Finance Act 2003

Part 4U.K.Stamp duty land tax

IntroductionU.K.

42The taxU.K.

(1)A tax (to be known as “stamp duty land tax”) shall be charged in accordance with this Part on land transactions.

(2)The tax is chargeable—

(a)whether or not there is any instrument effecting the transaction,

(b)if there is such an instrument, whether or not it is executed in the United Kingdom, and

(c)whether or not any party to the transaction is present, or resident, in the United Kingdom.

(3)The tax is under the care and management of the Commissioners of Inland Revenue (referred to in this Part as “the Board”).

Land transactionsU.K.

43Land transactionsU.K.

(1)In this Part a “land transaction” means any acquisition of a chargeable interest. As to the meaning of “chargeable interest” see section 48.

(2)Except as otherwise provided, this Part applies however the acquisition is effected, whether by act of the parties, by order of a court or other authority, by or under any statutory provision or by operation of law.

(3)For the purposes of this Part—

(a)the creation of a chargeable interest is—

(i)an acquisition by the person becoming entitled to the interest created, and

(ii)a disposal by the person whose interest or right is subject to the interest created;

(b)the surrender or release of a chargeable interest is—

(i)an acquisition of that interest by any person whose interest or right is benefitted or enlarged by the transaction, and

(ii)a disposal by the person ceasing to be entitled to that interest; F1...

(c)the variation of a chargeable interest [F2(other than a lease)] is—

(i)an acquisition of a chargeable interest [F2(other than a lease)] by the person benefitting from the variation, and

(ii)a disposal of a chargeable interest [F2(other than a lease)] by the person whose interest is subject to or limited by the variation.

[F3(d)the variation of a lease is an acquisition and disposal of a chargeable interest only where

[F4(i)] it takes effect, or is treated for the purposes of this Part, as the grant of a new lease[F5, or

(ii)paragraph 15A of Schedule 17A (reduction of rent or term) applies.]]

(4)References in this Part to the “purchaser” and “vendor”, in relation to a land transaction, are to the person acquiring and the person disposing of the subject-matter of the transaction.

These expressions apply even if there is no consideration given for the transaction.

(5)A person is not treated as a purchaser unless he has given consideration for, or is a party to, the transaction.

(6)References in this Part to the subject-matter of a land transaction are to the chargeable interest acquired (the “main subject-matter”), together with any interest or right appurtenant or pertaining to it that is acquired with it.

44Contract and conveyanceU.K.

(1)This section applies where a contract for a land transaction is entered into under which the transaction is to be completed by a conveyance.

(2)A person is not regarded as entering into a land transaction by reason of entering into the contract, but the following provisions have effect.

(3)If the transaction is completed without previously having been substantially performed, the contract and the transaction effected on completion are treated as parts of a single land transaction. In this case the effective date of the transaction is the date of completion.

(4)If the contract is substantially performed without having been completed, the contract is treated as if it were itself the transaction provided for in the contract.

In this case the effective date of the transaction is when the contract is substantially performed.

(5)A contract is “substantially performed” when—

(a)the purchaser[F6, or a person connected with the purchaser,] takes possession of the whole, or substantially the whole, of the subject-matter of the contract, or

(b)a substantial amount of the consideration is paid or provided.

(6)For the purposes of subsection (5)(a)—

[F7(a)possession includes receipt of rents and profits or the right to receive them, and]

(b)it is immaterial whether [F8possession is taken] under the contract or under a licence or lease of a temporary character.

(7)For the purposes of subsection (5)(b) a substantial amount of the consideration is paid or provided—

(a)if none of the consideration is rent, where the whole or substantially the whole of the consideration is paid or provided;

(b)if the only consideration is rent, when the first payment of rent is made;

(c)if the consideration includes both rent and other consideration, when—

(i)the whole or substantially the whole of the consideration other than rent is paid or provided, or

(ii)the first payment of rent is made.

(8)Where subsection (4) applies and the contract is subsequently completed by a conveyance—

(a)both the contract and the transaction effected on completion are notifiable transactions, and

(b)tax is chargeable on the latter transaction to the extent (if any) that the amount of tax chargeable on it is greater than the amount of tax chargeable on the contract.

(9)Where subsection (4) applies and the contract is (to any extent) afterwards rescinded or annulled, or is for any other reason not carried into effect, the tax paid by virtue of that subsection shall (to that extent) be repaid by the Inland Revenue.

Repayment must be claimed by amendment of the land transaction return made in respect of the contract.

[F9(9A)Where—

(a)paragraph 12A of Schedule 17A applies (agreement for lease), or

F10(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

it applies in place of subsections (4), (8) and (9).]

(10)In this section—

(a)references to completion are to completion of the land transaction proposed, between the same parties, in substantial conformity with the contract; and

(b)“contract” includes any agreement and “conveyance” includes any instrument.

[F11(11)[F12Section 1122 of the Corporation Tax Act 2010] (connected persons) has effect for the purposes of this section.]

[F1344AContract providing for conveyance to third partyU.K.

(1)This section applies where a contract is entered into under which a chargeable interest is to be conveyed by one party to the contract (A) at the direction or request of the other (B)—

(a)to a person (C) who is not a party to the contract, or

(b)either to such a person or to B.

(2)B is not regarded as entering into a land transaction by reason of entering into the contract, but the following provisions have effect.

(3)If the contract is substantially performed B is treated for the purposes of this Part as acquiring a chargeable interest, and accordingly as entering into a land transaction.

The effective date of the transaction is when the contract is substantially performed.

(4)Where the contract is (to any extent) afterwards rescinded or annulled, or is for any other reason not carried into effect, the tax paid by virtue of subsection (3) shall (to that extent) be repaid by the Inland Revenue.

Repayment must be claimed by amendment of the land transaction return made in respect of the contract.

(5)Subject to subsection (6), section 44 (contract and conveyance) does not apply (except so far as it defines “substantial performance”) in relation to the contract.

(6)Where—

(a)this section applies by virtue of subsection (1)(b), and

(b)by reason of B’s direction or request, A becomes obliged to convey a chargeable interest to B,

section 44 applies to that obligation as it applies to a contract for a land transaction that is to be completed by a conveyance.

(7)Section 44 applies in relation to any contract between B and C, in respect of the chargeable interest referred to in subsection (1) above, that is to be completed by a conveyance.

References to completion in that section, as it so applies, include references to conveyance by A to C of the subject matter of the contract between B and C.

(8)In this section “contract” includes any agreement and “conveyance” includes any instrument.]

[F1445Transactions entered into before completion of contractU.K.

Schedule 2A contains—

(a)provision about the application of section 44 (contract and conveyance) in certain cases where an assignment of rights, subsale or other transaction is entered into without the contract having been completed, and

(b)other provision about such cases.]

[F1545AContract providing for conveyance to third party: effect of transfer of rightsU.K.

(1)This section applies where—

(a)a contract (“the original contract”) is entered into under which a chargeable interest is to be conveyed by one party to the contract (A) at the direction or request of the other (B)—

(i)to a person (C) who is not a party to the contract, or

(ii)either to such a person or to B,

and

(b)there is an assignment or other transaction (relating to the whole or part of the subject-matter of the original contract) as a result of which a person (D) becomes entitled to exercise any of B’s rights under the original contract in place of B.

References in the following provisions of this section to a transfer of rights are to any such assignment or other transaction.

(2)D is not regarded as entering into a land transaction by reason of the transfer of rights, but section 44A (contract providing for conveyance to third party) has effect in accordance with the following provisions of this section.

(3)That section applies as if—

(a)D had entered into a contract (a “secondary contract”) in the same terms as the original contract except with D as a party instead of B, and

(b)the consideration due from D under the secondary contract were—

(i)so much of the consideration under the original contract as is referable to the subject-matter of the transfer of rights and is to be given (directly or indirectly) by D or a person connected with him, and

(ii)the consideration given for the transfer of rights.

(4)The substantial performance of the original contract shall be disregarded if—

(a)it occurs at the same time as, and in connection with, the substantial performance of the secondary contract, or

(b)it occurs after the transfer of rights.

(5)Where there are successive transfers of rights, subsection (3) has effect in relation to each of them.

(6)The substantial performance of the secondary contract arising from an earlier transfer of rights shall be disregarded if—

(a)it occurs at the same time as, and in connection with, the substantial performance of the secondary contract arising from a subsequent transfer of rights, or

(b)it occurs after that subsequent transfer.

(7)Where a transfer of rights relates to only part of the subject matter of the original contract, or to only some of the rights under that contract—

(a)a reference in subsection (3)(a) or (4) to the original contract, or a reference in subsection (6) to the secondary contract arising from an earlier transfer, is to that contract so far as relating to that part or those rights, and

(b)that contract so far as not relating to that part or those rights shall be treated as a separate contract.

(8)The effective date of a land transaction treated as entered into by virtue of subsection (3) is not earlier than the date of the transfer of rights.

(9)In relation to a such a transaction—

(a)references in Schedule 7 (group relief) to the vendor shall be read as references to A;

(b)other references in this Part to the vendor shall be read, where the context permits, as referring to either A or B.

(10)[F16Section 1122 of the Corporation Tax Act 2010] (connected persons) applies for the purposes of subsection (3)(b).

(11)In this section “contract” includes any agreement.]

46Options and rights of pre-emptionU.K.

(1)The acquisition of—

(a)an option binding the grantor to enter into a land transaction, or

(b)a right of pre-emption preventing the grantor from entering into, or restricting the right of the grantor to enter into, a land transaction,

is a land transaction distinct from any land transaction resulting from the exercise of the option or right.

They may be “linked transactions” (see section 108).

(2)The reference in subsection (1)(a) to an option binding the grantor to enter into a land transaction includes an option requiring the grantor either to enter into a land transaction or to discharge his obligations under the option in some other way.

(3)The effective date of the transaction in the case of the acquisition of an option or right such as is mentioned in subsection (1) is when the option or right is acquired (as opposed to when it becomes exercisable).

(4)Nothing in this section applies to so much of an option or right of pre-emption as constitutes or forms part of a land transaction apart from this section.

47ExchangesU.K.

(1)Where a land transaction is entered into by the purchaser (alone or jointly) wholly or partly in consideration of another land transaction being entered into by him (alone or jointly) as vendor, this Part applies in relation to each transaction as if each were distinct and separate from the other [F17(and they are not linked transactions within the meaning of section 108)].

(2)A transaction is treated for the purposes of this Part as entered into by the purchaser wholly or partly in consideration of another land transaction being entered into by him as vendor in any case where an obligation to give consideration for a land transaction that a person enters into as purchaser is met wholly or partly by way of that person entering into another transaction as vendor.

(3)As to the amount of the chargeable consideration in the case of exchanges and similar transactions, see—

• paragraphs 5 and 6 of Schedule 4 (exchanges, partition etc),F18...

• [F19paragraph 17 of that Schedule (arrangements involving public or educational bodies), and]

• F18...

Chargeable interests, chargeable transactions and chargeable considerationU.K.

48Chargeable interestsU.K.

(1)In this Part “chargeable interest” means—

(a)an estate, interest, right or power in or over land in [F20England [F21and Wales] or Northern Ireland] , or

(b)the benefit of an obligation, restriction or condition affecting the value of any such estate, interest, right or power,

other than an exempt interest.

[F22(1A)See section 48A regarding land which is partly in England and partly in Wales.]

(2)The following are exempt interests—

(a)any security interest;

(b)a licence to use or occupy land;

(c)F23...—

(i)a tenancy at will;

(ii)an advowson, franchise or manor.

(3)In subsection (2)—

(a)“security interest” means an interest or right (other than a rentcharge) held for the purpose of securing the payment of money or the performance of any other obligation; and

(b)“franchise” means a grant from the Crown such as the right to hold a market or fair, or the right to take tolls.

[F24(3A)Section 73B makes additional provision about exempt interests in relation to alternative finance arrangements.]

F25(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)The Treasury may by regulations provide that any other description of interest or right in relation to land in [F26England [F27and Wales] or Northern Ireland] is an exempt interest.

(6)The regulations may contain such supplementary, incidental and transitional provision as appears to the Treasury to be appropriate.

[F28(7)This section has effect subject to subsection (3) of section 44A (contract and conveyance to third party) [F29and to paragraph 15A of Schedule 17A (reduction of rent or term of lease)].]

[F3048AInterests, transactions and consideration where land in England and WalesU.K.

(1)This section sets out how this Part applies to a transaction which is the acquisition of—

(a)an estate, interest, right or power in or over land, or

(b)the benefit of an obligation, restriction or condition affecting the value of any such estate, interest, right or power,

where the land is partly in England and partly in Wales.

(2)The transaction is to be treated as if it were two transactions, one relating to the land in England (“the English transaction”) and the other relating to the land in Wales.

(3)The consideration for the transaction is to be apportioned between those two transactions on a just and reasonable basis.

(4)Accordingly, the English transaction is to be treated as a land transaction within the meaning of this Part (being the acquisition of a chargeable interest relating to the land in England).

(5)But subsection (4) does not apply in the case of an exempt interest.]

49Chargeable transactionsU.K.

(1)A land transaction is a chargeable transaction if it is not a transaction that is exempt from charge.

(2)Schedule 3 provides for certain transactions to be exempt from charge.

Other transactions are exempt from charge under other provisions of this Part.

50Chargeable considerationU.K.

(1)Schedule 4 makes provision as to the chargeable consideration for a transaction.

(2)The Treasury may by regulations amend or repeal the provisions of this Part relating to chargeable consideration and make such other provision as appears to them appropriate with respect to—

(a)what is to count as chargeable consideration, or

(b)the determination of the amount of chargeable consideration.

(3)The regulations may make different provision in relation to different descriptions of transaction or consideration and different circumstances.

51Contingent, uncertain or unascertained considerationU.K.

(1)Where the whole or part of the chargeable consideration for a transaction is contingent, the amount or value of the consideration shall be determined for the purposes of this Part on the assumption that the outcome of the contingency will be such that the consideration is payable or, as the case may be, does not cease to be payable.

(2)Where the whole or part of the chargeable consideration for a transaction is uncertain or unascertained, its amount or value shall be determined for the purposes of this Part on the basis of a reasonable estimate.

(3)In this Part—

• “contingent”, in relation to consideration, means—

  (a)

  that it is to be paid or provided only if some uncertain future event occurs, or

  (b)

  that it is to cease to be paid or provided if some uncertain future event occurs; and

• “uncertain”, in relation to consideration, means that its amount or value depends on uncertain future events.

(4)This section has effect subject to—

• section 80 (adjustment where contingency ceases or consideration is ascertained), and

• section 90 (application to defer payment in case of contingent or uncertain consideration).

[F31(5)This section applies in relation to chargeable consideration consisting of rent only to the extent that it is applied by paragraph 7 of Schedule 17A.]

52Annuities etc: chargeable consideration limited to twelve years' paymentsU.K.

(1)This section applies to so much of the chargeable consideration for a land transaction as consists of an annuity payable—

(a)for life, or

(b)in perpetuity, or

(c)for an indefinite period, or

(d)for a definite period exceeding twelve years.

(2)For the purposes of this Part the consideration to be taken into account is limited to twelve years' annual payments.

(3)Where the amount payable varies, or may vary, from year to year, the twelve highest annual payments shall be taken.

No account shall be taken for the purposes of this Schedule of any provision for adjustment of the amount payable in line with the retail price index.

(4)References in this section to annual payments are to payments in respect of each successive period of twelve months beginning with the effective date of the transaction.

(5)For the purposes of this section the amount or value of any payment shall be determined (if necessary) in accordance with section 51 (contingent, uncertain or unascertained consideration).

(6)References in this section to an annuity include any consideration (other than rent) that falls to be paid or provided periodically. References to payment shall be read accordingly.

(7)Where this section applies—

(a)section 80 (adjustment where contingency ceases or consideration is ascertained) does not apply, and

(b)no application may be made under section 90 (application to defer payment in case of contingent or uncertain consideration).

53Deemed market value where transaction involves connected companyU.K.

[F32(1)This section applies where the purchaser is a company and—

(a)the vendor is connected with the purchaser, or

(b)some or all of the consideration for the transaction consists of the issue or transfer of shares in a company with which the vendor is connected.

(1A)The chargeable consideration for the transaction shall be taken to be not less than—

(a)the market value of the subject-matter of the transaction as at the effective date of the transaction, and

(b)if the acquisition is the grant of a lease at a rent, that rent.]

(2)[F33Section 1122 of the Corporation Tax Act 2010] (connected persons) has effect for the purposes of this section.

(3)In this section—

• “company” means any body corporate;

• “shares” includes stock and the reference to shares in a company includes a reference to securities issued by a company.

(4)Where this section applies paragraph 1 of Schedule 3 (exemption of transactions for which there is no chargeable consideration) does not apply.

But this section has effect subject to any other provision affording exemption or relief from stamp duty land tax.

(5)This section is subject to the exceptions provided for in section 54.

54Exceptions from deemed market value ruleU.K.

(1)Section 53 (chargeable consideration: transaction with connected company) does not apply in the following cases.

In the following provisions “the company” means the company that is the purchaser in relation to the transaction in question.

(2)Case 1 is where immediately after the transaction the company holds the property as trustee in the course of a business carried on by it that consists of or includes the management of trusts.

(3)Case 2 is where—

(a)immediately after the transaction the company holds the property as trustee, and

(b)the vendor is connected with the company only because of [F34section 1122(6) of the Corporation Tax Act 2010].

(4)Case 3 is where—

(a)the vendor is a company and the transaction is, or is part of, a distribution of the assets of that company (whether or not in connection with its winding up), and

(b)it is not the case that—

(i)the subject-matter of the transaction, or

(ii)an interest from which that interest is derived,

has, within the period of three years immediately preceding the effective date of the transaction, been the subject of a transaction in respect of which group relief was claimed by the vendor.

Amount of tax chargeableU.K.

55Amount of tax chargeable: generalU.K.

(1)The amount of tax chargeable in respect of a chargeable transaction [F35to which this section applies] is [F36determined in accordance with subsections (1B), (1C) and (2)].

[F37(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.]

[F38(1B)If the relevant land consists entirely of residential property and 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 Table A below to the parts of the relevant consideration specified in the first column of that Table.

• 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%

(1C)If the relevant land consists entirely of residential property and 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 Table A in subsection (1B) to the parts of the relevant consideration specified in the first column of that Table.

• 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.]

(2)[F39If the relevant land consists of or includes land that is not residential property, the amount of tax chargeable is the percentage of the chargeable consideration for the transaction determined in accordance with Table B below by reference to the amount of the relevant consideration.]

(3)For the purposes of [F40subsections (1B) and (2)] —

(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,

subject as follows.

(4)[F41For the purposes of subsections (1C) and (2),] If the transaction in question is one of a number of linked transactions—

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

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

(5)This section has effect subject to—

• section [F4274(2) and (3)] ([F43exercise of collective rights by tenants of flats]), F44...

• F44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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).

F46(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4755AAmount 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.

ReliefsU.K.

F4857Disadvantaged areas reliefU.K.

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

[F4957ASale and leaseback arrangementsU.K.

(1)The leaseback element of a sale and leaseback arrangement is exempt from charge if the qualifying conditions specified below are met.

(2)A “sale and leaseback”arrangement means an arrangement under which—

(a)A transfers or grants to B a major interest in land (the “sale”), and

(b)out of that interest B grants a lease to A (the “leaseback”).

(3)The qualifying conditions are—

(a)that the sale transaction is entered into wholly or partly in consideration of the leaseback transaction being entered into,

[F50(aa)that the sale transaction is entered into wholly or partly in consideration of the leaseback transaction being entered into,

(b)that the only other consideration (if any) for the sale is the payment of money or the assumption, satisfaction or release of a debt (or both),]

(c)that the sale is not a transfer of rights within the meaning of F51... 45A (contract providing for conveyance to third party: effect of transfer of rights) [F52or a pre-completion transaction within the meaning of Schedule 2A (transactions entered into before completion of contract)], and

(d)where A and B are both bodies corporate at the effective date of the leaseback transaction, that they are not members of the same group for the purposes of group relief (see paragraph 1 of Schedule 7) at that date.

[F53(e)where A and B are both bodies corporate at the effective date of the leaseback transaction, that they are not members of the same group for the purposes of group relief (see paragraph 1 of Schedule 7) at that date.]

F54(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

[F5557AAFirst-time buyersU.K.

(1)A land transaction is exempt from charge under section 55 if—

(a)it is a relevant acquisition of a major interest in land,

(b)the land consists entirely of residential property,

(c)the relevant consideration (see section 55) for the transaction (other than any consisting of rent) is more than £125,000 but not more than £250,000,

(d)the purchaser, or (if more than one) each of the purchasers, is a first-time buyer who intends to occupy the residential property as the purchaser’s only or main residence, and

(e)(subject to subsection (4)) the transaction is not one of a number of linked transactions.

(2)In this section “first-time buyer” means a person who—

(a)has not previously been a purchaser in relation to a relevant acquisition of a major interest in land which consisted of or included residential property,

(b)has not previously acquired an equivalent interest in such land under the law of [F56Scotland or] a territory outside the United Kingdom,

(c)has not previously been, or been one of the persons who was, “the person” for the purposes of section 71A, F57... or 73 in a case where the first transaction within the meaning of the section concerned was a relevant acquisition of a major interest in land which consisted of or included residential property, and

(d)would not have been such a person for those purposes in such a case if the provisions mentioned in paragraph (c) had been in force, and had had effect in the territory concerned, at all material times (subject, where required, to appropriate modifications).

(3)In this section “relevant acquisition of a major interest in land” means an acquisition of a major interest in land other than—

(a)the grant of a lease for a term of less than 21 years, or

(b)the assignment of a lease which has less than 21 years to run.

(4)Subsection (1)(e) does not prevent a transaction being exempt from charge under section 55 if each of the linked transactions is one the subject-matter of which is land, or an interest in or right over land, which falls within section 116(1)(a), (b) or (c) by reason of its connection with the same building.]

[F5858ARelief for certain acquisitions of residential propertyU.K.

Schedule 6A provides for relief in the case of certain acquisitions of residential property.]

[F5958BRelief for new zero-carbon homesU.K.

(1)The Treasury may make regulations granting relief on the first acquisition of a dwelling which is a “zero-carbon home”.

[F60(2)For the purposes of this section—

(a)a building, or a part of a building, is a dwelling if it is constructed for use as a single dwelling, and

(b)“first acquisition”, in relation to a dwelling, means its acquisition when it has not previously been occupied.]

(3)For the purpose of subsection (2) land occupied or enjoyed with a dwelling as a garden or grounds is part of the dwelling.

(4)The regulations shall define “zero-carbon home” by reference to specified aspects of the energy efficiency of a building; for which purpose “energy efficiency” includes—

(a)consumption of energy,

(b)conservation of energy, and

(c)generation of energy.

(5)The relief may take the form of—

(a)exemption from charge, or

(b)a reduction in the amount of tax chargeable.

(6)Regulations under this section shall not have effect in relation to acquisitions on or after 1st October 2012.

(7)The Treasury may by order—

(a)substitute a later date for the date in subsection (6);

(b)make transitional provision, or provide savings, in connection with the effect of subsection (6).

58CRelief for new zero-carbon homes: supplementalU.K.

(1)Regulations under section 58B—

(a)shall include provision about the method of claiming relief (including documents or information to be provided), and

(b)in particular, shall include provision about the evidence to be adduced to show that a [F61dwelling] satisfies the definition of “zero-carbon home”.

(2)Regulations made by virtue of subsection (1)(b) may, in particular—

(a)refer to a scheme or process established by or for the purposes of an enactment about building;

(b)establish or provide for the establishment of a scheme or process of certification;

(c)specify, or provide for the approval of, one or more schemes or processes for certifying energy efficiency.

[F62(d)provide for the charging of fees of a reasonable amount in respect of services provided as part of a scheme or process of certification.]

(3)In defining “zero-carbon home” regulations under section 58B may include requirements which may be satisfied in relation to [F63a dwelling] either—

(a)by features of the [F64building which, or part of which, constitutes the dwelling], or

(b)by other installations or utilities.

(4)Regulations under section 58B may modify the effect of section 108, or another provision of this Part about linked transactions, in relation to a set of transactions of which at least one is the first acquisition of a dwelling which is a zero-carbon home.

(5)In determining whether section 116(7) applies, and in the application of section 116(7), a transaction shall be disregarded if or in so far as it involves the first acquisition of a dwelling which is a zero-carbon home.

(6)Regulations under section 58B—

(a)may provide for relief to be wholly or partly withdrawn if a dwelling ceases to be a zero-carbon home, and

(b)may provide for the reduction or withholding of relief where a person acquires more than one zero-carbon home within a specified period.

(7)Regulations under section 58B may include provision for relief to be granted in respect of acquisitions occurring during a specified period before the regulations come into force.]

[F6558DTransfers involving multiple dwellingsU.K.

(1)Schedule 6B provides for relief in the case of transfers involving multiple dwellings.

(2)Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.]

60Compulsory purchase facilitating developmentU.K.

(1)A compulsory purchase facilitating development is exempt from charge.

(2)In this section “compulsory purchase facilitating development” means—

(a)in relation to England [F66and Wales] F67..., the acquisition by a person of a chargeable interest in respect of which that person has made a compulsory purchase order for the purpose of facilitating development by another person;

(b)in relation to Northern Ireland, the acquisition by a person of a chargeable interest by means of a vesting order made for the purpose of facilitating development by a person other than the person who acquires the interest.

(3)For the purposes of subsection (2)(a) it does not matter how the acquisition is effected (so that provision applies where the acquisition is effected by agreement).

(4)In subsection (2)(b) a “vesting order” means an order made under any statutory provision to authorise the acquisition of land otherwise than by agreement.

(5)In this section “development”—

(a)in relation to England [F68and Wales], has the same meaning as in the Town and Country Planning Act 1990 (c. 8) (see section 55 of that Act);

F69(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F70(c)in relation to Northern Ireland, has the same meaning as in the Planning Act (Northern Ireland) 2011 (see section 23 of that Act).]

61Compliance with planning obligationsU.K.

(1)A land transaction that is entered into in order to comply with a planning obligation or a modification of a planning obligation is exempt from charge if—

(a)the planning obligation or modification is enforceable against the vendor,

(b)the purchaser is a public authority, and

(c)the transaction takes place within the period of five years beginning with the date on which the planning obligation was entered into or modified.

(2)In this section—

(a)in relation to England and Wales—

• “planning obligation” means either of the following—

  (a)

  a planning obligation within the meaning of section 106 of the Town and Country Planning Act 1990 that is entered into in accordance with subsection (9) of that section, or

  (b)

  a planning obligation within the meaning of section 299A of that Act that is entered into in accordance with subsection (2) of that section; and

• “modification” of a planning obligation means modification as mentioned in section 106A(1) of that Act;

F71(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F72(c)in relation to Northern Ireland—

• “planning obligation” means a planning agreement within the meaning of section 76 of the Planning Act (Northern Ireland) 2011 that is entered into in accordance with subsection (10) of that section, and

• “modification of a planning obligation” means modification as mentioned in section 77(1) of that Act.]

(3)The following are public authorities for the purposes of subsection (1)(b)—

62Group relief and reconstruction or acquisition reliefU.K.

(1)Schedule 7 provides for relief from stamp duty land tax.

(2)In that Schedule—

• Part 1 makes provision for group relief,

• Part 2 makes provision for reconstruction and acquisition reliefs.

(3)Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.

63Demutualisation of insurance companyU.K.

(1)A land transaction is exempt from charge if it is entered into for the purposes of or in connection with a qualifying transfer of the whole or part of the business of a mutual insurance company (“the mutual”) to a company that has share capital (“the acquiring company”).

(2)A transfer is a qualifying transfer if—

(a)it is a transfer of business consisting of the effecting or carrying out of contracts of insurance and takes place under an insurance business transfer scheme, or

(b)it is a transfer of business of a general insurance company carried on through a permanent establishment in the United Kingdom and takes place in accordance with authorisation granted outside the United Kingdom for the purposes of—

(i)Article 14 of the life assurance Directive, or

(ii)Article 12 of the 3rd non-life insurance Directive,

and, in either case, the requirements of subsections (3) and (4) are met in relation to the shares of a company (“the issuing company”) which is either the acquiring company or a company of which the acquiring company is a wholly-owned subsidiary.

(3)Shares in the issuing company must be offered, under the scheme, to at least 90% of the persons who are members of the mutual immediately before the transfer.

(4)Under the scheme all of the shares in the issuing company that will be in issue immediately after the transfer has been made, other than shares that are to be or have been issued pursuant to an offer to the public, must be offered to the persons who (at the time of the offer) are—

(a)members of the mutual,

(b)persons who are entitled to become members of the mutual, or

(c)employees, former employees or pensioners of—

(i)the mutual, or

(ii)a wholly-owned subsidiary of the mutual.

(5)The Treasury may by regulations—

(a)amend subsection (3) by substituting a lower percentage for the percentage mentioned there;

(b)provide that any or all of the references in subsections (3) and (4) to members shall be construed as references to members of a class specified in the regulations.

Regulations under paragraph (b) may make different provision for different cases.

(6)For the purposes of this section a company is the wholly-owned subsidiary of another company (“the parent”) if the company has no members except the parent and the parent’s wholly-owned subsidiaries or persons acting on behalf of the parent or the parent’s wholly-owned subsidiaries.

(7)In this section—

• “contract of insurance” has the meaning given by Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544);

• “employee”, in relation to a mutual insurance company or its wholly-owned subsidiary, includes any officer or director of the company or subsidiary and any other person taking part in the management of the affairs of the company or subsidiary;

• “general insurance company” means a company that has permission under [F83Part 4A] of the Financial Services and Markets Act 2000 (c. 8), or paragraph 15 of Schedule 3 to that Act (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule), to effect or carry out contracts of insurance;

• “insurance company” means a company that carries on the business of effecting or carrying out contracts of insurance;

• “insurance business transfer scheme” has the same meaning as in Part 7 of the Financial Services and Markets Act 2000;

• “the life assurance Directive” means the Council Directive of 5th November 2002 concerning life assurance (No.2002/83/EC);

• “mutual insurance company” means an insurance company carrying on business without having any share capital;

• “the 3rd non-life insurance Directive” means the Council Directive of 18th June 1992 on the co-ordination of laws, regulations and administrative provisions relating to direct insurance other than life insurance and amending Directives 73/239/EEC and 88/357/EEC (No. 92/49/EEC);

• “pensioner”, in relation to a mutual insurance company or its wholly-owned subsidiary, means a person entitled (whether presently or prospectively) to a pension, lump sum, gratuity or other like benefit referable to the service of any person as an employee of the company or subsidiary.

64Demutualisation of building societyU.K.

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.

F8464AInitial transfer of assets to trustees of unit trust schemeU.K.

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

65Incorporation of limited liability partnershipU.K.

(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.)).

66Transfers involving public bodiesU.K.

(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—

(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.

[F92(6)In this section “company” means a company as defined by section [F931] of the Companies Act [F932006] F94....]

67Transfer in consequence of reorganisation of parliamentary constituenciesU.K.

(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.

[F9567AAcquisitions by certain health service bodiesU.K.

(1)A land transaction is exempt from charge if the purchaser is any of the following—

(a)the National Health Service Commissioning Board;

(b)a clinical commissioning group established under section 14D 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.]

68Charities reliefU.K.

(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.

69Acquisition by bodies established for national purposesU.K.

A land transaction is exempt from charge if the purchaser is any of the following—

(a)the Historic Buildings and Monuments Commission for England;

F96(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.

70Right to buy transactions, shared ownership leases etcU.K.

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

71Certain acquisitions by registered social landlordU.K.

[F97(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 [F98relevant housing provider] is exempt from charge if—

(a)the [F98relevant housing provider] is controlled by its tenants,

(b)the vendor is a qualifying body, or

(c)the transaction is funded with the assistance of a public subsidy.

[F99(1A)In this section “relevant housing provider” means—

(a)a non-profit registered provider of social housing, or

(b)a registered social landlord.]

(2)The reference in subsection (1)(a) to a [F100relevant housing provider] “controlled by its tenants” is to a [F100relevant housing provider] the majority of whose board members are tenants occupying properties owned or managed by it.

• “Board member”, in relation to a [F100relevant housing provider], means—

  (a)

  if it is a company, a director of the company,

  (b)

  if it is a body corporate whose affairs are managed by its members, a member,

  (c)

  if it is body of trustees, a trustee,

  (d)

  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 [F100relevant housing provider].

(3)In subsection (1)(b) “qualifying body” means—

(a)a [F101relevant housing provider],

(b)a housing action trust established under Part 3 of the Housing Act 1988 (c. 50),

(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)the Scottish Ministers,

(f)a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39),

(g)Scottish Homes,

(h)the Department for Social Development in Northern Ireland, or

(i)the Northern Ireland Housing Executive.

(4)In [F102this 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)under section 18 of the Housing Act 1996 (c. 52) (social housing grants),

(c)under section 126 of the Housing Grants, Construction and Regeneration Act 1996 (c. 53) (financial assistance for regeneration and development),

[F103(ca)under section 19 of the Housing and Regeneration Act 2008 (financial assistance by the Homes and Communities Agency),]

[F104(cb)made or given by the Greater London Authority,]

(d)under section 2 of the Housing (Scotland) Act 1988 (c. 43) (general functions of the Scottish Ministers), or

(e)under Article 33 [F105or 33A] of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15)).

[F10671AAlternative property finance: land sold to financial institution and leased to [F107person] U.K.

(1)This section applies where arrangements are entered into between [F108a 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 [F107person] as beneficial tenants in common,

(c)the institution (or the person holding the land on trust as mentioned in paragraph (b)) grants to the [F107person] 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 [F107person] enter into an agreement under which the [F107person] has a right to require the institution or its successor in title to transfer to the [F107person] (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 [F107person], 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 [F107person].

(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 [F107person] 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 [F107person].

(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).

[F109(6)The requirements of subsection (1), or (4)(b)(ii), are not met if—

(a)the [F107person] enters into the arrangement, or holds the lease or sub-lease, as trustee and any beneficiary of the trust is not [F108a person], or

(b)the [F107person] enters into the arrangements, or holds the lease or sub-lease, as partner and any of the other partners is not [F108a 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 [F107person] of the whole interest purchased by the institution under the first transaction, so far as not transferred by a previous further transaction.

F110(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9)References in this section to [F108a person] shall be read, in relation to times after the death of the [F107person] concerned, as references to his personal representatives.

F111(10)]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11372Alternative property finance [F112in Scotland]: land sold to financial institution and leased to [F107person] U.K.

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

F11472AAlternative property finance in Scotland: land sold to financial institution and person in commonU.K.

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

73Alternative property finance: land sold to financial institution and re-sold to [F107person] U.K.

(1)This section applies where arrangements are entered into between [F108a 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 [F107person] (“the second transaction”), and

(b)the [F107person] grants the institution a legal mortgage over that interest.

(2)The first transaction is exempt from charge if the vendor is—

(a)the [F107person] concerned, or

(b)another financial institution by whom the interest was acquired under other arrangements of the kind mentioned in [F115section 71A(1)F116...] entered into between it and the [F107person].

(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 [F117on 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.]).

[F118(4)This section does not apply if—

(a)the [F107person] enters into the arrangements as trustee and any beneficiary of the trust is not [F108a person], or

(b)the [F107person] enters into the arrangements as partner and any of the other partners is not [F108a person].]

(5)In this section—

F119(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)“legal mortgage”—

(i)in relation to land in England [F120or Wales], means a legal mortgage as defined in section 205(1)(xvi) of the Law of Property Act 1925 (c. 20);

F121(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 [F108a person] shall be read, in relation to times after the death of the [F107person] concerned, as references to his personal representatives.

[F12273A[F123Sections 71A to 73: relationship with Schedule 7]U.K.

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

[F12473AB [F125Section 71A] : arrangements to transfer control of financial institutionU.K.

(1)Section 71AF126... 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)F127...;

• “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)[F128Section 1124 of the Corporation Tax Act 2010] applies for the purposes of determining who has control of the relevant financial institution.]

[F12973BExempt interestsU.K.

(1)An interest held by a financial institution as a result of the first transaction within the meaning of section 71A(1)(a)F130... 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)F131... ceases to have effect, or

(b)the right under section 71A(1)(d)F132... 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)F133....]

[F13473BAMeaning of “financial institution”U.K.

(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.

[F135(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).]]

[F13673CAlternative finance investment bondsU.K.

Schedule 61 to the Finance Act 2009 makes provision for relief from charge in the case of arrangements [F137to which section 564G of the Income Tax Act 2007 or section 151N of the Taxation of Chargeable Gains Act 1992 (investment bond arrangements) applies].]

[F13873CASections 71A to 73: first-time buyersU.K.

(1)Where section 71AF139... or 73 applies, the first transaction within the meaning of the section concerned is exempt from charge under section 55 if—

(a)the transaction is a relevant acquisition of a major interest in land,

(b)the land consists entirely of residential property,

(c)the relevant consideration (see section 55) for the transaction (other than any consisting of rent) is more than £125,000 but not more than £250,000,

(d)the person (within the meaning of the section concerned), or (if more than one) each of them, is a first-time buyer who intends to occupy the residential property as the person’s only or main residence, and

(e)(subject to subsection (3)) the transaction is not one of a number of linked transactions.

(2)In subsection (1)—

• “first-time buyer”, and

• “relevant acquisition of a major interest in land”,

have the same meaning as in section 57AA.

(3)Subsection (4) of section 57AA applies for the purposes of this section.]

74[F140Exercise of collective rights by tenants of flats]U.K.

[F141(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).]

[F142(1A)The [F143amount] 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 [F144£500,000] or less, determine the [F145amount of] tax chargeable in accordance with [F146subsection (1B)].

• Step 3 If the amount produced by step 1 is more than [F144£500,000] and the condition in paragraph 3(3) of Schedule 4A is not met with respect to the transaction, determine the [F147amount of] tax chargeable in accordance with [F148subsection (1B)].

• Step 4 If the amount produced by step 1 is more than [F144£500,000] and the condition in paragraph 3(3) of Schedule 4A is met with respect to the transaction, [F149subsection (1B) does] not apply, and the amount of tax chargeable in respect of the transaction is 15% of the chargeable consideration for the transaction.]

[F150(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.]

[F151(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.

F15275Crofting community right to buyU.K.

(1)This section applies where—

(a)a chargeable transaction is entered into in pursuance of the crofting community right to buy, and

(b)under that transaction two or more crofts are being bought.

[F153(1A)In that case, the amount of tax 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 produced by dividing the total amount of that consideration by the number of crofts being bought.

• Step 2 Multiply the amount determined at step 1 by the number of crofts being bought under that transaction.]

(4)In this section “crofting community right to buy” means the right exercisable by a crofting community body under Part 3 of the Land Reform (Scotland) Act 2003 (asp 2).

(5)References in this section to the relevant consideration have the same meaning as in section 55.

[F15475AAnti-avoidanceU.K.

(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 [F155section 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.

75BAnti-avoidance: incidental transactionsU.K.

(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.

75CAnti-avoidance: supplementalU.K.

(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 [F156and 74] , or a provision of Schedule 6A 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, F157...

F157(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F158(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.]

Returns and other administrative mattersU.K.

76Duty to deliver land transaction returnU.K.

(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 30 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, F159...

F159(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F16077Notifiable transactionsU.K.

(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 [F161any 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), F162...

(d)a notional land transaction under section 75A [F163or

(e)a notional or additional land transaction under paragraph 5 of Schedule 2A.]

(2)This section has effect subject to—

(a)sections 71A(7) F164..., and

(b)paragraph 30 of Schedule 15.

(3)In this section “relief” does not include an exemption from charge under Schedule 3.

77AExceptions for certain acquisitions of major interests in landU.K.

(1)The exceptions referred to in section 77(1)(a) are as follows.

1An acquisition which is exempt from charge under Schedule 3.

2An 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.

3The 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.

4The 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.

5The grant of a lease for a term of less than 7 years where the chargeable consideration does not exceed the zero rate threshold.

6The 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 [F165more 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—

  (a)

  the annual rent, or

  (b)

  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.]

78Returns, enquiries, assessments and related mattersU.K.

(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.

[F16678ADisclosure of information contained in land transaction returnsU.K.

(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 F167...,

(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).

[F168(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.]]

79Registration of land transactions etcU.K.

(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,

F169(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 [F170or 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 [F171notifiable] land transaction [F172other than a transaction treated as taking place—

(a)under subsection (4) of section 44 (contract and conveyance) or under that section as it applies [F173by virtue of—

F174(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).]

[F175(ba)under paragraph 5 of Schedule 2A (transactions entered into before completion of contract),]

[F176(c)under paragraph 12A(2) F177... 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.

[F178(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 [F179referred to in subsection (1)] must be F180...—

(a)a certificate by the Inland Revenue (a “Revenue certificate”) that a land transaction return has been delivered in respect of the transaction, F181...

F181(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.

[F182(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 F183...—

(a)shall allow the Inland Revenue to inspect any certificates F184... 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.

80Adjustment where contingency ceases or consideration is ascertainedU.K.

(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 F185..., or that additional tax is payable in respect of a transaction or that tax is payable where none was payable before [F186(calculated in either case according to the effective date of the transaction)] —

(a)the purchaser must make a return to the Inland Revenue within 30 days,

(b)the 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,

F187(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . and

[F188(d)the tax or additional tax payable must be paid not later than the filing date for the 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 [F189return 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 [F190(calculated according to its effective date)] than has already been paid,

[F191(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].

[F192(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.]

[F193(5)This section does not apply so far as the consideration consists of rent (see paragraph 8 of Schedule 17A).]

81Further return where relief withdrawnU.K.

(1)Where relief is withdrawn to any extent under—

[F194(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), 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.

[F195(1A)Where relief is withdrawn to any extent under any of paragraphs 5G to 5K of Schedule 4A (higher rate for certain transactions) 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;

(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;

(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.]

(2)The return must—

(a)include a self-assessment of the amount of tax chargeable, F196...

F196(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F197(2A)[F198Where subsection (1) 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 to a return under [F199subsection (1)] as they apply to a [F200return under section 76 (general requirement to deliver land transaction return)], with the following adaptations—

(a)references to the transaction to which the return relates shall be read as references to the disqualifying event;

(b)references to the effective date of the transaction shall be read as references to the date on which the disqualifying event occurs.

(4)In this section “the disqualifying event” means—

[F201(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;

(c)in relation to the withdrawal of charities relief, a disqualifying event as defined in paragraph 2(3) [F202or 3(2)] of Schedule 8.

[F203(5)The provisions of Schedule 10 apply to a return under subsection (1A) as they apply to a return under section 76, but with the adaptation that references to the effective date of the transaction are to be read as references to the relevant date (as defined in subsection (1B)).]

[F20481ZAAlternative finance arrangements: return where relief withdrawnU.K.

(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 or 6H of Schedule 4A (higher rate of tax: alternative finance arrangements)—

(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 [F205according to] the effective date of the transaction in respect of which the relief was allowed.

(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 make land transaction return), but with the following adaptations—

(a)references to the effective date of the transaction are to be read as references to the date of the disqualifying event;

(b)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).

(3)In this section “the date of the disqualifying event” means the first day in the control period on which a relevant requirement was not met.

(4)In subsection (3) “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) “the control period” has the same meaning as in paragraph 5G, 5H, 5I, 5J or 5K (as the case requires) of Schedule 4A.

(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.]