43A Groups: eligibility.

1

Two or more bodies corporate are eligible to be treated as members of a group if each is established or has a fixed establishment in the United Kingdom and—

a

one of them controls each of the others,

b

one person (whether a body corporate or an individual) controls all of them, or

c

two or more individuals carrying on a business in partnership control all of them.

2

For the purposes of this section a body corporate shall be taken to control another body corporate if it is empowered by statute to control that body’s activities or if it is that body’s holding company within the meaning of section 736 of the M5Companies Act 1985.

3

For the purposes of this section an individual or individuals shall be taken to control a body corporate if he or they, were he or they a company, would be that body’s holding company within the meaning of that section.

43B Groups: applications.

1

This section applies where an application is made to the Commissioners for two or more bodies corporate, which are eligible under section 43A(1), to be treated as members of a group.

2

This section also applies where two or more bodies corporate are treated as members of a group and an application is made to the Commissioners—

a

for another body corporate, which is eligible under section 43A(1) to be treated as a member of the group, to be treated as a member of the group,

b

for a body corporate to cease to be treated as a member of the group,

c

for a member to be substituted as the group’s representative member, or

d

for the bodies corporate no longer to be treated as members of a group.

3

An application with respect to any bodies corporate—

a

must be made by one of them or by the person controlling them, and

b

in the case of an application for the bodies to be treated as a group, must appoint one of them as the representative member.

4

Where this section applies in relation to an application it shall, subject to subsection (6) below, be taken to be granted with effect from—

a

the day on which the application is received by the Commissioners, or

b

such earlier or later time as the Commissioners may allow.

5

The Commissioners may refuse an application, within the period of 90 days starting with the day on which it was received by them, if it appears to them—

a

in the case of an application such as is mentioned in subsection (1) above, that the bodies corporate are not eligible under section 43A(1) to be treated as members of a group,

b

in the case of an application such as is mentioned in subsection (2)(a) above, that the body corporate is not eligible under section 43A(1) to be treated as a member of the group, or

c

in any case, that refusal of the application is necessary for the protection of the revenue.

6

If the Commissioners refuse an application it shall be taken never to have been granted.

43C Groups: termination of membership.

1

The Commissioners may, by notice given to a body corporate, terminate its treatment as a member of a group from a date—

a

which is specified in the notice, and

b

which is, or falls after, the date on which the notice is given.

2

The Commissioners may give a notice under subsection (1) above only if it appears to them to be necessary for the protection of the revenue.

3

Where—

a

a body is treated as a member of a group, and

b

it appears to the Commissioners that the body is not, or is no longer, eligible under section 43A(1) to be treated as a member of the group,

the Commissioners shall, by notice given to the body, terminate its treatment as a member of the group from a date specified in the notice.

4

The date specified in a notice under subsection (3) above may be earlier than the date on which the notice is given but shall not be earlier than—

a

the first date on which, in the opinion of the Commissioners, the body was not eligible to be treated as a member of the group, or

b

the date on which, in the opinion of the Commissioners, the body ceased to be eligible to be treated as a member of the group.

k

the refusal of an application such as is mentioned in section 43B(1) or (2);

ka

the giving of a notice under section 43C(1) or (3);

4A

Where an appeal is brought against the refusal of an application such as is mentioned in section 43B(1) or (2) on the grounds stated in section 43B(5)(c)—

a

the tribunal shall not allow the appeal unless it considers that the Commissioners could not reasonably have been satisfied that there were grounds for refusing the application,

b

the refusal shall have effect pending the determination of the appeal, and

c

if the appeal is allowed, the refusal shall be deemed not to have occurred.

4B

Where an appeal is brought against the giving of a notice under section 43C(1) or (3)—

a

the notice shall have effect pending the determination of the appeal, and

b

if the appeal is allowed, the notice shall be deemed never to have had effect.

4C

Where an appeal is brought against the giving of a notice under section 43C(1), the tribunal shall not allow the appeal unless it considers that the Commissioners could not reasonably have been satisfied that there were grounds for giving the notice.

4D

Where—

a

an appeal is brought against the giving of a notice under section 43C(3), and

b

the grounds of appeal relate wholly or partly to the date specified in the notice,

the tribunal shall not allow the appeal in respect of the date unless it considers that the Commissioners could not reasonably have been satisfied that it was appropriate.

1A

In subsection (1) above “the applicable percentage” means the percentage which is the basic rate for the year of assessment in which the payment has become or becomes due.

12 Adjudication by Commissioners.

1

Subject to such regulations as the Commissioners may think fit to make, the Commissioners may be required by any person to adjudicate with reference to any executed instrument upon the questions—

a

whether it is chargeable with duty;

b

with what amount of duty it is chargeable;

c

whether any penalty is payable under section 15B (penalty on late stamping);

d

what penalty is in their opinion correct and appropriate.

2

The Commissioners may require to be furnished with an abstract of the instrument and with such evidence as they may require as to the facts and circumstances relevant to those questions.

3

The Commissioners shall give notice of their decision upon those questions to the person by whom the adjudication was required.

4

If the Commissioners decide that the instrument is not chargeable with any duty, it may be stamped with a particular stamp denoting that it has been the subject of adjudication and is not chargeable with any duty.

5

If the Commissioners decide that the instrument is chargeable with duty and assess the amount of duty chargeable, the instrument when stamped in accordance with their decision may be stamped with a particular stamp denoting that it has been the subject of adjudication and is duly stamped.

6

Every instrument stamped in accordance with subsection (4) or (5) shall be admissible in evidence and available for all purposes notwithstanding any objection relating to duty.

12A Adjudication: supplementary provisions.

1

An instrument which has been the subject of adjudication by the Commissioners under section 12 shall not, if it is unstamped or insufficiently stamped, be stamped otherwise than in accordance with the Commissioners’ decision on the adjudication.

2

If without reasonable excuse any such instrument is not duly stamped within 30 days after the date on which the Commissioners gave notice of their decision, or such longer period as the Commissioners may allow, the person by whom the adjudication was required is liable to a penalty not exceeding £300.

3

A statutory declaration made for the purposes of section 12 shall not be used against the person making it in any proceedings whatever, except in an inquiry as to the duty with which the instrument to which it relates is chargeable or as to the penalty payable on stamping that instrument.

4

Every person by whom any such declaration is made shall, on payment of the duty chargeable upon the instrument to which it relates, and any interest or penalty payable on stamping, be relieved from any penalty to which he may be liable by reason of the omission to state truly in the instrument any fact or circumstance required by this Act to be so stated.

13 Appeal against Commissioners’ decision on adjudication.

1

A person who is dissatisfied with a decision of the Commissioners on an adjudication under section 12 may appeal against it.

2

The appeal must be brought within 30 days of notice of the decision on the adjudication being given under section 12(3).

3

An appeal may only be brought on payment of—

a

duty and any penalty in conformity with the Commissioners’ decision, and

b

any interest that in conformity with that decision would be payable on stamping the instrument on the day on which the appeal is brought.

4

An appeal which relates only to the penalty payable on late stamping may be brought to the Special Commissioners in accordance with section 13A below.

5

Any other appeal may be brought in accordance with section 13B below to the High Court of the part of the United Kingdom in which the case has arisen.

13A Appeal to the Special Commissioners.

1

The following provisions apply in relation to an appeal under section 13(4).

2

Notice of appeal must be given in writing to the Commissioners, specifying the grounds of appeal.

3

On the hearing of the appeal the Special Commissioners may allow the appellant to put forward a ground not specified in the notice of appeal, and take it into consideration, if satisfied that the omission was not wilful or unreasonable.

4

The powers conferred by sections 46A(1)(c) and (2) to (4) and sections 56B to 56D of the Taxes Management Act 1970 (power of Lord Chancellor to make regulations as to jurisdiction, practice and procedure in relation to appeals) are exercisable in relation to appeals to which this section applies.

5

On the appeal the Special Commissioners may—

a

if it appears to them that no penalty should be paid, set the decision aside;

b

if the amount determined appears to them to be appropriate, confirm the decision;

c

if the amount determined appears to them to be excessive, reduce it to such other amount (including nil) as they consider appropriate;

d

if the amount determined appears to them to be insufficient, increase it to such amount as they consider appropriate.

6

Section 56A of the Taxes Management Act 1970 (general right of appeal on point of law) applies in relation to a decision of the Special Commissioners under this section.

7

Without prejudice to that right of appeal, an appeal lies against the amount of a penalty determined by the Special Commissioners under this section, at the instance of the person liable to the penalty, to the High Court.

8

On an appeal under subsection (7) the court has the same powers as are conferred on the Special Commissioners by subsection (5) above.

13B Appeal to the High Court.

1

The following provisions apply in relation to an appeal under section 13(5).

2

The appellant may for the purposes of the appeal require the Commissioners to state and sign a case setting out the questions upon which they were required to adjudicate and their decision upon them.

3

The Commissioners shall thereupon state and sign a case and deliver the same to the person by whom it is required, and the case may, within 30 days thereafter, be set down by him for hearing.

4

On the appeal the court shall determine the questions submitted and may give such directions as it thinks fit with respect to the repayment of any duty or penalty paid in conformity with the Commissioners’ decision.

240 Time for presenting agreement for lease.

1

This section applies if there are presented for stamping at the same time in pursuance of Schedule 13 to the Finance Act 1999—

a

an agreement for a lease, and

b

the lease which gives effect to the agreement,

and the duty (if any) chargeable on the agreement is paid.

2

Section 15A of that Act (interest payable on late stamping) applies in relation to the agreement as if the reference to the day on which the instrument was executed were to the day on which the lease was executed.

3

For the purposes of section 15B of that Act (penalty on late stamping) the agreement is treated—

a

as if it had been executed at the same time and place as the lease, and

b

where the lease was executed outside the United Kingdom, as if it had been first received in the United Kingdom at the same time as the lease.

4

For the purposes of this section a lease gives effect to an agreement if the lease is granted subsequent to the agreement and either is in conformity with the agreement or relates to substantially the same property and term as the agreement.

5

References in this section to an agreement for a lease include missives of let in Scotland.

240A Requirements before lease treated as duly stamped.

1

A lease shall not be treated as duly stamped unless—

a

it contains a certificate that there is no agreement to which it gives effect, or

b

it is stamped with a stamp denoting—

i

that there is an agreement to which it gives effect which is not chargeable with duty, or

ii

the duty paid on the agreement to which it gives effect.

2

For the purposes of this section a lease gives effect to an agreement if the lease is granted subsequent to the agreement and either is in conformity with the agreement or relates to substantially the same property and term as the agreement.

3

References in this section to a lease do not include, and references in this section to an agreement do include, missives of let in Scotland.

8

Where stamp duty is chargeable under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) on an instrument which transfers loan capital, the rate at which duty is charged under that Part shall be 0.5% of the amount or value of the consideration for the sale to which the instrument gives effect.

1

Where apart from this section stamp duty under any of the provisions of Schedule 13 to the Finance Act 1999 would be chargeable on an instrument, stamp duty shall not be so chargeable if the property consists entirely of exempt property.

1

For the purposes of paragraph 6(1) of Schedule 13 to the Finance Act 1999 (meaning of instrument being certified at an amount)—

a

a sale or contract or agreement for the sale of exempt property within the meaning of section 110 above shall be disregarded; and

b

any statement as mentioned in that provision shall be construed as leaving out of account any matter which is to be so disregarded.

4

In this section—

a

“stock” includes securities;

b

references to stock include any interest in, or in any fraction of, stock or in any dividends or other rights arising out of stock and any right to an allotment of or to subscribe for stock; and

c

“transfer” includes any instrument used for transferring stock.

4A

Nothing in this section applies to—

a

an instrument which is chargeable with duty at the rate specified in paragraph 5 of Schedule 15 to the Finance Act 1999 (certain bearer instruments issued by or on behalf of non-UK companies) and is duly stamped, or

b

renounceable letters of allotment, letters of rights or other similar instruments where the rights under the letter or other instrument are renounceable not later than six months after its issue.