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Change 1
As published
123 Contract and conveyance: the vendor
(1) This section applies where a person (“V”) enters into a contract under which—
(a) V is to dispose of a relevant chargeable interest, and
(b) the disposal is to be completed by a conveyance.
(2) V is not regarded as disposing of a chargeable interest by reason of entering into the contract.
(3) If the contract is substantially performed without having been completed, this Part has effect as if the substantial performance of the contract were the completion of the disposal provided for by the contract.
(4) Accordingly, where subsection (3) applies and the contract is subsequently completed by a conveyance, that completion is not treated for the purposes of section 102 as effecting the disposal of a chargeable interest.
(5) Where subsection (3) applies and—
(a) the contract is afterwards rescinded or annulled, or
(b) performance of the contract is for any other reason terminated before the contract has been carried fully into effect,
this Part has effect as if V had at the relevant time re-acquired the chargeable interest referred to in subsection (1)(a).
(6) In subsection (5) “the relevant time” means—
(a) the time when the rescission or annulment takes effect, or
(b) (as the case requires) the time when performance of the contract ceases.
(7) Where subsection (3) applies and the contract is afterwards varied (or partially rescinded) so that the chargeable interest to be disposed of under the contract is not the same as the chargeable interest to which the contract originally related, this Part (including subsection (3)) has effect as if the variation of the contract effected—
(a) the re-acquisition by V of the chargeable interest referred to in subsection (1)(a), and
(b) the substantial performance of the contract, as varied.
(8) If the parties to the contract proceed as if they had varied the contract in the way mentioned in subsection (7) (without actually doing so), subsection (7) applies as if they had actually made the corresponding variation in the terms of the contract.
(9) In this section—
(a) references to completion are to the completion of the disposal proposed, between the same parties, in substantial conformity with the contract;
(b) “contract” includes any agreement;
(c) “conveyance” includes any instrument;
(d) “relevant chargeable interest” means a chargeable interest in or over land that consists of or includes a dwelling;
(e) “substantially performed” has the same meaning as in section 44 of FA 2003.
Your change, as a redline
123 Contract and conveyance: the vendor
(1) This section applies where a person (“V”) enters into a contract under which—
(a) V is to dispose of a relevant chargeable interest, and
(b) the disposal is to be completed by a conveyance.
(2) V is not regarded as disposing of a chargeable interest by reason of entering into the contract.
(3) If the contract is substantially performed without having been completed, this Part has effect as if the substantial performance of the contract were the completion of the disposal provided for by the contract.
(4) Accordingly, where subsection (3) applies and the contract is subsequently completed by a conveyance, that completion is not treated for the purposes of section 102 as effecting the disposal of a chargeable interest.
(5) Where subsection (3) applies and—
(a) the contract is afterwards rescinded or annulled, or
(b) performance of the contract is for any other reason terminated before the contract has been carried fully into effect,
this Part has effect as if V had at the relevant time re-acquired the chargeable interest referred to in subsection (1)(a).
(6) In subsection (5) “the relevant time” means—
(a) the time when the rescission or annulment takes effect, or
(b) (as the case requires) the time when performance of the contract ceases.
(7) Where subsection (3) applies and the contract is afterwards varied (or partially rescinded) so that the chargeable interest to be disposed of under the contract is not the same as the chargeable interest to which the contract originally related, this Part (including subsection (3)) has effect as if the variation of the contract effected—
(a) the re-acquisition by V of the chargeable interest referred to in subsection (1)(a), and
(b) the substantial performance of the contract, as varied.
(8) If the parties to the contract proceed as if they had varied the contract in the way mentioned in subsection (7) (without actually doing so), subsection (7) applies as if they had actually made the corresponding variation in the terms of the contract.
(9) In this section—
(a) references to completion are to the completion of the disposal proposed, between the same parties, in substantial conformity with the contract;
(b) “contract” includes any agreement;
(c) “conveyance” includes any instrument;
(d) “relevant chargeable interest” means a chargeable interest in or over land that consists of or includes a dwelling;
(e) “substantially performed” has the same meaning as in section 44 of FA 2003.
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