Finance Act 2007

75SDLT: alternative finance arrangements

(1)In FA 2003, after section 73A insert—

“73BExempt interests

(1)An interest held by a financial institution as a result of the first transaction within the meaning of section 71A(1)(a), 72(1)(a) or 72A(1)(a) 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), 72(1)(b) or 72A(1)(b) ceases to have effect, or

(b)the right under section 71A(1)(d), 72(1)(c) or 72A(1)(c) 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), 72(4) or 72A(4).”

(2)In section 48 of that Act (stamp duty land tax: exempt interests), after subsection (3) insert—

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

(3)For the text of sections 71A(8), 72(7), 72A(8) and 73(5)(a) of that Act (alternative finance arrangements: meaning of “financial institution”), substitute “In this section “financial institution” has the meaning given by section 46 of the Finance Act 2005 (alternative finance arrangements).”

(4)The amendments made by this section—

(a)have effect in relation to anything that would, but for the exemption provided by new section 73B inserted by subsection (1) above, be a land transaction with an effective date on or after 22nd March 2007, and

(b)apply, in accordance with paragraph (a), to interests irrespective of the date of their creation.