Finance Act 2003

Amount of tax chargeableU.K.

55Amount of tax chargeable: generalU.K.

(1)The amount of tax chargeable in respect of a chargeable transaction [F1to which this section applies] is [F2determined in accordance with subsections (1B) [F3and (1C)]].

[F4(1A)This section applies to any chargeable transaction other than a transaction to which paragraph 3 of Schedule 4A or step 4 of section 74(1A) (higher rate for certain transactions) applies.]

[F5(1B)If F6... the transaction is not one of a number of linked transactions, the amount of tax chargeable is determined as follows—

• Step 1 Apply the rates specified in the second column of [F7the appropriate table] below to the parts of the relevant consideration specified in the first column of [F8the appropriate table].

  [F9“The “appropriate table” is—

  (a) Table A, if the relevant land consists entirely of residential property, and

  (b) Table B, if the relevant land consists of or includes land that is not residential property.]

• Step 2 Add together the amounts calculated at Step 1 (if there are two or more such amounts).

  TABLE A: RESIDENTIAL

  Part of relevant consideration	Rate
  So much as does not exceed £125,000	0%
  So much as exceeds £125,000 but does not exceed £250,000	2%
  So much as exceeds £250,000 but does not exceed £925,000	5%
  So much as exceeds £925,000 but does not exceed £1,500,000	10%
  The remainder (if any)	12%

  [F10Table B: Non-residential or mixed

  Relevant consideration	Percentage
  So much as does not exceed £150,000	0%
  So much as exceeds £150,000 but does not exceed £250,000	2%
  The remainder (if any)	5%]

(1C)If F11... the transaction is one of a number of linked transactions, the amount of tax chargeable in respect of the particular transaction under consideration is determined as follows—

• Step 1 Apply the rates specified in the second column of [F12the appropriate table] in subsection (1B) to the parts of the relevant consideration specified in the first column of [F13the appropriate table].

  [F14“The “appropriate table” is—

  (a) Table A, if the relevant land consists entirely of residential property, and

  (b) Table B, if the relevant land consists of or includes land that is not residential property.]

• Step 2 Add together the amounts calculated at Step 1 (if there are two or more such amounts).

• Step 3 Multiply the amount given by Step 1 or Step 2, as the case may be, by—

  

  where—

  C is the chargeable consideration for the transaction, and

  R is the relevant consideration.]

F15(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)For the purposes of [F16subsection (1B)] —

(a)the relevant land is the land an interest in which is the main subject-matter of the transaction, and

(b)the relevant consideration is the chargeable consideration for the transaction

F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)[F18For the purposes of] [F19subsection (1C)] —

(a)the relevant land is any land an interest in which is the main subject-matter of any of [F20the linked] transactions, and

(b)the relevant consideration is the total of the chargeable consideration for all those transactions.

[F21(4A)Schedule 4ZA (higher rates for additional dwellings and dwellings purchased by companies) modifies this section as it applies for the purpose of determining the amount of tax chargeable in respect of certain transactions involving major interests in dwellings.]

(5)This section has effect subject to—

• section [F2274(1B)] ([F23exercise of collective rights by tenants of flats]), F24...

• F24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(which [F25provides] for the [F26amount] of tax to be determined by reference to a fraction of the relevant consideration).

(6)In the case of a transaction for which the whole or part of the chargeable consideration is rent this section has effect subject to section 56 and Schedule 5 (amount of tax chargeable: rent).

F27(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F2855AAmount of tax chargeable: higher rate for certain transactionsU.K.

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

56Amount of tax chargeable: rentU.K.

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