C1C2C4C6C7C8Part 4Stamp duty land tax
Pt. 4 modified (coming into force at 2 p.m. on 6.12.2006) by The Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2006 (S.I. 2006/3237), regs. 1, 2, Sch.
Pt. 4 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 194(8)-(12)
Pt. 4 applied (17.7.2014) by Finance Act 2014 (c. 26), ss. 223(8)(9)(d)
Pt. 4 modified (temp.) (22.7.2020) by Stamp Duty Land Tax (Temporary Relief) Act 2020 (c. 15), s. 1 (as amended (10.6.2021) by 2021 c. 26, s. 87(2))
Pt. 4 modified (temp.) (10.6.2021) by 2020 c. 15, s. 1A (as inserted by Finance Act 2021 (c. 26), s. 87(3))
Reliefs
F8057I1Disadvantaged areas relief
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57AF1Sale and leaseback arrangements
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,
F3aa
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
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.
F5e
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.
F44
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F10357AAFirst-time buyers
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57BF102First-time buyers
1
Schedule 6ZA provides relief for first-time buyers.
2
Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.
58AF2Relief for certain acquisitions of residential property
Schedule 6A provides for relief in the case of certain acquisitions of residential property.
58BF30Relief for new zero-carbon homes
1
The Treasury may make regulations granting relief on the first acquisition of a dwelling which is a “zero-carbon home”.
F352
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: supplemental
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 F32dwelling 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.
F37d
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 F33a dwelling either—
a
by features of the F34building 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.
58DF55Transfers involving multiple dwellings
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.
60I2Compulsory purchase facilitating development
1
A compulsory purchase facilitating development is exempt from charge.
2
In this section “compulsory purchase facilitating development” means—
a
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 F106..., has the same meaning as in the Town and Country Planning Act 1990 (c. 8) (see section 55 of that Act);
F70b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F95c
in relation to Northern Ireland, has the same meaning as in the Planning Act (Northern Ireland) 2011 (see section 23 of that Act).
61I3Compliance with planning obligations
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
- a
“modification” of a planning obligation means modification as mentioned in section 106A(1) of that Act;
F67b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F96c
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)—
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61AF111Relief for F120special tax sites
1
Schedule 6C provides for relief in the case of transactions relating to land in a F122special tax site.
2
In that Schedule—
a
Part 1 contains definitions,
b
Part 2 makes provision about the relief,
c
Part 3 makes provision about the withdrawal of the relief,
d
Part 4 makes provision about cases involving alternative finance arrangements, and
e
Part 5 confers power to change the cases in which the relief is available.
3
Relief under that Schedule is available only in relation to a land transaction with an effective date falling on or before F121the applicable sunset date in relation to the special tax site concerned (as to which see section 332(4) and (5) of the Finance (No.2) Act 2023).
4
Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.
5
A claim for relief under that Schedule must—
a
be made on or before F123the period of one year and 14 days beginning with the end of the applicable sunset date in relation to the special tax site in which the transaction land is situated, and
b
include, or be accompanied by, such information as HMRC may require.
6
In this section and Schedule 6C, F124“special tax site” means an area for the time being designated under section 113 of the Finance Act 2021.
62I4Group relief and reconstruction or acquisition relief
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.
63I5Demutualisation of insurance company
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
F100b
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 the Solvency 2 Directive, and the requirements of subsection (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) F109... 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;
F97. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“mutual insurance company” means an insurance company carrying on business without having any share capital;
F98. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“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.
F99“the Solvency 2 Directive” means Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II).
64I6Demutualisation of building society
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.
F964AInitial transfer of assets to trustees of unit trust scheme
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
65I7Incorporation of limited liability partnership
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.)).
65AF101PAIF seeding relief and COACS seeding relief
1
Schedule 7A provides for relief from stamp duty land tax.
2
In that Schedule—
a
Part 1 makes provision for relief for property authorised investment funds (PAIF seeding relief), and
b
Part 2 makes provision for relief for co-ownership authorised contractual schemes (COACS seeding relief).
3
Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return, and must be accompanied by a notice to HMRC referring to the claim.
4
In the case of a claim for PAIF seeding relief, the notice must confirm that the purchaser is—
a
a property AIF as defined in paragraph 2(2) of Schedule 7A, or
b
a company treated as a property AIF by virtue of paragraph 2(5) of Schedule 7A (equivalent EEA funds).
5
In the case of a claim for COACS seeding relief, the notice must confirm that the purchaser is—
a
a co-ownership authorised contractual scheme as defined in section 102A(8), or
b
an entity treated as a co-ownership authorised contractual scheme by virtue of section 102A(7) (equivalent EEA schemes).
6
The notice must be in such form, and contain such further information, as HMRC may require.
66C4I8Transfers involving public bodies
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.
C54
The following are public bodies for the purposes of this section—
Government, Parliament etc
A Minister of the Crown
The Scottish Ministers
A Northern Ireland department
F28The Welsh Ministers, the First Minister for Wales and the Counsel General to the Welsh Government
The Corporate Officer of the House of Lords
The Corporate Officer of the House of Commons
The Scottish Parliamentary Corporate Body
The Northern Ireland Assembly Commission
F29The National Assembly for Wales Commission
Local government: England
A county or district council constituted under section 2 of the Local Government Act 1972 (c. 70)
The council of a London borough
The Greater London Authority
The Common Council of the City of London
The Council of the Isles of Scilly
Local government: Wales
A county or county borough council constituted under section 21 of the Local Government Act 1972
Local government: Scotland
A council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39)
Local government: Northern Ireland
A district council within the meaning of the Local Government Act (Northern Ireland) 1972 (c. 9 (N.I.))
Health: England and Wales
A Strategic Health Authority F21established under section 13 of the National Health Service Act 2006
A Special Health Authority established under F22section 28 of that Act or section 22 of the National Health Service (Wales) Act 2006
A Primary Care Trust established under F23section 18 of the National Health Service Act 2006
A Local Health Board established under F24section 11 of the National Health Service (Wales) Act 2006
A National Health Service Trust established under F25section 25 of the National Health Service Act 2006 or section 18 of the National Health Service (Wales) Act 2006
Health: Scotland
The Common Services Agency established under section 10(1) of the National Health Service (Scotland) Act 1978 (c. 29)
A Health Board established under section 2(1)(a) of that Act
A National Health Service Trust established under section 12A(1) of that Act
A Special Health Board established under section 2(1)(b) of that Act
Health: Northern Ireland
Other planning authorities
Any other authority that—
- a
is a local planning authority within the meaning of the Town and Country Planning Act 1990 (c. 8), or
- b
is the planning authority for any of the purposes of the planning Acts within the meaning of the Town and Country Planning (Scotland) Act 1997 (c. 8)
- a
F110...
Statutory bodies
A body (other than a company) that is established by or under a statutory provision for the purpose of carrying out functions conferred on it by or under a statutory provision
Prescribed persons
A person prescribed for the purposes of this section by Treasury order
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.
F86
66AF108Resolution of financial institutions
1
A land transaction is exempt from charge if it is effected by—
a
an instrument listed in subsection (2), or
b
an instrument made under an instrument listed in subsection (2).
2
The instruments are—
a
a property transfer instrument made in accordance with section 12(2) of the Banking Act 2009 (transfer to a bridge bank),
b
a property transfer instrument made in accordance with section 12ZA(3) of that Act (transfer to asset management vehicle),
c
a supplemental property transfer instrument made in accordance with section 42(2) of that Act where the original instrument was made in accordance with section 12(2), 12ZA(3) or 41A(2) of that Act,
d
a property transfer instrument made in accordance with section 41A(2) of that Act (transfer of property subsequent to resolution instrument),
e
a bridge bank supplemental property transfer instrument made in accordance with section 44D(2) of that Act,
f
a property transfer order made in accordance with section 45(2) of that Act (temporary public ownership: property transfer), F125...
g
a third-country instrument made in accordance with section 89H(2) or 89I(4) of that Act.
F126h
a property transfer instrument made in accordance with paragraph 29(3) (bridge central counterparty) of Schedule 11 to the Financial Services and Markets Act 2023 (central counterparties),
i
a property transfer instrument made in accordance with paragraph 66(2) of that Schedule (transfer of property subsequent to resolution instrument),
j
a supplemental property transfer instrument made in accordance with paragraph 67(2) of that Schedule (supplemental instruments) where the original instrument was made in accordance with paragraph 29(3) of that Schedule,
k
a property transfer instrument made in accordance with paragraph 71(2) (transfer of ownership and private sector purchaser: property transfer) where the original instrument was made in accordance with paragraph 30(2) of that Schedule (transfer of ownership), or
l
a third-country instrument made in accordance with paragraph 145(2) (third-country resolution actions) or 146(4) (effects of recognition on third-country resolution action) of that Schedule.
3
References in subsection (2) to a provision of the Banking Act 2009 include references to that provision as applied by or under any other provision of that Act (including where it is applied with modifications or in a substituted form).
67I9Transfer in consequence of reorganisation of parliamentary constituencies
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.
67AF82Acquisitions by certain health service bodies
1
A land transaction is exempt from charge if the purchaser is any of the following—
a
F112NHS England;
F113b
an integrated care board established under section 14Z25 of the National Health Service Act 2006;
F114ba
an NHS trust established under section 25 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.
68I10Charities relief
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.
69I11Acquisition by bodies established for national purposes
A land transaction is exempt from charge if the purchaser is any of the following—
a
the Historic Buildings and Monuments Commission for England;
F58b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
the Trustees of the British Museum;
d
the Trustees of the National Heritage Memorial Fund;
e
the Trustees of the Natural History Museum.
70I12Right to buy transactions, shared ownership leases etc
Schedule 9 makes provision for relief in the case of right to buy transactions, shared ownership leases and certain related transactions.
71I13Certain acquisitions by registered social landlord
F42A1
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 F49relevant housing provider is exempt from charge if—
a
the F49relevant 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.
F481A
In this section “relevant housing provider” means—
a
a non-profit registered provider of social housing, or
b
a registered social landlord.
2
“Board member”, in relation to a F50relevant 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 F50relevant housing provider.
- a
3
In subsection (1)(b) “qualifying body” means—
a
a F51relevant 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 F43this 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),
F39ca
under section 19 of the Housing and Regeneration Act 2008 (financial assistance by the Homes and Communities Agency),
F59cb
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 F26or 33A of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15)).
F1195
In this section “public subsidy” also means any grant under section 31 of the Local Government Act 2003 (grants towards expenditure incurred or to be incurred by local authorities) towards expenditure incurred or to be incurred on the provision of social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008 (see sections 68 and 72 of that Act).
71AF7Alternative property finance: land sold to financial institution and leased to F14person
1
This section applies where arrangements are entered into between F13a 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 F14person as beneficial tenants in common,
c
the institution (or the person holding the land on trust as mentioned in paragraph (b)) grants to the F14person 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 F14person enter into an agreement under which the F14person has a right to require the institution or its successor in title to transfer to the F14person (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 F14person, 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 F14person.
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 F14person 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 F14person.
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).
F106
The requirements of subsection (1), or (4)(b)(ii), are not met if—
a
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 F14person of the whole interest purchased by the institution under the first transaction, so far as not transferred by a previous further transaction.
F548
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
F7110
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7272Alternative property finance in Scotland: land sold to financial institution and leased to person
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6872AAlternative property finance in Scotland: land sold to financial institution and person in common
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
73I14Alternative property finance: land sold to financial institution and re-sold to F14person
1
This section applies where arrangements are entered into between F13a 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 F14person (“the second transaction”), and
b
the F14person grants the institution a legal mortgage over that interest.
2
The first transaction is exempt from charge if the vendor is—
a
the F14person concerned, or
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 F11on 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.).
F124
This section does not apply if—
a
5
In this section—
F57a
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
“legal mortgage”—
i
in relation to land in England F107..., means a legal mortgage as defined in section 205(1)(xvi) of the Law of Property Act 1925 (c. 20);
F74ii
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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
73AF15F38Sections 71A to 73: relationship with Schedule 7
Sections 71A to 73 do not apply to arrangements in which the first transaction is exempt from charge by virtue of Schedule 7.
73ABF36F75Section 71A : arrangements to transfer control of financial institution
1
Section 71AF76... 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)F77...;
“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
F52Section 1124 of the Corporation Tax Act 2010 applies for the purposes of determining who has control of the relevant financial institution.
73BF31Exempt interests
1
An interest held by a financial institution as a result of the first transaction within the meaning of section 71A(1)(a)F60... 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)F61... ceases to have effect, or
b
the right under section 71A(1)(d)F62... 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)F78....
73BAF56Meaning of “financial institution”
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.
F943
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).
73CF45Alternative finance investment bonds
Schedule 61 to the Finance Act 2009 makes provision for relief from charge in the case of arrangements F53to which section 564G of the Income Tax Act 2007 or section 151N of the Taxation of Chargeable Gains Act 1992 (investment bond arrangements) applies.
F10473CASections 71A to 73: first-time buyers
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
74C3I15F44Exercise of collective rights by tenants of flats
F401
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).
F811A
The F88amount 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 F86£500,000 or less, determine the F89amount of tax chargeable in accordance with F90subsection (1B).
Step 3 If the amount produced by step 1 is more than F86£500,000 and the condition in paragraph 3(3) of Schedule 4A is not met with respect to the transaction, determine the F91amount of tax chargeable in accordance with F92subsection (1B).
Step 4 If the amount produced by step 1 is more than F86£500,000 and the condition in paragraph 3(3) of Schedule 4A is met with respect to the transaction, F93subsection (1B) does not apply, and the amount of tax chargeable in respect of the transaction is 15% of the chargeable consideration for the transaction.
F871B
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.
F414
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.
F7975Crofting community right to buy
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pt. 4 construed as one with S.I. 2006/575, reg. 43 (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 43(4)