paragraph (d) were omitted. (3) In sections 71A, 73AB and 73B, “financial institution” also includes a person with permission under Part 4A of the Financial Services and Markets Act 2000 to carry on the regulated activity specified in Article 63F(1) of the Financial Services and Markets Act (Regulated Activities) Order 2001 (S.I. 2001/544) (entering into regulated home purchase plans as home purchase provider).

Propose a change

73C Alternative finance investment bonds

Schedule 61 to the Finance Act 2009 makes provision for relief from charge in the case of arrangements to which section 564G of the Income Tax Act 2007 or section 151N of the Taxation of Chargeable Gains Act 1992 (investment bond arrangements) applies.

Propose a change

73CA Sections 71A to 73: first-time buyers

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

74 Exercise of collective rights by tenants of flats

(1) This section applies where a chargeable transaction is entered into by a person or persons nominated or appointed by qualifying tenants of flats contained in premises in exercise of— (a) a right under Part 1 of the Landlord and Tenant Act 1987 (right of first refusal), or (b) a right under Chapter 1 of Part 1 of the Leasehold Reform, Housing and Urban Development Act 1993 (right to collective enfranchisement). (1A) The amount of tax is determined as follows. Step 1 Determine the fraction of the relevant consideration produced by dividing the total amount of that consideration by the number of qualifying flats contained in the premises. Step 2 If the amount produced by step 1 is £500,000 or less, determine the amount of tax chargeable in accordance with subsection (1B). Step 3 If the amount produced by step 1 is more than £500,000 and the condition in paragraph 3(3) of Schedule 4A is not met with respect to the transaction, determine the amount of tax chargeable in accordance with subsection (1B). Step 4 If the amount produced by step 1 is more than £500,000 and the condition in paragraph 3(3) of Schedule 4A is met with respect to the transaction, subsection (1B) does not apply, and the amount of tax chargeable in respect of the transaction is 17% of the chargeable consideration for the transaction. (1B) Where step 2 or 3 of subsection (1A) requires the amount of tax chargeable to be determined in accordance with this subsection, it is determined as follows. Step 1 Determine the amount of tax chargeable under section 55 as if the relevant consideration for the chargeable transaction were the fraction of the relevant consideration calculated under step 1 of subsection (1A). Step 2 Multiply the amount determined at step 1 by the number of qualifying flats contained in the premises. (4) In this section— “flat” and “qualifying tenant” have the same meaning as in the Chapter or Part of the Act conferring the right being exercised; “qualifying flat” means a flat that is held by a qualifying tenant who is participating in the exercise of the right. (5) References in this section to the relevant consideration have the same meaning as in section 55.

Propose a change

75 Crofting community right to buy

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

75ZA Increased rates for non-resident transactions

(1) In its application for the purpose of determining the amount of tax chargeable in respect of a chargeable transaction that is a non-resident transaction, this Part has effect as if 2% were added to each rate specified in the rate-specifying provisions. (2) The “rate-specifying provisions” are— (a) in section 55(1B), Table A; (b) in Schedule 4ZA, in paragraph 1(2), Table A; (c) in Schedule 4A, paragraph 3(1)(a); (d) in Schedule 5, in paragraph 2(3), Table A; (e) in Schedule 6ZA, in paragraph 4, Table A; (f) in section 74(1A), Step 4. (3) Schedule 9A defines “non-resident transaction” and makes further provision in connection with this section.

Propose a change

75A Anti-avoidance

(1) This section applies where— (a) one person (V) disposes of a chargeable interest and another person (P) acquires either it or a chargeable interest deriving from it, (b) a number of transactions (including the disposal and acquisition) are involved in connection with the disposal and acquisition (“the scheme transactions”), and (c) the sum of the amounts of stamp duty land tax payable in respect of the scheme transactions is less than the amount that would be payable on a notional land transaction effecting the acquisition of V's chargeable interest by P on its disposal by V. (2) In subsection (1) “transaction” includes, in particular— (a) a non-land transaction, (b) an agreement, offer or undertaking not to take specified action, (c) any kind of arrangement whether or not it could otherwise be described as a transaction, and (d) a transaction which takes place after the acquisition by P of the chargeable interest. (3) The scheme transactions may include, for example— (a) the acquisition by P of a lease deriving from a freehold owned or formerly owned by V; (b) a sub-sale to a third person; (c) the grant of a lease to a third person subject to a right to terminate; (d) the exercise of a right to terminate a lease or to take some other action; (e) an agreement not to exercise a right to terminate a lease or to take some other action; (f) the variation of a right to terminate a lease or to take some other action. (4) Where this section applies— (a) any of the scheme transactions which is a land transaction shall be disregarded for the purposes of this Part, but (b) there shall be a notional land transaction for the purposes of this Part effecting the acquisition of V's chargeable interest by P on its disposal by V. (5) The chargeable consideration on the notional transaction mentioned in subsections (1)(c) and (4)(b) is the largest amount (or aggregate amount)— (a) given by or on behalf of any one person by way of consideration for the scheme transactions, or (b) received by or on behalf of V (or a person connected with V within the meaning of section 1122 of the Corporation Tax Act 2010) by way of consideration for the scheme transactions. (6) The effective date of the notional transaction is— (a) the last date of completion for the scheme transactions, or (b) if earlier, the last date on which a contract in respect of the scheme transactions is substantially performed. (7) This section does not apply where subsection (1)(c) is satisfied only by reason of— (a) sections 71A to 73, or (b) a provision of Schedule 9.

Propose a change

75B Anti-avoidance: incidental transactions

(1) In calculating the chargeable consideration on the notional transaction for the purposes of section 75A(5), consideration for a transaction shall be ignored if or in so far as the transaction is merely incidental to the transfer of the chargeable interest from V to P. (2) A transaction is not incidental to the transfer of the chargeable interest from V to P— (a) if or in so far as it forms part of a process, or series of transactions, by which the transfer is effected, (b) if the transfer of the chargeable interest is conditional on the completion of the transaction, or (c) if it is of a kind specified in section 75A(3). (3) A transaction may, in particular, be incidental if or in so far as it is undertaken only for a purpose relating to— (a) the construction of a building on property to which the chargeable interest relates, (b) the sale or supply of anything other than land, or (c) a loan to P secured by a mortgage, or any other provision of finance to enable P, or another person, to pay for part of a process, or series of transactions, by which the chargeable interest transfers from V to P. (4) In subsection (3)— (a) paragraph (a) is subject to subsection (2)(a) to (c), (b) paragraph (b) is subject to subsection (2)(a) and (c), and (c) paragraph (c) is subject to subsection (2)(a) to (c). (5) The exclusion required by subsection (1) shall be effected by way of just and reasonable apportionment if necessary. (6) In this section a reference to the transfer of a chargeable interest from V to P includes a reference to a disposal by V of an interest acquired by P.

Propose a change

75C Anti-avoidance: supplemental

(1) A transfer of shares or securities shall be ignored for the purposes of section 75A if but for this subsection it would be the first of a series of scheme transactions. (2) The notional transaction under section 75A attracts any relief under this Part which it would attract if it were an actual transaction (subject to the terms and restrictions of the relief). (3) The notional transaction under section 75A is a land transaction entered into for the purposes of or in connection with the transfer of an undertaking or part for the purposes of paragraphs 7 and 8 of Schedule 7, if any of the scheme transactions is entered into for the purposes of or in connection with the transfer of the undertaking or part. (4) In the application of section 75A(5) no account shall be taken of any amount paid by way of consideration in respect of a transaction to which any of sections 60, 61, 63, 64, 65, 66, 67, 69, 71 and 74, or a provision of Schedule 6A, 7A or 8, applies. (5) In the application of section 75A(5) an amount given or received partly in respect of the chargeable interest acquired by P and partly in respect of another chargeable interest shall be subjected to just and reasonable apportionment. (6) Section 53 applies to the notional transaction under section 75A. (7) Paragraph 5 of Schedule 4 applies to the notional transaction under section 75A. (8) For the purposes of section 75A— (a) an interest in a property-investment partnership (within the meaning of paragraph 14 of Schedule 15) is a chargeable interest in so far as it concerns land owned by the partnership, ... (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8A) Nothing in Part 3 of Schedule 15 applies to the notional transaction under section 75A. (9) For the purposes of section 75A a reference to an amount of consideration includes a reference to the value of consideration given as money's worth. (10) Stamp duty land tax paid in respect of a land transaction which is to be disregarded by virtue of section 75A(4)(a) is taken to have been paid in respect of the notional transaction by virtue of section 75A(4)(b). (11) The Treasury may by order provide for section 75A not to apply in specified circumstances. (12) An order under subsection (11) may include incidental, consequential or transitional provision and may make provision with retrospective effect.

Propose a change

76 Duty to deliver land transaction return

(1) In the case of every notifiable transaction the purchaser must deliver a return (a “land transaction return”) to the Inland Revenue before the end of the period of 14 days after the effective date of the transaction. (2) The Inland Revenue may by regulations amend subsection (1) so as to require a land transaction return to be delivered before the end of such shorter period after the effective date of the transaction as may be prescribed or, if the regulations so provide, on that date. (3) A land transaction return in respect of a chargeable transaction must— (a) include an assessment (a “self-assessment”) of the tax that, on the basis of the information contained in the return, is chargeable in respect of the transaction, ... (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

77 Notifiable transactions

(1) A land transaction is notifiable if it is— (a) an acquisition of a major interest in land that does not fall within one or more of the exceptions in section 77A, (b) an acquisition of a chargeable interest other than a major interest in land where there is chargeable consideration in respect of any part of which tax is chargeable at a rate of more than 0% or would be so chargeable but for a relief, (c) a land transaction that a person is treated as entering into by virtue of section 44A(3), ... (d) a notional land transaction under section 75A or (e) a notional or additional land transaction under paragraph 5 of Schedule 2A. (2) This section has effect subject to— (a) sections 71A(7) ..., and (b) paragraph 30 of Schedule 15. (3) In this section “relief” does not include an exemption from charge under Schedule 3.

Propose a change

77A Exceptions for certain acquisitions of major interests in land

(1) The exceptions referred to in section 77(1)(a) are as follows. 1 An acquisition which is exempt from charge under Schedule 3. 2 An acquisition (other than the grant, assignment or surrender of a lease) where the chargeable consideration for that acquisition, together with the chargeable consideration for any linked transactions, is less than £40,000. 3 The grant of a lease for a term of 7 years or more where— (a) any chargeable consideration other than rent is less than £40,000, and (b) the relevant rent is less than £1,000. 4 The assignment or surrender of a lease where— (a) the lease was originally granted for a term of 7 years or more, and (b) the chargeable consideration for the assignment or surrender is less than £40,000. 5 The grant of a lease for a term of less than 7 years where the chargeable consideration does not exceed the zero rate threshold. 6 The assignment or surrender of a lease where— (a) the lease was originally granted for a term of less than 7 years, and (b) the chargeable consideration for the assignment or surrender does not exceed the zero rate threshold. (2) Chargeable consideration for an acquisition does not exceed the zero rate threshold if it does not consist of or include— (a) any amount in respect of which tax is chargeable at a rate of more than 0%, or (b) any amount in respect of which tax would be so chargeable but for a relief. (3) In this section— “annual rent” has the meaning given in paragraph 9A of Schedule 5, “relevant rent” means— the annual rent, or in the case of the grant of a lease to which paragraph 11 or 19 of Schedule 15 applies, the relevant chargeable proportion of the annual rent (as calculated in accordance with that paragraph), and “relief” does not include an exemption from charge under Schedule 3.

Propose a change

78 Returns, enquiries, assessments and related matters

(1) Schedule 10 has effect with respect to land transaction returns, assessments and related matters. (2) In that Schedule— Part 1 contains general provisions about returns; Part 2 imposes a duty to keep and preserve records; Part 3 makes provision for enquiries into returns; Part 4 provides for a Revenue determination if no return is delivered; Part 5 provides for Revenue assessments; Part 6 provides for relief in case of excessive assessment; and Part 7 provides for appeals against Revenue decisions on tax. (3) The Treasury may by regulations make such amendments of that Schedule, and such consequential amendments of any other provisions of this Part, as appear to them to be necessary or expedient from time to time.

Propose a change

78A Disclosure of information contained in land transaction returns

(1) Relevant information contained in land transaction returns delivered under section 76 (whether before or after the commencement of this section) is to be available for use— (a) by listing officers appointed under section 20 of the Local Government Finance Act 1992, for the purpose of facilitating the compilation and maintenance by them of valuation lists in accordance with Chapter 2 of Part 1 of that Act, (b) as evidence in an appeal by virtue of section 24(6) of that Act to a valuation tribunal ..., (c) by the Commissioner of Valuation for Northern Ireland, for the purpose of maintaining a valuation list prepared, and from time to time altered, by him in accordance with Part 3 of the Rates (Northern Ireland) Order 1977, and (d) by such other persons or for such other purposes as the Treasury may by regulations prescribe. (2) In this section, “relevant information” means any information of the kind mentioned in paragraph 1(4) of Schedule 10 (information corresponding to particulars required under previous legislation). (3) The Treasury may by regulations amend the definition of relevant information in subsection (2). (4) In this section “valuation tribunal” means— (a) in relation to England: the Valuation Tribunal for England; (b) in relation to Wales: a valuation tribunal established under paragraph 1 of Schedule 11 to the Local Government Finance Act 1988.

Propose a change

79 Registration of land transactions etc

(1) A land transaction to which this section applies, or (as the case may be) a document effecting or evidencing a land transaction to which this section applies, shall not be registered, recorded or otherwise reflected in an entry made— (a) in England and Wales, in the register of title maintained by the Chief Land Registrar, (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) in Northern Ireland, in any register maintained by the Land Registry of Northern Ireland or in the Registry of Deeds for Northern Ireland, unless there is produced, together with the relevant application, a certificate as to compliance with the requirements of this Part in relation to the transaction or such information about compliance as the Commissioners for Her Majesty's Revenue and Customs may specify in regulations. This does not apply where the entry is required to be made without any application or so far as the entry relates to an interest or right other than the chargeable interest acquired by the purchaser under the land transaction that gives rise to the application. (2) This section applies to every notifiable land transaction other than a transaction treated as taking place— (a) under subsection (4) of section 44 (contract and conveyance) or under that section as it applies by virtue of— (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (ii) paragraph 12B of Schedule 17A (assignment of agreement for lease), (b) under subsection (3) of section 44A (contract providing for conveyance to third party) or under that section as it applies by virtue of section 45A (contract providing for conveyance to third party: effect of transfer of rights). (ba) under paragraph 5 of Schedule 2A (transactions entered into before completion of contract), (c) under paragraph 12A(2) ... of Schedule 17A (agreement for lease), or (d) under paragraph 13 (increase of rent) or 15A (reduction of rent or term) of that Schedule. In this subsection “contract” includes any agreement and “conveyance” includes any instrument. (2A) Subsection (1), so far as relating to the entry of a notice under section 34 of the Land Registration Act 2002 or section 38 of the Land Registration Act (Northern Ireland) 1970 (notice in respect of interest affecting registered land), does not apply where the land transaction in question is the variation of a lease. (3) The certificate referred to in subsection (1) must be ...— (a) a certificate by the Inland Revenue (a “Revenue certificate”) that a land transaction return has been delivered in respect of the transaction, ... (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) The Inland Revenue may make provision by regulations about Revenue certificates. The regulations may, in particular— (a) make provision as to the conditions to be met before a certificate is issued; (b) prescribe the form and content of the certificate; (c) make provision about the issue of duplicate certificates if the original is lost or destroyed; (d) provide for the issue of multiple certificates where a return is made relating to more than one transaction. (5) Part 2 of Schedule 11 imposes a duty to keep and preserve records in respect of transactions that are not notifiable. (6) The registrar ...— (a) shall allow the Inland Revenue to inspect any certificates ... produced to him under this section and in his possession, and (b) may enter into arrangements for affording the Inland Revenue other information and facilities for verifying that the requirements of this Part have been complied with.

Propose a change

80 Adjustment where contingency ceases or consideration is ascertained

(1) Where section 51 (contingent, uncertain or unascertained consideration) applies in relation to a transaction and— (a) in the case of contingent consideration, the contingency occurs or it becomes clear that it will not occur, or (b) in the case of uncertain or unascertained consideration, an amount relevant to the calculation of the consideration, or any instalment of consideration, becomes ascertained, the following provisions have effect to require or permit reconsideration of how this Part applies to the transaction (and to any transaction in relation to which it is a linked transaction). (2) If the effect of the new information is that a transaction becomes notifiable, the purchaser must make a return to HMRC within 14 days. (2A) If the effect of the new information is that— (a) tax is payable in respect of a transaction where none was payable before and subsection (2) does not apply, or (b) additional tax is payable in respect of a transaction, the purchaser must make a further return to HMRC within 30 days. (2B) For the purposes of subsections (2) and (2A), any tax or additional tax payable is calculated according to the effective date of the transaction. (2C) If a purchaser is required to make a return under subsection (2) or a further return under subsection (2A)— (a) that return must contain a self-assessment of the tax chargeable in respect of the transaction on the basis of the information contained in the return, and (b) the tax or additional tax payable must be paid not later than the filing date for that return. (3) The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a return under section 76 (general requirement to make land transaction return), subject to the adaptation that references to the effective date of the transaction shall be read as references to the date of the event as a result of which the return is required. (4) If the effect of the new information is that less tax is payable in respect of a transaction (calculated according to its effective date) than has already been paid, (a) the purchaser may, within the period allowed for amendment of the land transaction return, amend the return accordingly; (b) after the end of that period he may (if the land transaction return is not so amended) make a claim to the Inland Revenue for repayment of the amount overpaid. (4A) Where the transaction (“the relevant transaction”) is the grant or assignment of a lease, no claim may be made under subsection (4)— (a) in respect of the repayment (in whole or part) of any loan or deposit that is treated by paragraph 18A of Schedule 17A as being consideration given for the relevant transaction, or (b) in respect of the refund of any of the consideration given for the relevant transaction, in a case where the refund— (i) is made under arrangements that were made in connection with the relevant transaction, and (ii) is contingent on the determination or assignment of the lease or on the grant of a chargeable interest out of the lease. (5) This section does not apply so far as the consideration consists of rent (see paragraph 8 of Schedule 17A).

Propose a change

81 Further return where relief withdrawn

(1) Where relief is withdrawn to any extent under— (za) paragraph 11 of Schedule 6A (relief for certain acquisitions of residential property), (a) Part 1 of Schedule 7 (group relief), (b) Part 2 of that Schedule (reconstruction or acquisition relief), ... (ba) paragraph 5, 7 or 8 of Schedule 7A (PAIF seeding relief), (bb) paragraph 13, 17 or 18 of Schedule 7A (co-ownership scheme seeding relief), or (c) Schedule 8 (charities relief), the purchaser must deliver a further return before the end of the period of 30 days after the date on which the disqualifying event occurred. (1A) Where relief is withdrawn to any extent under— (a) any of paragraphs 5G to 5L of Schedule 4A (relief from higher rate under Schedule 4A (higher rate for certain transactions)), (aa) Part 3 of Schedule 6C (relief for special tax sites), other than in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies, (b) paragraph 6 of Schedule 7A (PAIF seeding relief), or (c) paragraph 14 or 16 of Schedule 7A (co-ownership scheme seeding relief), the purchaser must deliver a further return before the end of the period of 30 days after the relevant date. (1B) In subsection (1A) “the relevant date” means— (a) in the case of relief under paragraph 5 of Schedule 4A (businesses of letting, trading in or redeveloping properties), the first day in the period mentioned in paragraph 5G(2) on which a requirement under paragraph 5G(3) was not met in the case of the chargeable interest in question; (b) in the case of relief under paragraph 5B of that Schedule (trades involving making a dwelling available to the public), the first day in the period mentioned in paragraph 5H(2) on which a requirement under paragraph 5H(3) was not met in the case of the chargeable interest in question; (c) in the case of relief under paragraph 5C of that Schedule (financial institutions acquiring dwellings in the course of lending), the first day in the period mentioned in paragraph 5I(2) on which a requirement under paragraph 5I(3) was not met in the case of the chargeable interest in question; (ca) in the case of relief under paragraph 5CA of that Schedule (acquisition under a regulated home reversion plan), the first day in the period mentioned in paragraph 5IA(2) of that Schedule on which the purchaser holds the higher threshold interest otherwise than for the purposes of the regulated home reversion plan, unless paragraph 5IA(3)(a) and (b) applies; (d) in the case of relief under paragraph 5D of that Schedule (dwellings for occupation by certain employees etc), the first day in the period mentioned in paragraph 5J(2) on which a requirement under paragraph 5J(3) was not met in the case of the chargeable interest in question; (da) in the case of relief under paragraph 5EA of that Schedule (acquisition by management company of flat for occupation by caretaker), the first day in the period mentioned in paragraph 5JA(2) of that Schedule on which the purchaser holds the higher threshold interest otherwise than for the purpose of making the flat available for use as caretaker accommodation; (e) in the case of relief under paragraph 5F of that Schedule (farmhouses), the first day in the period mentioned in paragraph 5K(2) on which a requirement under paragraph 5K(3) was not met in the case of the chargeable interest in question. (ea) in the case of relief under paragraph 5FA of that Schedule (qualifying housing co-operatives), the date determined in accordance with subsection (1C); (eb) in the case of relief under Schedule 6C (relief for special tax sites), the last day in the control period on which the qualifying land is used exclusively in a qualifying manner; (f) in the case of relief under paragraph 6 of Schedule 7A (PAIF seeding relief: portfolio test)— (i) where relief is withdrawn under paragraph 6(1), the last day of the seeding period (see paragraph 3 of that Schedule), or (ii) where relief is withdrawn under paragraph 6(3), the first time mentioned in paragraph 6(3)(a) or (b) at which the portfolio test was not met; (g) in the case of relief under paragraph 14 of Schedule 7A (co-ownership scheme seeding relief: genuine diversity of ownership condition), the first time mentioned in paragraph 14(1) at which the genuine diversity of ownership condition was not met; (h) in the case of relief under paragraph 16 of Schedule 7A (co-ownership scheme seeding relief: portfolio test)— (i) where relief is withdrawn under paragraph 16(1), the last day of the seeding period (see paragraph 11 of that Schedule), or (ii) where relief is withdrawn under paragraph 16(3), the first time mentioned in paragraph 16(3)(a) or (b) at which the portfolio test was not met. (1C) For the purposes of subsection (1B)(ea) (relief under paragraph 5FA of Schedule 4A withdrawn because the conditions in paragraph 5L(3) of that Schedule are met), the date is— (a) where paragraph 5L(4) of Schedule 4A does not apply, the first day in the period mentioned in paragraph 5L(3)(a) of that Schedule on which the purchaser is not a qualifying housing body; (b) where paragraph 5L(4) or (7) of that Schedule applies and relief is withdrawn because condition A in paragraph 5L(5) of that Schedule is met, the day of succession of the relevant successor; (c) where paragraph 5L(4) or (7) of that Schedule applies and relief is withdrawn because condition B in paragraph 5L(6) of that Schedule is met, the first day in the part of the control period that falls after the day of succession of the relevant successor on which the relevant successor is not a qualifying housing body. (1D) Where relief is withdrawn to any extent under paragraph 5L of Schedule 4A in a case to which paragraph 5L(4) or (7) applies, the reference in subsection (1A) to the purchaser is to be read as a reference to the relevant successor. (2) The return must— (a) include a self-assessment of the amount of tax chargeable, ... (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2A) Where subsection (1) or (1A) applies any tax payable must be paid not later than the filing date for the return. (3) The provisions of Schedule 10 (returns, assessments and other matters) apply for the purposes of this section with the following modifications— (a) references to a return under section 76 (general requirement to deliver land transaction return) are to be read as references to a return under subsection (1) or (1A); (b) references to the transaction to which a return relates are to be read as references to the withdrawal of relief in respect of which the return is required under subsection (1) or (1A); (c) references to a chargeable transaction to which (as yet) no return relates are to be read as references to the withdrawal of relief under any of the provisions mentioned in subsection (1) or (1A); (d) references to the effective date of a transaction— (i) in relation to the withdrawal of relief under any of the provisions mentioned in subsection (1), are to be read as references to the date on which the disqualifying event occurs, and (ii) in relation to the withdrawal of relief under any of the provisions mentioned in subsection (1A), are to be read as references to the relevant date (see subsections (1B) and (1C)); (e) where, by virtue of subsection (1D), a return is to be made by the relevant successor, references to the purchaser are to be read as references to the relevant successor; (f) paragraph 36(5A) is to be read as if it also permitted an appeal under paragraph 35(1)(e) on the ground that no further return is required. (4) In this section “the disqualifying event” means— (za) in relation to the withdrawal of relief under Schedule 6A, an event mentioned in paragraph (a), (b) or (c) of paragraph 11(2), (3), (4) or (5) of that Schedule; (a) in relation to the withdrawal of group relief, the purchaser ceasing to be a member of the same group as the vendor within the meaning of Part 1 of Schedule 7; (b) in relation to the withdrawal of reconstruction or acquisition relief, the change of control of the acquiring company mentioned in paragraph 9(1)(a) of Schedule 7 or, as the case may be, the event mentioned in paragraph 11(1)(a) or (2)(a) of that Schedule; (ba) in relation to the withdrawal of PAIF seeding relief— (i) the purchaser ceasing to be a property AIF as mentioned in paragraph 5 of Schedule 7A, (ii) a person making a relevant disposal of units as mentioned in paragraph 7 of that Schedule, or (iii) the grant of permission to a non-qualifying individual to occupy a dwelling as mentioned in paragraph 8 of that Schedule; (bb) in relation to the withdrawal of co-ownership scheme seeding relief— (i) the purchaser ceasing to be a co-ownership ... contractual scheme as mentioned in paragraph 13 of Schedule 7A, (ii) a person making a relevant disposal of units as mentioned in paragraph 17 of that Schedule, or (iii) the grant of permission to a non-qualifying individual to occupy a dwelling as mentioned in paragraph 18 of that Schedule; (c) in relation to the withdrawal of charities relief, a disqualifying event as defined in paragraph 2(3) or 3(2) of Schedule 8. (4A) Terms used in paragraph (eb) of subsection (1B) which are defined for the purposes of Schedule 6C have the same meaning in that paragraph as they have in that Schedule. (4B) Paragraph 10 of Schedule 6C applies for the purposes of subsection (1B)(eb) as it applies for the purposes of paragraph 8 of that Schedule. (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) In subsections (1C), (1D) and (3)(e) (which relate to the withdrawal of relief under paragraph 5L of Schedule 4A) “the relevant successor” means the person who is the most recent successor in the chain of succession at the time relief is withdrawn (and that person could be the first successor, the second successor or a subsequent successor). (7) Terms used in subsections (1C) and (6) which are defined for the purposes of paragraph 5L of Schedule 4A have the same meaning in those subsections as they have in that paragraph.

Propose a change

81ZA Alternative finance arrangements: return where relief withdrawn

(1) Where relief given in respect of a transaction entered into under alternative finance arrangements is withdrawn to any extent under any of paragraphs 6D, 6F, 6G , 6H or 6I of Schedule 4A (higher rate of tax: alternative finance arrangements) or under Part 3 of Schedule 6C (relief for special tax sites) in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies— (a) the relevant person must deliver a return to HMRC before the end of the period of 30 days after the date of the disqualifying event; (b) the return must contain a self-assessment of the additional tax chargeable as a result of the withdrawal of the relief; (c) the tax so chargeable is calculated according to the effective date of the transaction in respect of which the relief was allowed. (2) The provisions of Schedule 10 (returns, assessments and other matters) apply for the purposes of this section with the following modifications— (a) references to a return under section 76 (general requirement to deliver land transaction return) are to be read as references to a return under subsection (1); (b) references to the transaction to which a return relates are to be read as references to the withdrawal of relief in respect of which the return is required under subsection (1); (c) references to a chargeable transaction to which (as yet) no return relates are to be read as references to the withdrawal of relief under any of the provisions mentioned in subsection (1); (d) references to the effective date of a transaction are to be read as references to the date of the disqualifying event; (e) references to the purchaser are to be read as references to the relevant person so far as that is necessary as a result of subsection (1) of this section or section 85(3) (payment of additional tax by relevant person where relief withdrawn); (f) paragraph 36(5A) is to be read as if it also permitted an appeal under paragraph 35(1)(e) on the ground that no further return is required. (3) In this section “the date of the disqualifying event” means — (a) where the relief was given under paragraph 5, 5B, 5C, 5D or 5F of Schedule 4A, the first day in the control period on which a relevant requirement was not met; (b) where the relief was given under paragraph 5FA of Schedule 4A, the date determined in accordance with subsection (5A). (c) where the relief was given under Part 2 of Schedule 6C, the last day in the control period on which the qualifying land is used exclusively in a qualifying manner. (4) In subsection (3)(a) “relevant requirement” means— (a) where the relief was given under paragraph 5 of Schedule 4A (businesses of letting, trading in or redeveloping properties), a requirement under paragraph 5G(3) of that Schedule; (b) where the relief was given under paragraph 5B of that Schedule (trades involving making a dwelling available to the public), a requirement under paragraph 5H(3) of that Schedule; (c) where the relief was given under paragraph 5C of that Schedule (financial institutions acquiring dwellings in the course of lending), a requirement under paragraph 5I(3) of that Schedule; (d) where the relief was given under paragraph 5D of that Schedule (dwellings for occupation by certain employees etc), a requirement under paragraph 5J(3) of that Schedule; (e) where the relief was given under paragraph 5F of that Schedule (farmhouses), a requirement under paragraph 5K(3) of that Schedule. (5) In subsection (3)(a) “the control period” has the same meaning as in paragraph 5G, 5H, 5I, 5J or 5K (as the case requires) of Schedule 4A. (5A) For the purposes of subsection (3)(b) (relief withdrawn because the conditions in paragraph 6I(2) of Schedule 4A are met), the date is— (a) where paragraph 6I(3) of Schedule 4A does not apply, the first day in the period mentioned in paragraph 6I(2)(a) of that Schedule on which the relevant person is not a qualifying housing body; (b) where paragraph 6I(3) or (6) of that Schedule applies and relief is withdrawn because condition A in paragraph 6I(4) of that Schedule is met, the day of succession of the relevant successor; (c) where paragraph 6I(3) or (6) of that Schedule applies and relief is withdrawn because condition B in paragraph 6I(5) of that Schedule is met, the first day in the part of the control period that falls after the day of succession of the relevant successor on which the relevant successor is not a qualifying housing body. (6) In this section— “alternative finance arrangements” means any arrangements such as are mentioned in section 71A, 72, 72A or 73; “the relevant person” means— the person (other than the financial institution) who entered into the arrangements in question, or where relief is withdrawn to any extent under paragraph 6I of Schedule 4A in a case to which paragraph 6I(3) or (6) applies, the relevant successor; “the relevant successor” means the person who is the most recent successor in the chain of succession at the time relief is withdrawn (and that person could be the first successor, the second successor or a subsequent successor). (6A) Terms used in paragraph (c) of subsection (3) which are defined for the purposes of Schedule 6C have the same meaning in that paragraph as they have in that Schedule (as modified by paragraph 11 of that Schedule). (6B) Paragraph 10 of Schedule 6C (as modified by paragraph 11 of that Schedule) applies for the purposes of subsection (3)(c) as it applies for the purposes of paragraph 8 of that Schedule. (7) Terms used in subsection (5A), and in the definition of “the relevant successor” in subsection (6), which are defined for the purposes of paragraph 6I of Schedule 4A have the same meaning in those provisions as they have in that paragraph.

Propose a change

81A Return or further return in consequence of later linked transaction

(1) Where the effect of a transaction (“the later transaction”) that is linked to an earlier transaction is that the earlier transaction becomes notifiable, the purchaser under the earlier transaction must deliver a return in respect of that transaction before the end of the period of 14 days after the effective date of the later transaction. (1A) Where the effect of a transaction (“the later transaction”) that is linked to an earlier transaction is that— (a) tax is payable in respect of the earlier transaction where none was payable before and subsection (1) does not apply, or (b) additional tax is payable in respect of the earlier transaction, the purchaser under the earlier transaction must deliver a further return in respect of that transaction before the end of the period of 30 days after the effective date of the later transaction. (1B) For the purposes of subsections (1) and (1A), any tax or additional tax payable is calculated according to the effective date of the earlier transaction. (1C) Where a purchaser is required to deliver a return under subsection (1) or a further return under subsection (1A)— (a) that return must include a self-assessment of the amount of tax chargeable as a result of the later transaction, and (b) the tax or additional tax payable must be paid not later than the filing date for that return. (2) The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a return under section 76 (general requirement to deliver land transaction return), with the following adaptations— (a) in paragraph 5 (formal notice to deliver return), the requirement in sub-paragraph (2)(a) that the notice specify the transaction to which it relates shall be read as requiring both the earlier and later transactions to be specified; (b) references to the effective date of the transaction to which the return relates shall be read as references to the effective date of the later transaction. (3) This section does not affect any requirement to make a return under section 76 in respect of the later transaction.

Propose a change

81B Declaration by person authorised to act on behalf of individual

(1) This section applies to the declaration mentioned in paragraph 1(1)(c) of Schedule 10 ... (declaration that return ... is correct and complete). (2) The requirement that an individual make such a declaration (alone or jointly with others) is treated as met if a declaration to that effect is made by a person authorised to act on behalf of that individual in relation to the matters to which the return or certificate relates. (3) For the purposes of this section a person is not regarded as authorised to act on behalf of an individual unless he is so authorised by a power of attorney in writing, signed by that individual. In this subsection as it applies in Scotland “power of attorney” includes factory and commission. (4) Nothing in this section affects the making of a declaration in accordance with— (a) section 100(2) (persons through whom a company acts), or (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Propose a change

82 Loss or destruction of, or damage to, return etc

(1) This section applies where— (a) a return delivered to the Inland Revenue, or (b) any other document relating to tax made by or provided to the Inland Revenue, has been lost or destroyed, or been so defaced or damaged as to be illegible or otherwise useless. (2) The Inland Revenue may treat the return as not having been delivered or the document as not having been made or provided. (3) Anything done on that basis shall be as valid and effective for all purposes as it would have been if the return had not been made or the document had not been made or provided. (4) But if as a result a person is charged with tax and he proves to the satisfaction of the tribunal that he has already paid tax in respect of the transaction in question, relief shall be given, by reducing the charge or by repayment as the case may require.

Propose a change

← Find another law