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

82A Claims not included in returns

Schedule 11A has effect with respect to claims not included in returns.

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83 Formal requirements as to assessments, penalty determinations etc

(1) An assessment, determination, notice or other document required to be used in assessing, charging, collecting and levying tax or determining a penalty under this Part must be in accordance with the forms prescribed from time to time by the Board and a document in the form so prescribed and supplied or approved by the Board is valid and effective. (2) Any such assessment, determination, notice or other document purporting to be made under this Part is not ineffective— (a) for want of form, or (b) by reason of any mistake, defect or omission in it, if it is substantially in conformity with this Part and its intended effect is reasonably ascertainable by the person to whom it is directed. (3) The validity of an assessment or determination is not affected— (a) by any mistake in it as to— (i) the name of a person liable, or (ii) the amount of the tax charged, or (b) by reason of any variance between the notice of assessment or determination and the assessment or determination itself.

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84 Delivery and service of documents

(1) A notice or other document to be served under this Part on a person may be delivered to him or left at his usual or last known place of abode. (2) A notice or other document to be given, served or delivered under this Part may be served by post. (3) For the purposes of section 7 of the Interpretation Act 1978 (c. 30) (general provisions as to service by post) any such notice or other document to be given or delivered to, or served on, any person by the Inland Revenue is properly addressed if it is addressed to that person— (a) in the case of an individual, at his usual or last known place of residence or his place of business; (b) in the case of a company— (i) at its principal place of business, (ii) if a liquidator has been appointed, at his address for the purposes of the liquidation, or (iii) at any place prescribed by regulations made by the Inland Revenue.

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85 Liability for tax

(1) The purchaser is liable to pay the tax in respect of a chargeable transaction. (2) As to the liability of purchasers acting jointly see— section 103(2)(c) (joint purchasers); Part 2 of Schedule 15 (partners); and paragraph 5 of Schedule 16 (trustees). (2A) Where relief is withdrawn to any extent under paragraph 5L of Schedule 4A (qualifying housing co-operatives) in a case to which paragraph 5L(4) or (7) applies— (a) subsection (1) does not apply in relation to the additional tax payable as a result of the withdrawal of the relief, and (b) the relevant successor is liable to pay that additional tax. (2B) In subsection (2A) “the relevant successor” has the same meaning as it has in subsections (1C), (1D) and (3)(e) of section 81 (see subsections (6) and (7) of that section). (3) 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 and 6I of Schedule 4A (higher rate: 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) subsection (1) does not apply in relation to the additional tax payable as a result of the withdrawal of the relief, and (b) the relevant person is liable to pay that additional tax. (4) In subsection (3) “the relevant person” has the same meaning as in section 81ZA (see subsections (6) and (7) of that section).

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86 Payment of tax

(1) Tax payable in respect of a land transaction must be paid not later than the filing date for the land transaction return relating to the transaction. (2) Tax payable as a result of the withdrawal of relief under— (za) any of paragraphs 5G to 5L of Schedule 4A (higher rate for certain transactions), (zb) 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, (a) Part 1 of Schedule 7 (group relief), (b) Part 2 of that Schedule (reconstruction or acquisition relief), ... (ba) Part 1 of Schedule 7A (PAIF seeding relief), (bb) Part 2 of Schedule 7A (co-ownership scheme seeding relief), or (c) Schedule 8 (charities relief), must be paid not later than the filing date for the return relating to the withdrawal (see section 81). (2A) Tax payable as a result of a withdrawal of relief under any of paragraphs 6D, 6F, 6G , 6H and 6I of Schedule 4A (higher rate: 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 must be paid not later than the filing date for the return relating to the withdrawal (see section 81ZA(1)). (3) Tax payable as a result of the amendment of a return must be paid forthwith or, if the amendment is made before the filing date for the return, not later than that date. (4) Tax payable in accordance with a determination or assessment by the Inland Revenue must be paid within 30 days after the determination or assessment is issued. (5) The above provisions are subject to— (a) section 90 (application to defer payment of tax in case of contingent or uncertain consideration), ... (b) paragraphs 39 and 40 of Schedule 10 (postponement of payment pending determination of appeal) , and (c) regulation 31 of the Co-ownership Contractual Schemes (Tax) Regulations 2025 (withdrawal of seeding relief: application to postpone payment of tax where appeal against relevant decisions). (5A) The above provisions are also subject to paragraph 7 of Schedule 61 to the Finance Act 2009 (payment of tax where land ceases to qualify for relief in respect of alternative finance investment bonds). (6) This section does not affect the date from which interest is payable (as to which, see section 87).

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87 Interest on unpaid tax

(1) Interest is payable on the amount of any unpaid tax from the end of the period of 30 days after the relevant date until the tax is paid. (1A) But where the relevant date is determined by subsection (3)(aa), (aaa), (ab) or (c) or section 87A(4) or (6), and a return is required to be delivered before the end of the period of 14 days after that relevant date, interest is instead payable on the amount of any unpaid tax from the end of that period until the tax is paid. (2) The Inland Revenue may by regulations amend subsection (1) or (1A) so as to make interest run from the end of such shorter period after the relevant date as may be prescribed or, if the regulations so provide, from that date. (3) For the purposes of this section “the relevant date” is— (za) in the case of an amount payable because relief is withdrawn under any of paragraphs 5G to 5L of Schedule 4A (higher rate for certain transactions), the date which is the relevant date for the purposes of section 81(1A); (zb) in the case of an amount payable because relief is withdrawn under any of paragraphs 6D, 6F, 6G, 6H and 6I of Schedule 4A, the date which is the date of the disqualifying event for the purposes of section 81ZA (see subsection (3) of that section); (a) in the case of an amount payable because relief is withdrawn under— (ia) Schedule 6A (relief for certain acquisitions of residential property), (i) Part 1 of Schedule 7 (group relief), (ii) Part 2 of that Schedule (reconstruction or acquisition relief), ... (iia) paragraph 5, 7 or 8 of Schedule 7A (PAIF seeding relief), (iib) paragraph 13, 17 or 18 of Schedule 7A (co-ownership scheme seeding relief), or (except in a case to which section 87A applies) (iii) Schedule 8 (charities relief), the date of the disqualifying event; (aza) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (azaa) in the case of an amount payable because relief is withdrawn under 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, the date which is the relevant date for the purposes of section 81(1A); (azab) in the case of an amount payable because relief is withdrawn 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, the date which is the date of the disqualifying event for the purposes of section 81ZA (see subsection (3) of that section); (azb) in the case of an amount payable under paragraph 6(3) of Schedule 7A (PAIF seeding relief: portfolio test), the first time mentioned in paragraph 6(3)(a) or (b) at which the portfolio test was not met; (azc) in the case of an amount payable under paragraph 14(1) of Schedule 7A (co-ownership scheme seeding relief: genuine diversity of ownership condition) because the genuine diversity of ownership condition was not met at a time mentioned in paragraph 14(1)(b) or (c), the first time mentioned in paragraph 14(1)(b) or (c) at which that condition was not met; (azd) in the case of an amount payable under paragraph 16(3) of Schedule 7A (co-ownership scheme seeding relief: portfolio test), the first time mentioned in paragraph 16(3)(a) or (b) at which the portfolio test was not met; (aa) in the case of an amount payable under section 81A in respect of an earlier transaction because of the effect of a later linked transaction, the effective date of the later transaction; (aaa) in the case of an amount payable under paragraph 3(3) of Schedule 17A (leases that continue after a fixed term) by reason of the continuation of a lease for a period (or further period) under paragraph 3(2) or (6) of that Schedule, the final day of the period (or further period), (ab) in the case of an amount payable under paragraph ... 4(3) of Schedule 17A (... treatment of leases for an indefinite term), the day on which the lease becomes treated as being for a longer fixed term; (b) in the case of a deferred payment under section 90, the date when the deferred payment is due; (c) in any other case, the effective date of the transaction. (4) In subsection (3)(a) “the disqualifying event” has the same meaning as in section 81(4) (except in a case to which section 87A applies). (5) Subsection (3)(c) applies in a case within section 51 (contingent, uncertain or unascertained consideration) if payment is not deferred under section 90, with the result that interest on any tax payable under section 80 (adjustment where contingency ceases or consideration is ascertained) runs from the effective date of the transaction. (6) If an amount is lodged with the Inland Revenue in respect of the tax, the amount on which interest is payable is reduced by that amount. (7) Interest is calculated at the rate applicable under section 178 of the Finance Act 1989 (c. 26) (power of Treasury to prescribe rates of interest).

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87A Interest on unpaid tax: cases involving Reserved Investor Fund (Contractual Schemes)

(1) This section makes provision about the meaning of “relevant date” for the purposes of section 87 in the cases set out below where co-ownership seeding relief in relation to a land transaction has been withdrawn under paragraph 13 of Schedule 7A as a result of the purchaser ceasing to be a Reserved Investor Fund (Contractual Scheme) (and, accordingly, ceasing to be a co-ownership contractual scheme). (2) In those cases this section applies instead of section 87(3)(a)(iib) for the purposes of determining the relevant date. (3) The first case is where— (a) the purchaser ceases to be a Reserved Investor Fund (Contractual Scheme) by virtue of breaching the ownership requirement or the restriction requirement, and (b) the effective date of the relevant land transaction fell before the start of the cure period that applied in relation to the breach, and in such a case the “relevant date” is the date on which the breach mentioned in paragraph (a) first occurred. (4) The second case is where— (a) the purchaser ceases to be a Reserved Investor Fund (Contractual Scheme) by virtue of breaching the ownership requirement or the restriction requirement, and (b) the effective date of the relevant land transaction fell within the cure period that applied in relation to the breach, and in such a case the “relevant date” is the effective date of the relevant land transaction. (5) The third case is where— (a) the purchaser ceases to be a Reserved Investor Fund (Contractual Scheme) as a result of ceasing to meet the UK property rich condition in regulation 12 of the 2025 Regulations, and (b) regulation 19 of those Regulations applied in relation to the scheme, and in such a case the “relevant date” means the date on which regulation 19 first applied in relation to the scheme. (6) The fourth case is where— (a) the purchaser ceases to be a Reserved Investor Fund (Contractual Scheme) by virtue of the scheme no longer being able to rely on regulation 9 of the 2025 Regulations to meet the ownership requirement, and (b) the effective date of the relevant land transaction fell at a time when the scheme was relying on that regulation to meet the ownership requirement, and in such a case the “relevant date” means the effective date of the relevant land transaction. (7) In this section— “the 2025 Regulations” means the Co-ownership Contractual Schemes (Tax) Regulations 2025; “cure period”— in relation to a breach of the ownership requirement, means— “the 9 month period” that applies in relation to the breach under regulation 16 of the 2025 Regulations (as defined in that regulation), or if a notice is given in relation to the breach under paragraph (2) of that regulation, the period beginning with the day on which the breach occurred and ending on the day on which the notice is given; in relation to a breach of the restriction requirement, means— “the 9 month period” that applies in relation to a breach under regulation 18 of the 2025 Regulations (as defined in that regulation), or if a notice is given in relation to the breach under paragraph (3) of that regulation, the period beginning with the day on which the breach occurred and ending on the day on which the notice is given; “ownership requirement” has the meaning given in regulation 5 of the 2025 Regulations; “relevant land transaction” means the land transaction to which the withdrawal of seeding relief relates; “restriction requirement” has the meaning given in regulation 10(1) of the 2025 Regulations; “UK property rich condition” has the meaning given in regulation 12 of the 2025 Regulations.

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88 Interest on penalties

A penalty under this Part shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the date it is determined until payment.

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89 Interest on repayment of tax overpaid etc

(1) A repayment by the Inland Revenue to which this section applies shall be made with interest at the rate applicable under section 178 of the Finance Act 1989 for the period between the relevant time (as defined below) and the date when the order for repayment is issued. (2) This section applies to— (a) any repayment of tax, and (b) any repayment of a penalty under this Part. In that case the relevant time is the date on which the payment of tax or penalty was made. (3) This section also applies to a repayment by the Inland Revenue of an amount lodged with them in respect of the tax payable in respect of a transaction. In that case the relevant time is the date on which the amount was lodged with them. (4) No interest is payable under this section in respect of a payment made in consequence of an order or judgment of a court having power to allow interest on the payment. (5) Interest paid to any person under this section is not income of that person for any tax purposes.

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90 Application to defer payment in case of contingent or uncertain consideration

(1) The purchaser may apply to the Inland Revenue to defer payment of tax in a case where the amount payable depends on the amount or value of chargeable consideration that— (a) at the effective date of the transaction is contingent or uncertain, and (b) falls to be paid or provided on one or more future dates of which at least one falls, or may fall, more than six months after the effective date of the transaction. (2) The Inland Revenue may make provision by regulations for carrying this section into effect. (3) The regulations may in particular— (a) specify when an application is to be made; (b) impose requirements as to the form and contents of an application; (c) require the applicant to provide such information as the Inland Revenue may reasonably require for the purposes of determining whether to accept an application; (d) specify the grounds on which an application may be refused; (e) specify the procedure for reaching a decision on an application; (f) make provision for postponing payment of tax when an application has been made; (g) provide for an appeal to the tribunal against a refusal to accept an application, and make provision in relation to such an appeal corresponding to any provision made in relation to appeals under Part 7 of Schedule 10 (appeals against Revenue decisions on tax); (h) provide for the effect of accepting an application; (i) require the purchaser to make a return or further return, and to make such payments or further payments of tax as may be specified, in such circumstances as may be specified. (4) The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a land transaction return. (5) An application under this section does not affect the purchaser’s obligations as regards payment of tax in respect of chargeable consideration that has already been paid or provided or is not contingent and whose amount is ascertained or ascertainable at the time the application is made. This applies as regards both the time of payment and the calculation of the amount payable. (6) Regulations under this section may provide that where— (a) a payment is made as mentioned in subsection (5), and (b) an application under this section is accepted in respect of other chargeable consideration taken into account in calculating the amount of that payment, section 80 (adjustment where contingency ceases or consideration is ascertained) does not apply in relation to the payment and, instead, any necessary adjustment shall be made in accordance with the regulations. (7) This section does not apply so far as the consideration consists of rent.

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91 Collection and recovery of tax etc

(1) The provisions of Schedule 12 have effect with respect to the collection and recovery of tax. In that Schedule— Part 1 contains general provisions, and Part 2 relates to court proceedings. (2) The provisions of that Schedule have effect in relation to the collection and recovery of any unpaid amount by way of— (a) penalty under this Part, or (b) interest under this Part (on unpaid tax or penalty), as if it were an amount of unpaid tax.

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92 Payment by cheque

For the purposes of this Part where— (a) payment to the Inland Revenue is made by cheque, and (b) the cheque is paid on its first presentation to the banker on whom it is drawn, the payment is treated as made on the day on which the cheque was received by the Inland Revenue.

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93 Information powers

(1) Schedule 13 has effect with respect to the powers of the Inland Revenue to call for documents and information for the purposes of stamp duty land tax. (2) In that Schedule— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part 6 provides for an order of a judicial authority for the delivery of documents; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part 8 relates to falsification etc of documents. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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94 Power to inspect premises

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95 Offence of fraudulent evasion of tax

(1) A person commits an offence if he is knowingly concerned in the fraudulent evasion of tax by him or any other person. (2) A person guilty of an offence under this section is liable— (a) on summary conviction to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum, or both; (b) on conviction on indictment, to imprisonment for a term not exceeding 14 years or a fine, or both.

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96 Penalty for assisting in preparation of incorrect return etc

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97 Power to allow further time and reasonable excuse for failure

(1) For the purposes of this Part a person shall be deemed not to have failed to do anything required to be done within a limited time if he did it within such further time, if any, as the Inland Revenue may allow. (2) Where a person had a reasonable excuse for not doing anything required to be done for the purposes of this Part— (a) he shall be deemed not to have failed to do it unless the excuse ceased, and (b) after the excuse ceased, he shall be deemed not to have failed to do it if he did it without unreasonably delay after the excuse had ceased.

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98 Admissibility of evidence not affected by offer of settlement etc

(1) Statements made or documents produced by or on behalf of a person are not inadmissible in proceedings to which this section applies by reason only that it has been drawn to his attention— (a) that where serious tax fraud has been committed the Board may accept a money settlement and that the Board will accept such a settlement, and will not pursue a criminal prosecution, if he makes a full confession of all tax irregularities, or (b) that the extent to which he is helpful and volunteers information is a factor that will be taken into account in determining the amount of any penalty, and that he was or may have been induced thereby to make the statements or produce the documents. (2) The proceedings to which this section applies are— (a) any criminal proceedings against the person in question for any form of fraudulent conduct in connection with or in relation to tax; (b) any proceedings against him for the recovery of any tax due from him; (c) any proceedings for a penalty or on appeal against the determination of a penalty.

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99 General provisions about penalties

(1) Schedule 14 has effect with respect to the determination of penalties under this Part and related appeals. (2) The Board may in their discretion mitigate a penalty under this Part, or stay or compound any proceedings for the recovery of such a penalty. They may also, after judgment, further mitigate or entirely remit the penalty. (2A) Where a person is liable to more than one tax-related penalty in respect of the same land transaction, each penalty after the first shall be reduced so that his liability to such penalties, in total, does not exceed the amount of whichever is (or, but for this subsection, would be) the greatest one. (3) Nothing in the provisions of this Part relating to penalties affects any criminal proceedings for an offence.

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100 Companies

(1) In this Part “company”, except as otherwise expressly provided, means any body corporate or unincorporated association, but does not include a partnership. (2) Everything to be done by a company under this Part shall be done by the company acting through— (a) the proper officer of the company, or (b) another person having for the time being having the express, implied or apparent authority of the company to act on its behalf for the purpose. Paragraph (b) does not apply where a liquidator has been appointed for the company. (3) Service on a company of any document under or in pursuance of this Part may be effected by serving it on the proper officer. (4) Tax due from a company that— (a) is not a body corporate, or (b) is incorporated under the law of a country or territory outside the United Kingdom, may, without prejudice to any other method of recovery, be recovered from the proper officer of the company. (5) The proper officer may retain out of any money coming into his hands on behalf of the company sufficient sums to pay that tax and, so far as he is not so reimbursed, he is entitled to be indemnified by the company in respect of the liability imposed on him. (6) For the purposes of this Part— (a) the proper officer of a body corporate is the secretary, or person acting as secretary, of the company, and (b) the proper officer of an unincorporated association, or of a body corporate that does not have a proper officer within paragraph (a), is the treasurer, or person acting as treasurer, of the company. This subsection does not apply if a liquidator or administrator has been appointed for the company. (7) If a liquidator or administrator has been appointed for the company, then, for the purposes of this Part— (a) the liquidator or, as the case may be, the administrator is the proper officer, and (b) if two or more persons are appointed to act jointly or concurrently as the administrator of the company, the proper officer is— (i) such one of them as is specified in a notice given to the Inland Revenue by those persons for the purposes of this section, or (ii) where the Inland Revenue is not so notified, such one or more of those persons as the Inland Revenue may designate as the proper officer for those purposes.

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101 Unit trust schemes

(1) This Part (with the exception of the provision mentioned in subsection (7) below) applies in relation to a unit trust scheme as if— (a) the trustees were a company, and (b) the rights of the unit holders were shares in the company. (2) Each of the parts of an umbrella scheme is regarded for the purposes of this Part as a separate unit trust scheme and the scheme as a whole is not so regarded. (3) An “umbrella scheme” means a unit trust scheme— (a) that provides arrangements for separate pooling of the contributions of participants and the profits or income out of which payments are to be made for them, and (b) under which the participants are entitled to exchange rights in one pool for rights in another. A “part” of an umbrella scheme means such of the arrangements as relate to a separate pool. (4) In this Part, subject to any regulations under subsection (5)— “unit trust scheme” has the same meaning as in the Financial Services and Markets Act 2000 (c. 8), and “unit holder” means a person entitled to a share of the investments subject to the trusts of a unit trust scheme. (5) The Treasury may by regulations provide that a scheme of a description specified in the regulations is to be treated as not being a unit trust scheme for the purposes of this Part. Any such regulations may contain such supplementary and transitional provisions as appear to the Treasury to be necessary or expedient. (6) Section 620 of the Corporation Tax Act 2010 (court investment funds treated as authorised unit trusts) applies for the purposes of this Part as it applies for the purposes of that Act, with the substitution for references to an authorised unit trust of references to a unit trust scheme. (7) An unit trust scheme is not to be treated as a company for the purposes of— ... Schedule 7 (group relief, reconstruction relief or acquisition relief) , or Schedule 9A (increased rates for non-resident transactions).

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102 Open-ended investment companies

(1) The Treasury may by regulations make such provision as they consider appropriate for securing that the provisions of this Part have effect in relation to— (a) open-ended investment companies of such description as may be prescribed in the regulations, and (b) transactions involving such companies, in a manner corresponding, subject to such modifications as the Treasury consider appropriate, to the manner in which they have effect in relation to unit trust schemes and transactions involving such trusts. (2) The regulations may, in particular, make provision— (a) modifying the operation of any prescribed provision in relation to open-ended investment companies so as to secure that arrangements for treating the assets of such a company as assets comprised in separate pools are given an effect corresponding to that of equivalent arrangements constituting the separate parts of an umbrella scheme; (b) treating the separate parts of the undertaking of an open-ended investment company in relation to which such provision is made as distinct companies for the purposes of this Part. (3) Regulations under this section may— (a) make different provision for different cases, and (b) contain such incidental, supplementary, consequential and transitional provision as the Treasury think fit. (4) In this section— “open-ended investment company” has the meaning given by section 236 of the Financial Services and Markets Act 2000 (c. 8); “prescribed” means prescribed by regulations under this section; and “unit trust scheme” and “umbrella scheme” have the same meaning as in section 101.

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102A Co-ownership ... contractual schemes

(1) This section has effect for the purposes of this Part. (2) This Part, with the exception of Schedule 7 (see subsection (10)), applies in relation to a co-ownership ... contractual scheme as if— (a) the scheme were a company, and (b) the rights of the participants were shares in the company. (2A) In this Part, a “co-ownership contractual scheme” means— (a) a co-ownership authorised contractual scheme, or (b) a Reserved Investor Fund (Contractual Scheme). (3) An “umbrella scheme” means a co-ownership ... contractual scheme— (a) whose arrangements provide for separate pooling of the contributions of the participants and the profits or income out of which payments are made to them (“pooling arrangements”), and (b) under which the participants are entitled to exchange rights in one pool for rights in another. (4) A “sub-scheme”, in relation to an umbrella scheme, means such of the pooling arrangements as relate to a separate pool. (5) Each of the sub-schemes of an umbrella scheme is regarded as a separate co-ownership ... contractual scheme, and the umbrella scheme as a whole is not so regarded. (6) In relation to a sub-scheme of an umbrella scheme— (a) references to chargeable interests are references to such of the chargeable interests as under the pooling arrangements form part of the separate pool to which the sub-scheme relates, and (b) references to the scheme documents are references to such parts of the documents as apply to the sub-scheme. (7) References to a co-ownership authorised contractual scheme are treated as including a collective investment scheme which— (a) is constituted under the law of an EEA State ... by a contract, (b) is managed by a body corporate incorporated under the law of any part of the United Kingdom or of an EEA State, and (c) is authorised under the law of the EEA State mentioned in paragraph (a) in a way which makes it, under that law, the equivalent of a co-ownership authorised contractual scheme as defined in subsection (8), provided that, apart from this section, no charge to tax is capable of arising to the scheme under this Part. (8) Subject to any regulations under subsection (9)— “co-ownership authorised contractual scheme” means a co-ownership scheme which is authorised for the purposes of FSMA 2000 by an authorisation order in force under section 261D(1) of that Act; “co-ownership scheme” has the same meaning as in FSMA 2000 (see section 235A of that Act); “Reserved Investor Fund (Contractual Scheme)” has the meaning given by section 20 of the Finance (No.2) Act 2024. (9) The Treasury may by regulations provide that a scheme of a description specified in the regulations is to be treated as not being a co-ownership authorised contractual scheme or a Reserved Investor Fund (Contractual Scheme) for the purposes of this Part. Any such regulations may contain such supplementary and transitional provisions as appear to the Treasury to be necessary or expedient. (10) A co-ownership ... contractual scheme is not to be treated as a company for the purposes of Schedule 7 (group relief, reconstruction relief or acquisition relief). (11) In relation to a land transaction in respect of which a co-ownership ... contractual scheme is treated as the purchaser by virtue of this section, references to the purchaser in the following provisions are to be read as references to the operator of the scheme— (a) sections 76, 80, 81, 81A and 108(2) and Schedule 10 (provisions about land transaction returns and further returns, enquiries, assessments and related matters), (b) section 85 (liability for tax), and (c) section 90 (application to defer payment in case of contingent or unascertained consideration). (12) In this section— “collective investment scheme” has the meaning given by section 235 of FSMA 2000; “FSMA 2000” means the Financial Services and Markets Act 2000; “operator”— in relation to a co-ownership ... contractual scheme constituted under the law of the United Kingdom, has the meaning given by section 237(2) of FSMA 2000, and in relation to a collective investment scheme treated as a co-ownership authorised contractual scheme by virtue of subsection (7) (equivalent EEA schemes), means the corporate body responsible for the management of the scheme (however described); “participant” is to be read in accordance with section 235 of FSMA 2000.

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103 Joint purchasers

(1) This section applies to a land transaction where there are two or more purchasers who are or will be jointly entitled to the interest acquired. (2) The general rules are that— (a) any obligation of the purchaser under this Part in relation to the transaction is an obligation of the purchasers jointly but may be discharged by any of them, (b) anything required or authorised by this Part to be done in relation to the purchaser must be done by or in relation to all of them, and (c) any liability of the purchaser under this Part in relation to the transaction (in particular, any liability arising by virtue of the failure to fulfil an obligation within paragraph (a)), is a joint and several liability of the purchasers. These rules are subject to the following provisions. (3) If the transaction is a notifiable transaction, a single land transaction return is required. (4) The declaration required by paragraph 1(1)(c) of Schedule 10 ... (declaration that return ... is complete and correct) must be made by all the purchasers. (5) If the Inland Revenue give notice of an enquiry into the return ...— (a) the notice must be given to each of the purchasers, (b) the powers of the Inland Revenue as to the production of documents and provision of information for the purposes of the enquiry are exercisable separately (and differently) in relation to each of the purchasers, (c) any of the purchasers may apply for a direction that a closure notice be given (and all of them are entitled to to be parties to the application), and (d) the closure notice must be given to each of the purchasers. (6) A Revenue determination or discovery assessment relating to the transaction must be made against all the purchasers and is not effective against any of them unless notice of it is given to each of them whose identity is known to the Inland Revenue. (7) In the case of an appeal arising from proceedings under this Part relating to the transaction— (a) the appeal may be brought by any of the purchasers, (b) notice of the appeal must be given to any of them by whom it is not brought, (c) the agreement of all the purchasers is required if the appeal is to be settled by agreement, (d) if it is not settled, and is notified to the tribunal, any of them are entitled to be parties to the appeal, and (e) the tribunal’s decision on the appeal binds all of them. (7A) In a case where subsection (7) applies and some (but not all) of the purchasers require HMRC to undertake a review under paragraph 36B or 36C of Schedule 10— (a) notification of the review must be given by HMRC to each of the other purchasers whose identity is known to HMRC, (b) any of the other purchasers may be a party to the review if they notify HMRC in writing, (c) the notice of HMRC’s conclusions must be given to each of the other purchasers whose identity is known to HMRC, (d) paragraph 36F of Schedule 10 (effect of conclusions of review) applies in relation to all of the purchasers, and (e) any of the purchasers may notify the appeal to the tribunal under paragraph 36G. (8) This section has effect subject to— the provisions of Schedule 15 relating to partnerships, and the provisions of Schedule 16 relating to trustees.

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104 Partnerships

(1) Schedule 15 has effect with respect to the application of this Part in relation to partnerships. (2) In that Schedule— Part 1 defines “partnership” and contains other general provisions, and Part 2 deals with ordinary partnership transactions, and Part 3 makes special provision for certain transactions.

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105 Trustees

Schedule 16 has effect with respect to the application of this Part in relation to trustees.

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106 Persons acting in a representative capacity etc

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) The personal representatives of a person who is the purchaser under a land transaction— (a) are responsible for discharging the obligations of the purchaser under this Part in relation to the transaction, and (b) may deduct any payment made by them under this Part out of the assets and effects of the deceased person. (4) A receiver appointed by a court in the United Kingdom having the direction and control of any property is responsible for discharging any obligations under this Part in relation to a transaction affecting that property as if the property were not under the direction and control of the court.

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107 Crown application

(1) This Part binds the Crown, subject to the following provisions of this section. (2) A land transaction under which the purchaser is any of the following is exempt from charge: Government 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 Parliament etc 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 (3) The powers conferred by Part 7 of Schedule 13 (entry with warrant to obtain information) are not exercisable in relation to premises occupied for the purposes of the Crown. (4) Nothing in this section shall be read as making the Crown liable to prosecution for an offence.

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108 Linked transactions

(1) Transactions are “linked” for the purposes of this Part if they form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser or, in either case, persons connected with them. Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this subsection (1A) A transaction is not a linked transaction if — (a) the transaction relates to land in Scotland, or (b) the transaction relates to land in Wales (whether by virtue of section 48A(2) or otherwise). (2) Where there are two or more linked transactions with the same effective date, the purchaser, or all of the purchasers if there is more than one, may make a single land transaction return as if all of those transactions that are notifiable were a single notifiable transaction. (3) Where two or more purchasers make a single return in respect of linked transactions, section 103 (joint purchasers) applies as if— (a) the transactions in question were a single transaction, and (b) those purchasers were purchasers acting jointly. (4) This section is subject to section 47(1).

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109 General power to vary this Part by regulations

(1) The Treasury may if they consider it expedient in the public interest make provision by regulations for the variation of this Part in its application to land transactions of any description. (2) The power conferred by this section includes, in particular, power to alter— (a) the descriptions of land transaction that are chargeable or notifiable; (b) the descriptions of land transaction in respect of which tax is chargeable at any existing rate or amount, or in respect of which tax is calculated in accordance with any particular provision. (2A) The power under subsection (2)(b) includes power to alter the conditions for the application to a chargeable transaction of paragraph 3 of Schedule 4A (higher rate for certain transactions), other than the condition that the transaction must be a high-value residential transaction. (3) The power conferred by this section does not, except as mentioned in subsections (2)(b) and (2A), include power to vary any threshold, rate or amount specified in— (a) section 55 (amount of tax chargeable: general), ... (aa) section 74(1A) (exercise of collective rights by tenants of flats), (ab) Schedule 4A (amount of tax chargeable: high-value interests in dwellings), or (b) Schedule 5 (amount of tax chargeable: rent). (4) This section has effect subject to section 110 (approval of regulations by House of Commons). (5) Regulations under this section do not apply in relation to any transaction of which the effective date is after the end of— (a) the period of 18 months beginning with the day on which the regulations were made, or (b) such shorter period as may be specified in the regulations. This does not affect the power to make further provision by regulations under this section to the same or similar effect. (6) Regulations under this section may include such supplementary, transitional and incidental provision as appears to the Treasury to be necessary or expedient. (7) The power conferred by this section may be exercised at any time after the passing of this Act.

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110 Approval of regulations under general power

(1) An instrument containing regulations under section 109 (general power to vary this Part by regulations) must be laid before the House of Commons after being made. (2) If the regulations are not approved by the House of Commons before the end of the period of 28 days beginning with the day on which they are made, they shall cease to have effect at the end of that period (if they have not already ceased to have effect under subsection (3)). (3) If on any day during that period of 28 days the House of Commons, in proceedings on a motion that (or to the effect that) the regulations be approved, comes to a decision rejecting the regulations, they shall cease to have effect at the end of that day. (4) In reckoning any such period of 28 days take no account of any time during which— (a) Parliament is prorogued or dissolved, or (b) the House of Commons is adjourned for more than four days. (5) Where regulations cease to have effect under this section, their ceasing to have effect is without prejudice to anything done in reliance on them. As to claims for repayment, see section 111. (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7) This section does not apply to regulations containing only provision varying Schedule 6ZA or paragraph 16 of Schedule 9 which does not increase any person's liability to tax.

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111 Claim for repayment if regulations under general power not approved

(1) Where regulations cease to have effect under section 110, a claim may be made to the Inland Revenue for repayment of any tax, interest or penalty that would not have been payable but for the regulations. (2) Section 89 (interest on repayment of tax overpaid etc) applies to a repayment under this section. (3) A claim for repayment must be made within two years after the effective date of the transaction in question. (4) The Inland Revenue may make provision by regulations— (a) for varying the time limit for making a claim; (b) as to any other conditions that must be met before repayment is made.

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112 Power to amend certain provisions before implementation

(1) The Treasury may by regulations amend the following provisions of this Part— (a) Schedule 5 (amount of tax chargeable: rent); (b) subsection (2) of section 55 (amount of tax chargeable: general) so far as relating to the thresholds at which different rates of tax become payable. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) A statutory instrument containing regulations under this section shall not be made unless a draft of the instrument has been laid before and approved by resolution of the House of Commons. (4) The power conferred by this section is not exercisable after the implementation date.

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113 Functions conferred on “the Inland Revenue”

(1) References in this Part to “the Inland Revenue” are to any officer of the Board, except as otherwise provided. (2) Any power of the Inland Revenue to make regulations is exercisable only by the Board. (3) In Schedule 10 (returns, assessments and other administrative matters)— (a) functions of the Inland Revenue under these provisions are exercisable by the Board or an officer of the Board— (i) paragraph 28 (discovery assessment), (ii) paragraph 29 (assessment to recover excessive repayment); (b) functions of the Inland Revenue under these provisions are functions of the Board— (i) paragraph 33 (relief in case of double assessment), (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3A) The following functions of the Inland Revenue under Schedule 11A (claims not included in returns) are functions of the Board— (a) functions under paragraph 2(1) (form of claims), (b) functions relating to a claim made to the Board. (4) Nothing in this section affects any provision of this Part that expressly confers functions on the Board, an officer of the Board, a collector or a specific officer of the Board.

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114 Orders and regulations made by the Treasury or the Inland Revenue

(1) Except as otherwise provided, any power of the Treasury or the Inland Revenue to make an order or regulations under this Part, or under any other enactments relating to stamp duty land tax (including enactments passed after this Act), is exercisable by statutory instrument. (2) Subsection (1) does not apply in relation to the power conferred by— paragraph 8 of Schedule 5 to this Act (tax chargeable in respect of rent: power to prescribe temporal discount rate), section 178(5) of the Finance Act 1989 (c. 26) (power to prescribe rates of interest). (3) Except as otherwise provided, a statutory instrument containing any order or regulations made by the Treasury or the Inland Revenue under this Part, or under any other enactments relating to stamp duty land tax (including enactments passed after this Act), shall be subject to annulment in pursuance of a resolution of the House of Commons. (4) Subsection (3) does not apply to a statutory instrument made under the power conferred by— section 61(3) (compliance with planning obligations: power to add to list of public authorities); paragraph 1(3) of Schedule 9 (right to buy transactions: power to add to list of relevant public sector bodies); paragraph 2(2) of Schedule 19 (commencement and transitional provisions: power to appoint implementation date). (5) The first set of regulations under section 58B (new zero-carbon homes) may not be made unless a draft has been laid before and approved by resolution of the House of Commons. (6) An order or regulations under this Part— (a) may make provision having effect generally or only in specified cases or circumstances, (b) may make different provision for different cases or circumstances, and (c) may include incidental, consequential or transitional provision or savings.

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115 General and Special Commissioners, appeals and other proceedings

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116 Meaning of “residential property”

(1) In this Part “residential property” means— (a) a building that is used or suitable for use as a dwelling, or is in the process of being constructed or adapted for such use, and (b) land that is or forms part of the garden or grounds of a building within paragraph (a) (including any building or structure on such land), or (c) an interest in or right over land that subsists for the benefit of a building within paragraph (a) or of land within paragraph (b); and “non-residential property” means any property that is not residential property. This is subject to the rule in subsection (7) in the case of a transaction involving six or more dwellings. (2) For the purposes of subsection (1) a building used for any of the following purposes is used as a dwelling— (a) residential accommodation for school pupils; (b) residential accommodation for students, other than accommodation falling with subsection (3)(b); (c) residential accommodation for members of the armed forces; (d) an institution that is the sole or main residence of at least 90% of its residents and does not fall within any of paragraphs (a) to (f) of subsection (3). (3) For the purposes of subsection (1) a building used for any of the following purposes is not used as a dwelling— (a) a home or other institution providing residential accommodation for children; (b) a hall of residence for students in further or higher education; (c) a home or other institution providing residential accommodation with personal care for persons in need of personal care by reason of old age, disablement, past or present dependence on alcohol or drugs or past or present mental disorder; (d) a hospital or hospice; (e) a prison or similar establishment; (f) a hotel or inn or similar establishment. (4) Where a building is used for a purpose specified in subsection (3), no account shall be taken for the purposes of subsection (1)(a) of its suitability for any other use. (5) Where a building that is not in use is suitable for use for at least one of the purposes specified in subsection (2) and at least one of those specified in subsection (3)— (a) if there is one such use for which it is most suitable, or if the uses for which it is most suitable are all specified in the same sub-paragraph, no account shall be taken for the purposes of subsection (1)(a) of its suitability for any other use, (b) otherwise, the building shall be treated for those purposes as suitable for use as a dwelling. (6) In this section “building” includes part of a building. (7) Where six or more separate dwellings are the subject of a single transaction involving the transfer of a major interest in, or the grant of a lease over, them, then, for the purposes of this Part as it applies in relation to that transaction, those dwellings are treated as not being residential property. (8) The Treasury may by order— (a) amend subsections (2) and (3) so as to change or clarify the cases where use of a building is, or is not to be, use of a building as a dwelling for the purposes of subsection (1); (b) amend or repeal subsection (7) and the reference to that subsection in subsection (1). Any such order may contain such incidental, supplementary, consequential or transitional provision as appears to the Treasury to be necessary or expedient.

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117 Meaning of “major interest” in land

(1) References in this Part to a “major interest” in land shall be construed as follows. (2) In relation to land in England ... , the references are to— (a) an estate in fee simple absolute, or (b) a term of years absolute, whether subsisting at law or in equity. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) In relation to land in Northern Ireland, the references are to— (a) any freehold estate, or (b) any leasehold estate, whether subsisting at law or in equity.

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118 Meaning of “market value”

(1) For the purposes of this Part “market value” shall be determined as for the purposes of the Taxation of Chargeable Gains Act 1992 (c. 12) (see sections 272 to 274 of that Act). (2) This is subject to paragraphs 7(7) and 17(7) of Schedule 7A (which define “market value” for certain purposes of PAIF seeding relief and co-ownership scheme seeding relief).

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119 Meaning of “effective date” of a transaction

(1) Except as otherwise provided, the effective date of a land transaction for the purposes of this Part is (a) the date of completion, or (b) such alternative date as the Commissioners for Her Majesty's Revenue and Customs may prescribe by regulations. (2) Other provision as to the effective date of certain descriptions of land transaction is made by— section 44(4) (contract and conveyance: contract substantially performed without having been completed), ... section 44A(3) (contract providing for conveyance to third party), section 45A(8) (contract providing for conveyance to third party: effect of transfer of rights), section 46(3) (options and rights of pre-emption). paragraph 5 of Schedule 2A, paragraph 3(4) of Schedule 17A (leases that continue after a fixed term), paragraph 12A(2) of Schedule 17A (agreement for lease followed by substantial performance), paragraph 12B(3) of that Schedule (assignment of agreement for lease occurring after agreement substantially performed), and ...

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