LegalizeReform history
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017
19 versions
· 2017-05-24
2026-02-13
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2025-11-21
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2025-09-10
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2025-02-07
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2025-01-23
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2024-11-26
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2024-07-12
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2022-09-09
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2021-04-01
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2021-01-21
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2020-12-31
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2020-07-27
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2019-04-03
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2019-01-26
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2018-04-01
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2018-01-25
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2017-10-18
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
2017-05-25
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2
Changes on 2017-05-25
@@ -8,7 +8,7 @@
- (1) This Act is arranged as follows–
- (a) Part 2 provides for a tax to be charged on land transactions (“land transaction tax”) and makes provision about the key concepts underlying the tax including—
- (a) Part 2 provides for a tax to be charged on land transactions (““land transaction tax””) and makes provision about the key concepts underlying the tax including—
- (i) which transactions are land transactions,
@@ -16,7 +16,7 @@
- (iii) when a chargeable interest is acquired and the treatment of transactions involving contracts required to be completed by transfer, as well as the treatment of other kinds of transactions,
- (iv) which land transactions are, and which are not, chargeable to the tax (“chargeable transactions”), and
- (iv) which land transactions are, and which are not, chargeable to the tax (““chargeable transactions””), and
- (v) what is, and what is not, chargeable consideration in relation to a chargeable transaction,
@@ -30,7 +30,7 @@
- (c) Part 4 makes provision about the application of this Act to leases,
- (d) Part 5 makes provision about the application of this Act and the [Tax Collection and Management (Wales) Act 2016 (anaw 6)](https://www.legislation.gov.uk/anaw/2016/6) to certain persons and bodies, including companies, partnerships and trusts,
- (d) Part 5 makes provision about the application of this Act and the Tax Collection and Management (Wales) Act 2016 (anaw 6) to certain persons and bodies, including companies, partnerships and trusts,
- (e) Part 6 makes provision about returns and payment of the tax including provision about—
@@ -40,9 +40,9 @@
- (iii) when the tax is required to be paid (including provision about when payment may be deferred),
- (f) Part 7 inserts into the [Tax Collection and Management (Wales) Act 2016 (anaw 6)](https://www.legislation.gov.uk/anaw/2016/6) provisions establishing a general rule for the purposes of counteracting avoidance arrangements in relation to devolved taxes, and
- (g) Part 8 provides for amendments to the [Tax Collection and Management (Wales) Act 2016 (anaw 6)](https://www.legislation.gov.uk/anaw/2016/6) and contains provisions that apply generally for the purposes of this Act, including definitions of expressions used in this Act.
- (f) Part 7 inserts into the Tax Collection and Management (Wales) Act 2016 (anaw 6) provisions establishing a general rule for the purposes of counteracting avoidance arrangements in relation to devolved taxes, and
- (g) Part 8 provides for amendments to the Tax Collection and Management (Wales) Act 2016 (anaw 6) and contains provisions that apply generally for the purposes of this Act, including definitions of expressions used in this Act.
- (2) Schedule 1 contains an overview of the Schedules to this Act.
@@ -54,7 +54,7 @@
##### 2
- (1) A tax (to be known as “land transaction tax”) is to be charged on land transactions.
- (1) A tax (to be known as “*"land transaction tax”*”) is to be charged on land transactions.
- (2) The tax is chargeable—
@@ -64,7 +64,7 @@
- (c) regardless of where any party to the transaction is or is resident.
- (3) The Welsh Revenue Authority (“WRA”) is to be responsible for the collection and management of the tax.
- (3) The Welsh Revenue Authority (““WRA””) is to be responsible for the collection and management of the tax.
### CHAPTER 2 — LAND TRANSACTIONS
@@ -72,7 +72,7 @@
##### 3
- (1) In this Act, a “land transaction” means an acquisition of a chargeable interest.
- (1) In this Act, a “*"land transaction”*” means an acquisition of a chargeable interest.
- (2) Except as otherwise provided, this Act applies however the acquisition is effected, whether by act of the parties, by order of a court or other authority, by or under any enactment or by operation of law.
@@ -90,7 +90,7 @@
other than an exempt interest.
- (2) In this Act, “land in Wales” does not include land below mean low water mark.
- (2) In this Act, “*"land in Wales”*” does not include land below mean low water mark.
- (3) See section 9 as to land partly in Wales and partly in England.
@@ -110,9 +110,9 @@
- (2) In subsection (1)—
- (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;
- (b) “franchise” means a grant from the Crown such as the right to hold a market or fair, or the right to take tolls.
- (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;
- (b) “*"franchise”*” means a grant from the Crown such as the right to hold a market or fair, or the right to take tolls.
- (3) See also paragraph 7 of Schedule 10 (which makes additional provision about exempt interests in relation to alternative financial arrangements).
@@ -146,17 +146,17 @@
- (a) the person becomes entitled to the interest on its creation,
- (b) the person’s interest or right is benefited or enlarged by the surrender or release of the interest, or
- (b) the person's interest or right is benefited or enlarged by the surrender or release of the interest, or
- (c) the person benefits from the variation of the interest.
- (4) A person disposes of a chargeable interest where—
- (a) the person’s interest or right becomes subject to the interest on its creation,
- (a) the person's interest or right becomes subject to the interest on its creation,
- (b) the person ceases to be entitled to the interest on its being surrendered or released, or
- (c) the person’s interest or right is subject to or limited by the variation of the interest.
- (c) the person's interest or right is subject to or limited by the variation of the interest.
- (5) This section has effect subject to section 10(4) (substantial performance without completion), section 11(3) (substantial performance of contract providing for transfer to third party) and paragraphs 20 and 24 of Schedule 6 (agreement for lease and reduction of rent or term or other variation of lease).
@@ -190,7 +190,7 @@
where the land is partly in Wales and partly in England.
- (2) The transaction is to be treated as if it were two transactions, one relating to the land in Wales (“the Welsh transaction”) and the other relating to the land in England (“the English transaction”).
- (2) The transaction is to be treated as if it were two transactions, one relating to the land in Wales (““the Welsh transaction””) and the other relating to the land in England (““the English transaction””).
- (3) The consideration for the transaction is to be apportioned between those two transactions on a just and reasonable basis.
@@ -202,11 +202,11 @@
- (7) WRA may revise guidance published under subsection (6) and must publish the revised guidance.
- (8) See section 48A of the [Finance Act 2003 (c. 14)](https://www.legislation.gov.uk/ukpga/2003/14) as to the application of Part 4 of that Act (stamp duty land tax) to the English transaction.
- (9) In section 48A of the [Finance Act 2003 (c. 14)](https://www.legislation.gov.uk/ukpga/2003/14), after subsection (5) insert—
> (6) See section 9 of the [Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 0)](https://www.legislation.gov.uk/anaw/2017/1) as to the application of that Act to the transaction relating to the land in Wales.
- (8) See section 48A of the Finance Act 2003 (c. 14) as to the application of Part 4 of that Act (stamp duty land tax) to the English transaction.
- (9) In section 48A of the Finance Act 2003 (c. 14), after subsection (5) insert—
> (6) See section 9 of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 0) as to the application of that Act to the transaction relating to the land in Wales.
### CHAPTER 3 — PARTICULAR TRANSACTIONS
@@ -250,7 +250,7 @@
- (a) references to completion are to completion of the land transaction proposed, between the same parties, in substantial conformity with the contract;
- (b) “contract” includes any agreement and “transfer” includes any instrument.
- (b) “*"contract”*” includes any agreement and “*"transfer”*” includes any instrument.
### Contracts and transfers: particular cases
@@ -258,9 +258,9 @@
##### 11
- (1) This section applies where a contract is entered into under which a chargeable interest is to be transferred by one party to the contract (“P1”) at the direction or request of the other (“P2”)—
- (a) to a person (“P3”) who is not a party to the contract, or
- (1) This section applies where a contract is entered into under which a chargeable interest is to be transferred by one party to the contract (““P1””) at the direction or request of the other (““P2””)—
- (a) to a person (““P3””) who is not a party to the contract, or
- (b) either to such a person or to P2.
@@ -282,7 +282,7 @@
- (a) this section applies by virtue of subsection (1)(b), and
- (b) by reason of P2’s direction or request, P1 becomes obliged to transfer a chargeable interest to P2,
- (b) by reason of P2's direction or request, P1 becomes obliged to transfer a chargeable interest to P2,
section 10 applies to that obligation as it applies to a contract for a land transaction that is to be completed by a transfer.
@@ -290,7 +290,7 @@
- (9) References to completion in that section, as it so applies, include references to transfer by P1 to P3 of the subject-matter of the contract between P2 and P3.
- (10) In this section, “contract” includes any agreement and “transfer” includes any instrument.
- (10) In this section, “*"contract”*” includes any agreement and “*"transfer”*” includes any instrument.
#### Contract providing for transfer to third party: effect of transfer of rights
@@ -298,13 +298,13 @@
- (1) This section applies where—
- (a) a contract (“the original contract”) is entered into under which a chargeable interest is to be transferred by one party to the contract (“P1”) at the direction or request of the other (“P2”)—
- (i) to a person (“P3”) who is not a party to the contract, or
- (a) a contract (““the original contract””) is entered into under which a chargeable interest is to be transferred by one party to the contract (““P1””) at the direction or request of the other (““P2””)—
- (i) to a person (““P3””) who is not a party to the contract, or
- (ii) either to such a person or to P2, 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 (“P4”) becomes entitled to exercise any of P2’s rights under the original contract in place of P2.
- (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 (““P4””) becomes entitled to exercise any of P2's rights under the original contract in place of P2.
- (2) References in the following provisions of this section to a transfer of rights are to any such assignment or other transaction.
@@ -312,7 +312,7 @@
- (4) That section applies as if—
- (a) P4 had entered into a contract (a “secondary contract”) in the same terms as the original contract except with P4 as a party instead of P2, and
- (a) P4 had entered into a contract (a ““secondary contract””) in the same terms as the original contract except with P4 as a party instead of P2, and
- (b) the consideration due from P4 under the secondary contract were—
@@ -348,7 +348,7 @@
- (b) other references in this Act to the seller are to be read, where the context permits, as referring to either P1 or P2.
- (11) In this section, “contract” includes any agreement.
- (11) In this section, “*"contract”*” includes any agreement.
#### Pre-completion transactions
@@ -404,9 +404,9 @@
is a land transaction distinct from any land transaction resulting from the exercise of the option or right.
- (2) They may be “linked transactions” (see section 8).
- (3) 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 the grantor’s obligations under the option in some other way.
- (2) They may be ““linked transactions”” (see section 8).
- (3) 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 the grantor's obligations under the option in some other way.
- (4) 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).
@@ -466,7 +466,7 @@
- (1) Where the whole or part of the chargeable consideration for a transaction is contingent, the amount or value of the consideration is to be determined for the purposes of this Act 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) In this Act, “contingent”, in relation to consideration, means—
- (2) In this Act, “*"contingent”*”, in relation to consideration, means—
- (a) that it is to be paid or provided only if some uncertain future event occurs, or
@@ -478,7 +478,7 @@
- (1) Where the whole or part of the chargeable consideration for a transaction is uncertain or unascertained, its amount or value is to be determined for the purposes of this Act on the basis of a reasonable estimate.
- (2) In this Act, “uncertain”, in relation to consideration, means that its amount or value depends on uncertain future events.
- (2) In this Act, “*"uncertain”*”, in relation to consideration, means that its amount or value depends on uncertain future events.
#### Annuities
@@ -494,7 +494,7 @@
- (d) for a definite period exceeding 12 years.
- (2) The consideration to be taken into account is limited to 12 years’ annual payments.
- (2) The consideration to be taken into account is limited to 12 years' annual payments.
- (3) Where the amount payable varies, or may vary, from year to year, the 12 highest annual payments are to be taken into account.
@@ -530,9 +530,9 @@
- (4) In this section—
- “company” (“*cwmni*”) means any body corporate;
- “shares” (“*cyfranddaliadau*”) includes stock and the reference to shares in a company includes a reference to securities issued by a company.
- “*"company”*” (“*"*cwmni**”") means any body corporate;
- “*"shares”*” (“*"*cyfranddaliadau**”") includes stock and the reference to shares in a company includes a reference to securities issued by a company.
- (5) Where this section applies paragraph 1 of Schedule 3 (exemption of transactions for which there is no chargeable consideration) does not apply.
@@ -554,7 +554,7 @@
- (a) immediately after the transaction the company holds the property as trustee, and
- (b) the seller is connected with the company only because of section 1122(6) of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4).
- (b) the seller is connected with the company only because of section 1122(6) of the Corporation Tax Act 2010 (c. 4).
- (4) Case 3 is where—
@@ -568,7 +568,7 @@
has, within the period of 3 years immediately preceding the effective date of the transaction, been the subject of a transaction in respect of which group relief under Schedule 16 was claimed by the seller.
- (5) In this section, “the company” means the company that is the buyer in relation to the transaction in question.
- (5) In this section, “*"the company”*” means the company that is the buyer in relation to the transaction in question.
## PART 3 — CALCULATION OF TAX AND RELIEFS
@@ -586,11 +586,11 @@
- (c) non-residential property transactions.
- (2) In this Act, “tax band” means a lower and, if specified, upper amount of money from or, as the case may be, between which a specified percentage tax rate applies.
- (2) In this Act, “*"tax band”*” means a lower and, if specified, upper amount of money from or, as the case may be, between which a specified percentage tax rate applies.
- (3) Regulations under subsection (1)(a) and (c) must specify, in the case of each type of transaction—
- (a) a tax band for which the applicable tax rate is 0% (“the zero rate band”),
- (a) a tax band for which the applicable tax rate is 0% (““the zero rate band””),
- (b) two or more tax bands above the zero rate band,
@@ -680,9 +680,9 @@
- (1) In this section—
- (a) “rejected regulations” means regulations which cease to have effect by virtue of subsection (2) or (3) of section 25;
- (b) “the interim period” means the period—
- (a) “*"rejected regulations”*” means regulations which cease to have effect by virtue of subsection (2) or (3) of section 25;
- (b) “*"the interim period”*” means the period—
- (i) beginning with the date specified by rejected regulations as the date on which specified tax bands and tax rates apply in relation to a chargeable transaction, and
@@ -760,7 +760,7 @@
- *Step 3* Multiply the amount arrived at under Step 1 by the fraction arrived at under Step 2. The result is the amount of tax chargeable.
- (2) In subsection (1), the “total consideration” is the total of the chargeable consideration for all the linked transactions (not including any chargeable consideration which is rent).
- (2) In subsection (1), the ““total consideration”” is the total of the chargeable consideration for all the linked transactions (not including any chargeable consideration which is rent).
- (3) Where the whole or part of the chargeable consideration for a linked transaction is rent this section does not apply for the purposes of calculating the amount of any tax chargeable in respect of the rent; instead see—
@@ -908,7 +908,7 @@
- (b) which forms part of arrangements which are tax avoidance arrangements.
- (2) An arrangement is a “tax avoidance arrangement” if—
- (2) An arrangement is a ““tax avoidance arrangement”” if—
- (a) the obtaining of a tax advantage for any person is the main purpose, or one of the main purposes, of the buyer in the land transaction entering into the arrangement, and
@@ -916,11 +916,11 @@
- (3) In this section—
- “arrangement” (“*trefniant*”) includes any transaction, scheme, agreement, grant, understanding, promise, undertaking or series of any of those things (whether or not legally enforceable);
- “tax” (“*treth*”) means land transaction tax, income tax, corporation tax, capital gains tax, stamp duty land tax, stamp duty reserve tax or stamp duty;
- “tax advantage” (“*mantais drethiannol*”) means— relief or increased relief from tax, repayment or increased repayment of tax, avoidance or reduction of a charge to tax, or deferral of a payment of tax or advancement of a repayment of tax.
- “*"arrangement”*” (“*"*trefniant**”") includes any transaction, scheme, agreement, grant, understanding, promise, undertaking or series of any of those things (whether or not legally enforceable);
- “*"tax”*” (“*"*treth**”") means land transaction tax, income tax, corporation tax, capital gains tax, stamp duty land tax, stamp duty reserve tax or stamp duty;
- “*"tax advantage”*” (“*"*mantais drethiannol**”") means—relief or increased relief from tax,repayment or increased repayment of tax,avoidance or reduction of a charge to tax, ordeferral of a payment of tax or advancement of a repayment of tax.
## PART 4 — LEASES
@@ -928,7 +928,7 @@
##### 32
- (1) In this Act, “lease” means—
- (1) In this Act, “*"lease”*” means—
- (a) an interest or right in or over land for a term of years (whether fixed or periodic), or
@@ -942,7 +942,7 @@
##### 33
- (1) In this Act, “company”, except as otherwise provided, means any body corporate or unincorporated association, but does not include a partnership.
- (1) In this Act, ““company””, except as otherwise provided, means any body corporate or unincorporated association, but does not include a partnership.
- (2) Everything to be done by a company under this Act, or under TCMA as it applies in relation to land transaction tax, is to be done by the company acting through—
@@ -986,23 +986,23 @@
- (2) Each of the parts of an umbrella scheme is to be regarded as a separate unit trust scheme and the scheme as a whole is not so regarded.
- (3) In this section and section 35, an “umbrella scheme” means a unit trust scheme—
- (3) In this section and section 35, an “*"umbrella scheme”*” means a unit trust scheme—
- (a) that provides arrangements for separate pooling of the contributions of participants and the profits or income out of which payments are to be made for them, and
- (b) under which the participants are entitled to exchange rights in one pool for rights in another.
- (4) A “part” of an umbrella scheme means such of the arrangements as relate to a separate pool.
- (4) A ““part”” of an umbrella scheme means such of the arrangements as relate to a separate pool.
- (5) In this Act, subject to any regulations under subsection (6)—
- “unit trust scheme” (“*cynllun ymddiriedolaeth unedau*”) has the same meaning as in the [Financial Services and Markets Act 2000 (c. 8)](https://www.legislation.gov.uk/ukpga/2000/8) (see section 237 of that Act), and
- “unit holder” (“*deiliad unedau*”) means a participant in a unit trust scheme.
- “*"unit trust scheme”*” (“*"*cynllun ymddiriedolaeth unedau**”") has the same meaning as in the Financial Services and Markets Act 2000 (c. 8) (see section 237 of that Act), and
- “*"unit holder”*” (“*"*deiliad unedau**”") means a participant in a unit trust scheme.
- (6) The Welsh Ministers may by regulations provide that a scheme of a description specified in the regulations is to be treated as not being a unit trust scheme for the purposes of this Act, and TCMA as it applies in relation to land transaction tax.
- (7) Section 620 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4) (court investment funds treated as authorised unit trusts) applies for the purposes of this Act as it applies for the purposes of that Act, but as if references to an authorised unit trust were references to a unit trust scheme.
- (7) Section 620 of the Corporation Tax Act 2010 (c. 4) (court investment funds treated as authorised unit trusts) applies for the purposes of this Act as it applies for the purposes of that Act, but as if references to an authorised unit trust were references to a unit trust scheme.
- (8) A unit trust scheme is not to be treated as a company for the purposes of Schedules 16 (group relief) and 17 (reconstruction relief or acquisition relief).
@@ -1024,7 +1024,7 @@
- (b) treating the separate parts of the undertaking of an open-ended investment company in relation to which such provision is made as distinct companies for the purposes of this Act, and TCMA as it applies in relation to land transaction tax.
- (3) In this section, “open-ended investment company” has the meaning given by section 236 of the [Financial Services and Markets Act 2000 (c. 8)](https://www.legislation.gov.uk/ukpga/2000/8).
- (3) In this section, “*"open-ended investment company”*” has the meaning given by section 236 of the Financial Services and Markets Act 2000 (c. 8).
#### Co-ownership authorised contractual schemes
@@ -1036,13 +1036,13 @@
- (b) the rights of the participants were shares in the company.
- (2) An “umbrella COACS” means a co-ownership authorised contractual scheme—
- (a) whose arrangements provide for separate pooling of the contributions of the participants and the profits or income out of which payments are made to them (“pooling arrangements”), and
- (2) An “*"umbrella COACS”*” means a co-ownership authorised contractual scheme—
- (a) whose arrangements provide for separate pooling of the contributions of the participants and the profits or income out of which payments are made to them (““pooling arrangements””), and
- (b) under which the participants are entitled to exchange rights in one pool for rights in another.
- (3) A “sub-scheme”, in relation to an umbrella COACS, means such of the pooling arrangements as relate to a separate pool.
- (3) A “*"sub-scheme”*”, in relation to an umbrella COACS, means such of the pooling arrangements as relate to a separate pool.
- (4) Each of the sub-schemes of an umbrella COACS is to be regarded as a separate co-ownership authorised contractual scheme, and the umbrella COACS as a whole is not so regarded.
@@ -1064,9 +1064,9 @@
- (7) Subject to any regulations under subsection (8)—
- “co-ownership authorised contractual scheme” (“*cynllun contractiol awdurdodedig cyfberchnogaeth*”) means a co-ownership scheme which is authorised for the purposes of the [Financial Services and Markets Act 2000 (c. 8)](https://www.legislation.gov.uk/ukpga/2000/8) by an authorisation order in force under section 261D(1) of that Act;
- “co-ownership scheme” (“*cynllun cyfberchnogaeth*”) has the same meaning as in the [Financial Services and Markets Act 2000 (c. 8)](https://www.legislation.gov.uk/ukpga/2000/8) (see section 235A of that Act).
- “*"co-ownership authorised contractual scheme”*” (“*"*cynllun contractiol awdurdodedig cyfberchnogaeth**”") means a co-ownership scheme which is authorised for the purposes of the Financial Services and Markets Act 2000 (c. 8) by an authorisation order in force under section 261D(1) of that Act;
- “*"co-ownership scheme”*” (“*"*cynllun cyfberchnogaeth**”") has the same meaning as in the Financial Services and Markets Act 2000 (c. 8) (see section 235A of that Act).
- (8) The Welsh Ministers may by regulations provide that a scheme of a description specified in the regulations is to be treated as not being a co-ownership authorised contractual scheme for the purposes of this Act, and TCMA as it applies in relation to land transaction tax.
@@ -1078,11 +1078,11 @@
- (12) In this section—
- “collective investment scheme” (“*cynllun buddsoddi torfol*”) has the meaning given by section 235 of the [Financial Services and Markets Act 2000 (c. 8)](https://www.legislation.gov.uk/ukpga/2000/8);
- “operator” (“*gweithredwr*”)— in relation to a co-ownership authorised contractual scheme constituted under the law of the United Kingdom, has the meaning given by section 237(2) of the [Financial Services and Markets Act 2000 (c. 8)](https://www.legislation.gov.uk/ukpga/2000/8), and in relation to a collective investment scheme treated as a co-ownership authorised contractual scheme by virtue of subsection (6) (equivalent EEA schemes), means the corporate body responsible for the management of the scheme (however described);
- “participant” (“*cyfranogwr*”) is to be read in accordance with section 235 of the [Financial Services and Markets Act 2000 (c. 8)](https://www.legislation.gov.uk/ukpga/2000/8).
- “*"collective investment scheme”*” (“*"*cynllun buddsoddi torfol**”") has the meaning given by section 235 of the Financial Services and Markets Act 2000 (c. 8);
- “*"operator”*” (“*"*gweithredwr**”")—in relation to a co-ownership authorised contractual scheme constituted under the law of the United Kingdom, has the meaning given by section 237(2) of the Financial Services and Markets Act 2000 (c. 8), andin relation to a collective investment scheme treated as a co-ownership authorised contractual scheme by virtue of subsection (6) (equivalent EEA schemes), means the corporate body responsible for the management of the scheme (however described);
- “*"participant”*” (“*"*cyfranogwr**”") is to be read in accordance with section 235 of the Financial Services and Markets Act 2000 (c. 8).
#### Joint buyers: general rules
@@ -1148,7 +1148,7 @@
- (b) any of the other buyers may be a party to the review if they notify WRA in writing;
- (c) notice of WRA’s conclusions under section 176(5), (6) or (7) of TCMA must be issued to each of the buyers whose identity is known to WRA;
- (c) notice of WRA's conclusions under section 176(5), (6) or (7) of TCMA must be issued to each of the buyers whose identity is known to WRA;
- (d) section 177 of TCMA (effect of conclusions of review) applies in relation to all of the buyers.
@@ -1160,7 +1160,7 @@
- (c) any of the buyers are entitled to be parties to the appeal;
- (d) the tribunal’s determination under section 181 of TCMA binds all the buyers.
- (d) the tribunal's determination under section 181 of TCMA binds all the buyers.
#### Partnerships
@@ -1208,7 +1208,7 @@
- (b) if the transaction is a chargeable transaction, include a self-assessment.
- (3) In this Act, “self-assessment” in relation to a return, means an assessment of the amount of tax that, on the basis of the information contained in that return, is chargeable in respect of the transaction.
- (3) In this Act, “*"self-assessment”*” in relation to a return, means an assessment of the amount of tax that, on the basis of the information contained in that return, is chargeable in respect of the transaction.
### Notifiable transactions
@@ -1276,7 +1276,7 @@
- (b) any amount in respect of which tax would be so chargeable but for a relief listed in section 30(2) or (3).
- (9) In subsection (6), “relevant rent” means—
- (9) In subsection (6), “*"relevant rent”*” means—
- (a) the annual rent (as defined in paragraph 36(2) of Schedule 6), or
@@ -1344,9 +1344,9 @@
- (a) section 19 or 20 (contingent, uncertain or unascertained consideration) applies in relation to the transaction, or to any transaction in relation to which the transaction is a linked transaction,
- (b) an event mentioned in section 47(2) occurs (“the relevant event”), and
- (c) the effect of the relevant event is that there is less tax payable in respect of the transaction than the buyer has already paid in accordance with the return made for the transaction (“the land transaction return”).
- (b) an event mentioned in section 47(2) occurs (“*"the relevant event”*”), and
- (c) the effect of the relevant event is that there is less tax payable in respect of the transaction than the buyer has already paid in accordance with the return made for the transaction (““the land transaction return””).
- (2) In order to obtain a repayment of the amount of tax overpaid, the buyer in the land transaction may—
@@ -1360,7 +1360,7 @@
> (a) the period of 4 years beginning with the day after the filing date for the tax return to which the land transaction tax already paid relates, or
> (b) the period of 12 months beginning with the relevant event (within the meaning given in section 48(1)(b) of LTTA).
- (4) But where the transaction (“the relevant transaction”) is the grant or assignment of a lease, no claim may be made under subsection (2)—
- (4) But where the transaction (““the relevant transaction””) is the grant or assignment of a lease, no claim may be made under subsection (2)—
- (a) in respect of the repayment (in whole or in part) of any loan or deposit that is treated by virtue of paragraph 19 of Schedule 6 as being consideration given for the relevant transaction, or
@@ -1440,7 +1440,7 @@
##### 51
- (1) This section applies where the effect of a transaction (“the later transaction”) that is linked to an earlier transaction is that—
- (1) This section applies where the effect of a transaction (““the later transaction””) that is linked to an earlier transaction is that—
- (a) the earlier transaction becomes notifiable,
@@ -1488,15 +1488,15 @@
##### 53
- (1) A return under this Act must include a declaration by the buyer that the return is, to the best of the buyer’s knowledge, correct and complete.
- (1) A return under this Act must include a declaration by the buyer that the return is, to the best of the buyer's knowledge, correct and complete.
- (2) But where—
- (a) the buyer authorises an agent to complete the return,
- (b) the buyer makes a declaration that, with the exception of the relevant date, the information provided in the return is to the best of the buyer’s knowledge, correct and complete, and
- (c) the return includes a declaration by the agent that the relevant date provided in the return is to the best of the agent’s knowledge correct,
- (b) the buyer makes a declaration that, with the exception of the relevant date, the information provided in the return is to the best of the buyer's knowledge, correct and complete, and
- (c) the return includes a declaration by the agent that the relevant date provided in the return is to the best of the agent's knowledge correct,
the requirement in subsection (1) is deemed to be met.
@@ -1524,15 +1524,15 @@
- (b) the Official Solicitor is acting for that buyer, and
- (c) the return includes a declaration by the Official Solicitor that the return is to best of the Official Solicitor’s knowledge correct and complete,
- (c) the return includes a declaration by the Official Solicitor that the return is to best of the Official Solicitor's knowledge correct and complete,
the requirement in section 53 is deemed to be met.
- (2) Nothing in this section affects the liability of the buyer under this Act or TCMA.
- (3) For the purposes of this section, a person is disabled if they have a disability for the purposes of the [Equality Act 2010 (c. 15)](https://www.legislation.gov.uk/ukpga/2010/15).
- (4) In this section, the “Official Solicitor” means the Official Solicitor to the Senior Courts.
- (3) For the purposes of this section, a person is disabled if they have a disability for the purposes of the Equality Act 2010 (c. 15).
- (4) In this section, the “*"Official Solicitor”*” means the Official Solicitor to the Senior Courts.
#### Declaration by person authorised to act on behalf of individual
@@ -1542,7 +1542,7 @@
- (2) Where the buyer is an individual, the requirement that the buyer make such a declaration (alone or jointly with others) is treated as met if a declaration to that effect is made by a person authorised to act on behalf of that individual in relation to the matters to which the return or certificate relates.
- (3) For the purposes of this section a person (“P”) is not regarded as authorised to act on behalf of an individual unless P is so authorised by a power of attorney in writing, signed by that individual.
- (3) For the purposes of this section a person (““P””) is not regarded as authorised to act on behalf of an individual unless P is so authorised by a power of attorney in writing, signed by that individual.
- (4) This section does not apply where an individual is acting in accordance with section 33 (persons through whom a company acts)—
@@ -1590,7 +1590,7 @@
##### 58
- (1) A buyer in a land transaction where the whole or part of the chargeable consideration is contingent or uncertain (see sections 19 and 20) may give notice to WRA (“a deferral request”) requesting that payment of an amount of tax payable stated in the first return relating to the transaction (“the requested amount”) be deferred.
- (1) A buyer in a land transaction where the whole or part of the chargeable consideration is contingent or uncertain (see sections 19 and 20) may give notice to WRA (““a deferral request””) requesting that payment of an amount of tax payable stated in the first return relating to the transaction (““the requested amount””) be deferred.
- (2) But the requested amount may not exceed the deferrable amount (see section 59).
@@ -1602,7 +1602,7 @@
- (i) specifies the requested amount to be deferred,
- (ii) sets out the calculation of the requested amount carried out in accordance with section 59 (including the amount of consideration falling within step 2 of that calculation (“the deferred consideration”)),
- (ii) sets out the calculation of the requested amount carried out in accordance with section 59 (including the amount of consideration falling within step 2 of that calculation (““the deferred consideration””)),
- (iii) sets out the reasons why the deferred consideration is contingent or uncertain and the reasons why it falls to be paid or provided on one or more future dates of which at least one will or may fall more than 6 months after the effective date of the transaction,
@@ -1620,23 +1620,23 @@
- (6) When agreeing to a deferral request WRA—
- (a) must determine the amount of tax it agrees to defer (the “deferred amount”);
- (a) must determine the amount of tax it agrees to defer (the ““deferred amount””);
- (b) must determine the expected end date of the deferral period (that may be different to the expected end date proposed by the buyer) (see subsection (8));
- (c) may impose such conditions (including conditions requiring the buyer to make payments of part of the deferred amount at specified times during the deferral period) as WRA thinks appropriate.
- (7) In this section, “tax avoidance arrangement” has the same meaning as in section 31.
- (7) In this section, “*"tax avoidance arrangement”*” has the same meaning as in section 31.
- (8) In this Chapter—
- (a) “deferral period” means the period beginning with the filing date for the return referred to in subsection (1) and ending on the earlier of—
- (a) “*"deferral period”*” means the period beginning with the filing date for the return referred to in subsection (1) and ending on the earlier of—
- (i) the expected end date, or
- (ii) the date on which an event mentioned in subsection (9) occurs in relation to the deferred consideration;
- (b) “expected end date” means—
- (b) “*"expected end date”*” means—
- (i) the date on which an event mentioned in subsection (9) is expected to occur in relation to the deferred consideration, or
@@ -1656,7 +1656,7 @@
- *Step 1* Calculate the amount of tax chargeable in respect of the land transaction in accordance with section 27 or 28.
- *Step 2* Determine the amount or value of chargeable consideration for the land transaction that— has not already been paid or provided, is contingent or uncertain (see sections 19 and 20), does not consist of— rent (within the meaning given in Schedule 6), or an annuity to which section 21 applies, and falls to be paid or provided on one or more future dates of which at least one will or may fall more than 6 months after the effective date of the transaction. That amount or value of consideration is the deferred consideration.
- *Step 2* Determine the amount or value of chargeable consideration for the land transaction that—has not already been paid or provided,is contingent or uncertain (see sections 19 and 20),does not consist of—rent (within the meaning given in Schedule 6), oran annuity to which section 21 applies, andfalls to be paid or provided on one or more future dates of which at least one will or may fall more than 6 months after the effective date of the transaction.That amount or value of consideration is the deferred consideration.
- *Step 3* Calculate (in accordance with section 27 or 28) the amount of tax that would have been chargeable in respect of the land transaction had the chargeable consideration for the transaction been reduced by the amount or value of the deferred consideration.
@@ -1690,9 +1690,9 @@
- (2) Where WRA refuses a deferral request (or agrees to a request but agrees a deferred amount which is lower than the requested amount)—
- (a) the amount of tax which WRA has refused to defer (“the refused amount”) is required to be paid by the end of the later of—
- (i) the date on which the buyer receives notice of WRA’s decision, or
- (a) the amount of tax which WRA has refused to defer (““the refused amount””) is required to be paid by the end of the later of—
- (i) the date on which the buyer receives notice of WRA's decision, or
- (ii) the date on which the amount would otherwise be required to be paid in accordance with section 57, and
@@ -1774,9 +1774,9 @@
##### 65
- (1) The Chief Land Registrar (“the Registrar”) may not register, record or otherwise reflect in an entry made in the register of title maintained by the Registrar a notifiable land transaction or a document effecting or evidencing such a transaction unless a WRA certificate is produced with the application to register, record or otherwise reflect the transaction.
- (2) A “WRA certificate” is a certificate issued by WRA stating that a return has been made in respect of the transaction.
- (1) The Chief Land Registrar (““the Registrar””) may not register, record or otherwise reflect in an entry made in the register of title maintained by the Registrar a notifiable land transaction or a document effecting or evidencing such a transaction unless a WRA certificate is produced with the application to register, record or otherwise reflect the transaction.
- (2) A ““WRA certificate”” is a certificate issued by WRA stating that a return has been made in respect of the transaction.
- (3) But subsection (1) does not apply in so far as—
@@ -1824,20 +1824,20 @@
> (81A)
> (1) This Part makes provision for counteracting tax advantages arising from artificial tax avoidance arrangements, including provision—
> (a) about the meaning of “tax avoidance arrangement”, “artificial” and “tax advantage” (sections 81B to 81D);
> (b) about WRA’s power to make adjustments to counteract tax advantages and the steps to be taken by WRA in connection with such adjustments (sections 81E to 81G).
> (2) The rules in this Part are collectively to be known as “the general anti-avoidance rule”.
> (a) about the meaning of ““tax avoidance arrangement””, ““artificial”” and ““tax advantage”” (sections 81B to 81D);
> (b) about WRA's power to make adjustments to counteract tax advantages and the steps to be taken by WRA in connection with such adjustments (sections 81E to 81G).
> (2) The rules in this Part are collectively to be known as “*"the general anti-avoidance rule”*”.
> (81B)
> (1) For the purposes of this Part, an arrangement is a “tax avoidance arrangement” if the obtaining of a tax advantage for any person is the main purpose, or one of the main purposes, of a taxpayer entering into the arrangement.
> (1) For the purposes of this Part, an arrangement is a ““tax avoidance arrangement”” if the obtaining of a tax advantage for any person is the main purpose, or one of the main purposes, of a taxpayer entering into the arrangement.
> (2) In determining whether the main purpose, or one of the main purposes, of an arrangement is the obtaining of a tax advantage regard may in particular be had to the amount of devolved tax that would have been chargeable in the absence of the arrangement.
> (3) In this Part—
> (a) an “arrangement” includes any transaction, scheme, action, operation, agreement, grant, understanding, promise, undertaking, event or any series of any of those things (whether legally enforceable or not);
> (a) an “*"arrangement”*” includes any transaction, scheme, action, operation, agreement, grant, understanding, promise, undertaking, event or any series of any of those things (whether legally enforceable or not);
> (b) references to an arrangement are to be read as including—
> (i) a series of arrangements, and
> (ii) any part or stage of an arrangement comprised of more than one part or stage;
> (c) “taxpayer” means a person liable to devolved tax or who would be liable but for the tax avoidance arrangement in question.
> (c) “*"taxpayer”*” means a person liable to devolved tax or who would be liable but for the tax avoidance arrangement in question.
> (81C)
> (1) For the purposes of this Part, a tax avoidance arrangement is “artificial” if the entering into or carrying out of it is not a reasonable course of action in relation to the provisions of Welsh tax legislation applying to the arrangements.
> (1) For the purposes of this Part, a tax avoidance arrangement is ““artificial”” if the entering into or carrying out of it is not a reasonable course of action in relation to the provisions of Welsh tax legislation applying to the arrangements.
> (2) In determining whether the tax avoidance arrangement is artificial, regard may in particular be had—
> (a) to any genuine economic or commercial substance to the arrangement (other than the obtaining of a tax advantage);
> (b) as to whether the arrangement results in an amount of tax chargeable that it is reasonable to assume was not the anticipated result when the relevant provision of Welsh tax legislation was enacted.
@@ -1845,12 +1845,17 @@
> (a) the arrangement was consistent with generally prevailing practice, and
> (b) WRA had indicated its acceptance of that practice.
> (4) Where a tax avoidance arrangement forms part of any other arrangements, regard must also be had to those other arrangements in determining whether the tax avoidance arrangement is artificial.
> (5) In this section, “Welsh tax legislation” means—
> (5) In this section, “*"Welsh tax legislation”*” means—
> (a) the Welsh Tax Acts, and
> (b) any subordinate legislation (within the meaning of section 21 of the [Interpretation Act 1978 (c. 30)](https://www.legislation.gov.uk/ukpga/1978/30)) made under those Acts.
> (b) any subordinate legislation (within the meaning of section 21 of the Interpretation Act 1978 (c. 30)) made under those Acts.
> (81D) For the purposes of this Part—
> - “tax” (“*treth*”) means any devolved tax;
> - “tax advantage” (“*mantais drethiannol*”) means— relief or increased relief from tax, repayment or increased repayment of tax, avoidance or reduction of a charge to tax, deferral of a payment of tax or advancement of a repayment of tax, and avoidance of an obligation to deduct or account for tax.
> - “*"tax”*” (“*"*treth**”") means any devolved tax;
> - “*"tax advantage”*” (“*"*mantais drethiannol**”") means—
> 1. relief or increased relief from tax,
> 2. repayment or increased repayment of tax,
> 3. avoidance or reduction of a charge to tax,
> 4. deferral of a payment of tax or advancement of a repayment of tax, and
> 5. avoidance of an obligation to deduct or account for tax.
> (81E)
> (1) WRA may make such adjustments as it considers just and reasonable to counteract a tax advantage that would (ignoring this Part) arise from an artificial tax avoidance arrangement.
> (2) An adjustment may be made in respect of the devolved tax in question or any other devolved tax.
@@ -1859,7 +1864,7 @@
> (b) otherwise by means of a WRA assessment.
> (4) WRA may not make an adjustment unless it has complied with the requirements of sections 81F and 81G.
> (81F)
> (1) WRA may issue a notice (a “proposed counteraction notice”) to a taxpayer if WRA considers—
> (1) WRA may issue a notice (a ““proposed counteraction notice””) to a taxpayer if WRA considers—
> (a) that a tax advantage has arisen to a person from an artificial tax avoidance arrangement, and
> (b) that the tax advantage should be counteracted by means of an adjustment under section 81E.
> (2) A proposed counteraction notice must—
@@ -1872,7 +1877,7 @@
> (ii) that the taxpayer may request that WRA extend that 45 day period, and
> (iii) that the taxpayer may make written representations to WRA at any time before the final counteraction notice is issued.
> (81G)
> (1) WRA must, after the expiry of the 45 day period mentioned in section 81F(2)(e)(i) or such longer period as WRA has agreed to, issue a notice (a “final counteraction notice”) to the taxpayer.
> (1) WRA must, after the expiry of the 45 day period mentioned in section 81F(2)(e)(i) or such longer period as WRA has agreed to, issue a notice (a ““final counteraction notice””) to the taxpayer.
> (2) A final counteraction notice must state whether the tax advantage arising from the tax avoidance arrangement is to be counteracted by means of an adjustment under section 81E.
> (3) In determining whether the tax advantage is to be counteracted WRA must have regard to any written representations made by the taxpayer.
> (4) If a final counteraction notice states that a tax advantage is to be counteracted by means of an adjustment the notice must also—
@@ -1884,7 +1889,7 @@
> (d) specify any amount that the taxpayer—
> (i) will be required to pay as a result of the amendment specified under paragraph (b), or
> (ii) is required to pay in accordance with the WRA assessment mentioned in paragraph (c).
> (5) If a final counteraction notice states that a tax advantage is not to be counteracted it must state the reasons for WRA’s decision.
> (5) If a final counteraction notice states that a tax advantage is not to be counteracted it must state the reasons for WRA's decision.
> (81H) In proceedings before a court or the tribunal in connection with the general anti-avoidance rule, it is for WRA to show—
> (a) that there is an artificial tax avoidance arrangement, and
> (b) that the adjustments made (or to be made) to counteract the tax advantage arising from the arrangement are just and reasonable.
@@ -1900,13 +1905,13 @@
##### 67
Except as otherwise provided, in this Act, “tax” means land transaction tax.
Except as otherwise provided, in this Act, “*"tax”*” means land transaction tax.
#### Meaning of major interest in land
##### 68
References in this Act to a “major interest” in land are to—
References in this Act to a ““major interest”” in land are to—
- (a) an estate in fee simple absolute, or
@@ -1918,13 +1923,13 @@
##### 69
Except as otherwise provided, references in this Act 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.
Except as otherwise provided, references in this Act 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.
#### Meaning of market value
##### 70
For the purposes of this Act, “market value” is to be determined as for the purposes of the [Taxation of Chargeable Gains Act 1992 (c. 12)](https://www.legislation.gov.uk/ukpga/1992/12) (see sections 272 to 274 of that Act).
For the purposes of this Act, ““market value”” is to be determined as for the purposes of the Taxation of Chargeable Gains Act 1992 (c. 12) (see sections 272 to 274 of that Act).
#### Meaning of effective date of transaction
@@ -1936,7 +1941,7 @@
##### 72
- (1) In this Act, “residential property” means—
- (1) In this Act, “*"residential property”*” means—
- (a) a building that is used or suitable for use as one or more dwellings, or is in the process of being constructed or adapted for such use;
@@ -1944,7 +1949,7 @@
- (c) an interest in or right over land that subsists for the benefit of a building within paragraph (a) or of land within paragraph (b).
- (2) Accordingly, “non-residential property” means any property that is not residential property.
- (2) Accordingly, “*"non-residential property”*” means any property that is not residential property.
- (3) But see the rule in subsection (9) in the case of a transaction involving 6 or more dwellings.
@@ -1980,7 +1985,7 @@
- (b) otherwise, the building is to be treated for those purposes as suitable for use as a dwelling.
- (8) In this section, “building” includes part of a building.
- (8) In this section, “*"building”*” includes part of a building.
- (9) Where 6 or more dwellings are the subject of a single transaction involving the transfer of a major interest in, or the grant of a lease over, them, then, for the purposes of this Act as it applies in relation to that transaction, those dwellings are treated as being non-residential property.
@@ -1990,13 +1995,13 @@
##### 73
References in this Act to a “dwelling” are to residential property comprising a single dwelling.
References in this Act to a ““dwelling”” are to residential property comprising a single dwelling.
#### References to connected persons
##### 74
- (1) Section 1122 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4) (connected persons) applies for the purposes of any reference in this Act to a person being connected with another person.
- (1) Section 1122 of the Corporation Tax Act 2010 (c. 4) (connected persons) applies for the purposes of any reference in this Act to a person being connected with another person.
- (2) But see the particular provision made in the following provisions—
@@ -2004,7 +2009,7 @@
- (b) paragraphs 16(2)(b) and 24(2)(b) of Schedule 7 (partnership transactions: determining the corresponding partners);
- (c) paragraph 51 of that Schedule (partnerships: application of section 1122 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4) to Schedule 7 generally);
- (c) paragraph 51 of that Schedule (partnerships: application of section 1122 of the Corporation Tax Act 2010 (c. 4) to Schedule 7 generally);
- (d) paragraph 5(5) of Schedule 16 (group relief: joint venture companies);
@@ -2016,21 +2021,21 @@
In this Act—
- “child” (“*plentyn*”) means a person under the age of 18;
- “consumer prices index” (“*mynegai prisiau defnyddwyr*”) means the all items consumer prices index published by the Statistics Board;
- “enactment” (“*deddfiad*”) means an enactment (whenever enacted or made) which is, or is contained in— an Act of Parliament, an Act or a Measure of the National Assembly for Wales, or subordinate legislation (within the meaning of the [Interpretation Act 1978 (c. 30)](https://www.legislation.gov.uk/ukpga/1978/30)) made under— an Act of Parliament, or an Act or a Measure of the National Assembly for Wales;
- “land” (“*tir*”) includes— buildings and structures; land covered by water;
- “registered social landlord” (“*landlord cymdeithasol cofrestredig*”) means a body registered as a social landlord in a register maintained under section 1(1) of the [Housing Act 1996 (c. 52)](https://www.legislation.gov.uk/ukpga/1996/52);
- “retail prices index” (“*mynegai prisiau manwerthu*”) means the United Kingdom General Index of Retail Prices published by the Statistics Board under section 21 of the [Statistics and Registration Service Act 2007 (c. 18)](https://www.legislation.gov.uk/ukpga/2007/18);
- “TCMA” (“*DCRhT*”) means the [Tax Collection and Management (Wales) Act 2016 (anaw 6)](https://www.legislation.gov.uk/anaw/2016/6);
- “Wales” (“*Cymru*”) has the meaning given by section 158(1) of the [Government of Wales Act 2006 (c. 32)](https://www.legislation.gov.uk/ukpga/2006/32).
- “*"child”*” (“*"*plentyn**”") means a person under the age of 18;
- “*"consumer prices index”*” (“*"*mynegai prisiau defnyddwyr**”") means the all items consumer prices index published by the Statistics Board;
- “*"enactment”*” (“*"*deddfiad**”") means an enactment (whenever enacted or made) which is, or is contained in—an Act of Parliament,an Act or a Measure of the National Assembly for Wales, orsubordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)) made under—an Act of Parliament, oran Act or a Measure of the National Assembly for Wales;
- “*"land”*” (“*"*tir**”") includes—buildings and structures;land covered by water;
- “*"registered social landlord”*” (“*"*landlord cymdeithasol cofrestredig**”") means a body registered as a social landlord in a register maintained under section 1(1) of the Housing Act 1996 (c. 52);
- “*"retail prices index”*” (“*"*mynegai prisiau manwerthu**”") means the United Kingdom General Index of Retail Prices published by the Statistics Board under section 21 of the Statistics and Registration Service Act 2007 (c. 18);
- “*"TCMA”*” (“*"*DCRhT**”") means the Tax Collection and Management (Wales) Act 2016 (anaw 6);
- “*"Wales”*” (“*"*Cymru**”") has the meaning given by section 158(1) of the Government of Wales Act 2006 (c. 32).
### Amendments to the Tax Collection and Management (Wales) Act 2016
@@ -2150,7 +2155,7 @@
- (2) But see paragraph 2 of Schedule 3 (which exempts land transactions from charge where the buyer is a specified Crown body).
- (3) And nothing in Chapter 2 of Part 6 (liability for and payment of tax) affects the operation of sections 8 and 9 of the [Crown Private Estates Act 1862 (c. 37)](https://www.legislation.gov.uk/ukpga/1862/37).
- (3) And nothing in Chapter 2 of Part 6 (liability for and payment of tax) affects the operation of sections 8 and 9 of the Crown Private Estates Act 1862 (c. 37).
- (4) Subsection (1) does not make the Crown liable to prosecution for an offence.
@@ -2186,13 +2191,13 @@
- (2) The Schedule is arranged as follows—
- (a) this Part makes introductory provisions setting out the circumstances where this Schedule applies (paragraph 2) and explaining the meaning of “pre-completion transaction” and other key terms referred to in the Schedule;
- (a) this Part makes introductory provisions setting out the circumstances where this Schedule applies (paragraph 2) and explaining the meaning of ““pre-completion transaction”” and other key terms referred to in the Schedule;
- (b) Part 2 sets out how this Act applies in cases where the pre-completion transaction is an assignment of rights (the meaning of which is set out in paragraph 6);
- (c) Part 3 sets out how this Act applies in cases involving free-standing transfers (the meaning of which is set out in paragraph 12);
- (d) Part 4 provides for a special rule (“the minimum consideration rule”) which applies to determine the consideration given in cases where the parties in relation to a pre-completion transaction are connected or are otherwise not acting at arm’s length;
- (d) Part 4 provides for a special rule (““the minimum consideration rule””) which applies to determine the consideration given in cases where the parties in relation to a pre-completion transaction are connected or are otherwise not acting at arm's length;
- (e) Part 5 provides for relief to be available to certain buyers in cases where certain pre-completion transactions are entered into;
@@ -2204,7 +2209,7 @@
- (1) This Schedule applies where—
- (a) a person (“the original buyer”) enters into a contract (“the original contract”) for the acquisition by the original buyer of a chargeable interest under which the acquisition is to be completed by a transfer, and
- (a) a person (““the original buyer””) enters into a contract (““the original contract””) for the acquisition by the original buyer of a chargeable interest under which the acquisition is to be completed by a transfer, and
- (b) there is a pre-completion transaction.
@@ -2220,11 +2225,11 @@
- (1) A transaction is a pre-completion transaction if—
- (a) as a result of the transaction a person other than the original buyer (“the transferee”) becomes entitled to call for a transfer to the transferee of the whole or part of the subject-matter of the original contract, and
- (a) as a result of the transaction a person other than the original buyer (“*"the transferee”*”) becomes entitled to call for a transfer to the transferee of the whole or part of the subject-matter of the original contract, and
- (b) immediately before the transaction took place a person (other than the transferee but not necessarily the original buyer) was entitled under the original contract to call for a transfer of the whole or that part of that subject-matter.
- (2) A transaction that gives effect to a person’s acquisition of the whole or part of the subject-matter of the original contract is not a pre-completion transaction.
- (2) A transaction that gives effect to a person's acquisition of the whole or part of the subject-matter of the original contract is not a pre-completion transaction.
- (3) The grant or assignment of an option is not a pre-completion transaction.
@@ -2240,9 +2245,9 @@
- (b) also include, so far as is appropriate, interests or rights appurtenant or pertaining to the chargeable interest.
- (2) In this Schedule, “the transferor”, in relation to a pre-completion transaction, means a party to the pre-completion transaction who immediately before the pre-completion transaction took place was entitled to call for a transfer of (what became) the subject-matter of the pre-completion transaction.
- (3) References in this Schedule to the “subject-matter” of a pre-completion transaction—
- (2) In this Schedule, “*"the transferor”*”, in relation to a pre-completion transaction, means a party to the pre-completion transaction who immediately before the pre-completion transaction took place was entitled to call for a transfer of (what became) the subject-matter of the pre-completion transaction.
- (3) References in this Schedule to the ““subject-matter”” of a pre-completion transaction—
- (a) are to the chargeable interest the transfer of which the transferee is entitled to call for as a result of the pre-completion transaction, and
@@ -2260,7 +2265,7 @@
##### 6
A pre-completion transaction is an “assignment of rights” if the entitlement of the transferee referred to in paragraph 3(1)(a) is an entitlement to exercise rights under the original contract.
A pre-completion transaction is an ““assignment of rights”” if the entitlement of the transferee referred to in paragraph 3(1)(a) is an entitlement to exercise rights under the original contract.
#### Assignments of rights: application of rules about completion and consideration
@@ -2284,13 +2289,13 @@
- (b) for the assignment of rights.
- (6) Paragraph 1 of Schedule 4 (chargeable consideration: money or money’s worth) has effect accordingly but subject to sub-paragraphs (7) and (8) of this paragraph.
- (6) Paragraph 1 of Schedule 4 (chargeable consideration: money or money's worth) has effect accordingly but subject to sub-paragraphs (7) and (8) of this paragraph.
- (7) This paragraph does not allow any amount of consideration given by a person to be counted twice in determining the chargeable consideration.
- (8) In any case where there is a relevant connection between the parties as mentioned in paragraph 15(2) (minimum consideration rule), the chargeable consideration for the land transaction mentioned in sub-paragraph (4) of this paragraph is calculated (regardless of whether the consideration is taken to be the amount in paragraph (a), (b) or (c) of paragraph 15(2)) as if in paragraph 1 of Schedule 4 the words “or a person connected with the buyer” were omitted.
- (9) The original contract is to be taken to be “substantially performed by the transferee” where a land transaction is treated as effected under section 10(4) by reason of—
- (8) In any case where there is a relevant connection between the parties as mentioned in paragraph 15(2) (minimum consideration rule), the chargeable consideration for the land transaction mentioned in sub-paragraph (4) of this paragraph is calculated (regardless of whether the consideration is taken to be the amount in paragraph (a), (b) or (c) of paragraph 15(2)) as if in paragraph 1 of Schedule 4 the words ““or a person connected with the buyer”” were omitted.
- (9) The original contract is to be taken to be ““substantially performed by the transferee”” where a land transaction is treated as effected under section 10(4) by reason of—
- (a) the transferee under the assignment of rights, or a person connected with the transferee, taking possession of the whole, or substantially the whole, of the subject-matter of the original contract,
@@ -2300,13 +2305,13 @@
- (10) References in sub-paragraph (9) to possession and to the payment or provision of a substantial amount of the consideration are to be read in accordance with subsections (2) and (3) of section 14 (meaning of substantial performance).
- (11) In sub-paragraph (9), “the consideration”—
- (11) In sub-paragraph (9), ““the consideration””—
- (a) in relation to the land transaction, means (what is taken to be) the consideration for the acquisition of the subject-matter of the land transaction;
- (b) in relation to the original contract, means the consideration for the transferee’s acquisition of the subject-matter of that contract;
- (c) in relation to the assignment of rights, means the consideration for the transferee’s acquisition of the rights to which that contract relates.
- (b) in relation to the original contract, means the consideration for the transferee's acquisition of the subject-matter of that contract;
- (c) in relation to the assignment of rights, means the consideration for the transferee's acquisition of the rights to which that contract relates.
#### Assignment of rights: transferor treated as making separate acquisition
@@ -2314,21 +2319,21 @@
- (1) Where paragraph 7(4) to (8) applies (assignment of rights: original contract completed or substantially performed) this Act has effect as if—
- (a) the effective date of the land transaction mentioned in paragraph 7(4) (“the transferee’s land transaction”) were also the effective date of another land transaction (a “notional land transaction”), and
- (a) the effective date of the land transaction mentioned in paragraph 7(4) (““the transferee's land transaction””) were also the effective date of another land transaction (a ““notional land transaction””), and
- (b) the original buyer were the buyer in that notional land transaction.
- (2) The notional land transaction is referred to in this paragraph as being “associated with” the assignment of rights under which the original buyer is the transferor.
- (3) Where sub-paragraph (1) applies and the assignment of rights mentioned in paragraph 7(1) (“the implemented assignment of rights”) was preceded by one or more related assignments of rights, then for the purposes of this Act there is taken to be, for each assignment of rights (other than the first) in the chain formed by the implemented assignment of rights and those preceding assignments of rights, an additional notional land transaction—
- (a) the effective date of which is the effective date of the transferee’s land transaction, and
- (2) The notional land transaction is referred to in this paragraph as being ““associated with”” the assignment of rights under which the original buyer is the transferor.
- (3) Where sub-paragraph (1) applies and the assignment of rights mentioned in paragraph 7(1) (““the implemented assignment of rights””) was preceded by one or more related assignments of rights, then for the purposes of this Act there is taken to be, for each assignment of rights (other than the first) in the chain formed by the implemented assignment of rights and those preceding assignments of rights, an additional notional land transaction—
- (a) the effective date of which is the effective date of the transferee's land transaction, and
- (b) where the buyer is the transferor under that assignment of rights.
- (4) In sub-paragraph (3), “related assignment of rights” means a transaction that is an assignment of rights in relation to the original contract and has some subject-matter in common with the implemented assignment of rights.
- (5) The additional notional land transaction is referred to in this paragraph as being “associated with” the assignment of rights.
- (4) In sub-paragraph (3), “*"related assignment of rights”*” means a transaction that is an assignment of rights in relation to the original contract and has some subject-matter in common with the implemented assignment of rights.
- (5) The additional notional land transaction is referred to in this paragraph as being ““associated with”” the assignment of rights.
- (6) For the purpose of determining the chargeable consideration—
@@ -2336,7 +2341,7 @@
- (b) for any additional notional land transaction, that Schedule has effect as if paragraph 1 of it provided that the chargeable consideration is (except as otherwise provided) the sum of A, B and C.
- (7) A is the total amount of any consideration in money or money’s worth given (whether directly or indirectly) by any of the following as consideration under the original contract—
- (7) A is the total amount of any consideration in money or money's worth given (whether directly or indirectly) by any of the following as consideration under the original contract—
- (a) the transferee under the assignment of rights with which the notional land transaction or the additional notional land transaction is associated;
@@ -2344,19 +2349,19 @@
- (c) a person connected with a person falling within paragraph (a) or (b).
- (8) B is the total amount of any other consideration in money or money’s worth given as consideration under the original contract (directly or indirectly) by—
- (8) B is the total amount of any other consideration in money or money's worth given as consideration under the original contract (directly or indirectly) by—
- (a) the buyer (under the notional land transaction or the additional notional land transaction), or
- (b) a person connected with the buyer.
- (9) C is the amount of any consideration in money or money’s worth given for the preceding assignment of rights by—
- (9) C is the amount of any consideration in money or money's worth given for the preceding assignment of rights by—
- (a) the buyer (under the additional notional land transaction), or
- (b) a person connected with the buyer.
- (10) In sub-paragraph (9), “the preceding assignment of rights” means the assignment of rights as a result of which the buyer became entitled to call for a transfer of (what became) the subject-matter of the assignment of rights associated with the additional notional land transaction.
- (10) In sub-paragraph (9), “*"the preceding assignment of rights”*” means the assignment of rights as a result of which the buyer became entitled to call for a transfer of (what became) the subject-matter of the assignment of rights associated with the additional notional land transaction.
#### Notional land transactions: effect of rescission etc. following substantial performance
@@ -2406,7 +2411,7 @@
- (e) paragraph 2(1)(a) of Schedule 21 (compliance with planning obligations: conditions for relief).
- (6) The following are “relevant land transactions”—
- (6) The following are ““relevant land transactions””—
- (a) the land transaction given effect by the transfer mentioned in sub-paragraph (1)(b) or treated as having been given effect by the substantial performance mentioned in that sub-paragraph;
@@ -2418,7 +2423,7 @@
- (b) the transferor under any relevant assignment of rights.
- (8) The following are “relevant assignments of rights” in relation to a relevant land transaction—
- (8) The following are “*"relevant assignments of rights”*” in relation to a relevant land transaction—
- (a) the assignment of rights mentioned in sub-paragraph (1)(a);
@@ -2430,7 +2435,7 @@
##### 12
A pre-completion transaction which is not an assignment of rights is referred to in this Schedule as a “free-standing transfer”.
A pre-completion transaction which is not an assignment of rights is referred to in this Schedule as a “*"free-standing transfer”*”.
#### Free-standing transfers: consideration and substantial performance
@@ -2444,7 +2449,7 @@
- (4) An action taken by the transferee (or an assignee of the transferee) that would, if taken by the original buyer, constitute (for the purposes of section 14(1)) the taking of possession of the whole or substantially the whole of the subject-matter of the original contract is treated as being the substantial performance of the original contract.
- (5) If a transaction that is a free-standing transfer in relation to a contract is also a free-standing transfer in relation to another contract (in particular, where there have been successive free-standing transfers), each of those contracts is to be regarded as “the original contract” for the purposes of separate applications of sub-paragraph (4).
- (5) If a transaction that is a free-standing transfer in relation to a contract is also a free-standing transfer in relation to another contract (in particular, where there have been successive free-standing transfers), each of those contracts is to be regarded as “*"the original contract”*” for the purposes of separate applications of sub-paragraph (4).
- (6) In sub-paragraph (4)—
@@ -2504,21 +2509,21 @@
- (6) In this paragraph—
- (a) “the relevant land transaction” means—
- (a) “*"the relevant land transaction”*” means—
- (i) the land transaction mentioned in sub-paragraph (1)(a), or
- (ii) in a case falling within sub-paragraph (1)(b), the land transaction given effect by the transfer to the transferee of the subject-matter of the original contract or the substantial performance by the transferee of the original contract;
- (b) “the final transaction” means—
- (b) “*"the final transaction”*” means—
- (i) in a case falling within sub-paragraph (1)(a), the transaction giving effect to the acquisition by the transferee of the subject-matter of the free standing transfer;
- (ii) in a case falling within sub-paragraph (1)(b), the transaction giving effect to the acquisition by the transferee of the subject-matter of the assignment of rights (whether by the transfer of the subject-matter of the original contract to the transferee, the substantial performance of the original contract by the transferee or otherwise);
- (c) “the first appropriate transaction” means the original contract, unless sub-paragraph (7) applies.
- (7) In applying this paragraph to a case where the original contract is not performed at the same time as, and in connection with the performance of the final transaction, “the first appropriate transaction” means a transaction that is a pre-completion transaction in relation to the original contract and meets the following conditions.
- (c) “*"the first appropriate transaction”*” means the original contract, unless sub-paragraph (7) applies.
- (7) In applying this paragraph to a case where the original contract is not performed at the same time as, and in connection with the performance of the final transaction, “*"the first appropriate transaction”*” means a transaction that is a pre-completion transaction in relation to the original contract and meets the following conditions.
- (8) The conditions are that the pre-completion transaction—
@@ -2530,11 +2535,11 @@
- (9) For the purposes of sub-paragraphs (7) and (8)—
- (a) a contract for a land transaction is taken to be “performed” when it is substantially performed or completed (whichever is earlier);
- (b) a free-standing transfer other than a contract is taken to be “performed” when the transferee under that free-standing transfer (or an assignee of that transferee, as defined in paragraph 13(6)(b)) acquires the subject-matter of that free-standing transfer.
- (10) Where the final transaction is a pre-completion transaction in relation to each of two or more contracts such as are mentioned in paragraph 2(1)(a) that together form a series of such contracts (each having some subject-matter in common with all the others), references in this paragraph to the “original contract” are to be read as references to the first contract in that series.
- (a) a contract for a land transaction is taken to be ““performed”” when it is substantially performed or completed (whichever is earlier);
- (b) a free-standing transfer other than a contract is taken to be ““performed”” when the transferee under that free-standing transfer (or an assignee of that transferee, as defined in paragraph 13(6)(b)) acquires the subject-matter of that free-standing transfer.
- (10) Where the final transaction is a pre-completion transaction in relation to each of two or more contracts such as are mentioned in paragraph 2(1)(a) that together form a series of such contracts (each having some subject-matter in common with all the others), references in this paragraph to the ““original contract”” are to be read as references to the first contract in that series.
## PART 4 — THE MINIMUM CONSIDERATION RULE
@@ -2552,7 +2557,7 @@
- (c) the second minimum amount (see paragraph 17).
- (3) There is a “relevant connection between parties” if the transferee in relation to the pre-completion transaction mentioned in paragraph 7(1) or 13(1) (“the implemented transaction”) is connected with, or is not acting at arm’s length in relation to—
- (3) There is a ““relevant connection between parties”” if the transferee in relation to the pre-completion transaction mentioned in paragraph 7(1) or 13(1) (““the implemented transaction””) is connected with, or is not acting at arm's length in relation to—
- (a) the transferor in relation to the implemented transaction, or
@@ -2568,53 +2573,53 @@
- (b) a contract, or two or more successive contracts, that are themselves free-standing transfers in relation to the contract mentioned in paragraph (a),
references in this Part of this Schedule to the “original contract” are to the contract mentioned in paragraph (a) only (and references to the “original buyer” are to be read accordingly).
references in this Part of this Schedule to the ““original contract”” are to the contract mentioned in paragraph (a) only (and references to the “*"original buyer”*” are to be read accordingly).
#### The first minimum amount
##### 16
- (1) The “first minimum amount” is to be determined in accordance with sub-paragraph (2) unless conditions A to C in sub-paragraph (3) are met, in which case it is to be determined in accordance with that sub-paragraph.
- (2) The “first minimum amount” is—
- (a) if the chargeable interest acquired (or treated as acquired) under the land transaction referred to in paragraph 7(4) or 13(2) is the whole subject-matter of the original contract, the amount of any consideration (in money or money’s worth) agreed to be given, under the terms of the original contract, for the acquisition of that subject-matter, or
- (1) The ““first minimum amount”” is to be determined in accordance with sub-paragraph (2) unless conditions A to C in sub-paragraph (3) are met, in which case it is to be determined in accordance with that sub-paragraph.
- (2) The ““first minimum amount”” is—
- (a) if the chargeable interest acquired (or treated as acquired) under the land transaction referred to in paragraph 7(4) or 13(2) is the whole subject-matter of the original contract, the amount of any consideration (in money or money's worth) agreed to be given, under the terms of the original contract, for the acquisition of that subject-matter, or
- (b) if paragraph (a) does not apply, so much of the amount mentioned in that paragraph as is referable, on a just and reasonable apportionment, to the chargeable interest acquired (or treated as acquired) under the land transaction referred to in paragraph 7(4) or 13(2).
- (3) If conditions A to C are met, the “first minimum amount” is the amount of any consideration (in money or money’s worth) agreed, under the terms of the transfer to the first T, to be given in respect of the subject-matter of that transaction (including any consideration relating to an obligation of the transferor under the transfer to the first T).
- (3) If conditions A to C are met, the ““first minimum amount”” is the amount of any consideration (in money or money's worth) agreed, under the terms of the transfer to the first T, to be given in respect of the subject-matter of that transaction (including any consideration relating to an obligation of the transferor under the transfer to the first T).
- *Condition A* That the pre-completion transaction referred to in paragraph 7(4) or 13(2) is one of a chain of successive transactions (all having at least part of their subject-matter in common) that are pre-completion transactions in relation to the original contract.
- *Condition B* That a person (“T”) is the transferor under a pre-completion transaction that forms part of the chain and T is connected with, or not acting at arm’s length in relation to— the transferee under that transaction, or the transferee under a subsequent transaction in the chain (including the pre-completion transaction referred to in paragraph 7(4) or 13(2)).
- *Condition B* That a person (““T””) is the transferor under a pre-completion transaction that forms part of the chain and T is connected with, or not acting at arm's length in relation to—the transferee under that transaction, orthe transferee under a subsequent transaction in the chain (including the pre-completion transaction referred to in paragraph 7(4) or 13(2)).
- *Condition C* That, having regard to all the circumstances, the obtaining of a tax advantage (for any person) was not the main purpose, or one of the main purposes, of T entering into any pre-completion transaction in the chain or any arrangement of which such a transaction was part.
- (4) In this paragraph—
- (a) “the first T” means—
- (a) “*"the first T”*” means—
- (i) if condition B is met in relation to only one pre-completion transaction, T, or
- (ii) if condition B is met in relation to more than one pre-completion transaction in the chain, the transferor in relation to the first of the pre-completion transactions in relation to which condition B is met;
- (b) “the transfer to the first T” means—
- (b) “*"the transfer to the first T”*” means—
- (i) the pre-completion transaction under which the first T is the transferee, or
- (ii) the original contract (if T is the original buyer);
- (c) “tax advantage” has the same meaning as in section 31(3).
- (c) “*"tax advantage”*” has the same meaning as in section 31(3).
#### The second minimum amount
##### 17
- (1) The “second minimum amount” is the total of the net amounts of consideration given by the relevant parties.
- (1) The ““second minimum amount”” is the total of the net amounts of consideration given by the relevant parties.
- (2) The net amount of consideration given by any relevant party is—
$$CP-CR$ Figure 1 where— CP is the total amount of consideration given by the party for the acquisition of the chargeable interest or as consideration for a pre-completion transaction; CR is the total of any amounts of consideration given to the party by another relevant party (or other relevant parties) as consideration for the acquisition of the chargeable interest or as consideration for the pre-completion transaction, and if CR is greater than CP then the net amount of consideration given by the relevant party is taken to be zero.$
$$CP - CR$Figure 1 where—CP is the total amount of consideration given by the party for the acquisition of the chargeable interest or as consideration for a pre-completion transaction;CR is the total of any amounts of consideration given to the party by another relevant party (or other relevant parties) as consideration for the acquisition of the chargeable interest or as consideration for the pre-completion transaction,and if CR is greater than CP then the net amount of consideration given by the relevant party is taken to be zero.$
- (3) The relevant parties are—
@@ -2624,15 +2629,15 @@
unless sub-paragraph (4) applies.
- (4) If the pre-completion transaction mentioned in paragraph 7(1) or 13(1) (“the implemented transaction”) is one in a chain of successive transactions (all having at least part of their subject-matter in common) that are pre-completion transactions in relation to the original contract, only the following are relevant parties—
- (4) If the pre-completion transaction mentioned in paragraph 7(1) or 13(1) (““the implemented transaction””) is one in a chain of successive transactions (all having at least part of their subject-matter in common) that are pre-completion transactions in relation to the original contract, only the following are relevant parties—
- (a) the transferor and the transferee in relation to the implemented transaction;
- (b) a transferor in relation to a preceding transaction, if that transferor is connected with, or is not acting at arm’s length in relation to, the transferee under the implemented transaction;
- (b) a transferor in relation to a preceding transaction, if that transferor is connected with, or is not acting at arm's length in relation to, the transferee under the implemented transaction;
- (c) the transferee under a pre-completion transaction where the transferor is a relevant party (whether by virtue of this paragraph (c) or otherwise),
and in this sub-paragraph and sub-paragraph (6) “preceding transaction” means a pre-completion transaction that precedes the implemented transaction in the chain.
and in this sub-paragraph and sub-paragraph (6) “*"preceding transaction”*” means a pre-completion transaction that precedes the implemented transaction in the chain.
- (5) For the purposes of sub-paragraph (2)—
@@ -2644,7 +2649,7 @@
- (6) If the subject-matter of the implemented transaction is not the whole subject-matter of the original contract—
- (a) the amounts that are taken for the purposes of sub-paragraph (2) to be given “for the acquisition of the chargeable interest” are to be determined on a just and reasonable basis, and
- (a) the amounts that are taken for the purposes of sub-paragraph (2) to be given ““for the acquisition of the chargeable interest”” are to be determined on a just and reasonable basis, and
- (b) only so much of the consideration for a preceding transaction as is referable, on a just and reasonable basis, to the subject-matter of the implemented transaction is to be taken into account under sub-paragraph (2).
@@ -2682,7 +2687,7 @@
- (3) If the subject-matter of the qualifying subsale is part of the subject-matter of the original contract, the amount of consideration for the land transaction mentioned in sub-paragraph (1)(b) is taken to be—
$$OC-QS$ Figure 2 where— OC is the amount that the consideration would be apart from this sub-paragraph, and QS is so much of OC as is referable to the subject-matter of the qualifying subsale, and OC may be reduced more than once if there is more than one qualifying subsale.$
$$OC - QS$Figure 2 where—OC is the amount that the consideration would be apart from this sub-paragraph, andQS is so much of OC as is referable to the subject-matter of the qualifying subsale,and OC may be reduced more than once if there is more than one qualifying subsale.$
- (4) But no relief is available under this paragraph if—
@@ -2690,9 +2695,9 @@
- (b) the transaction effected, or treated as effected, by the performance of the qualifying subsale is relieved from tax by virtue of Schedule 10 (alternative property finance reliefs).
- (5) For the purposes of this paragraph, a contract for a land transaction is taken to be “performed” when it is substantially performed or completed (whichever is earlier).
- (6) A pre-completion transaction is a “qualifying subsale” if it is a contract under which the original buyer contracts to sell the whole or part of the subject-matter of the original contract to the transferee.
- (5) For the purposes of this paragraph, a contract for a land transaction is taken to be ““performed”” when it is substantially performed or completed (whichever is earlier).
- (6) A pre-completion transaction is a ““qualifying subsale”” if it is a contract under which the original buyer contracts to sell the whole or part of the subject-matter of the original contract to the transferee.
- (7) If a transaction is a qualifying subsale in relation to more than one contract such as is mentioned in paragraph 2(1)(a), this paragraph applies separately in relation to each such original contract for the purpose of determining what relief, if any, may be available with respect to the land transaction in question.
@@ -2704,9 +2709,9 @@
In this Schedule—
- “contract” (“*contract*”) includes any agreement;
- “transfer” (“*trosglwyddiad*”) includes any instrument.
- “*"contract”*” (“*"*contract**”") includes any agreement;
- “*"transfer”*” (“*"*trosglwyddiad**”") includes any instrument.
#### Index of expressions defined in this Schedule
@@ -2714,22 +2719,6 @@
The following Table lists expressions defined or otherwise explained in this Schedule.
| ***Expression*** | ***Paragraph*** |
| --- | --- |
| “additional notional land transaction” (“*trafodiad tir tybiannol ychwanegol*”) | Paragraph 8(3) |
| “assignment of rights” (“*aseinio hawliau*”) | Paragraph 6 |
| “contract” (“*contract*”) | Paragraph 20 |
| “free-standing transfer” (“*trosglwyddiad annibynnol*”) | Paragraph 12 |
| “notional land transaction” (“*trafodiad tir tybiannol*”) | Paragraph 8(1) |
| “original buyer” (“*prynwr gwreiddiol*”) and “original contract” (“*contract gwreiddiol*”) | Paragraph 2(1)(a) (but see also paragraph 15(4)) |
| “part of the subject-matter of the original contract” (“*rhan o destun y contract gwreiddiol*”) | Paragraph 4(1) |
| “pre-completion transaction” (“*trafodiad cyngwblhau*”) | Paragraph 3 |
| “qualifying subsale” (“*is-werthiant cymwys*”) | Paragraph 19(6) |
| “subject-matter” (“*testun*”) (of a precompletion transaction) | Paragraph 4(3) |
| “transfer” (“*trosglwyddiad*”) | Paragraph 20 |
| “the transferee” (“*y trosglwyddai*”) (in relation to a pre-completion transaction) | Paragraph 3(1)(a) |
| “the transferor” (“*y trosglwyddwr*”) (in relation to a pre-completion transaction) | Paragraph 4(2) |
## SCHEDULE 3
#### No chargeable consideration
@@ -2770,13 +2759,13 @@
- (a) in pursuance of an order of a court made on granting in respect of the parties a decree of divorce, nullity of marriage or judicial separation;
- (b) in pursuance of an order of a court made in connection with the dissolution or annulment of the marriage, or the parties’ judicial separation, at any time after the granting of such a decree as mentioned in paragraph (a);
- (b) in pursuance of an order of a court made in connection with the dissolution or annulment of the marriage, or the parties' judicial separation, at any time after the granting of such a decree as mentioned in paragraph (a);
- (c) in pursuance of—
- (i) an order of a court made at any time under section 22A, 23A or 24A of the [Matrimonial Causes Act 1973 (c. 18)](https://www.legislation.gov.uk/ukpga/1973/18), or
- (ii) an incidental order of a court made under section 8(2) of the [Family Law (Scotland) Act 1985 (c. 37)](https://www.legislation.gov.uk/ukpga/1985/37) by virtue of section 14(1) of that Act;
- (i) an order of a court made at any time under section 22A, 23A or 24A of the Matrimonial Causes Act 1973 (c. 18), or
- (ii) an incidental order of a court made under section 8(2) of the Family Law (Scotland) Act 1985 (c. 37) by virtue of section 14(1) of that Act;
- (d) at any time in pursuance of an agreement of the parties made in contemplation or otherwise in connection with the dissolution or annulment of the marriage, their judicial separation or the making of a separation order in respect of them.
@@ -2788,13 +2777,13 @@
- (a) in pursuance of an order of a court made on granting in respect of the parties an order or decree for the dissolution or annulment of the civil partnership or their judicial separation;
- (b) in pursuance of an order of a court made in connection with the dissolution or annulment of the civil partnership, or the parties’ judicial separation, at any time after the granting of such an order or decree as mentioned in paragraph (a);
- (b) in pursuance of an order of a court made in connection with the dissolution or annulment of the civil partnership, or the parties' judicial separation, at any time after the granting of such an order or decree as mentioned in paragraph (a);
- (c) in pursuance of—
- (i) an order of a court made at any time under any provision of Schedule 5 to the [Civil Partnership Act 2004 (c. 33)](https://www.legislation.gov.uk/ukpga/2004/33) that corresponds to section 22A, 23A or 24A of the [Matrimonial Causes Act 1973 (c. 18)](https://www.legislation.gov.uk/ukpga/1973/18), or
- (ii) an incidental order of a court made under any provision of the [Civil Partnership Act 2004 (c. 33)](https://www.legislation.gov.uk/ukpga/2004/33) that corresponds to section 8(2) of the [Family Law (Scotland) Act 1985 (c. 37)](https://www.legislation.gov.uk/ukpga/1985/37) by virtue of section 14(1) of that Act of 1985;
- (i) an order of a court made at any time under any provision of Schedule 5 to the Civil Partnership Act 2004 (c. 33) that corresponds to section 22A, 23A or 24A of the Matrimonial Causes Act 1973 (c. 18), or
- (ii) an incidental order of a court made under any provision of the Civil Partnership Act 2004 (c. 33) that corresponds to section 8(2) of the Family Law (Scotland) Act 1985 (c. 37) by virtue of section 14(1) of that Act of 1985;
- (d) at any time in pursuance of an agreement of the parties made in contemplation of or otherwise in connection with the dissolution or annulment of the civil partnership, their judicial separation or the making of a separation order in respect of them.
@@ -2802,7 +2791,7 @@
##### 5
- (1) The acquisition of property by a person in or towards satisfaction of the person’s entitlement under or in relation to the will of a deceased person, or on the intestacy of a deceased person, is exempt from charge.
- (1) The acquisition of property by a person in or towards satisfaction of the person's entitlement under or in relation to the will of a deceased person, or on the intestacy of a deceased person, is exempt from charge.
- (2) Sub-paragraph (1) does not apply if the person acquiring the property gives any consideration for it, other than the assumption of secured debt.
@@ -2810,21 +2799,21 @@
- (4) In this paragraph—
- “debt” (“*dyled*”) means an obligation, whether certain or contingent, to pay a sum of money either immediately or at a future date, and
- “secured debt” (“*dyled sicredig*”) means debt that, immediately after the death of the deceased person, is secured on the property.
- “*"debt”*” (“*"*dyled**”") means an obligation, whether certain or contingent, to pay a sum of money either immediately or at a future date, and
- “*"secured debt”*” (“*"*dyled sicredig**”") means debt that, immediately after the death of the deceased person, is secured on the property.
#### Variation of testamentary dispositions etc.
##### 6
- (1) A transaction following a person’s death that varies a disposition (whether effected by will, under the law relating to intestacy or otherwise) of property of which the deceased was competent to dispose is exempt from charge if the following conditions are met.
- (1) A transaction following a person's death that varies a disposition (whether effected by will, under the law relating to intestacy or otherwise) of property of which the deceased was competent to dispose is exempt from charge if the following conditions are met.
- (2) The conditions are—
- (a) that the transaction is carried out within the period of two years after a person’s death, and
- (b) that no consideration in money or money’s worth other than the making of a variation of another such disposition is given for it.
- (a) that the transaction is carried out within the period of two years after a person's death, and
- (b) that no consideration in money or money's worth other than the making of a variation of another such disposition is given for it.
- (3) Where the condition in sub-paragraph (2)(b) is not met, the chargeable consideration for the transaction is determined in accordance with paragraph 9(3) of Schedule 4.
@@ -2848,13 +2837,13 @@
##### 1
The chargeable consideration for a transaction is, except as otherwise provided, any consideration in money or money’s worth given for the subject-matter of the transaction, directly or indirectly, by the buyer or a person connected with the buyer.
The chargeable consideration for a transaction is, except as otherwise provided, any consideration in money or money's worth given for the subject-matter of the transaction, directly or indirectly, by the buyer or a person connected with the buyer.
#### Value added tax
##### 2
The chargeable consideration for a transaction includes any value added tax chargeable in respect of the transaction, other than value added tax chargeable by virtue of an option to tax any land under Part 1 of Schedule 10 to the [Value Added Tax Act 1994 (c. 23)](https://www.legislation.gov.uk/ukpga/1994/23) made after the effective date of the transaction.
The chargeable consideration for a transaction includes any value added tax chargeable in respect of the transaction, other than value added tax chargeable by virtue of an option to tax any land under Part 1 of Schedule 10 to the Value Added Tax Act 1994 (c. 23) made after the effective date of the transaction.
#### Postponed consideration
@@ -2892,9 +2881,9 @@
- (2) In this paragraph—
- (a) “relevant transaction” means any of those transactions, and
- (b) “relevant acquisition” means a relevant transaction entered into as buyer and “relevant disposal” means a relevant transaction entered into as seller.
- (a) “*"relevant transaction”*” means any of those transactions, and
- (b) “*"relevant acquisition”*” means a relevant transaction entered into as buyer and “*"relevant disposal”*” means a relevant transaction entered into as seller.
- (3) The following rules apply if the subject-matter of any of the relevant transactions is a major interest in land—
@@ -2924,7 +2913,7 @@
- (6) For the purposes of sub-paragraph (5)(b) the appropriate proportion is—
$$MVTMV$ Figure 3 where— MV is the market value of the subject-matter of the acquisition for which the chargeable consideration is being determined, and TMV is the total market value of the subject-matter of all the relevant acquisitions.$
$$MV TMV$Figure 3 where—MV is the market value of the subject-matter of the acquisition for which the chargeable consideration is being determined, andTMV is the total market value of the subject-matter of all the relevant acquisitions.$
- (7) This paragraph has effect subject to paragraph 6 (partition etc.: disregard of existing interest).
@@ -2982,7 +2971,7 @@
- (b) immediately before the transaction there were two or more persons each holding an undivided share of that property, or there are two or more such persons immediately afterwards,
the amount of secured debt assumed is to be determined as if the amount of that debt owed by each of those persons at a given time were the proportion of it corresponding to the person’s undivided share of the property at that time.
the amount of secured debt assumed is to be determined as if the amount of that debt owed by each of those persons at a given time were the proportion of it corresponding to the person's undivided share of the property at that time.
- (5) For the purposes of sub-paragraph (4), each joint tenant of property is treated as holding an equal undivided share of it.
@@ -2990,9 +2979,9 @@
- (7) In this paragraph—
- (a) “debt” means an obligation, whether certain or contingent, to pay a sum of money either immediately or at a future date,
- (b) “existing debt”, in relation to a transaction, means debt created or arising before the effective date of, and otherwise than in connection with, the transaction, and
- (a) “*"debt”*” means an obligation, whether certain or contingent, to pay a sum of money either immediately or at a future date,
- (b) “*"existing debt”*”, in relation to a transaction, means debt created or arising before the effective date of, and otherwise than in connection with, the transaction, and
- (c) references to the amount of a debt are to the principal amount payable or, as the case may be, the total of the principal amounts payable, together with the amount of any interest that has accrued due on or before the effective date of the transaction.
@@ -3002,7 +2991,7 @@
- (1) Where a land transaction would be exempt from charge under paragraph 5 of Schedule 3 (assents and appropriations by personal representatives) but for sub-paragraph (2) of that paragraph (cases where person acquiring property gives consideration for it), the chargeable consideration for the transaction does not include the amount of any secured debt assumed.
- (2) In sub-paragraph (1) “secured debt” has the same meaning as in paragraph 5 of Schedule 3.
- (2) In sub-paragraph (1) “*"secured debt”*” has the same meaning as in paragraph 5 of Schedule 3.
- (3) Where a land transaction would be exempt from charge under paragraph 6 of Schedule 3 (variation of testamentary dispositions etc.) but for a failure to meet the condition in sub-paragraph (2)(b) of that paragraph (no consideration other than variation of another disposition), the chargeable consideration for the transaction does not include the making of any variation as is mentioned in that sub-paragraph.
@@ -3062,9 +3051,9 @@
##### 13
Where a land transaction is entered into by reason of the buyer’s employment, or that of a person connected with the buyer, then—
- (a) if the transaction gives rise to a charge to tax under Chapter 5 of Part 3 of the [Income Tax (Earnings and Pensions) Act 2003 (c. 1)](https://www.legislation.gov.uk/ukpga/2003/1) (taxable benefits: living accommodation) and—
Where a land transaction is entered into by reason of the buyer's employment, or that of a person connected with the buyer, then—
- (a) if the transaction gives rise to a charge to tax under Chapter 5 of Part 3 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (taxable benefits: living accommodation) and—
- (i) no rent is payable by the buyer, or
@@ -3090,15 +3079,15 @@
- (a) there is a land transaction that is—
- (i) a transfer of value within section 3 of the [Inheritance Tax Act 1984 (c. 51)](https://www.legislation.gov.uk/ukpga/1984/51) (transfers of value), or
- (ii) a disposition, effected by will or under the law of intestacy, of a chargeable interest comprised in the estate of a person immediately before the person’s death,
- (i) a transfer of value within section 3 of the Inheritance Tax Act 1984 (c. 51) (transfers of value), or
- (ii) a disposition, effected by will or under the law of intestacy, of a chargeable interest comprised in the estate of a person immediately before the person's death,
and
- (b) the buyer is or becomes liable to pay, agrees to pay or does in fact pay any inheritance tax due in respect of the transfer or disposition,
the buyer’s liability, agreement or payment does not count as chargeable consideration for the transaction.
the buyer's liability, agreement or payment does not count as chargeable consideration for the transaction.
#### Buyer bearing capital gains tax liability
@@ -3108,15 +3097,15 @@
- (a) there is a land transaction under which the chargeable interest in question—
- (i) is acquired otherwise than by a bargain made at arm’s length, or
- (ii) is treated by section 18 of the [Taxation of Chargeable Gains Act 1992 (c. 12)](https://www.legislation.gov.uk/ukpga/1992/12) (transactions between connected persons) as so acquired,
- (i) is acquired otherwise than by a bargain made at arm's length, or
- (ii) is treated by section 18 of the Taxation of Chargeable Gains Act 1992 (c. 12) (transactions between connected persons) as so acquired,
and
- (b) the buyer is or becomes liable to pay, or does in fact pay, any capital gains tax due in respect of the corresponding disposal of the chargeable interest,
the buyer’s liability or payment does not count as chargeable consideration for the transaction.
the buyer's liability or payment does not count as chargeable consideration for the transaction.
- (2) Sub-paragraph (1) does not apply if there is chargeable consideration for the transaction (disregarding the liability or payment referred to in sub-paragraph (1)(b)).
@@ -3124,7 +3113,7 @@
##### 17
Costs borne by the buyer under section 9(4) of the [Leasehold Reform Act 1967 (c. 88)](https://www.legislation.gov.uk/ukpga/1967/88) or section 33 of the [Leasehold Reform, Housing and Urban Development Act 1993 (c. 28)](https://www.legislation.gov.uk/ukpga/1993/28) (costs of enfranchisement) do not count as chargeable consideration.
Costs borne by the buyer under section 9(4) of the Leasehold Reform Act 1967 (c. 88) or section 33 of the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) (costs of enfranchisement) do not count as chargeable consideration.
#### Arrangements involving public or educational bodies
@@ -3132,21 +3121,21 @@
- (1) This paragraph applies in any case where arrangements are entered into under which—
- (a) there is a transfer, or the grant or assignment of a lease, of land by a qualifying body (“A”) to a person who is not a qualifying body (“B”) (“the main transfer”),
- (b) in consideration (whether in whole or in part) of the main transfer there is a grant by B to A of a lease or sub-lease of the whole, or substantially the whole, of that land (“the leaseback”),
- (a) there is a transfer, or the grant or assignment of a lease, of land by a qualifying body (““A””) to a person who is not a qualifying body (““B””) (““the main transfer””),
- (b) in consideration (whether in whole or in part) of the main transfer there is a grant by B to A of a lease or sub-lease of the whole, or substantially the whole, of that land (““the leaseback””),
- (c) B undertakes to carry out works or provide services to A, and
- (d) some or all of the consideration given by A to B for the carrying out of those works or the provision of those services is consideration in money,
whether or not there is also a transfer, or the grant or assignment of a lease, of any other land by A to B (a “transfer of surplus land”).
whether or not there is also a transfer, or the grant or assignment of a lease, of any other land by A to B (a ““transfer of surplus land””).
- (2) The following are qualifying bodies—
- (a) public bodies within paragraph 1 of Schedule 20 or specified in regulations under that paragraph (relief for certain transactions involving public bodies);
- (b) institutions within the further education sector or the higher education sector within the meaning of section 91 of the [Further and Higher Education Act 1992 (c. 13)](https://www.legislation.gov.uk/ukpga/1992/13);
- (b) institutions within the further education sector or the higher education sector within the meaning of section 91 of the Further and Higher Education Act 1992 (c. 13);
- (c) further education corporations within the meaning of section 17 of that Act;
@@ -3198,7 +3187,7 @@
##### 2
This Part sets out when a chargeable transaction is a “higher rates residential property transaction” for the purpose of regulations under section 24(1)(b) in the case of a transaction involving a dwelling where the buyer is an individual.
This Part sets out when a chargeable transaction is a ““higher rates residential property transaction”” for the purpose of regulations under section 24(1)(b) in the case of a transaction involving a dwelling where the buyer is an individual.
#### Higher rates residential property transactions
@@ -3214,7 +3203,7 @@
- (a) the buyer is an individual,
- (b) the main subject-matter of the transaction consists of a major interest in a dwelling (“the purchased dwelling”), and
- (b) the main subject-matter of the transaction consists of a major interest in a dwelling (““the purchased dwelling””), and
- (c) the chargeable consideration for the transaction is £40,000 or more.
@@ -3238,7 +3227,7 @@
- (b) paragraph 8 (replacement of main residence exception).
- (6) In this Part of this Schedule, “purchased dwelling” has the meaning given by sub-paragraph (2)(b).
- (6) In this Part of this Schedule, “*"purchased dwelling”*” has the meaning given by sub-paragraph (2)(b).
##### 4
@@ -3260,19 +3249,19 @@
- (b) has an unexpired term of more than 21 years.
- (3) Where the buyer is jointly entitled with one or more persons to the major interest referred to in sub-paragraph (1)(a), the reference in sub-paragraph (1)(b) to the market value of the interest is to the market value of the buyer’s beneficial share in the interest as determined in accordance with sub-paragraph (4) or (5).
- (4) Where the buyer is beneficially entitled as a tenant in common, the market value of the buyer’s beneficial share is equal to—
$$MV×PI$ Figure 4 where— MV is the market value of the major interest, and PI is— the percentage of the interest to which the buyer is entitled, or where— the buyer and the buyer’s spouse or civil partner are living together on the effective date of the transaction (for the meaning of “living together”, see paragraph 25(3)), and taken together the buyer and the buyer’s spouse or civil partner are entitled as tenants in common, the percentage of the interest to which the buyer and the buyer’s spouse or civil partner are so entitled.$
- (5) Where the buyer is beneficially entitled as a joint tenant, the market value of the buyer’s beneficial share is equal to—
$$MVJT$ Figure 5 where— MV is the market value of the major interest, and JT is the number of joint tenants entitled to the interest.$
- (6) For the purpose of sub-paragraph (5), the buyer and the buyer’s spouse or civil partner are to be treated as one joint tenant if—
- (a) they are living together on the effective date of the transaction (for the meaning of “living together”, see paragraph 25(3)), and
- (3) Where the buyer is jointly entitled with one or more persons to the major interest referred to in sub-paragraph (1)(a), the reference in sub-paragraph (1)(b) to the market value of the interest is to the market value of the buyer's beneficial share in the interest as determined in accordance with sub-paragraph (4) or (5).
- (4) Where the buyer is beneficially entitled as a tenant in common, the market value of the buyer's beneficial share is equal to—
$$MV × PI$Figure 4 where—MV is the market value of the major interest, andPI is—the percentage of the interest to which the buyer is entitled, orwhere—the buyer and the buyer's spouse or civil partner are living together on the effective date of the transaction (for the meaning of ““living together””, see paragraph 25(3)), andtaken together the buyer and the buyer's spouse or civil partner are entitled as tenants in common,the percentage of the interest to which the buyer and the buyer's spouse or civil partner are so entitled.$
- (5) Where the buyer is beneficially entitled as a joint tenant, the market value of the buyer's beneficial share is equal to—
$$MV JT$Figure 5 where—MV is the market value of the major interest, andJT is the number of joint tenants entitled to the interest.$
- (6) For the purpose of sub-paragraph (5), the buyer and the buyer's spouse or civil partner are to be treated as one joint tenant if—
- (a) they are living together on the effective date of the transaction (for the meaning of ““living together””, see paragraph 25(3)), and
- (b) they are beneficially entitled as joint tenants to the interest.
@@ -3294,41 +3283,41 @@
- (a) in which, immediately before the effective date of the transaction, the buyer had another major interest, and
- (b) which, immediately before and after the effective date of the transaction, is the buyer’s only or main residence.
- (b) which, immediately before and after the effective date of the transaction, is the buyer's only or main residence.
#### Replacement of main residence exception
##### 8
- (1) A transaction is not a higher rates residential property transaction under paragraph 3 if the purchased dwelling is a replacement for the buyer’s only or main residence.
- (2) For the purposes of this paragraph, the purchased dwelling is a replacement for the buyer’s only or main residence if—
- (a) on the effective date of the transaction (“the transaction concerned”) the buyer intends the purchased dwelling to be the buyer’s only or main residence,
- (b) in another land transaction (“the previous transaction”), the effective date of which was during the period of 3 years ending with the effective date of the transaction concerned, the buyer or the buyer’s spouse or civil partner at the time disposed of a major interest in another dwelling (“the sold dwelling”),
- (c) immediately after the effective date of the previous transaction, neither the buyer nor the buyer’s spouse or civil partner had a major interest in the sold dwelling,
- (d) at any time during the period of 3 years referred to in paragraph (b) the sold dwelling was the buyer’s only or main residence, and
- (e) at no time during the period beginning with the effective date of the previous transaction and ending with the effective date of the transaction concerned has the buyer or the buyer’s spouse or civil partner acquired a major interest in any other dwelling with the intention of it being the buyer’s only or main residence.
- (3) Sub-paragraph (2)(c) does not apply in relation to a spouse or civil partner of the buyer if the two of them were not living together on the effective date of the transaction concerned (for the meaning of “living together”, see paragraph 25(3)).
- (4) For the purposes of this paragraph, the purchased dwelling may become a replacement for the buyer’s only or main residence if—
- (a) on the effective date of the transaction (“the transaction concerned”) the buyer intended the purchased dwelling to be the buyer’s only or main residence,
- (b) in another land transaction the effective date of which is during the period of 3 years beginning with the day after the effective date of the transaction concerned, the buyer or the buyer’s spouse, former spouse, civil partner or former civil partner disposes of a major interest in another dwelling (“the sold dwelling”),
- (c) immediately after the effective date of that other land transaction, neither the buyer nor the buyer’s spouse or civil partner has a major interest in the sold dwelling, and
- (d) at any time during the period of 3 years ending with the effective date of the transaction concerned the sold dwelling was the buyer’s only or main residence.
- (5) Sub-paragraph (4)(c) does not apply in relation to a spouse or civil partner of the buyer if the two of them are not living together on the effective date of that other land transaction (for the meaning of “living together”, see paragraph 25(3)).
- (6) For further provision in connection with a dwelling becoming a replacement for the buyer’s only or main residence, see paragraph 23.
- (1) A transaction is not a higher rates residential property transaction under paragraph 3 if the purchased dwelling is a replacement for the buyer's only or main residence.
- (2) For the purposes of this paragraph, the purchased dwelling is a replacement for the buyer's only or main residence if—
- (a) on the effective date of the transaction (““the transaction concerned””) the buyer intends the purchased dwelling to be the buyer's only or main residence,
- (b) in another land transaction (““the previous transaction””), the effective date of which was during the period of 3 years ending with the effective date of the transaction concerned, the buyer or the buyer's spouse or civil partner at the time disposed of a major interest in another dwelling (““the sold dwelling””),
- (c) immediately after the effective date of the previous transaction, neither the buyer nor the buyer's spouse or civil partner had a major interest in the sold dwelling,
- (d) at any time during the period of 3 years referred to in paragraph (b) the sold dwelling was the buyer's only or main residence, and
- (e) at no time during the period beginning with the effective date of the previous transaction and ending with the effective date of the transaction concerned has the buyer or the buyer's spouse or civil partner acquired a major interest in any other dwelling with the intention of it being the buyer's only or main residence.
- (3) Sub-paragraph (2)(c) does not apply in relation to a spouse or civil partner of the buyer if the two of them were not living together on the effective date of the transaction concerned (for the meaning of ““living together””, see paragraph 25(3)).
- (4) For the purposes of this paragraph, the purchased dwelling may become a replacement for the buyer's only or main residence if—
- (a) on the effective date of the transaction (““the transaction concerned””) the buyer intended the purchased dwelling to be the buyer's only or main residence,
- (b) in another land transaction the effective date of which is during the period of 3 years beginning with the day after the effective date of the transaction concerned, the buyer or the buyer's spouse, former spouse, civil partner or former civil partner disposes of a major interest in another dwelling (““the sold dwelling””),
- (c) immediately after the effective date of that other land transaction, neither the buyer nor the buyer's spouse or civil partner has a major interest in the sold dwelling, and
- (d) at any time during the period of 3 years ending with the effective date of the transaction concerned the sold dwelling was the buyer's only or main residence.
- (5) Sub-paragraph (4)(c) does not apply in relation to a spouse or civil partner of the buyer if the two of them are not living together on the effective date of that other land transaction (for the meaning of ““living together””, see paragraph 25(3)).
- (6) For further provision in connection with a dwelling becoming a replacement for the buyer's only or main residence, see paragraph 23.
#### Replacement of main residence: transactions during interim period
@@ -3356,9 +3345,9 @@
- (a) in relation to a dwelling in Wales, the conditions set out in paragraph 8(2) are met in respect of the transaction,
- (b) in relation to a dwelling in England or Northern Ireland, the conditions set out in paragraph 3(6) of Schedule 4ZA to the [Finance Act 2003 (c. 14)](https://www.legislation.gov.uk/ukpga/2003/14) are met in respect of the transaction, or
- (c) in relation to a dwelling in Scotland, the conditions set out in paragraph 2(2) of Schedule 2A to the [Land and Buildings Transaction Tax (Scotland) Act 2013 (asp 11)](https://www.legislation.gov.uk/asp/2013/11) are met in respect of the transaction.
- (b) in relation to a dwelling in England or Northern Ireland, the conditions set out in paragraph 3(6) of Schedule 4ZA to the Finance Act 2003 (c. 14) are met in respect of the transaction, or
- (c) in relation to a dwelling in Scotland, the conditions set out in paragraph 2(2) of Schedule 2A to the Land and Buildings Transaction Tax (Scotland) Act 2013 (asp 11) are met in respect of the transaction.
- (5) In this paragraph, the interim period means—
@@ -3370,13 +3359,13 @@
- (b) where sub-paragraph (4)(b) applies, the period—
- (i) beginning with the effective date of the previous transaction within the meaning given by paragraph 3(6)(b) of Schedule 4ZA to the [Finance Act 2003 (c. 14)](https://www.legislation.gov.uk/ukpga/2003/14), and
- (i) beginning with the effective date of the previous transaction within the meaning given by paragraph 3(6)(b) of Schedule 4ZA to the Finance Act 2003 (c. 14), and
- (ii) ending with the effective date of the transaction concerned within the meaning given by paragraph 3(6)(a) of that Schedule;
- (c) where sub-paragraph (4)(c) applies, the period—
- (i) beginning with the date on which the buyer disposed of the ownership of a dwelling as provided for in paragraph 2(2)(a) of Schedule 2A to the [Land and Buildings Transaction Tax (Scotland) Act 2013 (asp 11)](https://www.legislation.gov.uk/asp/2013/11), and
- (i) beginning with the date on which the buyer disposed of the ownership of a dwelling as provided for in paragraph 2(2)(a) of Schedule 2A to the Land and Buildings Transaction Tax (Scotland) Act 2013 (asp 11), and
- (ii) ending with the effective date of the transaction referred to in that paragraph.
@@ -3388,7 +3377,7 @@
##### 10
This Part sets out when a chargeable transaction is a “higher rates residential property transaction” for the purpose of regulations under section 24(1)(b) in the case of a transaction involving multiple dwellings where the buyer is an individual.
This Part sets out when a chargeable transaction is a ““higher rates residential property transaction”” for the purpose of regulations under section 24(1)(b) in the case of a transaction involving multiple dwellings where the buyer is an individual.
#### Higher rates residential property transaction
@@ -3404,9 +3393,9 @@
- (a) the buyer is an individual, and
- (b) the main subject-matter of the transaction consists of a major interest in two or more dwellings (“the purchased dwellings”).
- (3) In this Part of this Schedule, “purchased dwellings” has the meaning given by sub-paragraph (2)(b).
- (b) the main subject-matter of the transaction consists of a major interest in two or more dwellings (““the purchased dwellings””).
- (3) In this Part of this Schedule, “*"purchased dwellings”*” has the meaning given by sub-paragraph (2)(b).
- (4) Where paragraph 18 applies, an intermediate transaction (within the meaning given by that paragraph) is to be treated as a higher rates residential property transaction.
@@ -3452,7 +3441,7 @@
- (1) A purchased dwelling is not a qualifying dwelling if it is subsidiary to any of the other purchased dwellings.
- (2) For the purposes of this paragraph, one of the purchased dwellings (“dwelling A”) is subsidiary to another of the purchased dwellings (“dwelling B”) if—
- (2) For the purposes of this paragraph, one of the purchased dwellings (““dwelling A””) is subsidiary to another of the purchased dwellings (““dwelling B””) if—
- (a) dwelling A is situated within the grounds of, or within the same building as, dwelling B, and
@@ -3484,19 +3473,19 @@
- (b) has an unexpired term of more than 21 years.
- (3) Where the buyer is jointly entitled with one or more persons to the major interest referred to in sub-paragraph (1)(b)(i), the reference in sub-paragraph (1)(b)(ii) to the market value of the interest is to the market value of the buyer’s beneficial share in the interest as determined in accordance with sub-paragraph (4) or (5).
- (4) Where the buyer is beneficially entitled as a tenant in common, the market value of the buyer’s beneficial share is equal to—
$$MV×PI$ Figure 6 where— MV is the market value of the major interest, and PI is— the percentage of the interest to which the buyer is entitled, or where— the buyer and the buyer’s spouse or civil partner are living together on the effective date of the transaction (for the meaning of “living together”, see paragraph 25(3)), and taken together the buyer and the buyer’s spouse or civil partner are entitled as tenants in common, the percentage of the interest to which the buyer and the buyer’s spouse or civil partner are so entitled.$
- (5) Where the buyer is beneficially entitled as a joint tenant, the market value of the buyer’s beneficial share is equal to—
$$MVJT$ Figure 7 where— MV is the market value of the major interest, and JT is the number of joint tenants entitled to the interest.$
- (6) For the purpose of sub-paragraph (5), the buyer and the buyer’s spouse or civil partner are to be treated as one joint tenant if—
- (a) they are living together on the effective date of the transaction (for the meaning of “living together”, see paragraph 25(3)), and
- (3) Where the buyer is jointly entitled with one or more persons to the major interest referred to in sub-paragraph (1)(b)(i), the reference in sub-paragraph (1)(b)(ii) to the market value of the interest is to the market value of the buyer's beneficial share in the interest as determined in accordance with sub-paragraph (4) or (5).
- (4) Where the buyer is beneficially entitled as a tenant in common, the market value of the buyer's beneficial share is equal to—
$$MV × PI$Figure 6 where—MV is the market value of the major interest, andPI is—the percentage of the interest to which the buyer is entitled, orwhere—the buyer and the buyer's spouse or civil partner are living together on the effective date of the transaction (for the meaning of ““living together””, see paragraph 25(3)), andtaken together the buyer and the buyer's spouse or civil partner are entitled as tenants in common,the percentage of the interest to which the buyer and the buyer's spouse or civil partner are so entitled.$
- (5) Where the buyer is beneficially entitled as a joint tenant, the market value of the buyer's beneficial share is equal to—
$$MV JT$Figure 7 where—MV is the market value of the major interest, andJT is the number of joint tenants entitled to the interest.$
- (6) For the purpose of sub-paragraph (5), the buyer and the buyer's spouse or civil partner are to be treated as one joint tenant if—
- (a) they are living together on the effective date of the transaction (for the meaning of ““living together””, see paragraph 25(3)), and
- (b) they are beneficially entitled as joint tenants to the interest.
@@ -3514,41 +3503,41 @@
- (a) in which, immediately before the effective date of the transaction, the buyer had another major interest, and
- (b) which, immediately before and after the effective date of the transaction, is the buyer’s only or main residence.
- (b) which, immediately before and after the effective date of the transaction, is the buyer's only or main residence.
#### Replacement of main residence exception
##### 17
- (1) Paragraph 15 does not apply if the qualifying dwelling referred to in paragraph 15(1)(a) is a replacement for the buyer’s only or main residence.
- (2) For the purposes of this paragraph, a qualifying dwelling is a replacement for the buyer’s only or main residence if—
- (a) on the effective date of the transaction (“the transaction concerned”) the buyer intends that qualifying dwelling to be the buyer’s only or main residence,
- (b) in another land transaction (“the previous transaction”), the effective date of which was during the period of 3 years ending with the effective date of the transaction concerned, the buyer or the buyer’s spouse or civil partner at the time disposed of a major interest in another dwelling (“the sold dwelling”),
- (c) immediately after the effective date of the previous transaction, neither the buyer nor the buyer’s spouse or civil partner had a major interest in the sold dwelling,
- (d) at any time during the period of 3 years referred to in paragraph (b) the sold dwelling was the buyer’s only or main residence, and
- (e) at no time during the period beginning with the effective date of the previous transaction and ending with the effective date of the transaction concerned has the buyer or the buyer’s spouse or civil partner acquired a major interest in any other dwelling with the intention of it being the buyer’s only or main residence.
- (3) Sub-paragraph (2)(c) does not apply in relation to a spouse or civil partner of the buyer if the two of them were not living together on the effective date of the transaction concerned (for the meaning of “living together”, see paragraph 25(3)).
- (4) For the purposes of this paragraph, that qualifying dwelling may become a replacement for the buyer’s only or main residence if—
- (a) on the effective date of the transaction (“the transaction concerned”) the buyer intended that qualifying dwelling to be the buyer’s only or main residence,
- (b) in another land transaction the effective date of which is during the period of 3 years beginning with the day after the effective date of the transaction concerned, the buyer or the buyer’s spouse, former spouse, civil partner or former civil partner disposes of a major interest in another dwelling (“the sold dwelling”),
- (c) immediately after the effective date of that other land transaction, neither the buyer nor the buyer’s spouse or civil partner has a major interest in the sold dwelling, and
- (d) at any time during the period of 3 years ending with the effective date of the transaction concerned the sold dwelling was the buyer’s only or main residence.
- (5) Sub-paragraph (4)(c) does not apply in relation to a spouse or civil partner of the buyer if the two of them are not living together on the effective date of that other land transaction (for the meaning of “living together”, see paragraph 25(3)).
- (6) For further provision in connection with a dwelling becoming a replacement for the buyer’s only or main residence, see paragraph 23.
- (1) Paragraph 15 does not apply if the qualifying dwelling referred to in paragraph 15(1)(a) is a replacement for the buyer's only or main residence.
- (2) For the purposes of this paragraph, a qualifying dwelling is a replacement for the buyer's only or main residence if—
- (a) on the effective date of the transaction (““the transaction concerned””) the buyer intends that qualifying dwelling to be the buyer's only or main residence,
- (b) in another land transaction (““the previous transaction””), the effective date of which was during the period of 3 years ending with the effective date of the transaction concerned, the buyer or the buyer's spouse or civil partner at the time disposed of a major interest in another dwelling (““the sold dwelling””),
- (c) immediately after the effective date of the previous transaction, neither the buyer nor the buyer's spouse or civil partner had a major interest in the sold dwelling,
- (d) at any time during the period of 3 years referred to in paragraph (b) the sold dwelling was the buyer's only or main residence, and
- (e) at no time during the period beginning with the effective date of the previous transaction and ending with the effective date of the transaction concerned has the buyer or the buyer's spouse or civil partner acquired a major interest in any other dwelling with the intention of it being the buyer's only or main residence.
- (3) Sub-paragraph (2)(c) does not apply in relation to a spouse or civil partner of the buyer if the two of them were not living together on the effective date of the transaction concerned (for the meaning of ““living together””, see paragraph 25(3)).
- (4) For the purposes of this paragraph, that qualifying dwelling may become a replacement for the buyer's only or main residence if—
- (a) on the effective date of the transaction (““the transaction concerned””) the buyer intended that qualifying dwelling to be the buyer's only or main residence,
- (b) in another land transaction the effective date of which is during the period of 3 years beginning with the day after the effective date of the transaction concerned, the buyer or the buyer's spouse, former spouse, civil partner or former civil partner disposes of a major interest in another dwelling (““the sold dwelling””),
- (c) immediately after the effective date of that other land transaction, neither the buyer nor the buyer's spouse or civil partner has a major interest in the sold dwelling, and
- (d) at any time during the period of 3 years ending with the effective date of the transaction concerned the sold dwelling was the buyer's only or main residence.
- (5) Sub-paragraph (4)(c) does not apply in relation to a spouse or civil partner of the buyer if the two of them are not living together on the effective date of that other land transaction (for the meaning of ““living together””, see paragraph 25(3)).
- (6) For further provision in connection with a dwelling becoming a replacement for the buyer's only or main residence, see paragraph 23.
#### Replacement of main residence: transactions during interim period
@@ -3578,9 +3567,9 @@
- (a) in relation to a dwelling in Wales, the conditions set out in paragraph 17(2) are met in respect of the transaction,
- (b) in relation to a dwelling in England or Northern Ireland, the conditions set out in paragraph 3(6) of Schedule 4ZA to the [Finance Act 2003 (c. 14)](https://www.legislation.gov.uk/ukpga/2003/14) are met in respect of the transaction, or
- (c) in relation to a dwelling in Scotland, the conditions set out in paragraph 2(2) of Schedule 2A to the [Land and Buildings Transaction Tax (Scotland) Act 2013 (asp 11)](https://www.legislation.gov.uk/asp/2013/11) are met in respect of the transaction.
- (b) in relation to a dwelling in England or Northern Ireland, the conditions set out in paragraph 3(6) of Schedule 4ZA to the Finance Act 2003 (c. 14) are met in respect of the transaction, or
- (c) in relation to a dwelling in Scotland, the conditions set out in paragraph 2(2) of Schedule 2A to the Land and Buildings Transaction Tax (Scotland) Act 2013 (asp 11) are met in respect of the transaction.
- (5) In this paragraph, the interim period means—
@@ -3592,13 +3581,13 @@
- (b) where sub-paragraph (4)(b) applies, the period—
- (i) beginning with the effective date of the previous transaction within the meaning given by paragraph 3(6)(b) of Schedule 4ZA to the [Finance Act 2003 (c. 14)](https://www.legislation.gov.uk/ukpga/2003/14), and
- (i) beginning with the effective date of the previous transaction within the meaning given by paragraph 3(6)(b) of Schedule 4ZA to the Finance Act 2003 (c. 14), and
- (ii) ending with the effective date of the transaction concerned within the meaning given by paragraph 3(6)(a) of that Schedule;
- (c) where sub-paragraph (4)(c) applies, the period—
- (i) beginning with the date on which the buyer disposed of the ownership of a dwelling as provided for in paragraph 2(2)(a) of Schedule 2A to the [Land and Buildings Transaction Tax (Scotland) Act 2013 (asp 11)](https://www.legislation.gov.uk/asp/2013/11), and
- (i) beginning with the date on which the buyer disposed of the ownership of a dwelling as provided for in paragraph 2(2)(a) of Schedule 2A to the Land and Buildings Transaction Tax (Scotland) Act 2013 (asp 11), and
- (ii) ending with the effective date of the transaction referred to in that paragraph.
@@ -3610,7 +3599,7 @@
##### 19
This Part sets out when a chargeable transaction where the buyer is not an individual is a “higher rates residential property transaction” for the purpose of regulations under section 24(1)(b).
This Part sets out when a chargeable transaction where the buyer is not an individual is a ““higher rates residential property transaction”” for the purpose of regulations under section 24(1)(b).
#### Transaction involving a dwelling
@@ -3620,7 +3609,7 @@
- (a) the buyer is not an individual,
- (b) the main subject-matter of the transaction consists of a major interest in a dwelling (“the purchased dwelling”), and
- (b) the main subject-matter of the transaction consists of a major interest in a dwelling (““the purchased dwelling””), and
- (c) the chargeable consideration for the dwelling is £40,000 or more.
@@ -3646,7 +3635,7 @@
- (a) the buyer is not an individual,
- (b) the main subject-matter of the transaction consists of a major interest in two or more dwellings (“the purchased dwellings”), and
- (b) the main subject-matter of the transaction consists of a major interest in two or more dwellings (““the purchased dwellings””), and
- (c) at least one of the purchased dwellings is a dwelling to which sub-paragraph (2) applies.
@@ -3680,9 +3669,9 @@
##### 23
- (1) This paragraph applies where by reason of paragraph 8(4) or 17(4) a chargeable transaction (“the transaction concerned”) ceases to be a higher rates residential property transaction for the purpose of regulations under section 24(1)(b).
- (2) The land transaction (“the subsequent transaction”) by reference to which the condition in paragraph 8(4)(b) or 17(4)(b) was met may not be taken into account for the purposes of paragraph 8(2)(b) or 17(2)(b) in determining whether any other chargeable transaction is a higher rates residential property transaction.
- (1) This paragraph applies where by reason of paragraph 8(4) or 17(4) a chargeable transaction (““the transaction concerned””) ceases to be a higher rates residential property transaction for the purpose of regulations under section 24(1)(b).
- (2) The land transaction (““the subsequent transaction””) by reference to which the condition in paragraph 8(4)(b) or 17(4)(b) was met may not be taken into account for the purposes of paragraph 8(2)(b) or 17(2)(b) in determining whether any other chargeable transaction is a higher rates residential property transaction.
- (3) Sub-paragraph (4) applies where—
@@ -3690,7 +3679,7 @@
- (b) the return has not been made.
- (4) The buyer may, when making the return in respect of the transaction concerned, treat the purchased dwelling referred to in paragraph 8(4) or 17(4) as though it had been a replacement for the buyer’s only or main residence on the effective date of the transaction concerned; and in such a case the transaction concerned is to be treated as if it had never been a higher rates residential property transaction.
- (4) The buyer may, when making the return in respect of the transaction concerned, treat the purchased dwelling referred to in paragraph 8(4) or 17(4) as though it had been a replacement for the buyer's only or main residence on the effective date of the transaction concerned; and in such a case the transaction concerned is to be treated as if it had never been a higher rates residential property transaction.
- (5) Sub-paragraph (6) applies where the effect of the transaction concerned ceasing to be a higher rates residential property transaction is that less tax is payable in respect of it than the buyer has already paid in accordance with a return made for that transaction.
@@ -3704,7 +3693,7 @@
##### 24
- (1) This paragraph applies where by reason of the application of paragraph 9 or 18 a chargeable transaction (“the intermediate transaction”) is treated as a higher rates residential property transaction.
- (1) This paragraph applies where by reason of the application of paragraph 9 or 18 a chargeable transaction (““the intermediate transaction””) is treated as a higher rates residential property transaction.
- (2) The intermediate transaction is treated as a higher rates residential property transaction for the purposes of this Act as from the end of the interim period that applies in accordance with paragraph 9(5) or 18(5).
@@ -3724,11 +3713,11 @@
- (a) the buyer (or one of them) is married or in a civil partnership on the effective date,
- (b) the buyer and the buyer’s spouse or civil partner are living together on that date, and
- (c) the buyer’s spouse or civil partner is not a buyer in the transaction.
- (2) The transaction is to be treated as being a higher rates residential property transaction if it would have been a higher rates residential property transaction had the buyer’s spouse or civil partner been a buyer.
- (b) the buyer and the buyer's spouse or civil partner are living together on that date, and
- (c) the buyer's spouse or civil partner is not a buyer in the transaction.
- (2) The transaction is to be treated as being a higher rates residential property transaction if it would have been a higher rates residential property transaction had the buyer's spouse or civil partner been a buyer.
- (3) Individuals who are married to, or are civil partners of, each other are treated for the purposes of this Schedule as living together unless—
@@ -3746,13 +3735,13 @@
- (2) This sub-paragraph applies to a dwelling the interest in which is held by the buyer as a tenant in common in consequence of—
- (a) an order under section 24(1)(b) of the [Matrimonial Causes Act 1973 (c. 18)](https://www.legislation.gov.uk/ukpga/1973/18) (property adjustments orders in connection with matrimonial proceedings),
- (b) an order under section 17(1)(a)(ii) of the [Matrimonial and Family Proceedings Act 1984 (c. 42)](https://www.legislation.gov.uk/ukpga/1984/42) (property adjustment orders after overseas divorce) corresponding to such an order as is mentioned in paragraph (a),
- (c) an order under paragraph 7(1)(b) of Schedule 5 to the [Civil Partnership Act 2004 (c. 33)](https://www.legislation.gov.uk/ukpga/2004/33) (property adjustment orders in connection with dissolution etc. of civil partnership), or
- (d) an order under paragraph 9 of Schedule 7 to the [Civil Partnership Act 2004 (c. 33)](https://www.legislation.gov.uk/ukpga/2004/33) (property adjustment orders in connection with overseas dissolution etc. of civil partnership) corresponding to such an order as is mentioned in paragraph (c).
- (a) an order under section 24(1)(b) of the Matrimonial Causes Act 1973 (c. 18) (property adjustments orders in connection with matrimonial proceedings),
- (b) an order under section 17(1)(a)(ii) of the Matrimonial and Family Proceedings Act 1984 (c. 42) (property adjustment orders after overseas divorce) corresponding to such an order as is mentioned in paragraph (a),
- (c) an order under paragraph 7(1)(b) of Schedule 5 to the Civil Partnership Act 2004 (c. 33) (property adjustment orders in connection with dissolution etc. of civil partnership), or
- (d) an order under paragraph 9 of Schedule 7 to the Civil Partnership Act 2004 (c. 33) (property adjustment orders in connection with overseas dissolution etc. of civil partnership) corresponding to such an order as is mentioned in paragraph (c).
- (3) This sub-paragraph applies to a dwelling that is the only or main residence of a person for the benefit of whom an order referred to in sub-paragraph (2) is made.
@@ -3820,9 +3809,9 @@
- (2) This sub-paragraph applies in relation to a transaction where—
- (a) a major interest in the dwelling is held on a bare trust for a beneficiary (“B”),
- (b) there is a disposal of the whole or part of B’s interest in the dwelling,
- (a) a major interest in the dwelling is held on a bare trust for a beneficiary (““B””),
- (b) there is a disposal of the whole or part of B's interest in the dwelling,
- (c) immediately before the effective date of the transaction—
@@ -3838,7 +3827,7 @@
- (3) This sub-paragraph applies in relation to a transaction where—
- (a) a person (“B”) is a beneficiary under a settlement where a major interest in the dwelling forms part of the trust property,
- (a) a person (““B””) is a beneficiary under a settlement where a major interest in the dwelling forms part of the trust property,
- (b) under the terms of the settlement B is entitled to—
@@ -3846,7 +3835,7 @@
- (ii) income earned in respect of the dwelling,
- (c) there is a disposal of the whole or part of B’s interest in the dwelling,
- (c) there is a disposal of the whole or part of B's interest in the dwelling,
- (d) immediately before the effective date of the transaction B is, by virtue of paragraph 28, treated as holding the major interest in the dwelling, and
@@ -3856,7 +3845,7 @@
##### 30
- (1) This paragraph applies where, by reason of paragraph 27 or 28 or paragraph 3(1) of Schedule 8 (bare trusts), the child of a person (“P”) would (but for this paragraph) be treated for the purposes of this Schedule as—
- (1) This paragraph applies where, by reason of paragraph 27 or 28 or paragraph 3(1) of Schedule 8 (bare trusts), the child of a person (““P””) would (but for this paragraph) be treated for the purposes of this Schedule as—
- (a) being the buyer in relation to a land transaction,
@@ -3874,15 +3863,15 @@
- (4) This paragraph does not apply where—
- (a) a person (“D”) acquires, holds or disposes of, a major interest in a dwelling in a child’s name or on the child’s behalf,
- (a) a person (““D””) acquires, holds or disposes of, a major interest in a dwelling in a child's name or on the child's behalf,
- (b) D does so in the exercise of powers conferred on D as the deputy of the child, and
- (c) D holds or, in the case of a disposal, held, that interest on trust for the child.
- (5) In sub-paragraph (4), “deputy” means—
- (a) a person appointed under section 16 of the [Mental Capacity Act 2005 (c. 9)](https://www.legislation.gov.uk/ukpga/2005/9), or
- (5) In sub-paragraph (4), “*"deputy”*” means—
- (a) a person appointed under section 16 of the Mental Capacity Act 2005 (c. 9), or
- (b) a person appointed to an equivalent position under the law of a country or territory outside England and Wales (and accordingly the reference to an interest being held on trust by such a person is to its being held on an equivalent basis under that law).
@@ -3932,11 +3921,11 @@
- (3) In this paragraph—
- “alternative finance arrangement” (“*trefniant cyllid arall*”) means an arrangement of a kind mentioned in paragraph 2(1) or 3(1) of Schedule 10 (alternative property finance reliefs);
- “financial institution” (“*sefydliad ariannol*”) has the meaning given by paragraph 8 of that Schedule;
- “first transaction” (“*trafodiad cyntaf*”), in relation to an alternative finance arrangement, has the meaning given by paragraph 2(1)(a) or 3(1)(a) of that Schedule.
- “*"alternative finance arrangement”*” (“*"*trefniant cyllid arall**”") means an arrangement of a kind mentioned in paragraph 2(1) or 3(1) of Schedule 10 (alternative property finance reliefs);
- “*"financial institution”*” (“*"*sefydliad ariannol**”") has the meaning given by paragraph 8 of that Schedule;
- “*"first transaction”*” (“*"*trafodiad cyntaf**”"), in relation to an alternative finance arrangement, has the meaning given by paragraph 2(1)(a) or 3(1)(a) of that Schedule.
#### Major interests in dwellings inherited jointly
@@ -3944,27 +3933,27 @@
- (1) This paragraph applies where by virtue of an inheritance—
- (a) a person (“P”) becomes jointly entitled with one or more other persons to a major interest in a dwelling, and
- (b) P’s beneficial share in the interest does not exceed 50% (see sub-paragraph (4)).
- (a) a person (““P””) becomes jointly entitled with one or more other persons to a major interest in a dwelling, and
- (b) P's beneficial share in the interest does not exceed 50% (see sub-paragraph (4)).
- (2) P is not to be treated for the purposes of paragraph 5(1)(a) or 15(1)(b) as having the major interest at any time during the period of 3 years beginning with the date of the inheritance.
- (3) But if at any time during that period of 3 years P becomes the only person beneficially entitled to the whole of the interest or P’s beneficial share in the interest exceeds 50% P is, from that time, to be treated as having the major interest for the purposes of the application of paragraphs 5(1)(a) and 15(1)(b) (subject to any disposal by P).
- (4) P’s share in the interest exceeds 50% if—
- (3) But if at any time during that period of 3 years P becomes the only person beneficially entitled to the whole of the interest or P's beneficial share in the interest exceeds 50% P is, from that time, to be treated as having the major interest for the purposes of the application of paragraphs 5(1)(a) and 15(1)(b) (subject to any disposal by P).
- (4) P's share in the interest exceeds 50% if—
- (a) P is beneficially entitled as a tenant in common or coparcener to more than half the interest,
- (b) P and P’s spouse or civil partner taken together are beneficially entitled as tenants in common or coparceners to more than half the interest, or
- (c) P and P’s spouse or civil partner are beneficially entitled as joint tenants to the interest and there is no more than one other joint tenant who is so entitled.
- (5) Sub-paragraph (4)(b) and (c) do not apply if, on the effective date of the transaction referred to in paragraph 5 or 15, P and P’s spouse or civil partner are not living together (for the meaning of “living together”, see paragraph 25(3)).
- (6) In this paragraph “inheritance” means the acquisition of an interest in or towards satisfaction of an entitlement under or in relation to the will of a deceased person, or on the intestacy of a deceased person.
- (7) This paragraph applies in relation to an interest acquired following a person’s death as a result of a variation of a disposition (whether effected by will, under the law relating to intestacy or otherwise) of property comprised in that person’s estate made within the period of 2 years after the person’s death, as it applies in relation to an inheritance; and in such a case the reference in sub-paragraph (2) to the date of the inheritance means the date of the acquisition of the interest in accordance with the variation.
- (b) P and P's spouse or civil partner taken together are beneficially entitled as tenants in common or coparceners to more than half the interest, or
- (c) P and P's spouse or civil partner are beneficially entitled as joint tenants to the interest and there is no more than one other joint tenant who is so entitled.
- (5) Sub-paragraph (4)(b) and (c) do not apply if, on the effective date of the transaction referred to in paragraph 5 or 15, P and P's spouse or civil partner are not living together (for the meaning of ““living together””, see paragraph 25(3)).
- (6) In this paragraph “*"inheritance”*” means the acquisition of an interest in or towards satisfaction of an entitlement under or in relation to the will of a deceased person, or on the intestacy of a deceased person.
- (7) This paragraph applies in relation to an interest acquired following a person's death as a result of a variation of a disposition (whether effected by will, under the law relating to intestacy or otherwise) of property comprised in that person's estate made within the period of 2 years after the person's death, as it applies in relation to an inheritance; and in such a case the reference in sub-paragraph (2) to the date of the inheritance means the date of the acquisition of the interest in accordance with the variation.
## PART 6 — INTERPRETATION
@@ -3972,21 +3961,21 @@
##### 35
- (1) In the provisions of this Schedule specified in sub-paragraph (4), references to a “dwelling” include references to a dwelling situated outside Wales.
- (2) In relation to a dwelling situated in England, those provisions are to be construed in accordance with the provisions of the [Finance Act 2003 (c. 14)](https://www.legislation.gov.uk/ukpga/2003/14).
- (1) In the provisions of this Schedule specified in sub-paragraph (4), references to a ““dwelling”” include references to a dwelling situated outside Wales.
- (2) In relation to a dwelling situated in England, those provisions are to be construed in accordance with the provisions of the Finance Act 2003 (c. 14).
- (3) In the application of those provisions in relation to a dwelling situated in a country or territory outside England and Wales—
- (a) references to a “major interest” in the dwelling are to an equivalent interest in the dwelling under the law of that country or territory,
- (a) references to a ““major interest”” in the dwelling are to an equivalent interest in the dwelling under the law of that country or territory,
- (b) references to persons being beneficially entitled as joint tenants, tenants in common or coparceners to an interest in the dwelling are to persons having an equivalent entitlement to the interest in the dwelling under the law of that country or territory,
- (c) references to a “land transaction” in relation to the dwelling are to the acquisition of an interest in the dwelling under the law of that country or territory,
- (d) references to the “effective date” of a land transaction in relation to the dwelling are to the date on which the interest in the dwelling is acquired under the law of that country or territory, and
- (e) references to “inheritance” are to the acquisition of an interest from a deceased person’s estate in accordance with the laws of that country or territory concerning the inheritance of property.
- (c) references to a “*"land transaction”*” in relation to the dwelling are to the acquisition of an interest in the dwelling under the law of that country or territory,
- (d) references to the “*"effective date”*” of a land transaction in relation to the dwelling are to the date on which the interest in the dwelling is acquired under the law of that country or territory, and
- (e) references to ““inheritance”” are to the acquisition of an interest from a deceased person's estate in accordance with the laws of that country or territory concerning the inheritance of property.
- (4) The provisions of this Schedule referred to in sub-paragraphs (1), (2) and (3) are—
@@ -4010,7 +3999,7 @@
- (j) paragraph 34.
- (5) Where the child of a person (“P”) has an interest in a dwelling which is situated in a country or territory outside Wales—
- (5) Where the child of a person (““P””) has an interest in a dwelling which is situated in a country or territory outside Wales—
- (a) P and any spouse or civil partner of P are to be treated for the purposes of this Schedule as having that interest, and
@@ -4020,15 +4009,15 @@
- (7) Sub-paragraph (5) does not apply where—
- (a) a person (“D”) acquires, holds or disposes of, a major interest in a dwelling in a child’s name or on the child’s behalf,
- (a) a person (““D””) acquires, holds or disposes of, a major interest in a dwelling in a child's name or on the child's behalf,
- (b) D does so in the exercise of powers conferred on D as the deputy of the child, and
- (c) D holds or, in the case of a disposal, held, that interest on trust for the child.
- (8) In sub-paragraph (7), “deputy” means—
- (a) a person appointed under section 16 of the [Mental Capacity Act 2005 (c. 9)](https://www.legislation.gov.uk/ukpga/2005/9), or
- (8) In sub-paragraph (7), “*"deputy”*” means—
- (a) a person appointed under section 16 of the Mental Capacity Act 2005 (c. 9), or
- (b) a person appointed to an equivalent position under the law of a country or territory outside England and Wales (and accordingly the reference to an interest being held on trust by such a person is to its being held on an equivalent basis under that law).
@@ -4058,11 +4047,11 @@
- (6) In sub-paragraph (5)—
- “contract” (“*contract*”) includes any agreement;
- “relevant deeming provision” (“*darpariaeth dybio berthnasol*”) means any of sections 10 to 13 or paragraph 8(1) to (5) of Schedule 2 (pre-completion transactions) or paragraph 20 of Schedule 6 (agreement for lease);
- “substantially performed” (“*cyflawni’n sylweddol*”) has the same meaning as in section 14.
- “*"contract”*” (“*"*contract**”") includes any agreement;
- “*"relevant deeming provision”*” (“*"*darpariaeth dybio berthnasol**”") means any of sections 10 to 13 or paragraph 8(1) to (5) of Schedule 2 (pre-completion transactions) or paragraph 20 of Schedule 6 (agreement for lease);
- “*"substantially performed”*” (“*"*cyflawni'n sylweddol**”") has the same meaning as in section 14.
- (7) A building or part of a building used for a purpose specified in section 72(4) or (5) is not used as a dwelling for the purposes of sub-paragraph (2) or (5).
@@ -4072,7 +4061,7 @@
##### 37
For the purposes of this Schedule, any term of years absolute or leasehold estate is not a “major interest” if its term does not exceed 7 years on the date of its grant.
For the purposes of this Schedule, any term of years absolute or leasehold estate is not a ““major interest”” if its term does not exceed 7 years on the date of its grant.
## SCHEDULE 6
@@ -4152,7 +4141,7 @@
- (1) This paragraph applies where—
- (a) (ignoring this paragraph) paragraph 3 would apply to treat a lease (“the original lease”) as if it were a lease for a fixed term one year longer than the original fixed term,
- (a) (ignoring this paragraph) paragraph 3 would apply to treat a lease (““the original lease””) as if it were a lease for a fixed term one year longer than the original fixed term,
- (b) during that one year period the tenant under that lease is granted a new lease of the same or substantially the same premises,
@@ -4226,7 +4215,7 @@
- (c) in consideration of the rent payable under all of the leases.
- (2) Two or more leases constitute “a series of linked leases” if they—
- (2) Two or more leases constitute ““a series of linked leases”” if they—
- (a) are successive leases granted or treated as granted (whether at the same time or at different times) of the same or substantially the same premises, and
@@ -4240,25 +4229,25 @@
- (1) This paragraph applies where—
- (a) the tenant under a lease (“the old lease”) surrenders it to the landlord and in consideration of that surrender the landlord grants a lease to the tenant of the same or substantially the same premises (“the new lease”),
- (b) the tenant under a lease (“the old lease”) of premises to which Part 2 of the [Landlord and Tenant Act 1954 (c. 56)](https://www.legislation.gov.uk/ukpga/1954/56) (security of tenure for business, professional and other tenants) applies, makes a request for a new tenancy (“the new lease”) which is then executed,
- (c) on termination of a lease (“the head lease”) a sub-tenant is granted a lease (“the new lease”) of the same or substantially the same premises as those comprised in the sub-tenant’s original lease (“the old lease”) in pursuance of—
- (a) the tenant under a lease (““the old lease””) surrenders it to the landlord and in consideration of that surrender the landlord grants a lease to the tenant of the same or substantially the same premises (“*"the new lease”*”),
- (b) the tenant under a lease (““the old lease””) of premises to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (security of tenure for business, professional and other tenants) applies, makes a request for a new tenancy (“*"the new lease”*”) which is then executed,
- (c) on termination of a lease (““the head lease””) a sub-tenant is granted a lease (“*"the new lease”*”) of the same or substantially the same premises as those comprised in the sub-tenant's original lease (““the old lease””) in pursuance of—
- (i) an order of a court on a claim for relief against re-entry or forfeiture, or
- (ii) a contractual entitlement arising in the event of the head lease being terminated, or
- (d) a person who has guaranteed the obligations of a tenant under a lease that has been terminated (“the old lease”) is granted a lease of the same or substantially the same premises (“the new lease”) in pursuance of the guarantee.
- (d) a person who has guaranteed the obligations of a tenant under a lease that has been terminated (““the old lease””) is granted a lease of the same or substantially the same premises (“*"the new lease”*”) in pursuance of the guarantee.
- (2) For the purposes of this Act, the rent payable under the new lease in respect of any period falling within the overlap period is treated as reduced by the amount of the taxable rent that would have been payable in respect of that period under the old lease (but it cannot be treated as being reduced to a negative amount).
- (3) For the purposes of sub-paragraph (2)—
- (a) the “overlap period” is the period between the date of the grant of the new lease and what would have been the end of the term of the old lease had it not been terminated;
- (b) rent is “taxable” if or to the extent that it is taken into account in determining the tax chargeable in respect of the acquisition of the old lease.
- (a) the ““overlap period”” is the period between the date of the grant of the new lease and what would have been the end of the term of the old lease had it not been terminated;
- (b) rent is ““taxable”” if or to the extent that it is taken into account in determining the tax chargeable in respect of the acquisition of the old lease.
#### Tenant holding over: new lease backdated to previous year
@@ -4266,9 +4255,9 @@
- (1) This paragraph applies where—
- (a) the tenant under a lease (“the old lease”) continues in occupation after the date on which, under its terms, the lease terminates (“the contractual termination date”),
- (b) the tenant is granted a lease of the same or substantially the same premises (“the new lease”),
- (a) the tenant under a lease (““the old lease””) continues in occupation after the date on which, under its terms, the lease terminates (““the contractual termination date””),
- (b) the tenant is granted a lease of the same or substantially the same premises (“*"the new lease”*”),
- (c) the new lease is granted on a date falling more than one year after the contractual termination date, and
@@ -4278,7 +4267,7 @@
- (ii) ending with the latest anniversary of that date falling before the date on which the new lease is granted,
(“the whole years of holdover”).
(““the whole years of holdover””).
- (2) The term of the new lease is treated for the purposes of this Act as beginning with the date on which it is expressed to begin.
@@ -4294,13 +4283,13 @@
- (5) For the purposes of this paragraph—
- (a) “holdover tenancy” means—
- (a) “*"holdover tenancy”*” means—
- (i) the old lease if it continues beyond the contractual termination date (whether by virtue of the lease being granted for a fixed term and thereafter until terminated or by operation of law), or
- (ii) any other tenancy of the same or substantially the same premises by virtue of which the tenant under the old lease continues in occupation after the contractual termination date;
- (b) rent is “taxable” if or to the extent that it is taken into account in determining the tax chargeable in respect of the acquisition of the holdover tenancy.
- (b) rent is ““taxable”” if or to the extent that it is taken into account in determining the tax chargeable in respect of the acquisition of the holdover tenancy.
## PART 3 — RENT AND OTHER CONSIDERATION
@@ -4312,7 +4301,7 @@
- (2) Sub-paragraph (1) is without prejudice to the application of paragraph 4 of Schedule 4 (chargeable consideration: just and reasonable apportionment) where separate sums are expressed to be payable in respect of rent and other matters.
- (3) For the purposes of this Act, “rent” does not include any chargeable consideration for the grant of a lease that is payable in respect of a period before the grant of the lease.
- (3) For the purposes of this Act, “*"rent”*” does not include any chargeable consideration for the grant of a lease that is payable in respect of a period before the grant of the lease.
#### Variable or uncertain rent
@@ -4342,9 +4331,9 @@
- (6) For the purposes of this paragraph and paragraph 12, the cases where the amount of rent payable under a lease is uncertain or unascertained include cases where there is a possibility of that amount being varied under—
- (a) section 12, 13 or 33 of the [Agricultural Holdings Act 1986 (c. 5)](https://www.legislation.gov.uk/ukpga/1986/5) (provisions relating to increases, reductions and other variations of rent), or
- (b) Part 2 of the [Agricultural Tenancies Act 1995 (c. 8)](https://www.legislation.gov.uk/ukpga/1995/8) (rent review under farm business tenancy).
- (a) section 12, 13 or 33 of the Agricultural Holdings Act 1986 (c. 5) (provisions relating to increases, reductions and other variations of rent), or
- (b) Part 2 of the Agricultural Tenancies Act 1995 (c. 8) (rent review under farm business tenancy).
- (7) For the purposes of this Act, no account is to be taken of any provision for rent to be adjusted in line with the retail prices index, consumer prices index or any other similar index used to express a rate of inflation.
@@ -4360,7 +4349,7 @@
- (i) is to an amount that (before that adjustment) is uncertain, and
- (ii) has effect from a date (the “review date”) that is expressed as falling 5 years after a specified date, and
- (ii) has effect from a date (the ““review date””) that is expressed as falling 5 years after a specified date, and
- (c) the specified date falls within the period of 3 months before the beginning of the term of the lease,
@@ -4436,7 +4425,7 @@
- (1) In the case of the grant, assignment or surrender of a lease a reverse premium does not count as chargeable consideration.
- (2) A “reverse premium” means—
- (2) A “*"reverse premium”*” means—
- (a) in relation to the grant of a lease, a premium moving from the landlord to the tenant;
@@ -4452,7 +4441,7 @@
- (a) any undertaking by the tenant to repair, maintain or insure the leased premises;
- (b) any undertaking by the tenant to pay any amount in respect of services, repairs, maintenance or insurance or the landlord’s costs of management;
- (b) any undertaking by the tenant to pay any amount in respect of services, repairs, maintenance or insurance or the landlord's costs of management;
- (c) any other obligation of the tenant that is not such as to affect the rent that a tenant would be prepared to pay in the open market;
@@ -4460,9 +4449,9 @@
- (e) any penal rent, or increased rent in the nature of a penal rent, payable in respect of the breach of any obligation of the tenant under the lease;
- (f) any liability of the tenant for costs under section 14(2) of the [Leasehold Reform Act 1967 (c. 88)](https://www.legislation.gov.uk/ukpga/1967/88) or section 60 of the [Leasehold Reform, Housing and Urban Development Act 1993 (c. 28)](https://www.legislation.gov.uk/ukpga/1993/28) (costs to be borne by person exercising statutory rights to be granted lease);
- (g) any other obligation of the tenant to bear the landlord’s reasonable costs or expenses of, or incidental to, the grant of the lease;
- (f) any liability of the tenant for costs under section 14(2) of the Leasehold Reform Act 1967 (c. 88) or section 60 of the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) (costs to be borne by person exercising statutory rights to be granted lease);
- (g) any other obligation of the tenant to bear the landlord's reasonable costs or expenses of, or incidental to, the grant of the lease;
- (h) any obligation under the lease to transfer to the landlord, on the termination of the lease, payment entitlements granted to the tenant under the single payment scheme (that is, the scheme of income support for farmers in pursuance of Title III of Council Regulation [(EC) No 73/2009](https://www.legislation.gov.uk/european/regulation/2009/0073)) in respect of land subject to the lease.
@@ -4542,11 +4531,11 @@
- (b) the agreement is substantially performed without having been completed,
the agreement is treated for the purposes of this Act as if it were the grant of a lease in accordance with the agreement (“the notional lease”), beginning with the date of substantial performance.
the agreement is treated for the purposes of this Act as if it were the grant of a lease in accordance with the agreement (““the notional lease””), beginning with the date of substantial performance.
- (2) The effective date of the transaction is the date of substantial performance of the agreement.
- (3) For the purposes of this paragraph the agreement is completed by the grant of a lease (“the actual lease”) in substantial conformity with the agreement.
- (3) For the purposes of this paragraph the agreement is completed by the grant of a lease (““the actual lease””) in substantial conformity with the agreement.
- (4) Where the actual lease is subsequently granted the notional lease is treated for the purposes of this Act as if it were a lease granted—
@@ -4564,7 +4553,7 @@
- (b) the tenant under the actual lease (rather than the tenant under the notional lease) is liable for any tax or additional tax chargeable in respect of the notional lease as a result of sub-paragraph (4), and
- (c) the reference in section 51(2) to “the buyer in the earlier transaction” is to be read, in relation to the notional lease, as a reference to the tenant under the actual lease.
- (c) the reference in section 51(2) to ““the buyer in the earlier transaction”” is to be read, in relation to the notional lease, as a reference to the tenant under the actual lease.
- (7) Where—
@@ -4582,13 +4571,13 @@
##### 21
- (1) This paragraph applies where a person (“P”) assigns P’s interest as tenant under an agreement for lease.
- (1) This paragraph applies where a person (““P””) assigns P's interest as tenant under an agreement for lease.
- (2) Where this paragraph applies Schedule 2 (transactions entered into before completion of contract) does not apply.
- (3) If the assignment occurs without the agreement having been substantially performed, section 10 (contract and transfer) has effect as if—
- (a) the agreement were with the assignee (“A”) and not P, and
- (a) the agreement were with the assignee (““A””) and not P, and
- (b) the consideration given by A for entering into the agreement included any consideration given by A for the assignment.
@@ -4630,7 +4619,7 @@
- (5) This paragraph does not apply where the relief in question is group relief, reconstruction or acquisition relief or charities relief and is withdrawn as a result of a disqualifying event occurring before the effective date of the assignment.
- (6) For the purposes of sub-paragraph (5), “disqualifying event” means—
- (6) For the purposes of sub-paragraph (5), “*"disqualifying event”*” means—
- (a) in relation to the withdrawal of group relief, the event falling within paragraph 8(2)(a) of Schedule 16 (buyer ceasing to be a member of the same group as the seller) as read with paragraph 9 of that Schedule;
@@ -4664,7 +4653,7 @@
- (1) Where a lease is varied so as to reduce the amount of the rent, the variation is treated for the purposes of this Act as an acquisition of a chargeable interest by the tenant.
- (2) Where any consideration in money or money’s worth (other than an increase in rent) is given by the tenant for any variation of a lease, other than a variation of the amount of the rent or of the term of the lease, the variation is treated for the purposes of this Act as an acquisition of a chargeable interest by the tenant.
- (2) Where any consideration in money or money's worth (other than an increase in rent) is given by the tenant for any variation of a lease, other than a variation of the amount of the rent or of the term of the lease, the variation is treated for the purposes of this Act as an acquisition of a chargeable interest by the tenant.
- (3) Where a lease is varied so as to reduce the term, the variation is treated for the purposes of this Act as an acquisition of a chargeable interest by the landlord.
@@ -4724,7 +4713,7 @@
- (5) Regulations under sub-paragraph (4) must specify—
- (a) a tax band for which the applicable tax rate is 0% (“the RL zero rate band”),
- (a) a tax band for which the applicable tax rate is 0% (““the RL zero rate band””),
- (b) two or more tax bands above the RL zero rate band,
@@ -4746,7 +4735,7 @@
- (2) Regulations under sub-paragraph (1) must specify—
- (a) a tax band for which the applicable tax rate is 0% (“the NRL zero rate band”),
- (a) a tax band for which the applicable tax rate is 0% (““the NRL zero rate band””),
- (b) two or more tax bands above the NRL zero rate band,
@@ -4766,7 +4755,7 @@
In the case of the acquisition of a non-residential lease or mixed lease, the amount of tax chargeable on so much of the chargeable consideration as consists of rent is to be calculated as follows (unless paragraph 30 (linked transactions) applies).
- *Step 1* Calculate the net present value (the “NPV”) of the rent payable over the term of the lease (see paragraph 31).
- *Step 1* Calculate the net present value (the ““NPV””) of the rent payable over the term of the lease (see paragraph 31).
- *Step 2* For each tax band applicable to the acquisition, multiply so much of the NPV as falls within the band by the tax rate for that band.
@@ -4778,7 +4767,7 @@
Where the acquisition of a non-residential lease or mixed lease is one of a number of linked transactions for which the chargeable consideration consists of or includes rent, the amount of tax chargeable in respect of the rent is to be calculated as follows.
- *Step 1* Calculate the total of the net present values (the “TNPV”) of the rent payable over the terms of all the linked leases (see paragraph 31).
- *Step 1* Calculate the total of the net present values (the ““TNPV””) of the rent payable over the terms of all the linked leases (see paragraph 31).
- *Step 2* For each tax band applicable to the acquisition, multiply so much of the TNPV as falls within the band by the tax rate for that band.
@@ -4794,13 +4783,11 @@
The NPV of the rent payable over the term of a lease is calculated by applying the following formula—
$$NPV=∑i=1nri(1+T)i$ Figure 8 where— ri is the rent payable in respect of year i, i is the first, second, third etc. year of the term of the lease, n is the term of the lease, and T is the temporal discount rate (see paragraph 32).$
#### Temporal discount rate
##### 32
For the purposes of paragraph 31 the “temporal discount rate” is 3.5% or such other rate as the Welsh Ministers may by regulations specify.
For the purposes of paragraph 31 the ““temporal discount rate”” is 3.5% or such other rate as the Welsh Ministers may by regulations specify.
#### Tax chargeable in respect of consideration other than rent: general
@@ -4846,15 +4833,15 @@
- (1) In paragraphs 34 and 35—
- (a) “the relevant rent” means—
- (a) “*"the relevant rent”*” means—
- (i) the annual rent in relation to the transaction in question, or
- (ii) if that transaction is one of a number of linked transactions for which the chargeable consideration consists of or includes rent, the total of the annual rents in relation to all of those transactions;
- (b) “the specified amount” means an amount of relevant rent specified by the Welsh Ministers by regulations.
- (2) In sub-paragraph (1)(a) “the annual rent” means—
- (b) “*"the specified amount”*” means an amount of relevant rent specified by the Welsh Ministers by regulations.
- (2) In sub-paragraph (1)(a) “*"the annual rent”*” means—
- (a) the average annual rent over the term of the lease, or
@@ -4910,13 +4897,13 @@
##### 3
In this Act, a “partnership” means—
- (a) a partnership within the [Partnership Act 1890 (c. 39)](https://www.legislation.gov.uk/ukpga/1890/39);
- (b) a limited partnership registered under the [Limited Partnerships Act 1907 (c. 24)](https://www.legislation.gov.uk/ukpga/1907/24);
- (c) a limited liability partnership formed under the [Limited Liability Partnerships Act 2000 (c. 12)](https://www.legislation.gov.uk/ukpga/2000/12);
In this Act, a “*"partnership”*” means—
- (a) a partnership within the Partnership Act 1890 (c. 39);
- (b) a limited partnership registered under the Limited Partnerships Act 1907 (c. 24);
- (c) a limited liability partnership formed under the Limited Liability Partnerships Act 2000 (c. 12);
- (d) a firm or entity of similar character to any of those mentioned above formed under the law of a country or territory outside the United Kingdom.
@@ -4986,7 +4973,7 @@
- (2) This includes making the declaration required by section 53 (declaration that return is complete and correct).
- (3) A “representative partner” means a partner nominated by a majority of the partners to act as the representative of the partnership for the purposes of this Act.
- (3) A “*"representative partner”*” means a partner nominated by a majority of the partners to act as the representative of the partnership for the purposes of this Act.
- (4) Any such nomination, or the revocation or such a nomination, has effect only after notice of the nomination, or revocation, has been given to WRA.
@@ -5014,7 +5001,7 @@
- (b) in relation to any other penalty, or to late payment interest on the penalty, the time when the act or omission occurred that caused the penalty to become payable.
- (5) In this paragraph, “late payment interest” means late payment interest under Part 6 of TCMA.
- (5) In this paragraph, “*"late payment interest”*” means late payment interest under Part 6 of TCMA.
## PART 4 — TRANSACTIONS INVOLVING TRANSFERS TO A PARTNERSHIP
@@ -5050,7 +5037,7 @@
- (3) The chargeable consideration for the transaction is taken to be equal to—
$$MV×(100-SLP)%$ Figure 9 where— MV is the market value of the chargeable interest transferred, and SLP is the sum of the lower proportions.$
$$MV × ( 100 - SLP ) %$Figure 9 where—MV is the market value of the chargeable interest transferred, andSLP is the sum of the lower proportions.$
- (4) Paragraph 14 provides for determining the sum of the lower proportions.
@@ -5074,9 +5061,9 @@
- *Step 2* For each relevant owner, identify the corresponding partner or partners (see paragraph 16). If there is no relevant owner with a corresponding partner, the sum of the lower proportions is zero.
- *Step 3* For each relevant owner, find the proportion of the chargeable interest to which the owner was entitled immediately before the transaction. Apportion that proportion between any one or more of the relevant owner’s corresponding partners.
- *Step 4* Find the lower of the following (“the lower proportion”) for each corresponding partner— the proportion of the chargeable interest attributable to the partner (see paragraph 17); the partner’s partnership share immediately after the transaction.
- *Step 3* For each relevant owner, find the proportion of the chargeable interest to which the owner was entitled immediately before the transaction. Apportion that proportion between any one or more of the relevant owner's corresponding partners.
- *Step 4* Find the lower of the following (““the lower proportion””) for each corresponding partner—the proportion of the chargeable interest attributable to the partner (see paragraph 17);the partner's partnership share immediately after the transaction.
- *Step 5* Add together the lower proportions of each corresponding partner. The result is the sum of the lower proportions.
@@ -5106,7 +5093,7 @@
- (a) holds property as trustee, and
- (b) is connected with the relevant owner only because of section 1122(6) of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4) (as it has effect with the omission of subsection (6)(c) to (e)).
- (b) is connected with the relevant owner only because of section 1122(6) of the Corporation Tax Act 2010 (c. 4) (as it has effect with the omission of subsection (6)(c) to (e)).
#### Proportion of chargeable interest attributable to corresponding partner
@@ -5124,11 +5111,11 @@
- (1) This paragraph applies where—
- (a) there is a transfer of a chargeable interest to a partnership (“the land transfer”);
- (a) there is a transfer of a chargeable interest to a partnership (““the land transfer””);
- (b) the land transfer falls within paragraph 13(1);
- (c) there is subsequently a transfer of an interest in the partnership (“the partnership transfer”);
- (c) there is subsequently a transfer of an interest in the partnership (““the partnership transfer””);
- (d) the partnership transfer is made—
@@ -5152,9 +5139,9 @@
- (5) That proportion is—
- (a) if the person making the partnership transfer is not a partner immediately after the partnership transfer, that person’s partnership share immediately before that transfer;
- (b) if the person is a partner immediately after the partnership transfer, the difference between the person’s partnership share before and after that transfer.
- (a) if the person making the partnership transfer is not a partner immediately after the partnership transfer, that person's partnership share immediately before that transfer;
- (b) if the person is a partner immediately after the partnership transfer, the difference between the person's partnership share before and after that transfer.
- (6) The partnership transfer and the land transfer are taken to be linked transactions.
@@ -5164,7 +5151,7 @@
- (b) any person becoming a partner as a result of, or in connection with, the transfer.
- (8) In this paragraph, “tax avoidance arrangements” has the meaning given by section 31.
- (8) In this paragraph, “*"tax avoidance arrangements”*” has the meaning given by section 31.
#### Withdrawal of money etc. from partnership after transfer of chargeable interest
@@ -5172,7 +5159,7 @@
- (1) This paragraph applies where—
- (a) there is a transfer of a chargeable interest to a partnership (“the land transfer”);
- (a) there is a transfer of a chargeable interest to a partnership (““the land transfer””);
- (b) the land transfer falls within paragraph 13(1);
@@ -5184,11 +5171,11 @@
- (2) A qualifying event is—
- (a) a withdrawal from the partnership of money or money’s worth which does not represent income profit, by the relevant person—
- (i) withdrawing capital from the relevant person’s capital account,
- (ii) reducing the relevant person’s interest in the partnership, or
- (a) a withdrawal from the partnership of money or money's worth which does not represent income profit, by the relevant person—
- (i) withdrawing capital from the relevant person's capital account,
- (ii) reducing the relevant person's interest in the partnership, or
- (iii) ceasing to be a partner, or
@@ -5196,7 +5183,7 @@
- (i) the repayment (to any extent) by the partnership of the loan, or
- (ii) a withdrawal by the relevant person from the partnership of money or money’s worth which does not represent income profit.
- (ii) a withdrawal by the relevant person from the partnership of money or money's worth which does not represent income profit.
- (3) For the purposes of sub-paragraph (2), the relevant person is—
@@ -5216,11 +5203,11 @@
- (7) The chargeable consideration for the transaction is taken to be—
- (a) in a case falling within sub-paragraph (2)(a), equal to the value of the money or money’s worth withdrawn from the partnership;
- (a) in a case falling within sub-paragraph (2)(a), equal to the value of the money or money's worth withdrawn from the partnership;
- (b) in a case falling within sub-paragraph (2)(b)(i), equal to the amount repaid;
- (c) in a case falling within sub-paragraph (2)(b)(ii), equal to so much of the value of the money or money’s worth withdrawn from the partnership as does not exceed the amount of the loan.
- (c) in a case falling within sub-paragraph (2)(b)(ii), equal to so much of the value of the money or money's worth withdrawn from the partnership as does not exceed the amount of the loan.
- (8) But the chargeable consideration determined under sub-paragraph (7) is not to exceed the market value, as at the effective date of the land transfer, of the chargeable interest transferred by the land transfer, reduced by any amount previously chargeable to tax.
@@ -5232,7 +5219,7 @@
the amount of the charge under this paragraph is reduced (but not below zero) by the amount of the charge under that paragraph.
- (10) In this paragraph, “tax avoidance arrangement” has the meaning given by section 31.
- (10) In this paragraph, “*"tax avoidance arrangement”*” has the meaning given by section 31.
## PART 5 — TRANSACTIONS INVOLVING TRANSFERS FROM A PARTNERSHIP
@@ -5254,7 +5241,7 @@
- (2) The chargeable consideration for the transaction is (subject to paragraph 30) taken to be equal to—
$$MV×(100-SLP)%$ Figure 10 where— MV is the market value of the interest transferred, and SLP is the sum of the lower proportions.$
$$MV × ( 100 - SLP ) %$Figure 10 where—MV is the market value of the interest transferred, andSLP is the sum of the lower proportions.$
- (3) Paragraph 22 provides for determining the sum of the lower proportions.
@@ -5274,9 +5261,9 @@
- *Step 2* For each relevant owner, identify the corresponding partner or partners (see paragraph 24). If there is no relevant owner with a corresponding partner, the sum of the lower proportions is zero.
- *Step 3* For each relevant owner, find the proportion of the chargeable interest to which that owner is entitled immediately after the transaction. Apportion that proportion between any one or more of the relevant owner’s corresponding partners.
- *Step 4* Find the lower of the following (“the lower proportion”) for each corresponding partner— the proportion of the chargeable interest attributable to the partner (see paragraph 25); the partnership share attributable to the partner (see paragraphs 26 and 27).
- *Step 3* For each relevant owner, find the proportion of the chargeable interest to which that owner is entitled immediately after the transaction. Apportion that proportion between any one or more of the relevant owner's corresponding partners.
- *Step 4* Find the lower of the following (““the lower proportion””) for each corresponding partner—the proportion of the chargeable interest attributable to the partner (see paragraph 25);the partnership share attributable to the partner (see paragraphs 26 and 27).
- *Step 5* Add together the lower proportions of each corresponding partner. The result is the sum of the lower proportions.
@@ -5306,7 +5293,7 @@
- (a) holds property as trustee, and
- (b) is connected with the relevant owner only because of section 1122(6) of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4) (as it has effect with the omission of subsection (6)(c) to (e)).
- (b) is connected with the relevant owner only because of section 1122(6) of the Corporation Tax Act 2010 (c. 4) (as it has effect with the omission of subsection (6)(c) to (e)).
#### Proportion of chargeable interest attributable to corresponding partner
@@ -5326,11 +5313,11 @@
- (2) Where this paragraph applies, the partnership share attributable to a corresponding partner is to be determined, as follows—
- *Step 1* Find the partner’s actual partnership share on the relevant date. The relevant date— if the partner was a partner on 19 October 2003, is that date; if the partner became a partner after that date, is the date on which the partner became a partner.
- *Step 2* Add to that partnership share any increases in the partner’s partnership share which— occur in the period beginning with the day after the relevant date and ending immediately before the transaction to which paragraph 22 applies, and count for this purpose (see sub-paragraph (5)). The result is the increased partnership share.
- *Step 3* Deduct from the increased partnership share any decreases in the partner’s partnership share which occur in the period beginning with the day after the relevant date and ending immediately before the transaction to which paragraph 22 applies. The result is the partnership share attributable to the partner.
- *Step 1* Find the partner's actual partnership share on the relevant date. The relevant date—if the partner was a partner on 19 October 2003, is that date;if the partner became a partner after that date, is the date on which the partner became a partner.
- *Step 2* Add to that partnership share any increases in the partner's partnership share which—occur in the period beginning with the day after the relevant date and ending immediately before the transaction to which paragraph 22 applies, andcount for this purpose (see sub-paragraph (5)).The result is the increased partnership share.
- *Step 3* Deduct from the increased partnership share any decreases in the partner's partnership share which occur in the period beginning with the day after the relevant date and ending immediately before the transaction to which paragraph 22 applies. The result is the partnership share attributable to the partner.
- (3) If the effect of applying Step 3 would be to reduce the partnership share attributable to the partner below zero, the partnership share attributable to the partner is zero.
@@ -5360,11 +5347,11 @@
- (4) Where this paragraph applies, and one of the conditions in sub-paragraph (3) is met, the partnership share attributable to the partner is determined as follows—
- *Step 1* Find the partner’s actual partnership share on the relevant date. The relevant date— if the partner was a partner on the effective date of the transfer of the relevant chargeable interest to the partnership, is that date; if the partner became a partner after that date, is the date on which the partner became a partner.
- *Step 2* Add to that partnership share any increases in the partner’s partnership share which— occur in the period beginning with the day after the relevant date and ending immediately before the transaction to which paragraph 22 applies, and count for this purpose (see sub-paragraph (7)). The result is the increased partnership share.
- *Step 3* Deduct from the increased partnership share any decreases in the partner’s partnership share which occur in the period starting on the day after the relevant date and ending immediately before the transaction to which paragraph 22 applies. The result is the partnership share attributable to the partner.
- *Step 1* Find the partner's actual partnership share on the relevant date. The relevant date—if the partner was a partner on the effective date of the transfer of the relevant chargeable interest to the partnership, is that date;if the partner became a partner after that date, is the date on which the partner became a partner.
- *Step 2* Add to that partnership share any increases in the partner's partnership share which—occur in the period beginning with the day after the relevant date and ending immediately before the transaction to which paragraph 22 applies, andcount for this purpose (see sub-paragraph (7)).The result is the increased partnership share.
- *Step 3* Deduct from the increased partnership share any decreases in the partner's partnership share which occur in the period starting on the day after the relevant date and ending immediately before the transaction to which paragraph 22 applies. The result is the partnership share attributable to the partner.
- (5) If the effect of applying Step 3 would be to reduce the partnership share attributable to the partner below zero, the partnership share attributable to the partner is zero.
@@ -5436,7 +5423,7 @@
> (2) The chargeable consideration for the transaction is taken to be equal to the market value of the interest transferred.
- (4) Paragraph 31(2) has effect as if for “sub-paragraphs (3) to (6)” there were substituted “sub-paragraph (5)”.
- (4) Paragraph 31(2) has effect as if for ““sub-paragraphs (3) to (6)”” there were substituted “ sub-paragraph (5) ”.
- (5) Paragraph 31 has effect as if sub-paragraphs (3), (4), (6) and (7) were omitted.
@@ -5452,29 +5439,29 @@
- (3) Paragraph 29 has effect as if—
- (a) in Step 1, for “the net present value (the “NPV”) of the rent payable over the term of the lease” there were substituted “the relevant chargeable proportion of the net present value (the “NPV”) of the rent payable over the term of the lease”;
- (b) in Step 2, for “the NPV” there were substituted “the relevant chargeable proportion”.
- (a) in Step 1, for ““the net present value (the ““NPV””) of the rent payable over the term of the lease”” there were substituted “ the relevant chargeable proportion of the net present value (the ““NPV””) of the rent payable over the term of the lease ”;
- (b) in Step 2, for ““the NPV”” there were substituted “ the relevant chargeable proportion ”.
- (4) Paragraph 30 has effect as if—
- (a) in Step 1, for “the total of the net present values (the “TNPV”) of the rent payable over the terms of all the linked leases” there were substituted “the total of the relevant chargeable proportions of the net present values (the “TNPV”) of the rent payable over the terms of all the leases”;
- (b) in Step 2, for “the TNPV” there were substituted “the total of the relevant chargeable proportions”;
- (c) in Step 4, for “the NPV” substitute “the relevant chargeable proportion” and for “the TNPV” substitute “the total of the relevant chargeable proportions”.
- (5) Paragraph 33(1) has effect as if for “paragraphs 34 and 35” there were substituted “paragraphs 13 and 21 of Schedule 7 and paragraphs 34 and 35 of this Schedule”.
- (a) in Step 1, for ““the total of the net present values (the ““TNPV””) of the rent payable over the terms of all the linked leases”” there were substituted “ the total of the relevant chargeable proportions of the net present values (the ““TNPV””) of the rent payable over the terms of all the leases ”;
- (b) in Step 2, for ““the TNPV”” there were substituted “ the total of the relevant chargeable proportions ”;
- (c) in Step 4, for ““the NPV”” substitute “ the relevant chargeable proportion ” and for ““the TNPV”” substitute “ the total of the relevant chargeable proportions ”.
- (5) Paragraph 33(1) has effect as if for ““paragraphs 34 and 35”” there were substituted “ paragraphs 13 and 21 of Schedule 7 and paragraphs 34 and 35 of this Schedule ”.
- (6) Paragraph 36(1)(a) has effect as if—
- (a) in sub-paragraph (i) for “the annual rent” there were substituted “the relevant chargeable proportion of the annual rent”;
- (b) in sub-paragraph (ii) for “the total of the annual rents” there were substituted “the relevant chargeable proportion of the total of the annual rents”.
- (a) in sub-paragraph (i) for ““the annual rent”” there were substituted “ the relevant chargeable proportion of the annual rent ”;
- (b) in sub-paragraph (ii) for ““the total of the annual rents”” there were substituted “ the relevant chargeable proportion of the total of the annual rents ”.
- (7) For the purposes of paragraphs 29, 30 and 36 of Schedule 6 as modified by this paragraph, the relevant chargeable proportion is—
$$(100-SLP)%$ Figure 11 where SLP is the sum of the lower proportions.$
$$( 100 - SLP ) %$Figure 11 where SLP is the sum of the lower proportions.$
- (8) The following paragraphs apply for determining the sum of the lower proportions—
@@ -5500,11 +5487,11 @@
##### 33
- (1) In this Schedule, a “property-investment partnership” is a partnership whose sole or main activity is investing or dealing in chargeable interests (whether or not that activity involves the carrying out of construction operations on the land in question).
- (2) In sub-paragraph (1), “construction operations” has the same meaning as in Chapter 3 of Part 3 of the [Finance Act 2004 (c. 12)](https://www.legislation.gov.uk/ukpga/2004/12)(see section 74 of that Act).
- (3) For the purposes of sub-paragraph (1), “chargeable interests” includes any interest which would be a chargeable interest but for the fact that it relates to land outside Wales.
- (1) In this Schedule, a ““property-investment partnership”” is a partnership whose sole or main activity is investing or dealing in chargeable interests (whether or not that activity involves the carrying out of construction operations on the land in question).
- (2) In sub-paragraph (1), “*"construction operations”*” has the same meaning as in Chapter 3 of Part 3 of the Finance Act 2004 (c. 12)(see section 74 of that Act).
- (3) For the purposes of sub-paragraph (1), “*"chargeable interests”*” includes any interest which would be a chargeable interest but for the fact that it relates to land outside Wales.
#### Transfer of interest in property-investment partnership
@@ -5528,11 +5515,11 @@
- (5) That proportion is—
- (a) if the person acquiring the interest in the partnership was not a partner before the transfer, the person’s partnership share immediately after the transfer;
- (b) if the person was a partner before the transfer, the difference between that person’s partnership share before and after the transfer.
- (6) The “relevant partnership property”, in relation to a Type A transfer of an interest in a partnership, is every chargeable interest held as partnership property immediately after the transfer, other than—
- (a) if the person acquiring the interest in the partnership was not a partner before the transfer, the person's partnership share immediately after the transfer;
- (b) if the person was a partner before the transfer, the difference between that person's partnership share before and after the transfer.
- (6) The “*"relevant partnership property”*”, in relation to a Type A transfer of an interest in a partnership, is every chargeable interest held as partnership property immediately after the transfer, other than—
- (a) any chargeable interest that was transferred to the partnership in connection with the transfer,
@@ -5540,7 +5527,7 @@
- (c) any chargeable interest that is not attributable economically to the interest in the partnership that is transferred.
- (7) The “relevant partnership property”, in relation to a Type B transfer of an interest in a partnership, is every chargeable interest held as partnership property immediately after the transfer, other than—
- (7) The “*"relevant partnership property”*”, in relation to a Type B transfer of an interest in a partnership, is every chargeable interest held as partnership property immediately after the transfer, other than—
- (a) any chargeable interest that was transferred to the partnership in connection with the transfer,
@@ -5558,9 +5545,9 @@
- (a) a transfer that takes the form of arrangements entered into under which—
- (i) the whole or part of a partner’s interest as partner is acquired by another person (who may be an existing partner), and
- (ii) consideration in money or money’s worth is given by or on behalf of the person acquiring the interest, or
- (i) the whole or part of a partner's interest as partner is acquired by another person (who may be an existing partner), and
- (ii) consideration in money or money's worth is given by or on behalf of the person acquiring the interest, or
- (b) a transfer that takes the form of arrangements entered into under which—
@@ -5568,7 +5555,7 @@
- (ii) the interest of an existing partner in the partnership is reduced or an existing partner ceases to be a partner, and
- (iii) there is a withdrawal of money or money’ worth from the partnership by the existing partner mentioned in paragraph (ii) (other than money or money’s worth paid from the resources available to the partnership prior to the transfer).
- (iii) there is a withdrawal of money or money' worth from the partnership by the existing partner mentioned in paragraph (ii) (other than money or money's worth paid from the resources available to the partnership prior to the transfer).
- (9) Any other transfer to which this paragraph applies is a Type B transfer.
@@ -5622,13 +5609,13 @@
- (4) The election is irrevocable so that the return may not be amended so as to withdraw the election.
- (5) Where an election under this paragraph in respect of a transaction (the “main transaction”) is made in an amendment of a return—
- (5) Where an election under this paragraph in respect of a transaction (the ““main transaction””) is made in an amendment of a return—
- (a) the election has effect as if it had been made on the date on which the return was made, and
- (b) any return in respect of an affected transaction may be amended (within the period allowed for amendment of that return) to take account of that election.
- (6) In sub-paragraph (5), “affected transaction” in relation to the main transaction means a transaction—
- (6) In sub-paragraph (5), “*"affected transaction”*” in relation to the main transaction means a transaction—
- (a) to which paragraph 34 (transfer of interest in property-investment partnership) applied, and
@@ -5640,7 +5627,7 @@
- (1) Where section 16 (exchanges) applies to the acquisition of an interest in a property-investment partnership in consideration of entering into a land transaction with an existing partner, the interest in the partnership is to be treated as a major interest in land, for the purposes of paragraph 5 of Schedule 4 if the relevant partnership property includes a major interest in land.
- (2) In sub-paragraph (1), “relevant partnership property” has the meaning given by paragraphs 34(6) or (7) (as appropriate, and as read with paragraph 35).
- (2) In sub-paragraph (1), “*"relevant partnership property”*” has the meaning given by paragraphs 34(6) or (7) (as appropriate, and as read with paragraph 35).
- (3) Where this paragraph applies, paragraph 6 of Schedule 4 (partition etc.: disregard of existing interest) does not apply.
@@ -5684,22 +5671,22 @@
- (2) Paragraph 8 has effect as if—
- (a) in sub-paragraph (2)(a), for “the buyer” there were substituted “a partner who was a partner at the effective date of the relieved transaction (“the relevant partner”)”;
- (a) in sub-paragraph (2)(a), for ““the buyer”” there were substituted “ a partner who was a partner at the effective date of the relieved transaction (““the relevant partner””) ”;
- (b) for sub-paragraph (2)(b) there were substituted—
> (b) at the time the relevant partner ceases to be a member of the same group as the seller (“the relevant time”), a chargeable interest is held by or on behalf of the members of the partnership and that chargeable interest—
> (b) at the time the relevant partner ceases to be a member of the same group as the seller (“*"the relevant time”*”), a chargeable interest is held by or on behalf of the members of the partnership and that chargeable interest—
> (i) was acquired by or on behalf of the partnership under the relieved transaction, or
> (ii) is derived from a chargeable interest so acquired,
> and has not subsequently been acquired at market value under a chargeable transaction for which group relief was available but was not claimed.
;
- (c) in sub-paragraph (4), for the words from “the transferee company” to the end there were substituted “or on behalf of the partnership and to the proportion in which the relevant partner is entitled at the relevant time to share in the income profits of the partnership”;
- (d) in sub-paragraph (5), the definition of “relevant associated company” were omitted.
- (3) Paragraphs 9 to 14 have effect as if for “the buyer” (each time it occurs) there were substituted “the relevant partner”.
- (c) in sub-paragraph (4), for the words from ““the transferee company”” to the end there were substituted “ or on behalf of the partnership and to the proportion in which the relevant partner is entitled at the relevant time to share in the income profits of the partnership ”;
- (d) in sub-paragraph (5), the definition of ““relevant associated company”” were omitted.
- (3) Paragraphs 9 to 14 have effect as if for ““the buyer”” (each time it occurs) there were substituted “ the relevant partner ”.
#### Sum of the lower portions: connected company
@@ -5707,7 +5694,7 @@
- (1) This paragraph applies where in calculating the sum of the lower proportions in relation to a transaction (in accordance with paragraph 14)—
- (a) a company (“the connected company”) would have been a corresponding partner of a relevant owner (“the original owner”) but for the fact that, by virtue of paragraph 16(1)(b), Step 2 includes connected persons only if they are individuals, and
- (a) a company (““the connected company””) would have been a corresponding partner of a relevant owner (““the original owner””) but for the fact that, by virtue of paragraph 16(1)(b), Step 2 includes connected persons only if they are individuals, and
- (b) the connected company and the original owner are members of the same group.
@@ -5717,7 +5704,7 @@
- (a) as if paragraph 4(3)(a) were omitted,
- (b) as if in paragraph 8(2)(a) for “the buyer” there were substituted “a partner who was, at the effective date of the transaction, a partner and a member of the same group as the transferor (“the relevant partner”)”, and
- (b) as if in paragraph 8(2)(a) for ““the buyer”” there were substituted “ a partner who was, at the effective date of the transaction, a partner and a member of the same group as the transferor (““the relevant partner””) ”, and
- (c) with the other modifications specified in paragraph 40.
@@ -5727,17 +5714,17 @@
- (1) Schedule 18 (charities relief) applies to the transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 18 or 34 with the following modifications.
- (2) Paragraph 1(b) has effect as if for “a buyer in a land transaction” there were substituted “a transferee under a transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 18 or 34 of Schedule 7,”.
- (2) Paragraph 1(b) has effect as if for ““a buyer in a land transaction”” there were substituted “ a transferee under a transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 18 or 34 of Schedule 7, ”.
- (3) Paragraph 2 has effect as if—
- (a) in sub-paragraph (1), for “a buyer in a land transaction” there were substituted “a transferee under a transfer of an interest in a partnership by virtue of paragraph 18 or 34 of Schedule 7”;
- (b) in sub-paragraph (1)(a), for “if C intends to hold the subject-matter of the transaction” there were substituted “if every chargeable interest held as partnership property immediately after the transfer is held”;
- (a) in sub-paragraph (1), for ““a buyer in a land transaction”” there were substituted “ a transferee under a transfer of an interest in a partnership by virtue of paragraph 18 or 34 of Schedule 7 ”;
- (b) in sub-paragraph (1)(a), for ““if C intends to hold the subject-matter of the transaction”” there were substituted “ if every chargeable interest held as partnership property immediately after the transfer is held ”;
- (c) sub-paragraph (1)(b) were omitted;
- (d) in sub-paragraph (2), for “C holds the subject-matter of the transaction” there were substituted “a chargeable interest held as partnership property is held”;
- (d) in sub-paragraph (2), for ““C holds the subject-matter of the transaction”” there were substituted “ a chargeable interest held as partnership property is held ”;
- (e) after sub-paragraph (2) there were inserted—
@@ -5746,19 +5733,19 @@
;
- (f) in sub-paragraph (4), for “a buyer in a land transaction” there were substituted “a transferee under a transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 18 or 34 of Schedule 7”;
- (g) in sub-paragraph (4)(b), for “the subject-matter of the transaction” there were substituted “any chargeable interest held as partnership property immediately after the transaction”.
- (f) in sub-paragraph (4), for ““a buyer in a land transaction”” there were substituted “ a transferee under a transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 18 or 34 of Schedule 7 ”;
- (g) in sub-paragraph (4)(b), for ““the subject-matter of the transaction”” there were substituted “ any chargeable interest held as partnership property immediately after the transaction ”.
- (4) Paragraph 3 has effect as if—
- (a) for “a land transaction” there were substituted “a transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 18 or 34 of Schedule 7”;
- (b) for “the buyer” there were substituted “the transferee”.
- (a) for ““a land transaction”” there were substituted “ a transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 18 or 34 of Schedule 7 ”;
- (b) for ““the buyer”” there were substituted “ the transferee ”.
- (5) Paragraph 4 has effect as if—
- (a) in sub-paragraph (1)(a), for “a land transaction” were substituted “a transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 18 or 34 of Schedule 7”;
- (a) in sub-paragraph (1)(a), for ““a land transaction”” were substituted “ a transfer of an interest in a partnership that is a chargeable transaction by virtue of paragraph 18 or 34 of Schedule 7 ”;
- (b) for sub-paragraph (4) there were substituted—
@@ -5770,7 +5757,7 @@
- (c) for sub-paragraph (6) there were substituted—
> (6) An “appropriate proportion” means an appropriate proportion having regard to—
> (6) An “*"appropriate proportion”*” means an appropriate proportion having regard to—
> (a) the chargeable interests held as partnership property immediately after the relieved transaction and the chargeable interests held as partnership property at the time of the disqualifying event, and
> (b) the extent to which any chargeable interest held as partnership property at that time becomes used or held for purposes other than qualifying charitable purposes.
@@ -5782,7 +5769,7 @@
- (2) Section 58 (conditions for making WRA assessments) has effect as if subsection (2)(c) were omitted.
- (3) Section 59 (time limits for WRA assessments) has effect as if in subsection (7) in the definition of “related person”, paragraph (b) were omitted.
- (3) Section 59 (time limits for WRA assessments) has effect as if in subsection (7) in the definition of ““related person””, paragraph (b) were omitted.
- (4) Section 79 (the claimant: partnerships) has effect as if there were substituted for it—
@@ -5793,7 +5780,7 @@
> (c) (in a case falling within section 63A(1)) the buyer in the land transaction is a person acting in such a capacity.
> (2) In such a case, only a representative partner within the meaning of paragraph 10 of Schedule 7 to LTTA may make a claim under section 63 or 63A in respect of the amount in question.
- (5) Section 80 (assessment of claimant in connection with claim) has effect as if in subsection (2), for “any relevant person (as defined in section 79(3))” there were substituted “a responsible partner within the meaning of paragraph 9 of Schedule 7 to LTTA”.
- (5) Section 80 (assessment of claimant in connection with claim) has effect as if in subsection (2), for ““any relevant person (as defined in section 79(3))”” there were substituted “ a responsible partner within the meaning of paragraph 9 of Schedule 7 to LTTA ”.
- (6) Section 91 (requiring information and documents in relation to a partnership) has effect as if—
@@ -5805,18 +5792,18 @@
- (b) in subsection (2)—
- (i) in the opening words, for “one of the partners” (in both places) there were substituted “one of the responsible partners”;
- (ii) in paragraphs (a)(iii) and (c), for “at least one of the partners” there were substituted “the representative partner, or where there is no representative partner, to at least one of the responsible partners”;
- (i) in the opening words, for ““one of the partners”” (in both places) there were substituted “ one of the responsible partners ”;
- (ii) in paragraphs (a)(iii) and (c), for ““at least one of the partners”” there were substituted “ the representative partner, or where there is no representative partner, to at least one of the responsible partners ”;
- (c) after subsection (2) there were inserted—
> (3) “Responsible partner” and “representative partner” have the meanings given by paragraphs 9 and 10 of Schedule 7 to LTTA.
> (3) ““Responsible partner”” and ““representative partner”” have the meanings given by paragraphs 9 and 10 of Schedule 7 to LTTA.
- (7) Section 100 (taxpayer notices following a tax return) has effect as if for subsection (6) there were substituted—
> (6) Where any responsible partner in a partnership has made a tax return, this section has effect as if that return had been made by each of the responsible partners.
> (6A) “Partnership” and “responsible partner” have the meanings given by paragraphs 3 and 9 of Schedule 7 to LTTA.
> (6A) ““Partnership”” and ““responsible partner”” have the meanings given by paragraphs 3 and 9 of Schedule 7 to LTTA.
#### Notification of transfer of partnership interest
@@ -5838,7 +5825,7 @@
- (1) Any reference in this Schedule to partnership property is to an interest or right held by or on behalf of a partnership, or the members of a partnership, for the purposes of the partnership business.
- (2) Any reference in this Schedule to a person’s partnership share at any time is to the proportion in which the person is entitled at that time to share in the income profits of the partnership.
- (2) Any reference in this Schedule to a person's partnership share at any time is to the proportion in which the person is entitled at that time to share in the income profits of the partnership.
#### Transfer of a chargeable interest
@@ -5886,7 +5873,7 @@
- (2) In determining the market value of the lease, an obligation of the tenant under the lease is to be taken into account if (but only if)—
- (a) it is an obligation such as is mentioned in paragraph 16(1) of Schedule 6 (tenant’s obligations that do not count as chargeable consideration), or
- (a) it is an obligation such as is mentioned in paragraph 16(1) of Schedule 6 (tenant's obligations that do not count as chargeable consideration), or
- (b) it is an obligation to make a payment to a person.
@@ -5894,7 +5881,7 @@
##### 51
- (1) Section 1122 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4) (connected persons) has effect for the purposes of this Schedule.
- (1) Section 1122 of the Corporation Tax Act 2010 (c. 4) (connected persons) has effect for the purposes of this Schedule.
- (2) As applied by sub-paragraph (1), that section has effect with the omission of subsection (7) (partners connected with each other).
@@ -5904,7 +5891,7 @@
##### 52
In this Schedule, “arrangements” has the meaning given by section 31(3).
In this Schedule, “*"arrangements”*” has the meaning given by section 31(3).
## SCHEDULE 8
@@ -5928,9 +5915,9 @@
##### 2
- (1) In this Schedule, a “bare trust” means a trust under which property is held by a person as trustee—
- (a) for a person who is absolutely entitled as against the trustee, or who would be so entitled but for being aged under 18 or lacking capacity (within the meaning of the [Mental Capacity Act 2005 (c. 9)](https://www.legislation.gov.uk/ukpga/2005/9)) to administer and manage the person’s property and affairs, or
- (1) In this Schedule, a “*"bare trust”*” means a trust under which property is held by a person as trustee—
- (a) for a person who is absolutely entitled as against the trustee, or who would be so entitled but for being aged under 18 or lacking capacity (within the meaning of the Mental Capacity Act 2005 (c. 9)) to administer and manage the person's property and affairs, or
- (b) for two or more persons who are or would be jointly so entitled,
@@ -5942,13 +5929,13 @@
- (b) to direct how the property is to be dealt with.
- (3) In this Schedule, a “settlement” means a trust that is not a bare trust.
- (3) In this Schedule, a “*"settlement”*” means a trust that is not a bare trust.
#### Bare trusts
##### 3
- (1) Where a person (“T”) acquires a chargeable interest or an interest in a partnership as bare trustee, this Act applies as if the interest were vested in, and the acts of T in relation to it were the acts of, the person or persons for whom T is trustee.
- (1) Where a person (““T””) acquires a chargeable interest or an interest in a partnership as bare trustee, this Act applies as if the interest were vested in, and the acts of T in relation to it were the acts of, the person or persons for whom T is trustee.
- (2) But sub-paragraph (1) does not apply in relation to the grant of a lease.
@@ -6010,7 +5997,7 @@
- (b) in relation to any other penalty, or to late payment interest on the penalty, the time when the act or omission occurred that caused the penalty to become payable.
- (5) In this paragraph, “late payment interest” means late payment interest under Part 6 of TCMA.
- (5) In this paragraph, “*"late payment interest”*” means late payment interest under Part 6 of TCMA.
#### Relevant trustees for purposes of return etc.
@@ -6018,7 +6005,7 @@
- (1) A return in relation to a land transaction may be made or given by any one or more of the trustees who are the responsible trustees in relation to the transaction.
- (2) The trustees by whom such a return is made are referred to in this Schedule as “the relevant trustees”.
- (2) The trustees by whom such a return is made are referred to in this Schedule as “*"the relevant trustees”*”.
- (3) The declaration required by section 53 (declaration that return is complete and correct) must be made by all the relevant trustees.
@@ -6054,7 +6041,7 @@
- (b) any of the other relevant trustees may be a party to the review if they notify WRA in writing;
- (c) notice of WRA’s conclusions under section 176(5), (6) or (7) of TCMA must be issued to each of the relevant trustees whose identity is known to WRA;
- (c) notice of WRA's conclusions under section 176(5), (6) or (7) of TCMA must be issued to each of the relevant trustees whose identity is known to WRA;
- (d) section 177 of TCMA (effect of conclusions of review) applies in relation to all of the relevant trustees.
@@ -6066,7 +6053,7 @@
- (c) any of the relevant trustees are entitled to be parties to the appeal;
- (d) the tribunal’s determination under section 181 of TCMA binds all the relevant trustees.
- (d) the tribunal's determination under section 181 of TCMA binds all the relevant trustees.
#### Interests of beneficiaries under certain trusts
@@ -6092,9 +6079,9 @@
A sale and leaseback arrangement is an arrangement under which—
- (a) a person (“A”) transfers or grants to another person (“B”) a major interest in land (the “sale”), and
- (b) out of that interest B grants a lease to A (the “leaseback”).
- (a) a person (““A””) transfers or grants to another person (““B””) a major interest in land (the ““sale””), and
- (b) out of that interest B grants a lease to A (the ““leaseback””).
#### Qualifying conditions
@@ -6110,7 +6097,7 @@
- (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 Schedule 16) at that date.
- (2) In sub-paragraph (1)(b), “debt” means an obligation, whether certain or contingent, to pay a sum of money either immediately or at a future date.
- (2) In sub-paragraph (1)(b), “*"debt”*” means an obligation, whether certain or contingent, to pay a sum of money either immediately or at a future date.
## SCHEDULE 10
@@ -6138,13 +6125,13 @@
##### 2
- (1) This paragraph applies where arrangements are entered into between a person (“P”) 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”),
- (1) This paragraph applies where arrangements are entered into between a person (““P””) 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 P as beneficial tenants in common,
- (c) the institution (or the person holding the land on trust as mentioned in paragraph (b)) grants to P 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
- (c) the institution (or the person holding the land on trust as mentioned in paragraph (b)) grants to P 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 P enter into an agreement under which P has a right to require the institution or its successor in title to transfer to P (in one transaction or a series of transactions) the whole interest purchased by the institution under the first transaction.
@@ -6156,7 +6143,7 @@
- (3) The second transaction is relieved from tax if the provisions of this Act and TCMA relating to the first transaction are complied with (including any requirement to pay tax chargeable on the first transaction).
- (4) A transfer to P that results from the exercise of the right mentioned in sub-paragraph (1)(d) (“a further transaction”) is relieved from tax if—
- (4) A transfer to P that results from the exercise of the right mentioned in sub-paragraph (1)(d) (““a further transaction””) is relieved from tax if—
- (a) the provisions of this Act and TCMA relating to the first and second transactions are complied with, and
@@ -6178,15 +6165,15 @@
##### 3
- (1) This paragraph applies where arrangements are entered into between a person (“P”) and a financial institution under which—
- (1) This paragraph applies where arrangements are entered into between a person (““P””) 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 P (“the second transaction”), and
- (b) P grants the institution a legal mortgage (as defined in section 205(1)(xvi) of the [Law of Property Act 1925 (c. 20)](https://www.legislation.gov.uk/ukpga/1925/20)) over that interest.
- (i) purchases a major interest in land (““the first transaction””), and
- (ii) sells that interest to P (““the second transaction””), and
- (b) P grants the institution a legal mortgage (as defined in section 205(1)(xvi) of the Law of Property Act 1925 (c. 20)) over that interest.
- (2) The first transaction is relieved from tax if the seller is—
@@ -6202,7 +6189,7 @@
##### 4
References in paragraphs 2 and 3 to P are to be read, in relation to times after P has died, as references to P’s personal representatives.
References in paragraphs 2 and 3 to P are to be read, in relation to times after P has died, as references to P's personal representatives.
## PART 3 — CIRCUMSTANCES WHERE ARRANGEMENTS NOT RELIEVED
@@ -6222,13 +6209,13 @@
- (3) In this paragraph—
- “alternative finance arrangements” (“*trefniadau cyllid eraill*”) means the arrangements referred to in paragraph 2(1);
- “connected arrangements” (“*trefniadau cysylltiedig*”) means any arrangements entered into in connection with the making of alternative finance arrangements (including arrangements involving one or more persons who are not parties to the alternative finance arrangements);
- “relevant financial institution” (“*sefydliad ariannol perthnasol*”) means the financial institution which enters into the alternative finance arrangements.
- (4) Section 1124 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4) applies for the purposes of determining who has control of the relevant financial institution.
- “*"alternative finance arrangements”*” (“*"*trefniadau cyllid eraill**”") means the arrangements referred to in paragraph 2(1);
- “*"connected arrangements”*” (“*"*trefniadau cysylltiedig**”") means any arrangements entered into in connection with the making of alternative finance arrangements (including arrangements involving one or more persons who are not parties to the alternative finance arrangements);
- “*"relevant financial institution”*” (“*"*sefydliad ariannol perthnasol**”") means the financial institution which enters into the alternative finance arrangements.
- (4) Section 1124 of the Corporation Tax Act 2010 (c. 4) applies for the purposes of determining who has control of the relevant financial institution.
## PART 4 — EXEMPT INTEREST
@@ -6258,17 +6245,17 @@
##### 8
In this Schedule, “financial institution” means—
- (a) a financial institution within the meaning of section 564B of the [Income Tax Act 2007 (c. 3)](https://www.legislation.gov.uk/ukpga/2007/3) (alternative finance arrangements: meaning of “financial institution”) other than a person referred to in subsection (1)(d) of that section (persons with permission to enter into credit agreements and contracts for hire of goods);
- (b) a person with permission under Part 4A of the [Financial Services and Markets Act 2000 (c. 8)](https://www.legislation.gov.uk/ukpga/2000/8) to carry on the regulated activity specified in Article 63F(1) of the [Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544)](https://www.legislation.gov.uk/uksi/2001/544) (entering into regulated home purchase plans as home purchase providers).
In this Schedule, “*"financial institution”*” means—
- (a) a financial institution within the meaning of section 564B of the Income Tax Act 2007 (c. 3) (alternative finance arrangements: meaning of ““financial institution””) other than a person referred to in subsection (1)(d) of that section (persons with permission to enter into credit agreements and contracts for hire of goods);
- (b) a person with permission under Part 4A of the Financial Services and Markets Act 2000 (c. 8) to carry on the regulated activity specified in Article 63F(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (entering into regulated home purchase plans as home purchase providers).
#### Meaning of “arrangements”
##### 9
In this Schedule, “arrangements” includes any agreement, understanding, scheme, transaction or series of any of those things (whether or not legally enforceable).
In this Schedule, “*"arrangements”*” includes any agreement, understanding, scheme, transaction or series of any of those things (whether or not legally enforceable).
## SCHEDULE 11
@@ -6298,15 +6285,15 @@
In this Schedule—
- “alternative finance investment bond” (“*bond buddsoddi cyllid arall*”) means arrangements to which section 564G of the [Income Tax Act 2007 (c. 3)](https://www.legislation.gov.uk/ukpga/2007/3) (investment bond arrangements) applies;
- “arrangements” (“*trefniadau*”) includes any agreement, understanding, scheme, transaction or series of any of those things (whether or not legally enforceable);
- “bond assets” (“*asedau bond*”), “bond-holder” (“*deiliad bond*”), “bond-issuer” (“*dyroddwr bond*”) and “capital” (“*cyflafaf*”) have the meaning given by section 564G of the [Income Tax Act 2007 (c. 3)](https://www.legislation.gov.uk/ukpga/2007/3);
- “prescribed” (“*rhagnodedig*”) means prescribed in regulations made by the Welsh Ministers;
- “qualifying interest” (“*buddiant cymwys*”) means a major interest in land other than a lease for a term of 21 years or less.
- “*"alternative finance investment bond”*” (“*"*bond buddsoddi cyllid arall**”") means arrangements to which section 564G of the Income Tax Act 2007 (c. 3) (investment bond arrangements) applies;
- “*"arrangements”*” (“*"*trefniadau**”") includes any agreement, understanding, scheme, transaction or series of any of those things (whether or not legally enforceable);
- “*"bond assets”*” (“*"*asedau bond**”"), “*"bond-holder”*” (“*"*deiliad bond**”"), “*"bond-issuer”*” (“*"*dyroddwr bond**”") and “*"capital”*” (“*"*cyflafaf**”") have the meaning given by section 564G of the Income Tax Act 2007 (c. 3);
- “*"prescribed”*” (“*"*rhagnodedig**”") means prescribed in regulations made by the Welsh Ministers;
- “*"qualifying interest”*” (“*"*buddiant cymwys**”") means a major interest in land other than a lease for a term of 21 years or less.
## PART 2 — ISSUE, TRANSFER AND REDEMPTION OF RIGHTS UNDER BOND NOT TO BE TREATED AS CHARGEABLE TRANSACTION
@@ -6330,7 +6317,7 @@
- (b) a group of connected bond-holders.
- (2) A bond-holder (“BH”), or a group of connected bond-holders, acquires control of the underlying asset if—
- (2) A bond-holder (““BH””), or a group of connected bond-holders, acquires control of the underlying asset if—
- (a) the rights of bond-holders under an alternative finance investment bond include the right of management and control of the bond assets, and
@@ -6350,7 +6337,7 @@
- (b) does not exercise the right of management and control of the bond assets.
- (6) In this paragraph, “underwrite”, in relation to an offer of rights under a bond, means to agree to make payments of capital under the bond in the event that other persons do not make those payments.
- (6) In this paragraph, “*"underwrite”*”, in relation to an offer of rights under a bond, means to agree to make payments of capital under the bond in the event that other persons do not make those payments.
## PART 3 — CONDITIONS FOR OPERATION OF RELIEFS ETC.
@@ -6364,9 +6351,9 @@
##### 6
Condition 1 is that one person (“A”) and another (“B”) enter into arrangements under which—
- (a) A transfers to B a qualifying interest in land (“the first transaction”), and
Condition 1 is that one person (““A””) and another (““B””) enter into arrangements under which—
- (a) A transfers to B a qualifying interest in land (““the first transaction””), and
- (b) A and B agree that when the interest ceases to be held by B as mentioned in paragraph 7(b), B will transfer the interest to A.
@@ -6400,7 +6387,7 @@
##### 9
- (1) Condition 4 is that, before the end of the period of 120 days beginning with the effective date of the first transaction, B provides WRA with the prescribed evidence that a satisfactory legal charge has been entered in the register of title kept under section 1 of the [Land Registration Act 2002 (c. 9)](https://www.legislation.gov.uk/ukpga/2002/9).
- (1) Condition 4 is that, before the end of the period of 120 days beginning with the effective date of the first transaction, B provides WRA with the prescribed evidence that a satisfactory legal charge has been entered in the register of title kept under section 1 of the Land Registration Act 2002 (c. 9).
- (2) A charge is satisfactory for the purposes of condition 4 if it—
@@ -6432,7 +6419,7 @@
Condition 7 is that—
- (a) before the end of the period of 30 days beginning with the date on which the interest in the land ceases to be held as a bond asset, the interest is transferred by B to A (“the second transaction”), and
- (a) before the end of the period of 30 days beginning with the date on which the interest in the land ceases to be held as a bond asset, the interest is transferred by B to A (““the second transaction””), and
- (b) the second transaction is given effect not more than 10 years (or such other period as may be prescribed) after the first transaction.
@@ -6494,7 +6481,7 @@
- (b) a group of connected bond-holders.
- (2) A bond-holder (“BH”), or a group of connected bond-holders, acquires control of the underlying asset if—
- (2) A bond-holder (““BH””), or a group of connected bond-holders, acquires control of the underlying asset if—
- (a) the rights of bond-holders under an alternative finance investment bond include the right of management and control of the bond assets, and
@@ -6518,7 +6505,7 @@
- (b) does not exercise the right of management and control of the bond assets.
- (8) In this paragraph, “underwrite”, in relation to an offer of rights under a bond, means to agree to make payments of capital under the bond in the event that other persons do not make those payments.
- (8) In this paragraph, “*"underwrite”*”, in relation to an offer of rights under a bond, means to agree to make payments of capital under the bond in the event that other persons do not make those payments.
## PART 5 — SUPPLEMENTARY
@@ -6528,11 +6515,11 @@
- (1) Paragraphs 13 to 16 apply with the modifications set out in sub-paragraph (2) or (as the case may be) (3) if—
- (a) conditions 1 to 3 and 7 are met in relation to an interest in land (“the original land”),
- (a) conditions 1 to 3 and 7 are met in relation to an interest in land (““the original land””),
- (b) B ceases to hold the original land as a bond asset (and accordingly, transfers it to A) before the termination of the alternative finance investment bond,
- (c) A and B enter into further arrangements satisfying condition 1 relating to an interest in other land (“the replacement land”), and
- (c) A and B enter into further arrangements satisfying condition 1 relating to an interest in other land (““the replacement land””), and
- (d) the value of the interest in the replacement land at the time it is transferred from A to B is greater than or equal to the market value of the interest in the original land on the effective date of the first transaction relating to the original land.
@@ -6566,7 +6553,7 @@
##### 19
- (1) Where a charge is discharged in accordance with paragraph 16 or 18(4) or (5), WRA must notify the Chief Land Registrar of the discharge in accordance with land registration rules (within the meaning of the [Land Registration Act 2002 (c. 9)](https://www.legislation.gov.uk/ukpga/2002/9)).
- (1) Where a charge is discharged in accordance with paragraph 16 or 18(4) or (5), WRA must notify the Chief Land Registrar of the discharge in accordance with land registration rules (within the meaning of the Land Registration Act 2002 (c. 9)).
- (2) WRA must do so within the period of 30 days beginning with the date on which B provides the evidence in question.
@@ -6576,7 +6563,7 @@
##### 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 relieved from tax if conditions A to C are met.
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 relieved from tax if conditions A to C are met.
#### Condition A
@@ -6610,11 +6597,11 @@
- (1) In this Schedule—
- “limited liability partnership” (“*partneriaeth atebolrwydd cyfyngedig*”) means a limited liability partnership formed under the [Limited Liability Partnerships Act 2000 (c. 12)](https://www.legislation.gov.uk/ukpga/2000/12);
- “the relevant time” (“*yr adeg berthnasol*”) means— where the transferor acquired the chargeable interest after the incorporation of the limited liability partnership, immediately after the transferor acquired it, and in any other case, immediately before the limited liability partnership’s incorporation.
- (2) In paragraph 4(b), “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.
- “*"limited liability partnership”*” (“*"*partneriaeth atebolrwydd cyfyngedig**”") means a limited liability partnership formed under the Limited Liability Partnerships Act 2000 (c. 12);
- “*"the relevant time”*” (“*"*yr adeg berthnasol**”") means—where the transferor acquired the chargeable interest after the incorporation of the limited liability partnership, immediately after the transferor acquired it, andin any other case, immediately before the limited liability partnership's incorporation.
- (2) In paragraph 4(b), “*"arrangements”*” includes any scheme, agreement or understanding, whether or not legally enforceable.
## SCHEDULE 13
@@ -6644,7 +6631,7 @@
- (1) This Schedule applies to a relevant transaction.
- (2) A “relevant transaction” is a chargeable transaction that is—
- (2) A ““relevant transaction”” is a chargeable transaction that is—
- (a) within sub-paragraph (3) or (4), and
@@ -6696,27 +6683,27 @@
##### 4
- (1) “The consideration attributable to dwellings” is—
- (1) ““The consideration attributable to dwellings”” is—
- (a) for a single dwelling transaction, so much of the chargeable consideration for the transaction as is attributable to the dwelling;
- (b) for a multiple dwelling transaction, so much of the chargeable consideration for the transaction as is attributable to the dwellings in total.
- (2) “The remaining consideration” is the chargeable consideration for the transaction less the consideration attributable to dwellings.
- (3) A relevant transaction is a “single dwelling transaction” if its main subject-matter consists of—
- (2) ““The remaining consideration”” is the chargeable consideration for the transaction less the consideration attributable to dwellings.
- (3) A relevant transaction is a ““single dwelling transaction”” if its main subject-matter consists of—
- (a) an interest in a dwelling, or
- (b) an interest in a dwelling and other property.
- (4) A relevant transaction is a “multiple dwelling transaction” if its main subject-matter consists of—
- (4) A relevant transaction is a ““multiple dwelling transaction”” if its main subject-matter consists of—
- (a) an interest in at least two dwellings, or
- (b) an interest in at least two dwellings and other property.
- (5) “Attributable” means attributable on a just and reasonable apportionment.
- (5) “*"Attributable”*” means attributable on a just and reasonable apportionment.
#### The amount of tax chargeable
@@ -6734,17 +6721,17 @@
##### 6
- (1) For the purposes of paragraph 5(1)(a), “the tax related to the consideration attributable to dwellings” is determined as follows—
- *Step 1* Determine the amount of tax that would be chargeable under section 27 on the assumption that— the chargeable transaction is a residential property transaction, and the chargeable consideration were the fraction produced by dividing total dwellings consideration by total dwellings.
- (1) For the purposes of paragraph 5(1)(a), ““the tax related to the consideration attributable to dwellings”” is determined as follows—
- *Step 1* Determine the amount of tax that would be chargeable under section 27 on the assumption that—the chargeable transaction is a residential property transaction, andthe chargeable consideration were the fraction produced by dividing total dwellings consideration by total dwellings.
- *Step 2* Multiply the amount determined at Step 1 by total dwellings.
- *Step 3* If the relevant transaction is one of a number of linked transactions, go to Step 4. Otherwise, the amount found at Step 2 is the tax related to the consideration attributable to dwellings.
- *Step 4* Multiply the amount found at Step 2 by— $CDTDC$ Figure 12 where— “CD” is the consideration attributable to dwellings for the relevant transaction, and “TDC” is total dwellings consideration.
- (2) But if the amount found at Step 2 of sub-paragraph (1) is less than 1% of total dwellings consideration, for the purposes of paragraph 5(1)(a) “the tax related to the consideration attributable to dwellings” is an amount equal to 1% of the consideration attributable to dwellings.
- *Step 4* Multiply the amount found at Step 2 by—$CD TDC$Figure 12 where—““CD”” is the consideration attributable to dwellings for the relevant transaction, and““TDC”” is total dwellings consideration.
- (2) But if the amount found at Step 2 of sub-paragraph (1) is less than 1% of total dwellings consideration, for the purposes of paragraph 5(1)(a) ““the tax related to the consideration attributable to dwellings”” is an amount equal to 1% of the consideration attributable to dwellings.
- (3) ”Total dwellings consideration” means—
@@ -6756,7 +6743,7 @@
- (ii) so much of the chargeable consideration for any of the linked transactions (whether or not relevant transactions) as is not included in the calculation under paragraph (i) but is attributable to the same dwellings by reference to which that calculation is made.
- (4) “Total dwellings” means the total number of dwellings by reference to which total dwellings consideration is calculated.
- (4) “*"Total dwellings”*” means the total number of dwellings by reference to which total dwellings consideration is calculated.
- (5) In the application of sub-paragraph (1), no account is to be taken of—
@@ -6772,13 +6759,13 @@
##### 7
- (1) For the purposes of paragraph 5(1)(b), “the tax related to the remaining consideration” is the appropriate fraction of the amount of tax which (but for this Schedule) would be due in respect of the relevant transaction.
- (2) In sub-paragraph (1), “the appropriate fraction” means—
$$RCTDC+TRC$ Figure 13 where— “RC” is the remaining consideration for the relevant transaction, “TDC” is total dwellings consideration, and “TRC” is total remaining consideration.$
- (3) The “total remaining consideration” is—
- (1) For the purposes of paragraph 5(1)(b), ““the tax related to the remaining consideration”” is the appropriate fraction of the amount of tax which (but for this Schedule) would be due in respect of the relevant transaction.
- (2) In sub-paragraph (1), “*"the appropriate fraction”*” means—
$$RC TDC + TRC$Figure 13 where—““RC”” is the remaining consideration for the relevant transaction,““TDC”” is total dwellings consideration, and““TRC”” is total remaining consideration.$
- (3) The ““total remaining consideration”” is—
- (a) for a transaction that is not one of a number of linked transactions, the remaining consideration for that transaction;
@@ -6802,11 +6789,11 @@
- (2) In sub-paragraph (1)—
- “contract” (“*contract*”) includes any agreement;
- “relevant deeming provision”(“*darpariaeth dybio berthnasol*”) means any of— section 10 (contract and transfer), section 11 (contract providing transfer to third party), paragraph 8(1) to (5) of Schedule 2 (assignment of rights: transferor treated as making a separate acquisition), or paragraph 20 of Schedule 6 (agreement for lease);
- “substantially performed” (“*cyflawni’n sylweddol*”) has the meaning given by section 14.
- “*"contract”*” (“*"*contract**”") includes any agreement;
- ““relevant deeming provision””(““*darpariaeth dybio berthnasol*””) means any of—section 10 (contract and transfer),section 11 (contract providing transfer to third party),paragraph 8(1) to (5) of Schedule 2 (assignment of rights: transferor treated as making a separate acquisition), orparagraph 20 of Schedule 6 (agreement for lease);
- “*"substantially performed”*” (“*"*cyflawni'n sylweddol**”") has the meaning given by section 14.
- (3) Subsections (4) to (7) of section 72 (meaning of residential property) apply for the purposes of this paragraph as they apply for the purposes of subsection (1)(a) of that section.
@@ -6848,7 +6835,7 @@
##### 2
- (1) Where a housebuilder acquires a dwelling (“the old dwelling”) from an individual (whether alone or with other individuals), the acquisition is relieved from tax if the following conditions are met (but see sub-paragraph (3) for provision about partial relief).
- (1) Where a housebuilder acquires a dwelling (“*"the old dwelling”*”) from an individual (whether alone or with other individuals), the acquisition is relieved from tax if the following conditions are met (but see sub-paragraph (3) for provision about partial relief).
- (2) The conditions are—
@@ -6856,9 +6843,9 @@
- (b) that the individual—
- (i) occupied the old dwelling as the individual’s only or main residence at some time in the period of 2 years ending with the date of its acquisition by the housebuilder, and
- (ii) intends to occupy the new dwelling as the individual’s only or main residence,
- (i) occupied the old dwelling as the individual's only or main residence at some time in the period of 2 years ending with the date of its acquisition by the housebuilder, and
- (ii) intends to occupy the new dwelling as the individual's only or main residence,
- (c) that each acquisition is entered into in consideration of the other, and
@@ -6878,7 +6865,7 @@
##### 3
- (1) Where a property trader acquires a dwelling (“the old dwelling”) from an individual (whether alone or with other individuals), the acquisition is relieved from tax if the following conditions are met (but see sub-paragraph (4) for provision about partial relief).
- (1) Where a property trader acquires a dwelling (“*"the old dwelling”*”) from an individual (whether alone or with other individuals), the acquisition is relieved from tax if the following conditions are met (but see sub-paragraph (4) for provision about partial relief).
- (2) The conditions are—
@@ -6888,9 +6875,9 @@
- (c) that the individual—
- (i) occupied the old dwelling as the individual’s only or main residence at some time in the period of 2 years ending with the date of its acquisition by the property trader, and
- (ii) intends to occupy the new dwelling as the individual’s only or main residence,
- (i) occupied the old dwelling as the individual's only or main residence at some time in the period of 2 years ending with the date of its acquisition by the property trader, and
- (ii) intends to occupy the new dwelling as the individual's only or main residence,
- (d) that the property trader does not intend—
@@ -6918,23 +6905,23 @@
##### 4
- (1) Where a property trader acquires a dwelling (“the old dwelling”) from an individual (whether alone or with other individuals), the acquisition is relieved from tax if the following conditions are met (but see sub-paragraph (4) for provision about partial relief).
- (1) Where a property trader acquires a dwelling (“*"the old dwelling”*”) from an individual (whether alone or with other individuals), the acquisition is relieved from tax if the following conditions are met (but see sub-paragraph (4) for provision about partial relief).
- (2) The conditions are—
- (a) that the individual has made arrangements to sell the old dwelling and acquire another dwelling (“the second dwelling”),
- (a) that the individual has made arrangements to sell the old dwelling and acquire another dwelling (““the second dwelling””),
- (b) that the arrangements to sell the old dwelling fail,
- (c) that the acquisition of the old dwelling is made for the purpose of enabling the individual’s acquisition of the second dwelling to proceed,
- (c) that the acquisition of the old dwelling is made for the purpose of enabling the individual's acquisition of the second dwelling to proceed,
- (d) that the acquisition is made in the course of a business that consists of or includes acquiring dwellings from individuals in those circumstances,
- (e) that the individual—
- (i) occupied the old dwelling as the individual’s only or main residence at some time in the period of 2 years ending with the date of its acquisition by the property trader, and
- (ii) intends to occupy the second dwelling as the individual’s only or main residence,
- (i) occupied the old dwelling as the individual's only or main residence at some time in the period of 2 years ending with the date of its acquisition by the property trader, and
- (ii) intends to occupy the second dwelling as the individual's only or main residence,
- (f) that the property trader does not intend—
@@ -6968,7 +6955,7 @@
- (a) that the acquisition is made in the course of a business that consists of or includes acquiring dwellings from personal representatives of deceased individuals,
- (b) that the deceased individual occupied the dwelling as the individual’s only or main residence at some time in the period of 2 years ending with the date of the individual’s death,
- (b) that the deceased individual occupied the dwelling as the individual's only or main residence at some time in the period of 2 years ending with the date of the individual's death,
- (c) that the property trader does not intend—
@@ -6998,7 +6985,7 @@
- (a) that the acquisition is made in the course of a business that consists of or includes acquiring dwellings from individuals in connection with a change of residence resulting from relocation of employment,
- (b) that the individual occupied the dwelling as the individual’s only or main residence at some time in the period of 2 years ending with the date of the acquisition by the property trader,
- (b) that the individual occupied the dwelling as the individual's only or main residence at some time in the period of 2 years ending with the date of the acquisition by the property trader,
- (c) that the acquisition is made in connection with a change of residence by the individual resulting from relocation of employment,
@@ -7028,11 +7015,11 @@
##### 7
- (1) Where an individual’s employer acquires a dwelling from the individual (whether alone or with other individuals), the acquisition is relieved from tax if the following conditions are met (but see sub-paragraph (3) for provision about partial relief).
- (1) Where an individual's employer acquires a dwelling from the individual (whether alone or with other individuals), the acquisition is relieved from tax if the following conditions are met (but see sub-paragraph (3) for provision about partial relief).
- (2) The conditions are—
- (a) that the individual occupied the dwelling as the individual’s only or main residence at some time in the period of 2 years ending with the date of the acquisition by the employer,
- (a) that the individual occupied the dwelling as the individual's only or main residence at some time in the period of 2 years ending with the date of the acquisition by the employer,
- (b) that the acquisition is made in connection with a change of residence by the individual resulting from relocation of employment,
@@ -7048,7 +7035,7 @@
- (b) references to the market value of the dwelling and of the permitted area are, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area, and
- (c) references to an individual’s employer include a prospective employer.
- (c) references to an individual's employer include a prospective employer.
#### Withdrawal of reliefs available to property traders
@@ -7090,7 +7077,7 @@
- (1) For the purposes of this Part of this Schedule—
- (a) “housebuilder” means—
- (a) “*"housebuilder”*” means—
- (i) a company,
@@ -7100,15 +7087,15 @@
that carries on the business of constructing or adapting buildings or parts of buildings for use as dwellings and references in this Schedule to a housebuilder includes any company or limited liability partnership connected with it;
- (b) “new dwelling” means a building or part of a building that—
- (b) “*"new dwelling”*” means a building or part of a building that—
- (i) has been constructed for use as a single dwelling and has not previously been occupied, or
- (ii) has been adapted for use as a single dwelling and has not been occupied since its adaptation;
- (c) “new place of employment” means the place where an individual normally performs, or is normally to perform, duties of employment after a relocation of employment;
- (d) “permitted amount”, in relation to the refurbishment of a dwelling, means—
- (c) “*"new place of employment”*” means the place where an individual normally performs, or is normally to perform, duties of employment after a relocation of employment;
- (d) “*"permitted amount”*”, in relation to the refurbishment of a dwelling, means—
- (i) £10,000, or
@@ -7116,7 +7103,7 @@
whichever is the greater, but subject to a maximum of £20,000;
- (e) “permitted area”, in relation to a dwelling, means that part of the dwelling which is land occupied and enjoyed with the building or part of the building occupied as a dwelling as its garden or grounds that does not exceed—
- (e) “*"permitted area”*”, in relation to a dwelling, means that part of the dwelling which is land occupied and enjoyed with the building or part of the building occupied as a dwelling as its garden or grounds that does not exceed—
- (i) an area (inclusive of the site of the building or part of the building) of 0.5 of a hectare, or
@@ -7124,7 +7111,7 @@
but where paragraph (ii) applies, the permitted area is taken to consist of that part of the land that would be the most suitable for occupation and enjoyment with the building or part of the building as its garden or grounds if the rest of the land were separately occupied;
- (f) “principal”, in relation to a property trader, means—
- (f) “*"principal”*”, in relation to a property trader, means—
- (i) in the case of a company, a director;
@@ -7132,7 +7119,7 @@
- (iii) in the case of a partnership whose members are all either companies or limited liability partnerships, a member or a person who is a principal of a member;
- (g) “property trader” means—
- (g) “*"property trader”*” means—
- (i) a company,
@@ -7142,25 +7129,25 @@
that carries on the business of buying and selling dwellings;
- (h) “refurbishment” of a dwelling means the carrying out of works that enhance or are intended to enhance the value of the dwelling, but does not include—
- (h) ““refurbishment”” of a dwelling means the carrying out of works that enhance or are intended to enhance the value of the dwelling, but does not include—
- (i) cleaning the dwelling, or
- (ii) works required solely for the purpose of ensuring that the dwelling meets minimum safety standards;
- (i) “relocation of employment” means a change of an individual’s place of employment due to—
- (i) “*"relocation of employment”*” means a change of an individual's place of employment due to—
- (i) the individual becoming employed by a new employer,
- (ii) an alteration of the duties of the individual’s employment, or
- (ii) an alteration of the duties of the individual's employment, or
- (iii) an alteration of the place where the individual normally performs those duties.
- (2) For the purposes of paragraphs 6 and 7, a change of residence is one “resulting from” relocation of employment if—
- (a) the change is made wholly or mainly to allow the individual to live within a reasonable daily travelling distance of the individual’s new place of employment, and
- (b) the individual’s former residence is not within a reasonable daily travelling distance of that place.
- (2) For the purposes of paragraphs 6 and 7, a change of residence is one ““resulting from”” relocation of employment if—
- (a) the change is made wholly or mainly to allow the individual to live within a reasonable daily travelling distance of the individual's new place of employment, and
- (b) the individual's former residence is not within a reasonable daily travelling distance of that place.
- (3) For the purposes of Part 2—
@@ -7176,9 +7163,9 @@
- (1) This paragraph 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 (c. 31)](https://www.legislation.gov.uk/ukpga/1987/31) (right of first refusal), or
- (b) a right under Chapter 1 of Part 1 of the [Leasehold Reform, Housing and Urban Development Act 1993 (c. 28)](https://www.legislation.gov.uk/ukpga/1993/28) (right to collective enfranchisement).
- (a) a right under Part 1 of the Landlord and Tenant Act 1987 (c. 31) (right of first refusal), or
- (b) a right under Chapter 1 of Part 1 of the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) (right to collective enfranchisement).
- (2) The amount of tax chargeable is determined as follows.
@@ -7190,9 +7177,9 @@
- (3) In this paragraph—
- (a) “flat” and “qualifying tenant” have the same meaning as in the Chapter or the Part of the Act conferring the right being exercised;
- (b) “qualifying flat” means a flat that is held by a qualifying tenant who is participating in the exercise of the right.
- (a) “*"flat”*” and “*"qualifying tenant”*” have the same meaning as in the Chapter or the Part of the Act conferring the right being exercised;
- (b) “*"qualifying flat”*” means a flat that is held by a qualifying tenant who is participating in the exercise of the right.
## SCHEDULE 15
@@ -7228,7 +7215,7 @@
- (b) any consideration that would be payable only if a contingency were to occur, or that is payable only because a contingency has occurred, does not count as chargeable consideration.
- (2) A “right to buy transaction” means—
- (2) A “*"right to buy transaction”*” means—
- (a) the sale of a dwelling at a discount, or the grant of a lease of a dwelling at a discount, by a relevant public sector body, or
@@ -7240,31 +7227,31 @@
- (b) the Welsh Ministers;
- (c) a local housing authority within the meaning given by section 1 of the [Housing Act 1985 (c. 68)](https://www.legislation.gov.uk/ukpga/1985/68);
- (c) a local housing authority within the meaning given by section 1 of the Housing Act 1985 (c. 68);
- (d) a registered social landlord;
- (e) a housing action trust established under Part 3 of the [Housing Act 1988 (c. 50)](https://www.legislation.gov.uk/ukpga/1988/50);
- (f) a local policing body within the meaning of section 101(1) of the [Police Act 1996 (c. 16)](https://www.legislation.gov.uk/ukpga/1996/16);
- (e) a housing action trust established under Part 3 of the Housing Act 1988 (c. 50);
- (f) a local policing body within the meaning of section 101(1) of the Police Act 1996 (c. 16);
- (g) a person specified for the purposes of this paragraph by the Welsh Ministers by regulations.
- (4) For the purposes of sub-paragraph (2)(b), the sale of a dwelling, or the grant of a lease of a dwelling, is made in pursuance of the preserved right to buy if—
- (a) the seller is a person against whom the right to buy under Part 5 of the [Housing Act 1985 (c. 68)](https://www.legislation.gov.uk/ukpga/1985/68) is exercisable by virtue of section 171A of that Act,
- (a) the seller is a person against whom the right to buy under Part 5 of the Housing Act 1985 (c. 68) is exercisable by virtue of section 171A of that Act,
- (b) the buyer is the qualifying person for the purposes of the preserved right to buy, and
- (c) the dwelling is the qualifying dwelling-house in relation to the buyer.
- (5) A grant by the Welsh Ministers under section 20 or 21 of the [Housing Act 1996 (c. 52)](https://www.legislation.gov.uk/ukpga/1996/52) (purchase grants in respect of disposals at a discount by registered social landlords) does not count as part of the chargeable consideration for a right to buy transaction in relation to which the seller is a registered social landlord or private registered provider of social housing.
- (5) A grant by the Welsh Ministers under section 20 or 21 of the Housing Act 1996 (c. 52) (purchase grants in respect of disposals at a discount by registered social landlords) does not count as part of the chargeable consideration for a right to buy transaction in relation to which the seller is a registered social landlord or private registered provider of social housing.
- (6) In this paragraph—
- “qualifying dwelling-house” (“*tŷ annedd” cymwys*”) and “qualifying person” (“*person cymwys*”) have the meaning given by section 171B of the [Housing Act 1985 (c. 68)](https://www.legislation.gov.uk/ukpga/1985/68);
- “registered social landlord” (“*landlord cymdeithasol cofrestredig*”) means a body registered as a social landlord in a register maintained under section 1(1) of the [Housing Act 1996 (c. 52)](https://www.legislation.gov.uk/ukpga/1996/52).
- “*"qualifying dwelling-house”*” (“*"*tŷ annedd” cymwys**”") and “*"qualifying person”*” (“*"*person cymwys**”") have the meaning given by section 171B of the Housing Act 1985 (c. 68);
- “*"registered social landlord”*” (“*"*landlord cymdeithasol cofrestredig**”") means a body registered as a social landlord in a register maintained under section 1(1) of the Housing Act 1996 (c. 52).
## PART 3 — SHARED OWNERSHIP LEASES
@@ -7374,7 +7361,7 @@
- (4) Where an election is made under this paragraph the chargeable consideration for the grant other than rent is taken to be the amount stated in the lease in accordance with sub-paragraph (2)(e)(i) or (ii).
- (5) In this paragraph, the “minimum rent” means the lowest rent which could become payable under the lease if it were varied as mentioned in sub-paragraph (2)(c) at the date when the lease is granted.
- (5) In this paragraph, the “*"minimum rent”*” means the lowest rent which could become payable under the lease if it were varied as mentioned in sub-paragraph (2)(c) at the date when the lease is granted.
#### Shared ownership lease: staircasing transactions
@@ -7384,7 +7371,7 @@
- (a) the tenant has the right, on the payment of a sum, to require the terms of the lease to be varied so that the rent payable under it is reduced, and
- (b) by exercising that right the tenant acquires an interest, additional to one already held, calculated by reference to the market value of the dwelling and expressed as a percentage of that dwelling or its value (a “share of the dwelling”).
- (b) by exercising that right the tenant acquires an interest, additional to one already held, calculated by reference to the market value of the dwelling and expressed as a percentage of that dwelling or its value (a ““share of the dwelling””).
- (2) Where this paragraph applies, the acquisition is relieved from tax if—
@@ -7410,9 +7397,9 @@
- (1) The chargeable consideration for transactions forming part of a rent to shared ownership lease scheme is determined in accordance with this paragraph.
- (2) A “rent to shared ownership lease scheme” means a scheme or arrangement under which a qualifying body—
- (a) grants an occupation contract of a dwelling to a person (“the tenant”) or persons (“the tenants”), and
- (2) A “*"rent to shared ownership lease scheme”*” means a scheme or arrangement under which a qualifying body—
- (a) grants an occupation contract of a dwelling to a person (““the tenant””) or persons (““the tenants””), and
- (b) subsequently grants a shared ownership lease of the dwelling or another dwelling to the tenant or one or more of the tenants.
@@ -7426,13 +7413,13 @@
- (4) For the purposes of determining the effective date of the grant of the shared ownership lease, the possession of the dwelling by the tenant or tenants under the occupation contract is to be disregarded.
- (5) In this paragraph, “occupation contract” has the meaning given by Part 2 of the [Renting Homes (Wales) Act 2016 (anaw 1)](https://www.legislation.gov.uk/anaw/2016/1).
- (5) In this paragraph, “*"occupation contract”*” has the meaning given by Part 2 of the Renting Homes (Wales) Act 2016 (anaw 1).
#### Shared ownership leases: interpretation
##### 9
- (1) For the purposes of paragraphs 6, 7 and 8, a “shared ownership lease” means a lease granted—
- (1) For the purposes of paragraphs 6, 7 and 8, a “*"shared ownership lease”*” means a lease granted—
- (a) by a qualifying body, or
@@ -7442,23 +7429,23 @@
- (2) Sub-paragraphs (3) and (4) apply to paragraphs 3 to 8.
- (3) A “qualifying body” means—
- (a) a local housing authority within the meaning given by section 1 of the [Housing Act 1985 (c. 68)](https://www.legislation.gov.uk/ukpga/1985/68);
- (b) a housing association within the meaning given by the [Housing Associations Act 1985 (c. 69)](https://www.legislation.gov.uk/ukpga/1985/69);
- (c) a housing action trust established under Part 3 of the [Housing Act 1988 (c. 50)](https://www.legislation.gov.uk/ukpga/1988/50).
- (3) A “*"qualifying body”*” means—
- (a) a local housing authority within the meaning given by section 1 of the Housing Act 1985 (c. 68);
- (b) a housing association within the meaning given by the Housing Associations Act 1985 (c. 69);
- (c) a housing action trust established under Part 3 of the Housing Act 1988 (c. 50).
- (4) A lease is granted in pursuance of the preserved right to buy if—
- (a) the seller is a person against whom the right to buy under Part 5 of the [Housing Act 1985 (c. 68)](https://www.legislation.gov.uk/ukpga/1985/68) is exercisable by virtue of section 171A of that Act (preservation of right to buy on disposal to private sector landlord),
- (a) the seller is a person against whom the right to buy under Part 5 of the Housing Act 1985 (c. 68) is exercisable by virtue of section 171A of that Act (preservation of right to buy on disposal to private sector landlord),
- (b) the tenant is the qualifying person for the purposes of the preserved right to buy, and
- (c) the lease is of a dwelling that is the qualifying dwelling-house in relation to the buyer.
- (5) In sub-paragraph (4), “qualifying person” (“*person cymwys*”) and “qualifying dwelling-house” (“*tŷ annedd cymwys*”) have the meaning given by section 171B of the [Housing Act 1985 (c. 68)](https://www.legislation.gov.uk/ukpga/1985/68).
- (5) In sub-paragraph (4), “*"qualifying person”*” (“*"*person cymwys**”") and “*"qualifying dwelling-house”*” (“*"*tŷ annedd cymwys**”") have the meaning given by section 171B of the Housing Act 1985 (c. 68).
## PART 4 — SHARED OWNERSHIP TRUSTS
@@ -7468,7 +7455,7 @@
- (1) This paragraph applies to paragraphs 11 to 17.
- (2) A “shared ownership trust” means a trust of land within the meaning of section 1 of the [Trusts of Land and Appointment of Trustees Act 1996 (c. 47)](https://www.legislation.gov.uk/ukpga/1996/47) which satisfies the following conditions.
- (2) A “*"shared ownership trust”*” means a trust of land within the meaning of section 1 of the Trusts of Land and Appointment of Trustees Act 1996 (c. 47) which satisfies the following conditions.
- (3) Condition 1 is that the trust property is—
@@ -7476,35 +7463,35 @@
- (b) in Wales.
- (4) Condition 2 is that one of the beneficiaries (“the social landlord”) is a qualifying body.
- (4) Condition 2 is that one of the beneficiaries (““the social landlord””) is a qualifying body.
- (5) Condition 3 is that the terms of the trust—
- (a) provide for one or more of the individual beneficiaries (“the buyer”) to have exclusive use of the trust property as the only or main residence of the buyer,
- (b) require the buyer to make an initial payment to the social landlord (“the initial capital”),
- (c) require the buyer to make additional payments to the social landlord by way of compensation under section 13(6)(a) of the Trusts of Land and Appointment of Trustees Act 1996 (“the rent-equivalent payments”),
- (d) enable the buyer to make other additional payments to the social landlord (“equity-acquisition payments”),
- (a) provide for one or more of the individual beneficiaries (““the buyer””) to have exclusive use of the trust property as the only or main residence of the buyer,
- (b) require the buyer to make an initial payment to the social landlord (““the initial capital””),
- (c) require the buyer to make additional payments to the social landlord by way of compensation under section 13(6)(a) of the Trusts of Land and Appointment of Trustees Act 1996 (““the rent-equivalent payments””),
- (d) enable the buyer to make other additional payments to the social landlord (““equity-acquisition payments””),
- (e) determine the initial beneficial interests of the social landlord and of the buyer by reference to which the initial capital was calculated,
- (f) specify a sum, equating or relating to the market value of the dwelling, by reference to which the initial capital was calculated, and
- (g) provide for the buyer’s beneficial interest in the trust property to increase, and the social landlord’s to diminish or to be extinguished as equity-acquisition payments are made.
- (g) provide for the buyer's beneficial interest in the trust property to increase, and the social landlord's to diminish or to be extinguished as equity-acquisition payments are made.
- (6) Section 70 (meaning of market value) does not apply to this paragraph.
- (7) In Condition 1, “dwelling” includes land which is to be used for the construction of a dwelling.
- (8) In Condition 2, “qualifying body” means—
- (a) a local housing authority within the meaning given by section 1 of the [Housing Act 1985 (c. 68)](https://www.legislation.gov.uk/ukpga/1985/68);
- (b) a housing association within the meaning given by the [Housing Associations Act 1985 (c. 69)](https://www.legislation.gov.uk/ukpga/1985/69);
- (c) a housing action trust established under Part 3 of the [Housing Act 1988 (c. 50)](https://www.legislation.gov.uk/ukpga/1988/50).
- (7) In Condition 1, “*"dwelling”*” includes land which is to be used for the construction of a dwelling.
- (8) In Condition 2, “*"qualifying body”*” means—
- (a) a local housing authority within the meaning given by section 1 of the Housing Act 1985 (c. 68);
- (b) a housing association within the meaning given by the Housing Associations Act 1985 (c. 69);
- (c) a housing action trust established under Part 3 of the Housing Act 1988 (c. 50).
#### Shared ownership trust: the buyer
@@ -7548,13 +7535,13 @@
##### 14
- (1) An equity-acquisition payment under a shared ownership trust, and the consequent increase in the buyer’s beneficial interest is to be relieved from tax if—
- (1) An equity-acquisition payment under a shared ownership trust, and the consequent increase in the buyer's beneficial interest is to be relieved from tax if—
- (a) an election has been made for relief under paragraph 12, and
- (b) any tax chargeable in respect of the declaration of the trust has been paid.
- (2) An equity-acquisition payment under a shared ownership trust, and the consequent increase in the buyer’s beneficial interest is also to be relieved from tax if following the increase the buyer’s beneficial interest does not exceed 80% of the the total beneficial interest in the trust property.
- (2) An equity-acquisition payment under a shared ownership trust, and the consequent increase in the buyer's beneficial interest is also to be relieved from tax if following the increase the buyer's beneficial interest does not exceed 80% of the the total beneficial interest in the trust property.
#### Shared ownership trust: treatment of additional payments where no election made
@@ -7572,7 +7559,7 @@
For the purposes of determining the amount of tax chargeable on the declaration of a shared ownership trust, the declaration is to be treated as if it were not linked to—
- (a) any equity-acquisition payment under the trust or any consequent increase in the buyer’s beneficial interest in the trust property, or
- (a) any equity-acquisition payment under the trust or any consequent increase in the buyer's beneficial interest in the trust property, or
- (b) a transfer to the buyer of an interest in the trust property on the termination of the trust.
@@ -7582,9 +7569,9 @@
- (1) The chargeable consideration for transactions forming part of a rent to shared ownership trust scheme is determined in accordance with this paragraph.
- (2) A “rent to shared ownership trust scheme” means a scheme or arrangement under which —
- (a) a qualifying body grants an occupation contract of a dwelling to a person (“the tenant”) or persons (“the tenants”), and
- (2) A “*"rent to shared ownership trust scheme”*” means a scheme or arrangement under which —
- (a) a qualifying body grants an occupation contract of a dwelling to a person (““the tenant””) or persons (““the tenants””), and
- (b) the tenant, or one or more of the tenants, subsequently becomes the buyer under a shared ownership trust of the dwelling, or another dwelling, under which the qualifying body is the social landlord.
@@ -7596,7 +7583,7 @@
- (c) any other land transaction between the qualifying body and the tenant, or any of the tenants, entered into as part of the scheme.
- (4) In this paragraph “occupation contract” has the meaning given by Part 2 of the [Renting Homes (Wales) Act 2016 (anaw 1)](https://www.legislation.gov.uk/anaw/2016/1).
- (4) In this paragraph “*"occupation contract”*” has the meaning given by Part 2 of the Renting Homes (Wales) Act 2016 (anaw 1).
## PART 5 — RENT TO MORTGAGE
@@ -7612,9 +7599,9 @@
- (b) grant of a lease of a dwelling to a person,
pursuant to the exercise by that person of the right to acquire on rent to mortgage terms under Part 5 of the [Housing Act 1985 (c. 68)](https://www.legislation.gov.uk/ukpga/1985/68).
- (3) The chargeable consideration for a rent to mortgage transaction is equal to the price that would be payable by virtue of section 126 of the [Housing Act 1985 (c. 68)](https://www.legislation.gov.uk/ukpga/1985/68), for—
pursuant to the exercise by that person of the right to acquire on rent to mortgage terms under Part 5 of the Housing Act 1985 (c. 68).
- (3) The chargeable consideration for a rent to mortgage transaction is equal to the price that would be payable by virtue of section 126 of the Housing Act 1985 (c. 68), for—
- (a) a transfer of the dwelling to the person where the rent to mortgage transaction is a transfer, or
@@ -7636,15 +7623,15 @@
- (c) the transaction is funded with the assistance of a public subsidy.
- (2) The reference in sub-paragraph (1)(a) to a registered social landlord “controlled by its tenants” is to a registered social landlord the majority of whose board members are tenants occupying properties owned or managed by it.
- (2) The reference in sub-paragraph (1)(a) to a registered social landlord ““controlled by its tenants”” is to a registered social landlord the majority of whose board members are tenants occupying properties owned or managed by it.
- (3) In this paragraph—
- “board member” (“*aelod o’r bwrdd*”), in relation to a registered social landlord, means— if it is a company, a director of the company, if it is a body corporate whose affairs are managed by its members, a member, if it is body of trustees, a trustee, or 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 registered social landlord;
- “public subsidy” (“*cymhorthdal cyhoeddus*”) means any grant or other financial assistance— made or given by way of a distribution pursuant to section 25 of the [National Lottery etc. Act 1993 (c. 39)](https://www.legislation.gov.uk/ukpga/1993/39) (application of money by distributing bodies), made by the Welsh Ministers under section 18 of the [Housing Act 1996 (c. 52)](https://www.legislation.gov.uk/ukpga/1996/52) (social housing grants), or under section 126 of the [Housing Grants, Construction and Regeneration Act 1996 (c. 53)](https://www.legislation.gov.uk/ukpga/1996/53) (financial assistance for regeneration and development);
- “qualifying body” (“*corff cymwys*”) means any of the following— a registered social landlord; a housing action trust established under Part 3 of the [Housing Act 1988 (c. 50)](https://www.legislation.gov.uk/ukpga/1988/50); a county or county borough council constituted under section 21 of the [Local Government Act 1972 (c. 70)](https://www.legislation.gov.uk/ukpga/1972/70); a county or district council constituted under section 2 of that Act; the Welsh Ministers.
- “*"board member”*” (“*"*aelod o'r bwrdd**”"), in relation to a registered social landlord, means—if it is a company, a director of the company,if it is a body corporate whose affairs are managed by its members, a member,if it is body of trustees, a trustee, orif 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 registered social landlord;
- “*"public subsidy”*” (“*"*cymhorthdal cyhoeddus**”") means any grant or other financial assistance—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),made by the Welsh Ministers under section 18 of the Housing Act 1996 (c. 52) (social housing grants), orunder section 126 of the Housing Grants, Construction and Regeneration Act 1996 (c. 53) (financial assistance for regeneration and development);
- “*"qualifying body”*” (“*"*corff cymwys**”") means any of the following—a registered social landlord;a housing action trust established under Part 3 of the Housing Act 1988 (c. 50);a county or county borough council constituted under section 21 of the Local Government Act 1972 (c. 70);a county or district council constituted under section 2 of that Act;the Welsh Ministers.
## SCHEDULE 16
@@ -7674,7 +7661,7 @@
- (1) A land transaction is relieved from tax if the seller and the buyer are companies that are members of the same group at the effective date of the transaction.
- (2) Relief under this paragraph is referred to in this Schedule as “group relief”.
- (2) Relief under this paragraph is referred to in this Schedule as “*"group relief”*”.
- (3) This paragraph is subject to paragraph 4 (restrictions on availability of group relief) and paragraphs 8 and 12 (withdrawal of group relief).
@@ -7684,11 +7671,11 @@
- (1) The following provisions apply for the purposes of group relief.
- (2) “Company” means a body corporate.
- (2) “*"Company”*” means a body corporate.
- (3) Companies are members of the same group if one is the 75% subsidiary of the other or both are 75% subsidiaries of a third company.
- (4) A company (“company A”) is the 75% subsidiary of another company (“company B”) if company B—
- (4) A company (““company A””) is the 75% subsidiary of another company (““company B””) if company B—
- (a) is beneficial owner of not less than 75% of the ordinary share capital of company A,
@@ -7700,11 +7687,11 @@
- (a) the ownership referred to is ownership either directly or through another company or companies, and
- (b) the amount of ordinary share capital of company A owned by company B through another company or companies is to be determined in accordance with sections 1155 to 1157 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4).
- (6) In sub-paragraphs (4)(a) and (5)(b), “ordinary share capital”, in relation to a company, means all the issued share capital (by whatever name called) of the company, other than capital the holders of which have a right to a dividend at a fixed rate but have no other right to share in the profits of the company.
- (7) Chapter 6 of Part 5 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4) (group relief: equity holders and profits or assets available for distribution) applies for the purposes of sub-paragraph (4)(b) and (c) as it applies for the purposes of section 151(4)(a) and (b) of that Act.
- (b) the amount of ordinary share capital of company A owned by company B through another company or companies is to be determined in accordance with sections 1155 to 1157 of the Corporation Tax Act 2010 (c. 4).
- (6) In sub-paragraphs (4)(a) and (5)(b), “*"ordinary share capital”*”, in relation to a company, means all the issued share capital (by whatever name called) of the company, other than capital the holders of which have a right to a dividend at a fixed rate but have no other right to share in the profits of the company.
- (7) Chapter 6 of Part 5 of the Corporation Tax Act 2010 (c. 4) (group relief: equity holders and profits or assets available for distribution) applies for the purposes of sub-paragraph (4)(b) and (c) as it applies for the purposes of section 151(4)(a) and (b) of that Act.
- (8) But sections 171(1)(b) and (3), 173, 174 and 176 to 178 of that Act are to be treated as omitted for the purposes of sub-paragraph (4)(b) and (c).
@@ -7720,9 +7707,9 @@
- (b) any persons together have or could obtain, at that time or some time later, control of the buyer but not of the seller.
- (2) Sub-paragraph (1) does not apply to arrangements entered into with a view to an acquisition of shares by a company (“the acquiring company”)—
- (a) in relation to which section 75 of the [Finance Act 1986 (c. 41)](https://www.legislation.gov.uk/ukpga/1968/41) (stamp duty: acquisition relief) will apply,
- (2) Sub-paragraph (1) does not apply to arrangements entered into with a view to an acquisition of shares by a company (“*"the acquiring company”*”)—
- (a) in relation to which section 75 of the Finance Act 1986 (c. 41) (stamp duty: acquisition relief) will apply,
- (b) in relation to which the conditions for relief under that section will be met, and
@@ -7740,13 +7727,13 @@
- (b) the transaction or transactions, or any of them, involve a payment or other disposition by a person other than a group company.
- (5) In sub-paragraphs (3)(a) and (b), a “group company” means a company that at the effective date of the transaction is a member of the same group as the seller or the buyer.
- (5) In sub-paragraphs (3)(a) and (b), a “*"group company”*” means a company that at the effective date of the transaction is a member of the same group as the seller or the buyer.
- (6) In this paragraph—
- “arrangements” (“*trefniadau*”) includes any scheme, agreement or understanding, whether or not legally enforceable;
- “control” (“*rheolaeth*”) has the meaning given by section 1124 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4).
- “*"arrangements”*” (“*"*trefniadau**”") includes any scheme, agreement or understanding, whether or not legally enforceable;
- “*"control”*” (“*"*rheolaeth**”") has the meaning given by section 1124 of the Corporation Tax Act 2010 (c. 4).
- (7) This paragraph has effect subject to paragraphs 5 and 6 (certain arrangements not within paragraph 4).
@@ -7764,13 +7751,13 @@
- (a) an agreement which provides for the transfer of shares or securities in the joint venture company to one or more members of that company on, or as a result of, one or more contingencies mentioned in sub-paragraph (3) occurring, or
- (b) a provision in a constitutional document of the joint venture company which provides for the suspension of a member’s voting rights on, or as a result of, one or more of those contingencies occurring.
- (b) a provision in a constitutional document of the joint venture company which provides for the suspension of a member's voting rights on, or as a result of, one or more of those contingencies occurring.
- (3) The contingencies referred to in sub-paragraphs (1)(b) and (2) are—
- (a) the voluntary departure of a member,
- (b) the commencement of the liquidation, administration, administrative receivership or receivership of, or the entering into of a voluntary arrangement by, a member under the [Insolvency Act 1986 (c. 45)](https://www.legislation.gov.uk/ukpga/1986/45) or the [Insolvency (Northern Ireland) Order 1989 (S.I.1989/2405 (N.I.19)](https://www.legislation.gov.uk/nisi/1989/2405)) or the commencement, or entering into, of equivalent proceedings or arrangements under the law of any country or territory outside the United Kingdom,
- (b) the commencement of the liquidation, administration, administrative receivership or receivership of, or the entering into of a voluntary arrangement by, a member under the Insolvency Act 1986 (c. 45) or the Insolvency (Northern Ireland) Order 1989 (S.I.1989/2405 (N.I.19)) or the commencement, or entering into, of equivalent proceedings or arrangements under the law of any country or territory outside the United Kingdom,
- (c) a serious deterioration in the financial condition of a member,
@@ -7788,7 +7775,7 @@
- (a) the transfer of shares or securities, or
- (b) the suspension of a member’s voting rights,
- (b) the suspension of a member's voting rights,
in advance of one or more of the contingencies occurring.
@@ -7796,11 +7783,11 @@
- (6) In this paragraph—
- “constitutional document” (“*dogfen gyfansoddiadol*”) means a memorandum of association, articles of association or any other similar document regulating the affairs of the joint venture company;
- “joint venture company” (“*cwmni cyd-fenter*”) means a company which— has two or more member companies, and carries on a commercial activity governed by an agreement regulating the affairs of its members;
- “member” (“*aelod*”) means a holder of shares or securities in the joint venture company.
- “*"constitutional document”*” (“*"*dogfen gyfansoddiadol**”") means a memorandum of association, articles of association or any other similar document regulating the affairs of the joint venture company;
- “*"joint venture company”*” (“*"*cwmni cyd-fenter**”") means a company which—has two or more member companies, andcarries on a commercial activity governed by an agreement regulating the affairs of its members;
- “*"member”*” (“*"*aelod**”") means a holder of shares or securities in the joint venture company.
#### Certain mortgage arrangements not within paragraph 4
@@ -7820,7 +7807,7 @@
- (3) For the purposes of sub-paragraph (2)(b), a mortgagee is not, by reason only of the mortgage, connected with a company whose shares or securities are the subject of the mortgage.
- (4) In this paragraph, “mortgage” means—
- (4) In this paragraph, “*"mortgage”*” means—
- (a) in England and Wales, and Northern Ireland, any legal or equitable charge, and
@@ -7832,7 +7819,7 @@
##### 7
In this Part of this Schedule, a transaction that is relieved from tax by virtue of paragraph 2 (group relief) is referred to as a “relieved transaction”.
In this Part of this Schedule, a transaction that is relieved from tax by virtue of paragraph 2 (group relief) is referred to as a “*"relieved transaction”*”.
#### Withdrawal of group relief
@@ -7848,7 +7835,7 @@
- (ii) in pursuance of, or in connection with, arrangements made before the end of that period, and
- (b) at the time the buyer ceases to be a member of the same group as the seller (“the relevant time”), it or a relevant associated company holds a chargeable interest—
- (b) at the time the buyer ceases to be a member of the same group as the seller (“*"the relevant time”*”), it or a relevant associated company holds a chargeable interest—
- (i) that was acquired by the buyer in the relieved transaction, or
@@ -7864,13 +7851,13 @@
or, as the case may be, an appropriate proportion of the tax that would have been so chargeable.
- (4) In sub-paragraphs (1) and (3), “an appropriate proportion” means an appropriate proportion having regard to the subject-matter of the relieved transaction and what is held at the relevant time by the transferee company or, as the case may be, by that company and its relevant associated companies.
- (4) In sub-paragraphs (1) and (3), “*"an appropriate proportion”*” means an appropriate proportion having regard to the subject-matter of the relieved transaction and what is held at the relevant time by the transferee company or, as the case may be, by that company and its relevant associated companies.
- (5) In this paragraph—
- “arrangements” (“*trefniadau*”) includes any scheme, agreement or understanding, whether or not legally enforceable;
- “relevant associated company” (“*cwmni cyswllt perthnasol*”), in relation to the buyer, means a company that— is a member of the same group as the buyer immediately before the buyer ceases to be a member of the same group as the seller, and ceases to be a member of the same group as the seller in consequence of the buyer so ceasing.
- “*"arrangements”*” (“*"*trefniadau**”") includes any scheme, agreement or understanding, whether or not legally enforceable;
- “*"relevant associated company”*” (“*"*cwmni cyswllt perthnasol**”"), in relation to the buyer, means a company that—is a member of the same group as the buyer immediately before the buyer ceases to be a member of the same group as the seller, andceases to be a member of the same group as the seller in consequence of the buyer so ceasing.
- (6) This paragraph has effect subject to paragraphs 9 and 10 (cases in which group relief not withdrawn) and paragraph 12 (withdrawal of group relief in certain cases involving successive transactions).
@@ -7886,13 +7873,13 @@
- (b) the seller or another company that is above the seller in the group structure otherwise ceasing to exist.
- (3) For the purposes of sub-paragraph (2), a company is “above” the seller in the group structure if the seller, or another company that is above the seller in the group structure, is a 75% subsidiary of the company.
- (3) For the purposes of sub-paragraph (2), a company is ““above”” the seller in the group structure if the seller, or another company that is above the seller in the group structure, is a 75% subsidiary of the company.
- (4) The second case is where—
- (a) the buyer ceases to be a member of the same group as the seller as a result of an acquisition of shares by another company (“the acquiring company”) in relation to which—
- (i) section 75 of the [Finance Act 1986 (c. 41)](https://www.legislation.gov.uk/ukpga/1986/41) applies (stamp duty: acquisition relief), and
- (a) the buyer ceases to be a member of the same group as the seller as a result of an acquisition of shares by another company (“*"the acquiring company”*”) in relation to which—
- (i) section 75 of the Finance Act 1986 (c. 41) applies (stamp duty: acquisition relief), and
- (ii) the conditions for relief under that section are met, and
@@ -7918,9 +7905,9 @@
- (7) In sub-paragraph (5)—
- “arrangements” (“*trefniadau*”) includes any scheme, agreement or understanding, whether or not legally enforceable;
- “relevant associated company” (“*cwmni cyswllt perthnasol*”), in relation to the buyer, means a company that is a member of the same group as the buyer that ceases to be a member of the same group as the acquiring company in consequence of the buyer so ceasing.
- “*"arrangements”*” (“*"*trefniadau**”") includes any scheme, agreement or understanding, whether or not legally enforceable;
- “*"relevant associated company”*” (“*"*cwmni cyswllt perthnasol**”"), in relation to the buyer, means a company that is a member of the same group as the buyer that ceases to be a member of the same group as the acquiring company in consequence of the buyer so ceasing.
#### Group relief not withdrawn where seller leaves group
@@ -7938,7 +7925,7 @@
- (ii) as a result of the transaction ceases to be a member of the same group as the buyer.
- (3) For the purpose of sub-paragraph (2), a company is “above” the seller in the group structure if the seller, or another company that is above the seller in the group structure, is a 75% subsidiary of the company.
- (3) For the purpose of sub-paragraph (2), a company is ““above”” the seller in the group structure if the seller, or another company that is above the seller in the group structure, is a 75% subsidiary of the company.
- (4) But if there is a change in the control of the buyer after the seller leaves the group, paragraphs 8, 9(4) and (6), 13 and 14 have effect as if the buyer had then ceased to be a member of the same group as the seller (but see sub-paragraph (7)).
@@ -7950,15 +7937,15 @@
- (c) the buyer is wound up.
- (6) For the purposes of sub-paragraph (5), a person (“P”) does not control, or obtain control of, the buyer if P is under the control of another person or other persons.
- (6) For the purposes of sub-paragraph (5), a person (““P””) does not control, or obtain control of, the buyer if P is under the control of another person or other persons.
- (7) Sub-paragraph (4) does not apply where—
- (a) there is a change in the control of the buyer because a loan creditor (within the meaning given by section 453 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4)) obtains control of, or ceases to control, the buyer, and
- (a) there is a change in the control of the buyer because a loan creditor (within the meaning given by section 453 of the Corporation Tax Act 2010 (c. 4)) obtains control of, or ceases to control, the buyer, and
- (b) the other persons who controlled the buyer before that change continue to do so.
- (8) In this paragraph, references to “control” are to be interpreted in accordance with sections 450 and 451 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4) (subject to sub-paragraph (6)).
- (8) In this paragraph, references to ““control”” are to be interpreted in accordance with sections 450 and 451 of the Corporation Tax Act 2010 (c. 4) (subject to sub-paragraph (6)).
#### Group relief not withdrawn as a result of certain transfers of business etc. by mutual societies
@@ -7976,7 +7963,7 @@
- (ii) in pursuance of, or in connection with, arrangements made before the end of that period.
- (2) In this paragraph, a “relevant transfer of business or engagement” means—
- (2) In this paragraph, a “*"relevant transfer of business or engagement”*” means—
- (a) a transfer of business described in paragraph 10(1)(a) and (b) of Schedule 22 (transactions entered into by building societies);
@@ -8024,17 +8011,17 @@
- (c) the company is wound up.
- (5) References to “control” in this paragraph are to be construed in accordance with sections 450 and 451 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4).
- (5) References to ““control”” in this paragraph are to be construed in accordance with sections 450 and 451 of the Corporation Tax Act 2010 (c. 4).
- (6) Sub-paragraph (1) does not apply where—
- (a) there is a change in the control of the buyer because a loan creditor (within the meaning given by section 453 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4)) obtains control of, or ceases to control, the buyer, and
- (a) there is a change in the control of the buyer because a loan creditor (within the meaning given by section 453 of the Corporation Tax Act 2010 (c. 4)) obtains control of, or ceases to control, the buyer, and
- (b) the other persons who controlled the buyer before that change continue to do so.
- (7) If two or more transactions effected at the same time are the earliest previous transactions falling within sub-paragraph (3), the reference in sub-paragraph (1) to the seller in the earliest previous transaction is a reference to the persons who are the sellers in the earliest previous transactions.
- (8) In this paragraph, “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.
- (8) In this paragraph, “*"arrangements”*” includes any scheme, agreement or understanding, whether or not legally enforceable.
## PART 5 — RECOVERY OF RELIEF FROM CERTAIN PERSONS
@@ -8060,15 +8047,15 @@
- (3) For the purposes of sub-paragraph (2)(b)—
- (a) a “relevant time” means any time between the effective date of the relieved transaction and the buyer ceasing to be a member of the same group as the seller;
- (b) a company (“company A”) is “above” another company (“company B”) in a group structure if company B, or another company that is above company B in the group structure, is a 75% subsidiary of company A.
- (a) a “*"relevant time”*” means any time between the effective date of the relieved transaction and the buyer ceasing to be a member of the same group as the seller;
- (b) a company (““company A””) is ““above”” another company (““company B””) in a group structure if company B, or another company that is above company B in the group structure, is a 75% subsidiary of company A.
- (4) In sub-paragraph (2)(c)—
- “director”(“*cyfarwyddwr*”), in relation to a company, has the meaning given by section 67(1) of the [Income Tax (Earnings and Pensions) Act 2003 (c. 1)](https://www.legislation.gov.uk/ukpga/2003/1) (read with subsection (2) of that section) and includes any person falling within section 452(1) of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4);
- “controlling director”(“*cyfarwyddwr â rheolaeth*”), in relation to a company, means a director of the company who has control of it (construing control in accordance with sections 450 and 451 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4)).
- ““director””(““*cyfarwyddwr*””), in relation to a company, has the meaning given by section 67(1) of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (read with subsection (2) of that section) and includes any person falling within section 452(1) of the Corporation Tax Act 2010 (c. 4);
- ““controlling director””(““*cyfarwyddwr â rheolaeth*””), in relation to a company, means a director of the company who has control of it (construing control in accordance with sections 450 and 451 of the Corporation Tax Act 2010 (c. 4)).
- (5) For the purposes of this paragraph, a claim is not finally determined until—
@@ -8088,7 +8075,7 @@
- (3) The notice must state the amount required to be paid by the person to whom the notice is issued.
- (4) That amount is a “relevant amount” payable by the person to whom the notice is issued for the purposes of Part 7 of TCMA (payment and enforcement).
- (4) That amount is a ““relevant amount”” payable by the person to whom the notice is issued for the purposes of Part 7 of TCMA (payment and enforcement).
- (5) A person who has paid an amount in pursuance of a notice under this paragraph may recover that amount from the buyer.
@@ -8120,19 +8107,19 @@
- (1) Where—
- (a) a company (“the acquiring company”) acquires the whole or part of the undertaking of another company (“the target company”) in pursuance of a scheme for the reconstruction of the target company, and
- (a) a company (“*"the acquiring company”*”) acquires the whole or part of the undertaking of another company (““the target company””) in pursuance of a scheme for the reconstruction of the target company, and
- (b) the first and second conditions specified below are met,
a land transaction entered into for the purposes of or in connection with the transfer of the undertaking or part is relieved from tax.
- (2) Relief under this paragraph is referred to in this Schedule as “reconstruction relief”.
- (2) Relief under this paragraph is referred to in this Schedule as “*"reconstruction relief”*”.
- (3) The first condition is that the consideration for the acquisition consists wholly or partly of the issue of non-redeemable shares in the acquiring company to all the shareholders of the target company.
- (4) Where the consideration for the acquisition consists partly of the issue of non-redeemable shares, that condition is met only if the rest of the consideration consists wholly of the assumption or discharge by the acquiring company of liabilities of the target company.
- (5) In sub-paragraphs (3) and (4), “non-redeemable shares” means shares that are not redeemable shares.
- (5) In sub-paragraphs (3) and (4), “*"non-redeemable shares”*” means shares that are not redeemable shares.
- (6) The second condition is that after the acquisition has been made—
@@ -8152,19 +8139,19 @@
- (1) Where—
- (a) a company (“the acquiring company”) acquires the whole or part of the undertaking of another company (“the target company”), and
- (a) a company (“*"the acquiring company”*”) acquires the whole or part of the undertaking of another company (““the target company””), and
- (b) all the conditions specified below are met,
the amount of tax chargeable on a land transaction entered into for the purposes of or in connection with the transfer of the undertaking or part is limited to 0.5% of the chargeable consideration for the transaction (or such other proportion of that consideration as the Welsh Ministers may specify by regulations under this paragraph).
- (2) Relief under this paragraph is referred to in this Schedule as “acquisition relief”.
- (2) Relief under this paragraph is referred to in this Schedule as “*"acquisition relief”*”.
- (3) The first condition is that the consideration for the acquisition consists wholly or partly of the issue of non-redeemable shares in the acquiring company to—
- (a) the target company, or
- (b) all or any of the target company’s shareholders.
- (b) all or any of the target company's shareholders.
- (4) Where the consideration for the acquisition consists partly of the issue of non-redeemable shares, that condition is met only if the rest of the consideration consists wholly of—
@@ -8174,17 +8161,17 @@
- (c) both of those things.
- (5) In sub-paragraphs (3) and (4), “non-redeemable shares” means shares that are not redeemable shares.
- (5) In sub-paragraphs (3) and (4), “*"non-redeemable shares”*” means shares that are not redeemable shares.
- (6) The second condition is that the acquiring company is not associated with another company that is a party to arrangements with the target company relating to shares of the acquiring company issued in connection with the transfer of the undertaking or part.
- (7) For this purpose, companies are associated if one has control of the other or both are controlled by the same person or persons; and the reference to control is to be construed in accordance with sections 450 and 451 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4).
- (7) For this purpose, companies are associated if one has control of the other or both are controlled by the same person or persons; and the reference to control is to be construed in accordance with sections 450 and 451 of the Corporation Tax Act 2010 (c. 4).
- (8) The third condition is that the undertaking or part acquired by the acquiring company has as its main activity the carrying on of a trade that does not consist wholly or mainly of dealing in chargeable interests.
- (9) In sub-paragraph (8), “trade” has the same meaning as in section 1119 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4).
- (10) In this paragraph, “arrangements” include any scheme, agreement or understanding, whether or not legally enforceable.
- (9) In sub-paragraph (8), “*"trade”*” has the same meaning as in section 1119 of the Corporation Tax Act 2010 (c. 4).
- (10) In this paragraph, ““arrangements”” include any scheme, agreement or understanding, whether or not legally enforceable.
- (11) This paragraph is subject to paragraph 5 (withdrawal of reconstruction or acquisition relief).
@@ -8200,7 +8187,7 @@
- (b) on which tax is chargeable in accordance with paragraph 3 (acquisition relief),
is referred to as a “relieved transaction”.
is referred to as a “*"relieved transaction”*”.
#### Withdrawal of reconstruction or acquisition relief
@@ -8216,7 +8203,7 @@
- (ii) in pursuance of, or in connection with, arrangements made before the end of that period, and
- (b) at the time control of the acquiring company changes (“the relevant time”), it or a relevant associated company holds a chargeable interest—
- (b) at the time control of the acquiring company changes (“*"the relevant time”*”), it or a relevant associated company holds a chargeable interest—
- (i) that was acquired by the acquiring company under the relieved transaction, or
@@ -8232,9 +8219,9 @@
or, as the case may be, an appropriate proportion of the tax that would have been so chargeable.
- (4) In sub-paragraphs (1) and (3), “an appropriate proportion” means an appropriate proportion having regard to the subject-matter of the relieved transaction and what is held at the relevant time by the acquiring company or, as the case may be, by that company and any relevant associated companies.
- (5) In this paragraph, “relevant associated company”, in relation to the acquiring company, means a company—
- (4) In sub-paragraphs (1) and (3), “*"an appropriate proportion”*” means an appropriate proportion having regard to the subject-matter of the relieved transaction and what is held at the relevant time by the acquiring company or, as the case may be, by that company and any relevant associated companies.
- (5) In this paragraph, “*"relevant associated company”*”, in relation to the acquiring company, means a company—
- (a) that is controlled by the acquiring company immediately before the control of that company changes, and
@@ -8242,9 +8229,9 @@
- (6) In this paragraph—
- (a) “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable;
- (b) “control” is to be construed in accordance with sections 450 and 451 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4);
- (a) “*"arrangements”*” includes any scheme, agreement or understanding, whether or not legally enforceable;
- (b) “*"control”*” is to be construed in accordance with sections 450 and 451 of the Corporation Tax Act 2010 (c. 4);
- (c) references to control of a company changing are to the company becoming controlled—
@@ -8276,13 +8263,13 @@
- (4) The third case is where control of the acquiring company changes as a result of an exempt intra-group transfer.
- (5) An “exempt intra-group transfer” means a transfer of shares effected by an instrument that is exempt from stamp duty by virtue of section 42 of the [Finance Act 1930 (c. 28)](https://www.legislation.gov.uk/ukpga/1930/28) or section 11 of the [Finance Act (Northern Ireland) 1954 (c. 23 (N.I.))](https://www.legislation.gov.uk/apni/1954/23) (transfers between associated bodies corporate).
- (5) An “*"exempt intra-group transfer”*” means a transfer of shares effected by an instrument that is exempt from stamp duty by virtue of section 42 of the Finance Act 1930 (c. 28) or section 11 of the Finance Act (Northern Ireland) 1954 (c. 23 (N.I.)) (transfers between associated bodies corporate).
- (6) But see paragraph 7 (withdrawal of relief in case of subsequent non-exempt transfer).
- (7) The fourth case is where control of the acquiring company changes as a result of a transfer of shares to another company in relation to which share acquisition relief applies.
- (8) “Share acquisition relief” means relief under section 77 of the [Finance Act 1986 (c. 41)](https://www.legislation.gov.uk/ukpga/1986/41) and a transfer is one in relation to which that relief applies if an instrument effecting the transfer is exempt from stamp duty by virtue of that provision.
- (8) “*"Share acquisition relief”*” means relief under section 77 of the Finance Act 1986 (c. 41) and a transfer is one in relation to which that relief applies if an instrument effecting the transfer is exempt from stamp duty by virtue of that provision.
- (9) But see paragraph 7 (withdrawal of relief in case of subsequent non-exempt transfer).
@@ -8292,7 +8279,7 @@
- (b) the other persons who were previously treated as controlling the company continue to be so treated.
- (11) “Loan creditor” here has the meaning given by section 453 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4).
- (11) ““Loan creditor”” here has the meaning given by section 453 of the Corporation Tax Act 2010 (c. 4).
#### Withdrawal of reconstruction or acquisition relief on subsequent non-exempt transfer
@@ -8308,7 +8295,7 @@
- (ii) in pursuance of or in connection with arrangements made before the end of that period, and
- (b) the acquiring company or a relevant associated company, at that time (“the relevant time”), holds a chargeable interest—
- (b) the acquiring company or a relevant associated company, at that time (“*"the relevant time”*”), holds a chargeable interest—
- (i) that was transferred to the acquiring company by the relieved transaction, or
@@ -8326,7 +8313,7 @@
at a time when that company holds any shares transferred to it by the exempt transfer, or any shares derived from shares so transferred, and
- (b) the acquiring company or a relevant associated company, at that time (“the relevant time”), holds a chargeable interest—
- (b) the acquiring company or a relevant associated company, at that time (“*"the relevant time”*”), holds a chargeable interest—
- (i) that was transferred to the acquiring company by the relieved transaction, or
@@ -8336,9 +8323,9 @@
- (4) The amount chargeable is the tax that would have been chargeable in respect of the relieved transaction but for reconstruction or acquisition relief if the chargeable consideration for that transaction had been an amount equal to the market value of the subject-matter of the transaction or, as the case may be, an appropriate proportion of the tax that would have been so chargeable.
- (5) In sub-paragraphs (1) and (4), “an appropriate proportion” means an appropriate proportion having regard to the subject-matter of the relieved transaction and what is held at the relevant time by the acquiring company or, as the case may be, by that company and any relevant associated companies.
- (6) In this paragraph, “relevant associated company”, in relation to the acquiring company, means a company—
- (5) In sub-paragraphs (1) and (4), “*"an appropriate proportion”*” means an appropriate proportion having regard to the subject-matter of the relieved transaction and what is held at the relevant time by the acquiring company or, as the case may be, by that company and any relevant associated companies.
- (6) In this paragraph, “*"relevant associated company”*”, in relation to the acquiring company, means a company—
- (a) that is controlled by the acquiring company immediately before the control of that company changes, and
@@ -8346,9 +8333,9 @@
- (7) In this paragraph—
- (a) “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable;
- (b) “control” is to be construed in accordance with sections 450 and 451 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4);
- (a) “*"arrangements”*” includes any scheme, agreement or understanding, whether or not legally enforceable;
- (b) “*"control”*” is to be construed in accordance with sections 450 and 451 of the Corporation Tax Act 2010 (c. 4);
- (c) references to control of a company changing are to the company becoming controlled—
@@ -8378,15 +8365,15 @@
- (b) any person who at any relevant time was a controlling director of the acquiring company or a company having control of the acquiring company.
- (3) For the purposes of sub-paragraph (2), “relevant time” means any time between effective date of the relieved transaction and the change of control by virtue of which tax is chargeable.
- (4) For the purposes of sub-paragraph (2)(a), a company (“company A”) is “above” another company (“company B”) in a group structure if company B, or another company that is above company B in the group structure, is a 75% subsidiary of company A.
- (3) For the purposes of sub-paragraph (2), “*"relevant time”*” means any time between effective date of the relieved transaction and the change of control by virtue of which tax is chargeable.
- (4) For the purposes of sub-paragraph (2)(a), a company (““company A””) is ““above”” another company (““company B””) in a group structure if company B, or another company that is above company B in the group structure, is a 75% subsidiary of company A.
- (5) For the purposes of sub-paragraph (2)(b)—
- (a) “director”, in relation to a company, has the meaning given by section 67(1) of the [Income Tax (Earnings and Pensions) Act 2003 (c. 1)](https://www.legislation.gov.uk/ukpga/2003/1) (read with subsection (2) of that section) and includes any person falling within section 452(1) of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4);
- (b) “controlling director”, in relation to a company, means a director of the company who has control of it; and “control” here is to be construed in accordance with sections 450 and 451 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4).
- (a) “*"director”*”, in relation to a company, has the meaning given by section 67(1) of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (read with subsection (2) of that section) and includes any person falling within section 452(1) of the Corporation Tax Act 2010 (c. 4);
- (b) “*"controlling director”*”, in relation to a company, means a director of the company who has control of it; and ““control”” here is to be construed in accordance with sections 450 and 451 of the Corporation Tax Act 2010 (c. 4).
- (6) For the purposes of this paragraph, a claim is not finally determined until—
@@ -8406,7 +8393,7 @@
- (3) The notice must state the amount required to be paid by the person to whom the notice is issued.
- (4) That amount is a “relevant amount” payable by the person to whom the notice is issued for the purposes of Part 7 of TCMA (payment and enforcement).
- (4) That amount is a ““relevant amount”” payable by the person to whom the notice is issued for the purposes of Part 7 of TCMA (payment and enforcement).
- (5) A person who has paid an amount in pursuance of a notice under this paragraph may recover that amount from the acquiring company.
@@ -8438,7 +8425,7 @@
##### 2
- (1) In this Schedule, a charity (“C”) which is a buyer in a land transaction is a “qualifying charity”—
- (1) In this Schedule, a charity (““C””) which is a buyer in a land transaction is a ““qualifying charity””—
- (a) for the purposes of paragraphs 3, 4 and 5, if C intends to hold the whole of the subject-matter of the transaction for qualifying charitable purposes;
@@ -8452,11 +8439,11 @@
- (3) In this Schedule—
- (a) “charity” has the meaning given by Part 1 of Schedule 6 to the [Finance Act 2010 (c. 13)](https://www.legislation.gov.uk/ukpga/2010/13), and
- (b) “charitable purpose” has the meaning given by section 2 of the [Charities Act 2011 (c. 25)](https://www.legislation.gov.uk/ukpga/2011/25).
- (4) In this Schedule, in relation to C which is a buyer in a land transaction, a “disqualifying event” occurs when—
- (a) “*"charity”*” has the meaning given by Part 1 of Schedule 6 to the Finance Act 2010 (c. 13), and
- (b) “*"charitable purpose”*” has the meaning given by section 2 of the Charities Act 2011 (c. 25).
- (4) In this Schedule, in relation to C which is a buyer in a land transaction, a ““disqualifying event”” occurs when—
- (a) C ceases to be established for charitable purposes only, or
@@ -8476,9 +8463,9 @@
- (1) This paragraph applies where—
- (a) a land transaction is relieved from tax under paragraph 3 (“the relieved transaction”),
- (b) a disqualifying event occurs in relation to a charity (“C”) which was the buyer under the relieved transaction, and
- (a) a land transaction is relieved from tax under paragraph 3 (““the relieved transaction””),
- (b) a disqualifying event occurs in relation to a charity (““C””) which was the buyer under the relieved transaction, and
- (c) the disqualifying event occurs in the circumstances required by sub-paragraphs (3) and (4).
@@ -8498,7 +8485,7 @@
- (5) The amount chargeable is the amount of tax that would have been chargeable but for paragraph 3 or, as the case may be, an appropriate proportion of that amount.
- (6) An “appropriate proportion” means an appropriate proportion having regard to—
- (6) An “*"appropriate proportion”*” means an appropriate proportion having regard to—
- (a) what was acquired by C under the relieved transaction and what is held by C at the time of the disqualifying event, and
@@ -8512,13 +8499,13 @@
- (a) a land transaction is not relieved from tax under paragraph 3 because the buyer is not a qualifying charity, but
- (b) the buyer is a charity (“C”) which intends to hold the greater part of the subject-matter of the transaction for qualifying charitable purposes.
- (b) the buyer is a charity (““C””) which intends to hold the greater part of the subject-matter of the transaction for qualifying charitable purposes.
- (2) In such a case—
- (a) paragraphs 3 and 4 have effect as if C were a qualifying charity, but
- (b) for the purposes of paragraph 4, “disqualifying event” includes the following if they are made otherwise than in furtherance of C’s charitable purpose—
- (b) for the purposes of paragraph 4, “*"disqualifying event”*” includes the following if they are made otherwise than in furtherance of C's charitable purpose—
- (i) any transfer by C of a major interest in the whole or any part of the subject-matter of the relieved transaction;
@@ -8532,23 +8519,23 @@
- (4) The modifications to paragraph 4 are—
- (a) sub-paragraph (4) is to have effect as if for “At the time of” there were substituted “Immediately before”;
- (b) sub-paragraph (6)(a) is to have effect as if for “at the time of” there were substituted “immediately before and immediately after”;
- (a) sub-paragraph (4) is to have effect as if for ““At the time of”” there were substituted “ Immediately before ”;
- (b) sub-paragraph (6)(a) is to have effect as if for ““at the time of”” there were substituted “ immediately before and immediately after ”;
- (c) sub-paragraph (6) is to have effect as if paragraph (b) were omitted.
- (5) For the purposes of this paragraph—
- (a) a lease is granted “at a premium” if there is consideration other than rent, and
- (b) a lease is a “low-rental” lease if the annual rent (if any) is less than £1,000 a year.
- (a) a lease is granted ““at a premium”” if there is consideration other than rent, and
- (b) a lease is a ““low-rental”” lease if the annual rent (if any) is less than £1,000 a year.
- (6) In this paragraph—
- (a) “annual rent” has the meaning given by paragraph 36(2) of Schedule 6, and
- (b) “rent” has the same meaning as in that Schedule.
- (a) “*"annual rent”*” has the meaning given by paragraph 36(2) of Schedule 6, and
- (b) “*"rent”*” has the same meaning as in that Schedule.
#### Joint purchase by qualifying charity and another person: partial relief
@@ -8566,7 +8553,7 @@
- (3) The relief is equal to the relevant proportion of the tax that would, ignoring paragraph 3, otherwise have been chargeable in respect of the transaction.
- (4) The “relevant proportion”, in the case of a qualifying charity, is the lower of P1 and P2, where—
- (4) The ““relevant proportion””, in the case of a qualifying charity, is the lower of P1 and P2, where—
- P1 is the proportion of the subject-matter of the transaction that is acquired by all the qualifying charities that are buyers under the transaction (in aggregate);
@@ -8578,13 +8565,13 @@
- (1) This paragraph applies where—
- (a) a land transaction is relieved from tax under paragraph 6 (“the relieved transaction”),
- (b) a disqualifying event occurs in relation to a charity (“C”) which was the buyer under the relieved transaction, and
- (a) a land transaction is relieved from tax under paragraph 6 (““the relieved transaction””),
- (b) a disqualifying event occurs in relation to a charity (““C””) which was the buyer under the relieved transaction, and
- (c) the disqualifying event occurs in the circumstances required by sub-paragraphs (3) and (4).
- (2) Where this paragraph applies, C’s portion of the relief, or an appropriate proportion of C’s portion of that relief, is withdrawn and tax is chargeable in accordance with this paragraph (see sub-paragraph (5)).
- (2) Where this paragraph applies, C's portion of the relief, or an appropriate proportion of C's portion of that relief, is withdrawn and tax is chargeable in accordance with this paragraph (see sub-paragraph (5)).
- (3) The disqualifying event must occur—
@@ -8598,19 +8585,19 @@
- (b) is derived from an interest so acquired.
- (5) The amount chargeable is equal to C’s portion of the relief or, as the case may be, the appropriate proportion of C’s portion of the relief.
- (6) C’s portion of the relief depends on whether P1 or P2 was lower in the calculation under paragraph 6.
- (7) If P1 was lower, C’s portion of the relief is equal to—
$$p1P1×R$ Figure 14 where— p1 is the proportion of the subject-matter of the transaction that was acquired by C under the transaction; P1 has the same meaning as in paragraph 6(4); R is the amount of the relief.$
- (8) If P2 was lower, C’s portion of the relief is equal to—
$$p2P2×R$ Figure 15 where— p2 is the proportion of chargeable consideration for the transaction that was given by C; P2 has the same meaning as in paragraph 6(4); R is the amount of the relief.$
- (9) In this paragraph, “appropriate proportion” means an appropriate proportion having regard to—
- (5) The amount chargeable is equal to C's portion of the relief or, as the case may be, the appropriate proportion of C's portion of the relief.
- (6) C's portion of the relief depends on whether P1 or P2 was lower in the calculation under paragraph 6.
- (7) If P1 was lower, C's portion of the relief is equal to—
$$p1 P1 × R$Figure 14 where—p1 is the proportion of the subject-matter of the transaction that was acquired by C under the transaction;P1 has the same meaning as in paragraph 6(4);R is the amount of the relief.$
- (8) If P2 was lower, C's portion of the relief is equal to—
$$p2 P2 × R$Figure 15 where—p2 is the proportion of chargeable consideration for the transaction that was given by C;P2 has the same meaning as in paragraph 6(4);R is the amount of the relief.$
- (9) In this paragraph, “*"appropriate proportion”*” means an appropriate proportion having regard to—
- (a) what was acquired by C under the relieved transaction and what is held by C at the time of the disqualifying event, and
@@ -8622,7 +8609,7 @@
- (1) This paragraph applies where—
- (a) a charity (“C”) is one of two or more buyers acquiring the subject-matter of a land transaction as tenants in common,
- (a) a charity (““C””) is one of two or more buyers acquiring the subject-matter of a land transaction as tenants in common,
- (b) C is not a qualifying charity,
@@ -8634,7 +8621,7 @@
- (a) paragraphs 6 and 7 have effect as if C were a qualifying charity, but
- (b) for the purposes of paragraph 7 “disqualifying event” includes the following if they are made otherwise than in furtherance of C’s charitable purposes—
- (b) for the purposes of paragraph 7 “*"disqualifying event”*” includes the following if they are made otherwise than in furtherance of C's charitable purposes—
- (i) any transfer by C of a major interest in the whole or any part of the subject-matter of the relieved transaction;
@@ -8648,23 +8635,23 @@
- (4) The modifications to paragraph 7 are—
- (a) sub-paragraph (4) is to have effect as if for “At the time of” there were substituted “Immediately before”;
- (b) sub-paragraph (9)(a) is to have effect as if for “at the time of” there were substituted “immediately before and immediately after”;
- (a) sub-paragraph (4) is to have effect as if for ““At the time of”” there were substituted “ Immediately before ”;
- (b) sub-paragraph (9)(a) is to have effect as if for ““at the time of”” there were substituted “ immediately before and immediately after ”;
- (c) sub-paragraph (9) is to have effect as if paragraph (b) were omitted.
- (5) For the purposes of this paragraph—
- (a) a lease is granted “at a premium” if there is consideration other than rent, and
- (b) a lease is a “low-rental” lease if the annual rent (if any) is less than £1,000 a year.
- (a) a lease is granted ““at a premium”” if there is consideration other than rent, and
- (b) a lease is a ““low-rental”” lease if the annual rent (if any) is less than £1,000 a year.
- (6) In this paragraph—
- (a) “annual rent” has the meaning given by paragraph 36(2) of Schedule 6, and
- (b) “rent” has the same meaning as in that Schedule.
- (a) “*"annual rent”*” has the meaning given by paragraph 36(2) of Schedule 6, and
- (b) “*"rent”*” has the same meaning as in that Schedule.
#### Application of this Schedule to certain trusts
@@ -8690,7 +8677,7 @@
##### 1
- (1) A land transaction transferring any property which is subject to the trusts of an authorised unit trust (“the target trust”) to an open-ended investment company (“the acquiring company”) is relieved from tax if the conditions set out in sub-paragraph (2) are met.
- (1) A land transaction transferring any property which is subject to the trusts of an authorised unit trust (“*"the target trust”*”) to an open-ended investment company (“*"the acquiring company”*”) is relieved from tax if the conditions set out in sub-paragraph (2) are met.
- (2) Those conditions are that—
@@ -8698,7 +8685,7 @@
- (b) under the arrangement all the units in the target trust are extinguished,
- (c) the consideration under the arrangement consists of or includes the issue of shares (“the consideration shares”) in the acquiring company to the persons who held the extinguished units,
- (c) the consideration under the arrangement consists of or includes the issue of shares (“*"the consideration shares”*”) in the acquiring company to the persons who held the extinguished units,
- (d) the consideration shares are issued to those persons in proportion to their holdings of the extinguished units, and
@@ -8708,7 +8695,7 @@
##### 2
- (1) A land transaction transferring any property which is subject to the trusts of an authorised unit trust (“the target trust”) to an open-ended investment company (“the acquiring company”) is relieved from tax if the conditions set out in sub-paragraph (2) are met.
- (1) A land transaction transferring any property which is subject to the trusts of an authorised unit trust (“*"the target trust”*”) to an open-ended investment company (“*"the acquiring company”*”) is relieved from tax if the conditions set out in sub-paragraph (2) are met.
- (2) Those conditions are that—
@@ -8716,7 +8703,7 @@
- (b) under the arrangement all the units in the target trust are extinguished,
- (c) the consideration under the arrangement consists of or includes the issue of shares (“the consideration shares”) in the acquiring company to the persons who held the extinguished units,
- (c) the consideration under the arrangement consists of or includes the issue of shares (“*"the consideration shares”*”) in the acquiring company to the persons who held the extinguished units,
- (d) the consideration shares are issued to those persons in proportion to their holdings of the extinguished units, and
@@ -8726,11 +8713,11 @@
##### 3
- (1) For the purposes of this Schedule, “the whole of the available property of the target trust” means the whole of the property subject to the trusts of the target trust, other than any property which is retained for the purpose of discharging liabilities of the trustees of the target trust (and “target trust” has the meaning given by paragraph 1 or 2, as the case may be).
- (2) For the purposes of this Schedule, each of the parts of an umbrella scheme (and not the scheme as a whole) is regarded as an authorised unit trust; and “umbrella scheme” has the same meaning as in section 619 of the [Corporation Tax Act 2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4).
- (3) In this Schedule, “authorised unit trust” means a unit trust scheme in the case of which an order under section 243 of the [Financial Services and Markets Act 2000 (c. 8)](https://www.legislation.gov.uk/ukpga/2000/8) is in force.
- (1) For the purposes of this Schedule, “*"the whole of the available property of the target trust”*” means the whole of the property subject to the trusts of the target trust, other than any property which is retained for the purpose of discharging liabilities of the trustees of the target trust (and “*"target trust”*” has the meaning given by paragraph 1 or 2, as the case may be).
- (2) For the purposes of this Schedule, each of the parts of an umbrella scheme (and not the scheme as a whole) is regarded as an authorised unit trust; and “*"umbrella scheme”*” has the same meaning as in section 619 of the Corporation Tax Act 2010 (c. 4).
- (3) In this Schedule, “*"authorised unit trust”*” means a unit trust scheme in the case of which an order under section 243 of the Financial Services and Markets Act 2000 (c. 8) is in force.
## SCHEDULE 20
@@ -8746,7 +8733,7 @@
- (b) either the buyer or the seller is a public body.
- (3) A “reorganisation” means changes involving—
- (3) A “*"reorganisation”*” means changes involving—
- (a) the establishment, reform or abolition of one or more public bodies,
@@ -8762,21 +8749,21 @@
- (c) the National Assembly for Wales Commission;
- (d) a county or county borough council constituted under section 21 of the [Local Government Act 1972 (c. 70)](https://www.legislation.gov.uk/ukpga/1972/70);
- (d) a county or county borough council constituted under section 21 of the Local Government Act 1972 (c. 70);
- (e) a county or district council constituted under section 2 of that Act;
- (f) the council of a London borough;
- (g) any other authority that is a local planning authority within the meaning of the [Town and Country Planning Act 1990 (c. 8)](https://www.legislation.gov.uk/ukpga/1990/8);
- (h) a Special Health Authority established under section 22 of the [National Health Service (Wales) Act 2006 (c. 42)](https://www.legislation.gov.uk/ukpga/2006/42) or section 28 of the [National Health Service Act 2006 (c. 41)](https://www.legislation.gov.uk/ukpga/2006/41);
- (i) a Local Health Board established under section 11 of the [National Health Service (Wales) Act 2006 (c. 42)](https://www.legislation.gov.uk/ukpga/2006/42);
- (j) a National Health Service Trust established under section 18 of the [National Health Service (Wales) Act 2006 (c. 42)](https://www.legislation.gov.uk/ukpga/2006/42) or section 25 of the [National Health Service Act 2006 (c. 41)](https://www.legislation.gov.uk/ukpga/2006/41);
- (k) a strategic planning panel established under section 60D of the [Planning and Compulsory Purchase Act 2004 (c. 5)](https://www.legislation.gov.uk/ukpga/2004/5);
- (g) any other authority that is a local planning authority within the meaning of the Town and Country Planning Act 1990 (c. 8);
- (h) a Special Health Authority established under section 22 of the National Health Service (Wales) Act 2006 (c. 42) or section 28 of the National Health Service Act 2006 (c. 41);
- (i) a Local Health Board established under section 11 of the National Health Service (Wales) Act 2006 (c. 42);
- (j) a National Health Service Trust established under section 18 of the National Health Service (Wales) Act 2006 (c. 42) or section 25 of the National Health Service Act 2006 (c. 41);
- (k) a strategic planning panel established under section 60D of the Planning and Compulsory Purchase Act 2004 (c. 5);
- (l) a person specified for the purposes of this paragraph by the Welsh Ministers by regulations.
@@ -8792,7 +8779,7 @@
A land transaction is relieved from tax if the buyer is any of the following—
- (a) a Local Health Board established under section 11 of the [National Health Service (Wales) Act 2006 (c. 42)](https://www.legislation.gov.uk/ukpga/2006/42);
- (a) a Local Health Board established under section 11 of the National Health Service (Wales) Act 2006 (c. 42);
- (b) a Special Health Authority established established under section 22 of that Act;
@@ -8810,9 +8797,9 @@
- (2) In this paragraph—
- “compulsory purchase facilitating development” (“*pryniant gorfodol sy’n hwyluso datblygiad*”) means a land transaction under which the buyer acquires a chargeable interest pursuant to a compulsory purchase order made by the buyer for the purpose of facilitating development by another person;
- “development” (“*datblygiad*”) has the meaning given by the [Town and Country Planning Act 1990 (c. 8)](https://www.legislation.gov.uk/ukpga/1990/8) (see section 55 of that Act).
- “*"compulsory purchase facilitating development”*” (“*"*pryniant gorfodol sy'n hwyluso datblygiad**”") means a land transaction under which the buyer acquires a chargeable interest pursuant to a compulsory purchase order made by the buyer for the purpose of facilitating development by another person;
- “*"development”*” (“*"*datblygiad**”") has the meaning given by the Town and Country Planning Act 1990 (c. 8) (see section 55 of that Act).
- (3) For the purposes of sub-paragraph (2), it does not matter how the acquisition is effected (so that the provision applies where the acquisition is effected by agreement).
@@ -8830,15 +8817,15 @@
- (2) In this paragraph—
- “modification” (“*addasiad*”) of a planning obligation means modification as mentioned in section 106A(1) (modification and discharge of planning obligations) of the [Town and Country Planning Act 1990 (c. 8)](https://www.legislation.gov.uk/ukpga/1990/8);
- “planning obligation” (“*rhwymedigaeth gynllunio*”) means a planning obligation within the meaning of section 106 of that Act that is entered into in accordance with subsection (9) of that section (matters relating to the form and execution of the instrument effecting the planning obligation).
- “*"modification”*” (“*"*addasiad**”") of a planning obligation means modification as mentioned in section 106A(1) (modification and discharge of planning obligations) of the Town and Country Planning Act 1990 (c. 8);
- “*"planning obligation”*” (“*"*rhwymedigaeth gynllunio**”") means a planning obligation within the meaning of section 106 of that Act that is entered into in accordance with subsection (9) of that section (matters relating to the form and execution of the instrument effecting the planning obligation).
- (3) The following are public bodies for the purposes of this paragraph—
- (a) a county or county borough council constituted under section 21 of the [Local Government Act 1972 (c. 70)](https://www.legislation.gov.uk/ukpga/1972/70);
- (b) a Special Health Authority established under section 22 of the [National Health Service (Wales) Act 2006 (c. 42)](https://www.legislation.gov.uk/ukpga/2006/42);
- (a) a county or county borough council constituted under section 21 of the Local Government Act 1972 (c. 70);
- (b) a Special Health Authority established under section 22 of the National Health Service (Wales) Act 2006 (c. 42);
- (c) a Local Health Board established under section 11 of that Act;
@@ -8852,13 +8839,13 @@
##### 1
A land transaction entered into by or under the direction of the Secretary of State for the purposes of carrying into effect Part 8 of the [Merchant Shipping Act 1995 (c. 21)](https://www.legislation.gov.uk/ukpga/1995/21) (lighthouses) is relieved from tax.
A land transaction entered into by or under the direction of the Secretary of State for the purposes of carrying into effect Part 8 of the Merchant Shipping Act 1995 (c. 21) (lighthouses) is relieved from tax.
##### 2
- (1) A land transaction entered into by or under the direction of the Trinity House for the purpose of carrying out the services referred to in section 221(1) of the [Merchant Shipping Act 1995 (c. 21)](https://www.legislation.gov.uk/ukpga/1995/21) is relieved from tax.
- (2) In this paragraph, “the Trinity House” has the meaning given by section 223 of the [Merchant Shipping Act 1995 (c. 21)](https://www.legislation.gov.uk/ukpga/1995/21).
- (1) A land transaction entered into by or under the direction of the Trinity House for the purpose of carrying out the services referred to in section 221(1) of the Merchant Shipping Act 1995 (c. 21) is relieved from tax.
- (2) In this paragraph, “*"the Trinity House”*” has the meaning given by section 223 of the Merchant Shipping Act 1995 (c. 21).
#### Visiting forces and international military headquarters reliefs
@@ -8882,11 +8869,11 @@
- (b) the members of that force consisted of such of the persons serving at or attached to the headquarters as are members of the armed forces of a designated country.
- (2) In this paragraph, “designated” means designated for the purpose in question by or under any Order in Council made to give effect to an international agreement.
- (2) In this paragraph, “*"designated”*” means designated for the purpose in question by or under any Order in Council made to give effect to an international agreement.
##### 5
In paragraphs 3 and 4, “visiting force” means any body, contingent or detachment of a country’s forces which is for the time being or is to be present in the United Kingdom on the invitation of Her Majesty’s Government in the United Kingdom.
In paragraphs 3 and 4, “*"visiting force”*” means any body, contingent or detachment of a country's forces which is for the time being or is to be present in the United Kingdom on the invitation of Her Majesty's Government in the United Kingdom.
#### Relief for property accepted in satisfaction of tax
@@ -8894,7 +8881,7 @@
A land transaction—
- (a) which is entered into under section 9 of the [National Heritage Act 1980 (c. 17)](https://www.legislation.gov.uk/ukpga/1980/17) (disposal of property accepted by the Commissioners for Revenue and Customs in satisfaction of inheritance tax) and by which property is transferred to a person mentioned in subsection (2) of that section, or
- (a) which is entered into under section 9 of the National Heritage Act 1980 (c. 17) (disposal of property accepted by the Commissioners for Revenue and Customs in satisfaction of inheritance tax) and by which property is transferred to a person mentioned in subsection (2) of that section, or
- (b) which is entered into under subsection (4) of that section,
@@ -8908,15 +8895,15 @@
- (a) it relates to a highway or proposed highway which is, or is to become, a trunk road, and
- (b) but for this paragraph tax would be payable in respect of the transaction as an expense incurred by the Welsh Ministers or the Secretary of State under the [Highways Act 1980 (c. 66)](https://www.legislation.gov.uk/ukpga/1980/66).
- (b) but for this paragraph tax would be payable in respect of the transaction as an expense incurred by the Welsh Ministers or the Secretary of State under the Highways Act 1980 (c. 66).
- (2) In this paragraph—
- “highway” (“*priffordd*”) has the meaning given by section 328 of the [Highways Act 1980 (c. 66)](https://www.legislation.gov.uk/ukpga/1980/66);
- “proposed highway” (“*priffordd arfaethedig*”) has the meaning given by section 329(1) of that Act;
- “trunk road” (“*cefnffordd*”) has the meaning given by section 329(1) of that Act.
- “*"highway”*” (“*"*priffordd**”") has the meaning given by section 328 of the Highways Act 1980 (c. 66);
- “*"proposed highway”*” (“*"*priffordd arfaethedig**”") has the meaning given by section 329(1) of that Act;
- “*"trunk road”*” (“*"*cefnffordd**”") has the meaning given by section 329(1) of that Act.
#### Relief for acquisitions by bodies established for national purposes
@@ -8934,7 +8921,7 @@
##### 9
- (1) A land transaction is relieved from tax where an Order in Council is made under the [Parliamentary Constituencies Act 1986 (c. 56)](https://www.legislation.gov.uk/ukpga/1986/56) (orders specifying new parliamentary constituencies) and where—
- (1) A land transaction is relieved from tax where an Order in Council is made under the Parliamentary Constituencies Act 1986 (c. 56) (orders specifying new parliamentary constituencies) and where—
- (a) the seller is an existing local constituency association, and
@@ -8948,21 +8935,21 @@
- (3) In this paragraph—
- “existing local constituency association” (“*cymdeithas etholaeth leol sy’n bodoli eisoes*”) 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 immediately before the relevant date;
- “former parliamentary constituency” (“*etholaeth seneddol flaenorol*”) means an area that, for the purposes of parliamentary elections, was a constituency immediately before the relevant date but is no longer such a constituency after that date;
- “local constituency association” (“*cymdeithas etholaeth leol*”) 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 is or was the same or substantially the same as the area of a parliamentary constituency or two or more parliamentary constituencies;
- “new association” (“*cymdeithas newydd*”) 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 immediately after the relevant date;
- “new parliamentary constituency”(“*etholaeth seneddol newydd*”) means an area that, for the purposes of parliamentary elections, is such a constituency after the relevant date but was not such a constituency immediately before that date;
- “related body” (“*corff perthynol*”), in relation to a local constituency association, means a body (whether corporate or unincorporated) that is an organ of the political party concerned;
- “relevant date” (“*dyddiad perthnasol*”) means the date which the Order mentioned in sub-paragraph (1) comes into operation (see section 4(6) of the [Parliamentary Constituencies Act 1986 (c. 56)](https://www.legislation.gov.uk/ukpga/1986/56)).
- (4) For the purposes of this paragraph, 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.
- “*"existing local constituency association”*” (“*"*cymdeithas etholaeth leol sy'n bodoli eisoes**”") 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 immediately before the relevant date;
- “*"former parliamentary constituency”*” (“*"*etholaeth seneddol flaenorol**”") means an area that, for the purposes of parliamentary elections, was a constituency immediately before the relevant date but is no longer such a constituency after that date;
- “*"local constituency association”*” (“*"*cymdeithas etholaeth leol**”") 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 is or was the same or substantially the same as the area of a parliamentary constituency or two or more parliamentary constituencies;
- “*"new association”*” (“*"*cymdeithas newydd**”") 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 immediately after the relevant date;
- ““new parliamentary constituency””(““*etholaeth seneddol newydd*””) means an area that, for the purposes of parliamentary elections, is such a constituency after the relevant date but was not such a constituency immediately before that date;
- “*"related body”*” (“*"*corff perthynol**”"), in relation to a local constituency association, means a body (whether corporate or unincorporated) that is an organ of the political party concerned;
- “*"relevant date”*” (“*"*dyddiad perthnasol**”") means the date which the Order mentioned in sub-paragraph (1) comes into operation (see section 4(6) of the Parliamentary Constituencies Act 1986 (c. 56)).
- (4) For the purposes of this paragraph, 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.
#### Building societies relief
@@ -8970,11 +8957,11 @@
- (1) A land transaction is relieved from tax if it is effected by or in consequence of—
- (a) an amalgamation of two or more building societies under section 93 of the [Building Societies Act 1986 (c. 53)](https://www.legislation.gov.uk/ukpga/1986/53) (amalgamation), or
- (a) an amalgamation of two or more building societies under section 93 of the Building Societies Act 1986 (c. 53) (amalgamation), or
- (b) a transfer of engagements between building societies under section 94 of that Act (transfer of engagements).
- (2) In this paragraph, “building society” has the meaning given by section 119(1) of the [Building Societies Act 1986 (c. 53)](https://www.legislation.gov.uk/ukpga/1986/53).
- (2) In this paragraph, “*"building society”*” has the meaning given by section 119(1) of the Building Societies Act 1986 (c. 53).
#### Friendly societies relief
@@ -8982,11 +8969,11 @@
- (1) A land transaction is relieved from tax if it is effected by or in consequence of—
- (a) an amalgamation of two or more registered societies under section 82 of the [Friendly Societies Act 1974 (c. 46)](https://www.legislation.gov.uk/ukpga/1974/46) (the “1974 Act”) (amalgamation and transfer of engagements),
- (a) an amalgamation of two or more registered societies under section 82 of the Friendly Societies Act 1974 (c. 46) (the “*"1974 Act”*”) (amalgamation and transfer of engagements),
- (b) a transfer of engagements under that section,
- (c) an amalgamation of two or more friendly societies under section 85 of the [Friendly Societies Act 1992 (c. 40)](https://www.legislation.gov.uk/ukpga/1992/40) (the “1992 Act”) (amalgamation of friendly societies),
- (c) an amalgamation of two or more friendly societies under section 85 of the Friendly Societies Act 1992 (c. 40) (the “*"1992 Act”*”) (amalgamation of friendly societies),
- (d) a transfer of the engagements of a friendly society under section 86 of the 1992 Act (transfer of engagements by or to friendly society), or
@@ -8994,11 +8981,11 @@
- (2) In this paragraph—
- “appropriate authority” (“*awdurdod priodol*”) has the meaning given by section 119 of the 1992 Act;
- “friendly society” (“*cymdeithas gyfeillgar*”) has the meaning given by section 116 of the 1992 Act;
- “registered”(“*cofrestredig*”) in relation to a society, has the meaning given by section 111 of the 1974 Act.
- “*"appropriate authority”*” (“*"*awdurdod priodol**”") has the meaning given by section 119 of the 1992 Act;
- “*"friendly society”*” (“*"*cymdeithas gyfeillgar**”") has the meaning given by section 116 of the 1992 Act;
- ““registered””(““*cofrestredig*””) in relation to a society, has the meaning given by section 111 of the 1974 Act.
#### Co-operative and community benefit society and credit union relief
@@ -9006,7 +8993,7 @@
- (1) A land transaction is relieved from tax if it is effected by or in consequence of—
- (a) a transfer by a registered society of its engagements to another registered society in accordance with section 110 of the [Co-operative and Community Benefit Societies Act 2014 (c. 14)](https://www.legislation.gov.uk/ukpga/2014/14) (the “2014 Act”) (transfer of engagements between societies),
- (a) a transfer by a registered society of its engagements to another registered society in accordance with section 110 of the Co-operative and Community Benefit Societies Act 2014 (c. 14) (the “*"2014 Act”*”) (transfer of engagements between societies),
- (b) a conversion of a registered society into a company in accordance with section 112 of the 2014 Act (conversion of society into a company, amalgamation with a company etc.),
@@ -9014,7 +9001,7 @@
- (d) a transfer by a registered society of the whole of its engagements to a company in accordance with that section.
- (2) In sub-paragraph (1), “registered society” means a registered society within the meaning given by section 1(1) of the 2014 Act, but in paragraphs (b) to (d) of that sub-paragraph it does not include a society registered as a credit union under that Act by virtue of section 1 of the [Credit Unions Act 1979 (c. 34)](https://www.legislation.gov.uk/ukpga/1979/34) (the “1979 Act”).
- (2) In sub-paragraph (1), “*"registered society”*” means a registered society within the meaning given by section 1(1) of the 2014 Act, but in paragraphs (b) to (d) of that sub-paragraph it does not include a society registered as a credit union under that Act by virtue of section 1 of the Credit Unions Act 1979 (c. 34) (the “*"1979 Act”*”).
- (3) In so far as it applies to a credit union, sub-paragraph (1)(a) has effect as if the reference to section 110 of the 2014 Act were a reference to that section as it has effect subject to section 21 of the 1979 Act (additional provisions relating to amalgamations and transfers of engagements).
@@ -9034,11 +9021,11 @@
##### 3
In the Welsh text, in section 37 (overview of Part), in paragraph (f), for “ymwared” substitute “ryddhad”.
In the Welsh text, in section 37 (overview of Part), in paragraph (f), for ““ymwared”” substitute “ ryddhad ”.
##### 4
In Chapter 2 of Part 3, in the chapter heading omit “TAXPAYER”.
In Chapter 2 of Part 3, in the chapter heading omit ““TAXPAYER””.
##### 5
@@ -9046,7 +9033,7 @@
- (a) in subsection (1)—
- (i) in paragraph (a), for the words from “make” to the end substitute “demonstrate that the tax return is correct and complete,”;
- (i) in paragraph (a), for the words from ““make”” to the end substitute “ demonstrate that the tax return is correct and complete, ”;
- (ii) for paragraph (b) substitute—
@@ -9056,34 +9043,34 @@
- (b) in subsection (2)—
- (i) for “day”, in both places where it occurs, substitute “date”;
- (ii) in paragraph (b), for the words from “WRA” to the end substitute “the enquiry period ends (see section 43(1A)).”;
- (i) for ““day””, in both places where it occurs, substitute “ date ”;
- (ii) in paragraph (b), for the words from ““WRA”” to the end substitute “ the enquiry period ends (see section 43(1A)). ”;
- (c) for subsection (3) substitute—
> (3) The “relevant date” is the sixth anniversary of whichever is the later of—
> (3) The ““relevant date”” is the sixth anniversary of whichever is the later of—
> (a) the filing date, and
> (b) if the return has been made and subsequently amended under section 41, the date on which notice of amendment is given under that section.
> (3A) But if WRA specifies an earlier date under this subsection, the “relevant date” means the date specified.
> (3A) But if WRA specifies an earlier date under this subsection, the “*"relevant date”*” means the date specified.
;
- (d) in subsection (4)—
- (i) for “days” substitute “dates”;
- (ii) for “(3)(b)” substitute “(3A)”;
- (i) for ““days”” substitute “ dates ”;
- (ii) for ““(3)(b)”” substitute “ (3A) ”;
- (e) for subsection (5) substitute—
> (5) In this Chapter, “records” includes supporting documents (for example, accounts, books, deeds, contracts, vouchers and receipts).
> (5) In this Chapter, “*"records”*” includes supporting documents (for example, accounts, books, deeds, contracts, vouchers and receipts).
;
- (f) omit subsections (6) to (8);
- (g) the section heading becomes “Duty to keep and preserve records: cases where a tax return is required”.
- (g) the section heading becomes “ Duty to keep and preserve records: cases where a tax return is required ”.
##### 6
@@ -9095,14 +9082,14 @@
> (a) keep any records that may be needed to enable the buyer to demonstrate that no tax return is required to be made, and
> (b) preserve any records that may be needed for that purpose.
> (3) The records must be preserved until the end of the relevant date.
> (4) The “relevant date” is the sixth anniversary of the effective date of the transaction.
> (5) But if WRA specifies an earlier date under this subsection, the “relevant date” is the date specified.
> (4) The ““relevant date”” is the sixth anniversary of the effective date of the transaction.
> (5) But if WRA specifies an earlier date under this subsection, the ““relevant date”” is the date specified.
> (6) Different dates may be specified for different purposes under subsection (5).
> (7) In subsection (4), “effective date” has the same meaning as in LTTA.
> (7) In subsection (4), “*"effective date”*” has the same meaning as in LTTA.
##### 7
In section 39 (preservation of information etc.), after “38” insert “or 38A”.
In section 39 (preservation of information etc.), after ““38”” insert “ or 38A ”.
##### 8
@@ -9112,7 +9099,7 @@
##### 9
In section 40 (meaning of filing date), for “this Act” substitute “the Welsh Tax Acts”.
In section 40 (meaning of filing date), for ““this Act”” substitute “ the Welsh Tax Acts ”.
##### 10
@@ -9131,13 +9118,13 @@
;
- (b) in subsection (5)(a), after “return” insert “under section 41”.
- (b) in subsection (5)(a), after ““return”” insert “ under section 41 ”.
##### 12
In section 43 (notice of enquiry)—
- (a) in subsection (1), for the words from “period” to the end substitute “enquiry period (but see subsection (1B)).”;
- (a) in subsection (1), for the words from ““period”” to the end substitute “ enquiry period (but see subsection (1B)). ”;
- (b) after subsection (1) insert—
@@ -9150,9 +9137,9 @@
;
- (c) in subsection (2), at the beginning insert “For the purposes of subsection (1A),”;
- (d) in subsection (3), for the words “in consequence of an amendment of the tax return under section 41” substitute—
- (c) in subsection (2), at the beginning insert “ For the purposes of subsection (1A), ”;
- (d) in subsection (3), for the words ““in consequence of an amendment of the tax return under section 41”” substitute—
> (a) as a result of an amendment of the tax return under section 41, or
> (b) by virtue of subsection (1B)
@@ -9161,15 +9148,15 @@
- (e) after subsection (3) insert—
> (4) In subsection (1B), “further return” means a further return made under LTTA.
> (4) In subsection (1B), “*"further return”*” means a further return made under LTTA.
##### 13
In section 45 (amendment of tax return during enquiry to prevent loss of tax)—
- (a) in subsection (1)(a), for “payable” substitute “chargeable”;
- (b) in subsection (5), for “section 46” substitute “sections 45A and 46”.
- (a) in subsection (1)(a), for ““payable”” substitute “ chargeable ”;
- (b) in subsection (5), for ““section 46”” substitute “ sections 45A and 46 ”.
##### 14
@@ -9179,20 +9166,20 @@
> (1) This section applies if a person who has made a tax return amends it during the period when an enquiry into the return is in progress.
> (2) For the purposes of section 44 (scope of enquiry), the amendment is to be treated as something contained in the tax return.
> (3) The amendment takes effect on the day on which the enquiry is completed unless WRA states in the closure notice issued under section 50 that—
> (a) the amendment has been taken into account in formulating the amendments required to give effect to WRA’s conclusions, or
> (b) WRA’s conclusion is that the amendment is incorrect.
> (a) the amendment has been taken into account in formulating the amendments required to give effect to WRA's conclusions, or
> (b) WRA's conclusion is that the amendment is incorrect.
##### 15
In section 50 (completion of enquiry), in subsection (4), for “chargeable” substitute “payable”.
In section 50 (completion of enquiry), in subsection (4), for ““chargeable”” substitute “ payable ”.
##### 16
In section 52 (determination of tax chargeable if no tax return made), in subsection (5), for “as a result of ” substitute “in accordance with”.
In section 52 (determination of tax chargeable if no tax return made), in subsection (5), for ““as a result of ”” substitute “ in accordance with ”.
##### 17
In the Welsh text, in section 54 (assessment where loss of tax), in paragraph (c), for “ymwared” substitute “rhyddhad”.
In the Welsh text, in section 54 (assessment where loss of tax), in paragraph (c), for ““ymwared”” substitute “ rhyddhad ”.
##### 18
@@ -9200,9 +9187,9 @@
- (a) in subsection (1)(a)—
- (i) for “two” substitute “three”;
- (ii) for “(2) and (3)” substitute “(2), (3) and (3A)”;
- (i) for ““two”” substitute “ three ”;
- (ii) for ““(2) and (3)”” substitute “ (2), (3) and (3A) ”;
- (b) for subsection (3) substitute—
@@ -9221,13 +9208,13 @@
- (d) in subsection (4)—
- (i) after “made”, where it first occurs, insert “in the first or second case”;
- (ii) in paragraph (a), for “the tax return” substitute “a tax return”.
- (i) after ““made””, where it first occurs, insert “ in the first or second case ”;
- (ii) in paragraph (a), for ““the tax return”” substitute “ a tax return ”.
##### 19
In section 59 (time limits for WRA assessments), in subsection (7), in the definition of “relevant date”—
In section 59 (time limits for WRA assessments), in subsection (7), in the definition of ““relevant date””—
- (a) before paragraph (a), insert—
@@ -9235,7 +9222,7 @@
;
- (b) in paragraph (a), for “the tax return”, in the first place where it occurs, substitute “a tax return”.
- (b) in paragraph (a), for ““the tax return””, in the first place where it occurs, substitute “ a tax return ”.
##### 20
@@ -9243,33 +9230,33 @@
##### 21
In the Welsh text, in the heading to Chapter 7 of Part 3 (relief in case of excessive assessment or overpaid tax) for “YMWARED” substitute “RHYDDHAD”.
In the Welsh text, in the heading to Chapter 7 of Part 3 (relief in case of excessive assessment or overpaid tax) for ““YMWARED”” substitute “ RHYDDHAD ”.
##### 22
In the Welsh text, in section 62 (claims for relief in case of double assessment)—
- (a) for “ymwared” substitute “ryddhad”;
- (b) in the section heading, for “ymwared” substitute “rhyddhad”.
- (a) for ““ymwared”” substitute “ ryddhad ”;
- (b) in the section heading, for ““ymwared”” substitute “ rhyddhad ”.
##### 23
In section 63 (claims for relief for overpaid tax etc.)—
- (a) in subsection (1)(b), before “determination” insert “WRA”;
- (b) in the Welsh text, in subsection (2), for “ ei ryddhau ohono” substitute “ollwng y swm”;
- (a) in subsection (1)(b), before ““determination”” insert “ WRA ”;
- (b) in the Welsh text, in subsection (2), for ““ ei ryddhau ohono”” substitute “ ollwng y swm ”;
- (c) in subsection (3)—
- (i) in the Welsh text, for “ymwared” substitute “rhyddhad”;
- (ii) for “this Act” substitute “the Welsh Tax Acts”;
- (d) in subsection (4), for “64” substitute “63A”;
- (e) in the Welsh text, in the section heading, for “ymwared” substitute “rhyddhad”.
- (i) in the Welsh text, for ““ymwared”” substitute “ rhyddhad ”;
- (ii) for ““this Act”” substitute “ the Welsh Tax Acts ”;
- (d) in subsection (4), for ““64”” substitute “ 63A ”;
- (e) in the Welsh text, in the section heading, for ““ymwared”” substitute “ rhyddhad ”.
##### 24
@@ -9289,82 +9276,82 @@
> (b) the filing date for a tax return containing an assessment of tax chargeable calculated using the tax bands and tax rates specified in the rejected regulations.
> (5) A claim under subsection (1) is to be treated as if it were an amendment made under section 41 to the assessment of tax chargeable contained in a tax return.
> (6) In this section—
> - “chargeable transaction” (“*trafodiad trethadwy*”) has the meaning given by section 17 of LTTA;
> - “rejected regulations” (“*rheoliadau a wrthodir*”) has the meaning given by section 26(1)(a) of that Act.
> - “*"chargeable transaction”*” (“*"*trafodiad trethadwy**”") has the meaning given by section 17 of LTTA;
> - “*"rejected regulations”*” (“*"*rheoliadau a wrthodir**”") has the meaning given by section 26(1)(a) of that Act.
##### 25
- (1) In section 64 (disallowing claims for relief due to unjustified enrichment)—
- (a) after “63” insert “or 63A”;
- (a) after ““63”” insert “ or 63A ”;
- (b) in the Welsh text—
- (i) for “ymwared” substitute “ryddhad”;
- (ii) for “ryddhau’r” substitute “ollwng y”.
- (2) The section heading becomes “Disallowing claims for relief due to unjustified enrichment”.
- (i) for ““ymwared”” substitute “ ryddhad ”;
- (ii) for “ryddhau'r” substitute “ ollwng y ”.
- (2) The section heading becomes “ Disallowing claims for relief due to unjustified enrichment ”.
##### 26
In the Welsh text, in section 65 (unjustified enrichment: further provision)—
- (a) in subsection (1)(a), for “y byddai person o’r fath i’w ryddhau ohono” substitute “i’w ollwng”;
- (b) in subsection (2)(a), for “ei ryddhau ohono” substitute “ollwng y swm”.
- (a) in subsection (1)(a), for “y byddai person o'r fath i'w ryddhau ohono” substitute “i'w ollwng”;
- (b) in subsection (2)(a), for ““ei ryddhau ohono”” substitute “ ollwng y swm ”.
##### 27
In section 66 (unjustified enrichment: reimbursement arrangements)—
- (a) in subsection (2), after “63” insert “or 63A”;
- (b) in the Welsh text, in subsection (2)(a), for “ryddhau” substitute “ollwng”.
- (a) in subsection (2), after ““63”” insert “ or 63A ”;
- (b) in the Welsh text, in subsection (2)(a), for ““ryddhau”” substitute “ ollwng ”.
##### 28
In section 67 (cases in which WRA need not give effect to a claim)—
- (a) in the Welsh text, in subsection (1), for “ymwared” substitute “ryddhad”;
- (b) in subsection (2)(a), after “claim” insert “or election”;
- (c) in subsection (2)(b), after “claim” insert “or election”;
- (a) in the Welsh text, in subsection (1), for ““ymwared”” substitute “ ryddhad ”;
- (b) in subsection (2)(a), after ““claim”” insert “ or election ”;
- (c) in subsection (2)(b), after ““claim”” insert “ or election ”;
- (d) after subsection (2) insert—
> (2A) In subsection (2), “election” means an election made under paragraph 3, 5 or 12 of Schedule 15 to LTTA (social housing reliefs).
> (2A) In subsection (2), “*"election”*” means an election made under paragraph 3, 5 or 12 of Schedule 15 to LTTA (social housing reliefs).
;
- (e) in the Welsh text, in subsection (3), for “ymwared” substitute “rhyddhad”;
- (f) in the Welsh text, in subsection (4), for “ymwared” substitute “rhyddhad” (in both places where it appears).
- (e) in the Welsh text, in subsection (3), for ““ymwared”” substitute “ rhyddhad ”;
- (f) in the Welsh text, in subsection (4), for ““ymwared”” substitute “ rhyddhad ” (in both places where it appears).
##### 29
In section 68 (making claims)—
- (a) in subsection (1), for “or 63” substitute “, 63 or 63A”;
- (b) in the Welsh text, in subsection (3)(a) for “ryddhau” substitute “ollwng”.
- (a) in subsection (1), for ““or 63”” substitute “ , 63 or 63A ”;
- (b) in the Welsh text, in subsection (3)(a) for ““ryddhau”” substitute “ ollwng ”.
##### 30
In section 69 (duty to keep and preserve records), in subsection (1), for “or 63” substitute “, 63 or 63A”.
In section 69 (duty to keep and preserve records), in subsection (1), for ““or 63”” substitute “ , 63 or 63A ”.
##### 31
In section 71 (amendment of claim by claimant), in subsection (1), for “or 63” substitute “, 63 or 63A”.
In section 71 (amendment of claim by claimant), in subsection (1), for ““or 63”” substitute “ , 63 or 63A ”.
##### 32
In the Welsh text, in section 73 (giving effect to claims and amendments), in subsection (1)(b) for “ryddhau’r hawlydd o dreth ddatganoledig neu ei had-dalu iddo” substitute “ollwng y swm o dreth ddatganoledig neu ei ad-dalu i’r hawlydd”.
In the Welsh text, in section 73 (giving effect to claims and amendments), in subsection (1)(b) for “ryddhau'r hawlydd o dreth ddatganoledig neu ei had-dalu iddo” substitute “ollwng y swm o dreth ddatganoledig neu ei ad-dalu i'r hawlydd”.
##### 33
In the Welsh text, in section 77 (giving effect to amendments under section 75), in subsection (1)(b) for “ryddhau’r hawlydd ohoni” substitute “ei gollwng”.
In the Welsh text, in section 77 (giving effect to amendments under section 75), in subsection (1)(b) for “ryddhau'r hawlydd ohoni” substitute “ ei gollwng ”.
##### 34
@@ -9376,43 +9363,43 @@
;
- (b) in subsection (4), after “63” insert “or 63A”.
- (b) in subsection (4), after ““63”” insert “ or 63A ”.
##### 35
In section 90 (requiring information and documents in relation to a group of undertakings)—
- (a) in subsection (1) for “another undertaking (a ”subsidiary undertaking”)” substitute “a subsidiary undertaking”;
- (b) in subsection (4) for the words from “section 1162” to the end substitute “sections 1161 and 1162 of, and Schedule 7 to, the [Companies Act 2006 (c. 46)](https://www.legislation.gov.uk/ukpga/2006/46), but in the application of this section in relation to land transaction tax, section 1161(1)(b) of that 2006 Act has effect as if the words “carrying on a trade or business, with or without a view to profit” were omitted.”
- (a) in subsection (1) for ““another undertaking (a ””subsidiary undertaking”)” substitute “ a subsidiary undertaking ”;
- (b) in subsection (4) for the words from ““section 1162”” to the end substitute “ sections 1161 and 1162 of, and Schedule 7 to, the Companies Act 2006 (c. 46), but in the application of this section in relation to land transaction tax, section 1161(1)(b) of that 2006 Act has effect as if the words ““carrying on a trade or business, with or without a view to profit”” were omitted. ”
##### 36
In section 95 (complying with an information notice), in subsection (1)(a) after “notice” insert “(or such longer period as may be agreed to by WRA and the person)”.
In section 95 (complying with an information notice), in subsection (1)(a) after ““notice”” insert “ (or such longer period as may be agreed to by WRA and the person) ”.
##### 37
In the Welsh text, in section 100 (taxpayer notices following a tax return), in subsection (5)(c), for “ymwared” substitute “rhyddhad”.
In the Welsh text, in section 100 (taxpayer notices following a tax return), in subsection (5)(c), for ““ymwared”” substitute “ rhyddhad ”.
##### 38
In section 116(1) (no review or appeal of tribunal approvals), for “the [Tribunals, Courts and Enforcement Act 2007 (c. 15)](https://www.legislation.gov.uk/ukpga/2007/15)” substitute “TCEA”.
In section 116(1) (no review or appeal of tribunal approvals), for ““the Tribunals, Courts and Enforcement Act 2007 (c. 15)”” substitute “ TCEA ”.
##### 39
In section 118 (penalty for failure to make tax return on or before filing date), after “A person” insert “who is required to make a tax return”.
In section 118 (penalty for failure to make tax return on or before filing date), after ““A person”” insert “ who is required to make a tax return ”.
##### 40
In section 119 (penalty for failure to make tax return within 6 months from filing date), in subsection (1), after “A person” insert “who is required to make a tax return”.
In section 119 (penalty for failure to make tax return within 6 months from filing date), in subsection (1), after ““A person”” insert “ who is required to make a tax return ”.
##### 41
In section 120 (penalty for failure to make tax return within 12 months from filing date)—
- (a) in subsection (1), after “A person” insert “who is required to make a tax return”, and
- (b) in subsection (2), for the words from “the greater of” to the end substitute
- (a) in subsection (1), after ““A person”” insert “ who is required to make a tax return ”, and
- (b) in subsection (2), for the words from ““the greater of”” to the end substitute
> —
> (a) £300, or
@@ -9427,7 +9414,7 @@
> (2) The penalty is 5% of the amount of unpaid tax.
> (3) In this section and in section 122A, the penalty date in respect of an amount of devolved tax specified in column 3 of Table A1 is the date specified in column 4.
| ***Item*** | ***Devolved Tax*** | ***Amount of Tax*** | ***Penalty date*** |
| **Item** | **Devolved Tax** | **Amount of Tax** | **Penalty date** |
| --- | --- | --- | --- |
| 1 | Land transaction tax | Amount (or additional amount) payable as a result of a tax return made by the buyer in a land transaction (unless the amount falls within item 8 or 9). | The date falling 30 days after the filing date for the return. |
| 2 | Landfill disposals tax | Amount stated in a tax return. | The date falling 30 days after the filing date for the return. |
@@ -9441,7 +9428,7 @@
| 10 | Landfill disposals tax | Amount charged by a charging notice issued under section 48 or 49 of LDTA. | The date falling 30 days after the date by which the amount is required to be paid. |
| 11 | Any devolved tax | A postponed amount within the meaning of section 181G(2). | The date falling 30 days after the date on which the postponement period ends (see section 181G as to the calculation of postponement periods). |
> (4) In this section, “deferred amount” has the same meaning as in section 58(6)(a) of LTTA.
> (4) In this section, “*"deferred amount”*” has the same meaning as in section 58(6)(a) of LTTA.
> (5) The Welsh Ministers may by regulations modify Table A1.
> (122A)
> (1) This section applies where a person is liable to a penalty under section 122 in respect of a failure to pay an amount of devolved tax on or before the penalty date for that amount.
@@ -9458,73 +9445,73 @@
In section 125 (special reduction in penalty), after subsection (2) insert—
> (2A) But “special circumstances” may include the fact that WRA has agreed that a person may pay an amount of devolved tax in instalments over an agreed period.
> (2A) But “*"special circumstances”*” may include the fact that WRA has agreed that a person may pay an amount of devolved tax in instalments over an agreed period.
##### 45
In section 126 (reasonable excuse for failure to make tax return or pay tax), in subsection (2), after “section 122” insert “or 122A”.
In section 126 (reasonable excuse for failure to make tax return or pay tax), in subsection (2), after ““section 122”” insert “ or 122A ”.
##### 46
In section 127 (assessment of penalties)—
- (a) in subsection (5), after “section “122” insert “or 122A”, and
- (b) in subsection (6), after “section 122” insert “or 122A”.
- (a) in subsection (5), after “section ““122”” insert “ or 122A ”, and
- (b) in subsection (6), after ““section 122”” insert “ or 122A ”.
##### 47
In section 128 (time limit for assessment of penalties under Chapter 2)—
- (a) in subsection (1), omit the words “in respect of any amount”;
- (b) in subsection (4), for “122(2)” substitute “122(3)”;
- (c) in subsection (5), omit the words “the later of the following periods”.
- (a) in subsection (1), omit the words ““in respect of any amount””;
- (b) in subsection (4), for ““122(2)”” substitute “ 122(3) ”;
- (c) in subsection (5), omit the words ““the later of the following periods””.
##### 48
In section 130 (amount of penalty for inaccuracy in document given to WRA)—
- (a) in subsection (1), after “for a deliberate inaccuracy is” insert “an amount not exceeding”, and
- (b) in subsection (2), after “for a careless inaccuracy is” insert “an amount not exceeding”.
- (a) in subsection (1), after ““for a deliberate inaccuracy is”” insert “ an amount not exceeding ”, and
- (b) in subsection (2), after ““for a careless inaccuracy is”” insert “ an amount not exceeding ”.
##### 49
In section 132 (penalty for deliberate inaccuracy in document given to WRA by another person), in subsection (4), after “under this section is” insert “an amount not exceeding”.
In section 132 (penalty for deliberate inaccuracy in document given to WRA by another person), in subsection (4), after ““under this section is”” insert “ an amount not exceeding ”.
##### 50
In section 133 (penalty for failure to notify under-assessment or under-determination), in subsection (3), after “under this section is” insert “an amount not exceeding”.
In section 133 (penalty for failure to notify under-assessment or under-determination), in subsection (3), after ““under this section is”” insert “ an amount not exceeding ”.
##### 51
In section 141 (assessment of penalties under Chapter 3), in subsection (5), omit the words “the later of the following periods”.
In section 141 (assessment of penalties under Chapter 3), in subsection (5), omit the words ““the later of the following periods””.
##### 52
In the Welsh text, in section 142 (interpretation of Chapter 3), in paragraph (c), for “ymwared” substitute “ryddhad” (in both places it appears).
In the Welsh text, in section 142 (interpretation of Chapter 3), in paragraph (c), for ““ymwared”” substitute “ ryddhad ” (in both places it appears).
##### 53
In section 143 (penalty for failure to keep and preserve records), in subsection (1), after “38” insert “, 38A”.
In section 143 (penalty for failure to keep and preserve records), in subsection (1), after ““38”” insert “ , 38A ”.
##### 54
In section 144 (reasonable excuse for failure to keep and preserve records), in subsection (1), after “38” insert “, 38A”.
In section 144 (reasonable excuse for failure to keep and preserve records), in subsection (1), after ““38”” insert “ , 38A ”.
##### 55
In section 145 (assessment of penalties under section 143), in subsection (2), after “38” insert “, 38A”.
In section 145 (assessment of penalties under section 143), in subsection (2), after ““38”” insert “ , 38A ”.
##### 56
After section 154 (payment of penalties) insert—
> (154A)
> (1) If a person liable to a penalty (“P”) has died, any penalty that could have been assessed on P may be assessed on the personal representatives of P.
> (2) Any penalty assessed accordingly is to be paid out of P’s estate.
> (1) If a person liable to a penalty (““P””) has died, any penalty that could have been assessed on P may be assessed on the personal representatives of P.
> (2) Any penalty assessed accordingly is to be paid out of P's estate.
##### 57
@@ -9547,7 +9534,7 @@
> (i) a determination under section 52, or
> (ii) an assessment under section 54 or 55,
> made in place of a tax return which was required to be made.
> (2) If the amount is not paid before the late payment interest start date, the amount carries interest (referred to in this Part as “late payment interest”) at the late payment interest rate for the period—
> (2) If the amount is not paid before the late payment interest start date, the amount carries interest (referred to in this Part as “*"late payment interest”*”) at the late payment interest rate for the period—
> (a) beginning with the late payment interest start date, and
> (b) ending with the date of payment.
> (3) The late payment interest start date is —
@@ -9556,16 +9543,16 @@
> (4) But where section 160 applies the late payment interest start date is the date specified in that section.
> (157A)
> (1) This section applies to an amount of penalty required to be paid under Part 5 of this Act.
> (2) If the amount is not paid on or before the date by which it is required to be paid, the amount carries interest (referred to in this Part as “late payment interest”) at the late payment interest rate for the period—
> (2) If the amount is not paid on or before the date by which it is required to be paid, the amount carries interest (referred to in this Part as “*"late payment interest”*”) at the late payment interest rate for the period—
> (a) beginning with the following day, and
> (b) ending with the date of payment.
> (3) But where section 160 applies, the late payment interest start date is the date specified in that section.
> (158)
> (1) This section applies for the purposes of sections 157 and 157A.
> (2) Late payment interest is not payable on late payment interest.
> (3) A late payment interest start date may be a non-business day within the meaning of section 92 of the [Bills of Exchange Act 1882 (c. 61)](https://www.legislation.gov.uk/ukpga/1882/61).
> (3) A late payment interest start date may be a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882 (c. 61).
> (4) The date of payment, in relation to an amount, includes the date on which the amount is set off against an amount payable by WRA.
> (5) “Late payment interest rate” has the meaning given by section 163(1).
> (5) “*"Late payment interest rate”*” has the meaning given by section 163(1).
##### 59
@@ -9573,14 +9560,14 @@
##### 60
In section 169 (proceedings in magistrates’ court), after subsection (5) insert—
In section 169 (proceedings in magistrates' court), after subsection (5) insert—
> (5A) Where a relevant amount includes an amount of land transaction tax in respect of which WRA has agreed to defer payment, any deferral period in respect of that amount (as determined under Chapter 3 of Part 6 of LTTA) must be ignored in calculating the period of 12 months referred to in subsection (4) or (5).
> (5B) Where a relevant amount includes an amount treated as a postponed amount by virtue of section 181G, any postponement period in respect of that amount (as determined under that section) must be ignored in calculating the period of 12 months referred to in subsection (4) or (5).
##### 61
In section 170(1) (enforcement by taking control of goods), for “the [Tribunals, Courts and Enforcement Act 2007 (c. 15)](https://www.legislation.gov.uk/ukpga/2007/15)” substitute “TCEA”.
In section 170(1) (enforcement by taking control of goods), for ““the Tribunals, Courts and Enforcement Act 2007 (c. 15)”” substitute “ TCEA ”.
##### 62
@@ -9601,7 +9588,7 @@
> (1) This section applies where a person—
> (a) gives a notice of request to review an appealable decision, or
> (b) makes an appeal against such a decision.
> (2) If the person thinks that an excessive amount of devolved tax has been charged on the person in consequence of the decision, the person may make a request to WRA to postpone the recovery of the amount of devolved tax that the person thinks is excessive (and interest on that amount) (a “postponement request”).
> (2) If the person thinks that an excessive amount of devolved tax has been charged on the person in consequence of the decision, the person may make a request to WRA to postpone the recovery of the amount of devolved tax that the person thinks is excessive (and interest on that amount) (a ““postponement request””).
> (3) A postponement request must specify—
> (a) the amount of devolved tax in respect of which the request is made, and
> (b) the reasons why the person making the request thinks the amount is excessive.
@@ -9628,8 +9615,8 @@
> (a) had a reasonable excuse for not making the request during the period specified in section 174 or 179, as the case may be, and
> (b) subsequently made the request without unreasonable delay.
> (181E)
> (1) A person who makes a postponement request may, within the period of 30 days beginning with the date WRA issues the notice of its decision on the request, apply to the tribunal for a review of WRA’s decision.
> (2) The tribunal may determine that WRA’s decision is to be—
> (1) A person who makes a postponement request may, within the period of 30 days beginning with the date WRA issues the notice of its decision on the request, apply to the tribunal for a review of WRA's decision.
> (2) The tribunal may determine that WRA's decision is to be—
> (a) affirmed,
> (b) cancelled, or
> (c) replaced by another decision that WRA could have made.
@@ -9667,7 +9654,7 @@
> (5) Where a postponed amount falling within subsection (2)(b) is varied under section 181F, the varied amount is to be treated as the postponed amount from the date of the variation.
> (6) In this section, references to a postponement request being granted include cases where the request is granted in part.
> (181H)
> (1) Where a person makes (in accordance with TCEA) a further appeal against the tribunal’s determination of an appeal against an appealable decision, sections 181B, 181C, 181E, 181F and 181G apply to the further appeal as they apply to an appeal, but as if the following modifications were made.
> (1) Where a person makes (in accordance with TCEA) a further appeal against the tribunal's determination of an appeal against an appealable decision, sections 181B, 181C, 181E, 181F and 181G apply to the further appeal as they apply to an appeal, but as if the following modifications were made.
> (2) Section 181B has effect as if for subsections (3), (4) and (5), there were substituted—
> (3) A postponement request must specify—
> (a) the amount of devolved tax in respect of which the request is made,
@@ -9682,17 +9669,17 @@
> (b) has reason to believe that it is only in respect of part of the amount (and interest on that part) that recovery would cause the person serious financial hardship,
> WRA may grant the request in respect of such part of the amount as it thinks appropriate.
> (3) Section 181C has effect as if—
> (a) in subsection (3), for “before the end of the period specified in section 179 for making the appeal” there were substituted “on or before the day on which the further appeal is made”, and
> (a) in subsection (3), for ““before the end of the period specified in section 179 for making the appeal”” there were substituted “ on or before the day on which the further appeal is made ”, and
> (b) subsection (4) were omitted.
> (4) Section 181F has effect as if, in subsection (1), for paragraph (a) there were substituted—
> (a) a postponement request has been granted by—
> (i) the Upper Tribunal where the request relates to a further appeal made under section 11 of TCEA, or
> (ii) the relevant appellate court specified under subsection (11) of section 13 of TCEA where the request relates to a further appeal made under that section,
> (5) Section 181G has effect as if—
> (a) in subsection (2)(a) the words “(unless the request is a late request made in accordance with section 181C(2) or (4) or section 181D)” were omitted, and
> (a) in subsection (2)(a) the words ““(unless the request is a late request made in accordance with section 181C(2) or (4) or section 181D)”” were omitted, and
> (b) for subsection (4)(b) there were substituted—
> (b) ends on the day on which the further appeal is determined.
> (6) The references in sections 181E(1) and (2), 181F(5) and (6) and 181G(2), (3) and (4) to “the tribunal” are to be read as references to—
> (6) The references in sections 181E(1) and (2), 181F(5) and (6) and 181G(2), (3) and (4) to ““the tribunal”” are to be read as references to—
> (a) the Upper Tribunal in a case where the further appeal is made under section 11 of TCEA, or
> (b) the relevant appellate court specified under subsection (11) of section 13 of TCEA in a case where the further appeal is made under that section.
> (181I)
@@ -9703,7 +9690,7 @@
##### 64
In section 182 (payment of penalties in the event of a review or appeal), in subsection (3) after “176(5)” insert “, (6)”.
In section 182 (payment of penalties in the event of a review or appeal), in subsection (3) after ““176(5)”” insert “ , (6) ”.
##### 65
@@ -9713,10 +9700,10 @@
> (1) This section applies where—
> (a) on an appeal against an appealable decision, the tribunal determines that an amount of devolved tax paid by a person is to be repaid by WRA, and
> (b) WRA applies under section 11(4) or 13(4) of TCEA for permission to make a further appeal.
> (2) When applying for permission WRA may request the tribunal’s permission to postpone repayment of the amount until—
> (2) When applying for permission WRA may request the tribunal's permission to postpone repayment of the amount until—
> (a) the further appeal is determined, or
> (b) WRA obtains adequate security for the amount.
> (3) The relevant tribunal or court must grant WRA’s request if it—
> (3) The relevant tribunal or court must grant WRA's request if it—
> (a) gives permission for the further appeal to proceed, and
> (b) thinks that granting the request is necessary to protect the revenue.
> (4) If permission to make a further appeal is not given—
@@ -9725,8 +9712,11 @@
> the fact that WRA made a request under subsection (2) when making the application for permission does not prevent WRA from making another request under that subsection if WRA applies for permission to make a further appeal under section 11(4)(b) or 13(4)(b) of TCEA.
> (5) But otherwise, the decision of the relevant tribunal or court on a request under subsection (2) is final.
> (6) In this section—
> - “relevant tribunal or court” (“*tribiwnlys neu lys berthnasol*”) means whichever of the following WRA applies to for permission to make a further appeal— the First-tier Tribunal; the Upper Tribunal; the relevant appellate court;
> - “relevant appellate court” (“*llys apeliadol perthnasol*”) means the court specified as such under section 13(11) of TCEA.
> - “*"relevant tribunal or court”*” (“*"*tribiwnlys neu lys berthnasol**”") means whichever of the following WRA applies to for permission to make a further appeal—
> 1. the First-tier Tribunal;
> 2. the Upper Tribunal;
> 3. the relevant appellate court;
> - “*"relevant appellate court”*” (“*"*llys apeliadol perthnasol**”") means the court specified as such under section 13(11) of TCEA.
##### 66
@@ -9740,22 +9730,22 @@
> (d) Part 7 (other than sections 168, 169 and 170);
> (e) Part 8 (other than sections 172(1)(d) and (e), (3)(b) and (c), (4), (5) and (6), 182 and 183);
> (f) sections 190 and 191.
> (2) But Part 4 does not apply to Her Majesty in Her private capacity (within the meaning of section 38(3) of the [Crown Proceedings Act 1947 (c. 44)](https://www.legislation.gov.uk/ukpga/1947/44)).
> (2) But Part 4 does not apply to Her Majesty in Her private capacity (within the meaning of section 38(3) of the Crown Proceedings Act 1947 (c. 44)).
##### 67
In section 189 (regulations), in subsection (2), after “18(2)” insert “122(5),”.
In section 189 (regulations), in subsection (2), after ““18(2)”” insert “ 122(5), ”.
##### 68
In section 190 (issue of notices by WRA)—
- (a) in subsection (1), for “this Act, or of regulations made under it,” substitute “the Welsh Tax Acts, or of regulations made under them,”;
- (a) in subsection (1), for ““this Act, or of regulations made under it,”” substitute “ the Welsh Tax Acts, or of regulations made under them, ”;
- (b) after subsection (1) insert—
> (1A) A notice must specify the day on which it is issued.
> (1B) If the person to whom the notice is issued cannot reasonably ascertain the effect of the notice because of a mistake in it or omission from it (including a mistake or omission relating to the person’s name), the notice is to be treated as not having been issued.
> (1B) If the person to whom the notice is issued cannot reasonably ascertain the effect of the notice because of a mistake in it or omission from it (including a mistake or omission relating to the person's name), the notice is to be treated as not having been issued.
##### 69
@@ -9763,9 +9753,9 @@
- (a) in subsection (1)—
- (i) for “this Act, or of regulations made under it” substitute “the Welsh Tax Acts, or of regulations made under them,”;
- (ii) after “person” insert “to make a tax return or”;
- (i) for ““this Act, or of regulations made under it”” substitute “ the Welsh Tax Acts, or of regulations made under them, ”;
- (ii) after ““person”” insert “ to make a tax return or ”;
- (b) for subsection (2) substitute—
@@ -9778,40 +9768,28 @@
;
- (c) in subsection (3), for “this Act” substitute “the Welsh Tax Acts”.
- (c) in subsection (3), for ““this Act”” substitute “ the Welsh Tax Acts ”.
##### 70
In section 192(2) (interpretation), in the appropriate places, insert—
> - “buyer” (“*prynwr*”) has the same meaning as in LTTA;
> - “land transaction” (“*trafodiad tir*”) has the same meaning as in LTTA;
> - “LTTA” (“*DTTT*”) means the [Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 0)](https://www.legislation.gov.uk/anaw/2017/1);
> - “TCEA” (“*DTLlG*”) means the [Tribunals, Courts and Enforcement Act 2007 (c. 15)](https://www.legislation.gov.uk/ukpga/2007/15);
> - “the Welsh Tax Acts” (“*Deddfau Trethi Cymru*”) means— this Act, and LTTA.
> “*"buyer”*” (“*"*prynwr**”") has the same meaning as in LTTA;
> “*"land transaction”*” (“*"*trafodiad tir**”") has the same meaning as in LTTA;
> “*"LTTA”*” (“*"*DTTT**”") means the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (anaw 0);
> “*"TCEA”*” (“*"*DTLlG**”") means the Tribunals, Courts and Enforcement Act 2007 (c. 15);
> “*"the Welsh Tax Acts”*” (“*"*Deddfau Trethi Cymru**”") means—
> (a) this Act, and
> (b) LTTA.
##### 71
In section 193 (index of defined expressions), in Table 1, at the appropriate places insert the defined expressions in the following table.
| Arrangement (in relation to the general antiavoidance rule) (“*trefniant*”) | section 81B(3)A |
| --- | --- |
| Artificial (in relation to the general antiavoidance rule) (“*artiffisial*”) | section 81C |
| Buyer (“*prynwr*”) | section 192(2) |
| Final counteraction notice (“*hysbysiad gwrthweithio terfynol*”) | section 81G |
| General anti-avoidance rule (“*rheol gwrthweithio osgoi trethi cyffredinol*”) | section 81A(2) |
| Land transaction (“*trafodiad tir*”) | section 192(2) |
| LTTA (”*DTTT*”) | section 192(2) |
| Proposed counteraction notice (“*hysbysiad gwrthweithio arfaethedig*”) | section 81F |
| Tax advantage (“*mantais drethiannol*”) | section 81D |
| Tax avoidance arrangement (“*trefniant osgoi trethi*”) | section 81B |
| TCEA (“*DTLlG*”) | section 192(2) |
| Welsh Tax Acts (“*Deddfau Trethi Cymru*”) | section 192(2) |
#### Overview of Act
#### Land transaction tax
@@ -10435,529 +10413,3 @@
[^key-be85bee0cf3152bd6ca52a30d0861f06]: Sch. 11 para. 18(4)(a)(5) in force at 18.10.2017 for specified purposes by [S.I. 2017/953](https://www.legislation.gov.uk/wsi/2017/953), [art. 2(e)(iv)](https://www.legislation.gov.uk/wsi/2017/953/article/2/e/iv)
[^key-17b152c9c523a047b4edb84bcf6c7285]: [Sch. 15 para. 2](https://www.legislation.gov.uk/anaw/2017/1/schedule/15/paragraph/2) in force at 1.4.2018 by [S.I. 2018/34](https://www.legislation.gov.uk/wsi/2018/34), [art. 3](https://www.legislation.gov.uk/wsi/2018/34/article/3)
### Meaning of “charity”
##### 2A
For the purpose of this Schedule, “charity” means a body of persons or trust that—
- (a) is established for charitable purposes only,
- (b) meets the jurisdiction condition (see paragraph 2B),
- (c) meets the registration condition (see paragraph 2C), and
- (d) meets the management condition (see paragraph 2D).
### Meaning of “charity”: jurisdiction condition
##### 2B
- (1) A body of persons or trust meets the jurisdiction condition if it falls to be subject to the control of a relevant UK court in the exercise of its jurisdiction with respect to charities.
- (2) A “relevant UK court” means—
- (a) the High Court,
- (b) the Court of Session, or
- (c) the High Court in Northern Ireland.
### Meaning of “charity”: registration condition
##### 2C
- (1) A body of persons or trust meets the registration condition if—
- (a) in the case of a body of persons or trust that is a charity within the meaning of section 10 of the Charities Act [2011 (c. 25)](https://www.legislation.gov.uk/ukpga/2011/25), condition A is met, and
- (b) in the case of any other body of persons or trust, condition B is met.
- (2) Condition A is that the body of persons or trust has complied with any requirement to be registered in the register of charities kept under section 29 of the Charities Act 2011.
- (3) Condition B is that the body of persons or trust has complied with any requirement to be registered in a register corresponding to that mentioned in condition A kept under the law of Scotland or Northern Ireland.
### Meaning of “charity”: management condition
##### 2D
- (1) A body of persons or trust meets the management condition if its managers are fit and proper persons to be managers of the body or trust.
- (2) In this paragraph “managers”, in relation to a body of persons or trust, means the persons having the general control and management of the administration of the body or trust.
- (3) Sub-paragraph (4) applies in relation to any period throughout which the management condition is not met.
- (4) The management condition is treated as met if WRA consider that—
- (a) the failure to meet the condition has not prejudiced the charitable purposes of the body or trust, or
- (b) it is just and reasonable in all the circumstances for the condition to be treated as met throughout the period.
### Meaning of emergency, public authority and relevant restriction
##### 38
- (1) For the purposes of this Schedule—
- “*emergency*” (“**argyfwng**”) has the meaning given by section 19 of the Civil Contingencies Act [2004 (c. 36)](https://www.legislation.gov.uk/ukpga/2004/36) and is not restricted to events or situations in relation to which powers are exercised under that Act;
- “*public authority*” (“**awdurdod cyhoeddus**”) means a person carrying out a function of a public nature;
- “*relevant restriction*” (“**cyfyngiad perthnasol**”) means a prohibition or restriction of any activity by an enactment, or by a public authority by virtue of an enactment, for the purpose of preventing, controlling or mitigating the effects of an emergency.
- (2) In sub-paragraph (1) “*relevant restriction*” does not include a prohibition or restriction that ceased to have effect before 12 July 2024.
## SCHEDULE 21A
## PART 1 — Key terms
### Meaning of transaction land
##### 1
In this Schedule, “*transaction land*”, in relation to a land transaction, means land a chargeable interest in which is the subject matter of the transaction.
### Meaning of special tax site
##### 2
In this Schedule, “*special tax site*” means the area designated as a special area by the Designation of Special Tax Sites (Celtic Freeport) Regulations 2024 as made on 16 October 2024.
### Meaning of qualifying land
##### 3
For the purposes of this Schedule, transaction land is “qualifying land” if, on the effective date of the land transaction—
- (a) it is situated in a special tax site, and
- (b) the buyer intends it to be used exclusively in a qualifying manner.
### Meaning of qualifying manner
##### 4
- (1) For the purposes of this Schedule, transaction land is used in a qualifying manner if it is used in one or more of the following ways—
- (a) it is used by the buyer or a connected person in the course of a commercial trade or profession;
- (b) it is developed or redeveloped by the buyer or a connected person for use (by any person) in the course of a commercial trade or profession;
- (c) it is exploited by the buyer or a connected person, in the course of a commercial trade or profession, as a source of rents or other receipts (other than excluded rents).
- (2) But transaction land is not used in a qualifying manner to the extent that it is—
- (a) used as a dwelling or as the garden or grounds of a dwelling (including any building or other structure on such land),
- (b) developed or redeveloped to become residential property,
- (c) exploited as a source of rents or other receipts payable by a person using the land otherwise than in a qualifying manner, or
- (d) held (as stock of the business) for resale without development or redevelopment.
- (3) Despite sub-paragraph (2), transaction land is used in a qualifying manner to the extent it is used as a dwelling or as the garden or grounds of a dwelling that is provided to an individual and the individual’s family for the better performance of the individual’s employment duties as caretaker of, or as a member of the security staff for, the transaction land or any part of it.
- (4) For the purposes of this paragraph, use of land in the course of a commercial trade or profession includes use of land for a purpose that is ancillary to the use of other land which—
- (a) is situated in a special tax site, and
- (b) is being used, or developed or redeveloped, in the course of a commercial trade or profession.
- (5) The references in this paragraph to doing something in the course of a commercial trade or profession include doing something in the course of a property rental business.
- (6) In this paragraph—
- “*commercial*” (“**masnachol**”) in relation to a trade or profession, means carried on—on a commercial basis, andwith a view to profit;
- “*excluded rents*” (“**rhenti wedi eu heithrio**”) means income within any of classes 1 to 6 in the table in section 605(2) of the Corporation Tax Act [2010 (c. 4)](https://www.legislation.gov.uk/ukpga/2010/4);
- “*property rental business*” (“**busnes rhentu eiddo**”) has the same meaning as a “property business” in the Income Tax (Trading and Other Income) Act [2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5) (see section 263(6) of that Act).”
## PART 2 — The Relief
### Meaning of relief period
##### 5
In this Part, the “*relief period*” means the period beginning with 26 November 2024 and ending with 30 September 2029.
### Full relief
##### 6
- (1) This paragraph applies if—
- (a) 100% of the chargeable consideration for a land transaction is attributable to qualifying land, and
- (b) the effective date of the transaction is within the relief period.
- (2) The land transaction is relieved from tax.
### Partial relief
##### 7
- (1) This paragraph applies if—
- (a) the proportion of the chargeable consideration for a land transaction attributable to qualifying land (“the relevant proportion”) is less than 100%, and
- (b) the effective date of the transaction is within the relief period.
- (2) The tax chargeable in respect of the land transaction is reduced by a proportion equivalent to the relevant proportion.
### Attributing chargeable consideration to land
##### 8
- (1) For the purposes of this Schedule, the consideration attributable to qualifying land must be determined on a just and reasonable basis.
- (2) Sub-paragraphs (3) and (4) apply if less than 100% of the chargeable consideration attributable to transaction land situated in a special tax site (“the tax site consideration”) is attributable to land that satisfies the condition in paragraph 3(b).
- (3) If at least 90% of the tax site consideration is attributable to land that satisfies the condition in paragraph 3(b), then, for the purposes of this Schedule, all of the tax site consideration is to be treated as being attributable to qualifying land.
- (4) If less than 10% of the tax site consideration is attributable to land that satisfies the condition in paragraph 3(b), then, for the purposes of this Schedule, all of the tax site consideration is to be treated as not being attributable to qualifying land.
### Contract completed by transfer after the end of the relief period
##### 9
- (1) This paragraph applies if—
- (a) a land transaction is treated as effected under section 10(4) as a result of a contract being substantially performed without having been completed,
- (b) that transaction is relieved from tax under paragraph 6 or 7, and
- (c) the contract mentioned in paragraph (a) is subsequently completed by a transfer after the end of the relief period.
- (2) Section 10(5)(b) does not apply in relation to the transaction mentioned in sub-paragraph (1)(c) if the sole reason that it would have applied (but for this paragraph) is that the transaction occurred after the end of the relief period.
- (3) In this paragraph, “completed”, “contract” and “transfer” are to be interpreted in accordance with section 10(10).
## PART 3 — Withdrawal of relief
### Withdrawal of relief
##### 10
- (1) In this Part, a transaction that is relieved from tax under Part 2 is referred to as a “*relieved transaction*”; and accordingly references to a “buyer” and “qualifying land” are references to the buyer and the qualifying land in the relieved transaction.
- (2) Relief is withdrawn in relation to a relieved transaction if, at any time during the control period, the qualifying land is not used exclusively in a qualifying manner.
- (3) But the relief is not withdrawn where, because of a change in circumstances that is unforeseen and beyond the buyer’s control, it is not reasonable to expect the qualifying land to be used exclusively in a qualifying manner at that time.
- (4) Where, at a time during the control period, the use of all or part of the qualifying land in a qualifying manner has not yet begun, that land, or that part of the land, is to be treated as being used exclusively in a qualifying manner if reasonable steps are being taken to ensure that it is used in that manner.
- (5) Where, at a time during the control period, the use of all or part of the qualifying land in a qualifying manner has ceased, that land, or that part of the land, is to be treated as being used exclusively in a qualifying manner if reasonable steps are being taken—
- (a) to ensure that it is used in that manner, or
- (b) to dispose of all chargeable interests in that land, or that part of the land, that are held by the buyer and connected persons in a timely manner.
### The control period
##### 11
- (1) In this Schedule, the “*control period*”, in relation to a relieved transaction, means the shorter of—
- (a) the period of 3 years beginning with the effective date of that transaction, and
- (b) the period beginning with the effective date of that transaction and ending with the effective date of the final transaction.
- (2) For the purposes of this paragraph, a land transaction is the final transaction if, immediately after the effective date of the transaction, neither the buyer nor a connected person holds a chargeable interest in the qualifying land (whether as a result of that transaction alone or as a result of that transaction and other land transactions).
- (3) For the purposes of sub-paragraph (2), the buyer or a connected person is treated as not having a chargeable interest in the qualifying land if the market value of the chargeable interest in the qualifying land that the buyer or a connected person holds is less than £40,000, unless sub-paragraph (4) applies.
- (4) This sub-paragraph applies if—
- (a) the buyer and any connected person hold between them more than one chargeable interest in the qualifying land, and
- (b) the total market value of those chargeable interests is £40,000 or more.
### Disposal of interest in part of qualifying land during control period
##### 12
- (1) This paragraph applies where the buyer ceases to hold a chargeable interest in part of the qualifying land during the control period.
- (2) The references in paragraphs 10 and 11 to the qualifying land are to be treated as references only to the part of the qualifying land in relation to which the buyer still holds a chargeable interest (whether the chargeable interest acquired in the land transaction relieved from tax under Part 2 of this Schedule or another chargeable interest).
## PART 4 — ALTERNATIVE FINANCE ARRANGEMENT
### Alternative Property Finance
##### 13
- (1) This paragraph applies where either of the following applies—
- (a) paragraph 2(1) of Schedule 10 (land sold to financial institution and leased to a person), or
- (b) paragraph 3(1) of Schedule 10 (land sold to financial institution and re-sold to a person).
- (2) This paragraph applies for the purposes of determining—
- (a) whether relief can be claimed under Part 2 of this Schedule for the first transaction, and
- (b) whether relief for the first transaction is withdrawn under Part 3 of this Schedule.
- (3) For those purposes, this Schedule has effect as if—
- (a) references to the buyer were references to the relevant person, and
- (b) the reference in paragraph 4(2)(d) to land held (as stock for the business) for resale without development or redevelopment were a reference to land held in that manner by the relevant person.
- (4) The first transaction does not qualify for relief under Part 2 of this Schedule except where it does so by virtue of this paragraph.
- (5) In this paragraph—
- “*the first transaction*” (“**y trafodiad cyntaf**”) has the same meaning as in paragraph 2 or 3 of Schedule 10 (as appropriate);
- “*the relevant person*” (“**y person perthnasol**”) means the person, other than the financial institution, who entered into the arrangements mentioned in paragraph 2 or 3 of Schedule 10 (as appropriate).
### Circumstances in which subsidiary dwellings do not count as separate dwellings
##### 7A
- (1) Sub-paragraph (3) applies in relation to a chargeable transaction—
- (a) where—
- (i) the buyer is an individual, and
- (ii) the main subject-matter of the transaction consists of a major interest in two or more dwellings (“purchased dwellings”),
- (b) where only one of the purchased dwellings is a qualifying dwelling, and
- (c) to which paragraph 15 of Schedule 5 does not apply.
- (2) But sub-paragraph (3) does not apply in relation to a chargeable transaction that—
- (a) is within sub-paragraph (1), and
- (b) to which paragraph 18 of Schedule 5 applies (intermediate transaction treated as a higher rates residential property transaction).
- (3) For the purposes of this Schedule, the interests in the qualifying dwelling mentioned in sub-paragraph (1)(b) and a purchased dwelling (or more than one) that is subsidiary to it are treated as if they were an interest in a single dwelling.
- (4) For the purposes of this paragraph, a purchased dwelling (“dwelling A”) is subsidiary to a qualifying dwelling (“dwelling B”) if dwelling A would be subsidiary to dwelling B for the purposes of Schedule 5 (see paragraph 14 of that Schedule).
- (5) In this paragraph, “*qualifying dwelling*” means a dwelling that is a qualifying dwelling for the purposes of Part 3 of Schedule 5 (see paragraph 13 of that Schedule).
### Subsequent disposal to local authorities exception: buyer is an individual in a single dwelling transaction
##### 9A
- (1) This paragraph applies to a transaction (“*the acquisition transaction*”)—
- (a) that is a higher rates residential property transaction under paragraph 3,
- (b) the effective date of which is during the period beginning with 13 February 2026 and ending with 31 March 2031, and
- (c) the chargeable consideration for which is £400,000 or less.
- (2) The acquisition transaction ceases to be a higher rates residential property transaction under paragraph 3 if—
- (a) in another transaction (“*the disposal transaction*”) the buyer in the acquisition transaction grants a lease of the purchased dwelling (“*the leased dwelling*”) to a local authority,
- (b) the lease is for a term of at least 5 years but not more than 20 years,
- (c) the rent payable under the lease is no greater than the maximum local housing allowance applicable at the effective date of the disposal transaction in respect of the leased dwelling, and
- (d) the effective date of the disposal transaction is during the period of 18 months beginning with the effective date of the acquisition transaction.
- (3) If the lease granted in the disposal transaction is terminated by the buyer in the acquisition transaction before the 5th anniversary of the effective date of the disposal transaction, sub-paragraph (2) is treated as if it never applied to the acquisition transaction.
- (4) For further provision in connection with—
- (a) a transaction to which sub-paragraph (2) applies, see paragraph 23A;
- (b) a transaction to which sub-paragraph (3) applies, see paragraph 23B.
- (5) For the purposes of sub-paragraph (2), paragraph 20(1) of Schedule 6 (agreement for lease that is substantially performed is treated as a grant of a lease) does not apply.
### Subsequent disposal to local authorities exception: multiple dwelling transactions
##### 18A
- (1) This paragraph applies to a transaction (“*the acquisition transaction*”)—
- (a) that is a higher rates residential property transaction under paragraph 11, and
- (b) the effective date of which is during the period beginning with 13 February 2026 and ending with 31 March 2031.
- (2) Sub-paragraph (4) applies to the acquisition transaction if—
- (a) in another transaction (“*the disposal transaction*”) the buyer in the acquisition transaction grants a lease of one or more of the purchased dwellings that consisted of the main subject-matter of the acquisition transaction (“*leased dwelling*”) to a local authority,
- (b) the chargeable consideration attributable to the leased dwelling or each leased dwelling (as the case may be) is £400,000 or less,
- (c) the lease is for a term of at least 5 years but not more than 20 years,
- (d) the rent payable under the lease is no greater than the maximum local housing allowance applicable at the effective date of the disposal transaction in respect of the leased dwelling or each leased dwelling (as the case may be), and
- (e) the effective date of the disposal transaction is during the period of 18 months beginning with the effective date of the acquisition transaction.
- (3) For the purpose of sub-paragraph (2)(b), the chargeable consideration attributable to a leased dwelling is so much of the chargeable consideration for the acquisition transaction that is attributable, on a just and reasonable basis, to the interest in that leased dwelling.
- (4) The tax chargeable in respect of the acquisition transaction is reduced by the relevant amount.
- (5) If the disposal transaction is the grant of a lease of a single leased dwelling, the “*relevant amount*” is the difference between—
- (a) the tax that would have been chargeable under section 27 in respect of the interest in the leased dwelling had it been the main subject-matter of a separate chargeable transaction (“*the notional transaction*”) that was a higher rates residential property transaction for the purposes of regulations under section 24(1)(b), and
- (b) the tax that would have been chargeable under section 27 on the same notional transaction were it a residential property transaction for the purposes of regulations under section 24(1)(a).
- (6) If the disposal transaction is the grant of a lease of more than one leased dwelling, the “*relevant amount*” is the difference between—
- (a) the sum of the amounts of tax that would have been chargeable under section 27 in respect of the interest in each leased dwelling had each interest been the main subject-matter of separate chargeable transactions (“*the notional transactions*”) and each notional transaction were a higher rates residential property transaction for the purposes of regulations under section 24(1)(b), and
- (b) the sum of the amounts of tax that would have been chargeable under section 27 on the same notional transactions were they residential property transactions for the purposes of regulations under section 24(1)(a).
- (7) For the purposes of determining the tax that would have been chargeable under sub-paragraphs (5)(a) and (5)(b) or (6)(a) and (6)(b) (as the case may be), the chargeable consideration for a notional transaction is the amount determined under sub-paragraph (3) in respect of the leased dwelling the interest in which is treated as being the main subject-matter of the notional transaction.
- (8) If the lease granted in the disposal transaction is terminated by the buyer in the acquisition transaction before the 5th anniversary of the effective date of the disposal transaction, sub-paragraph (4) is treated as if it never applied to the acquisition transaction.
- (9) For further provision in connection with—
- (a) a transaction to which sub-paragraph (4) applies, see paragraph 23A;
- (b) a transaction to which sub-paragraph (8) applies, see paragraph 23B.
- (10) For the purposes of sub-paragraph (2), paragraph 20(1) of Schedule 6 (agreement for lease that is substantially performed is treated as a grant of a lease) does not apply.
### Subsequent disposal to local authorities exception: transaction involving a dwelling
##### 20A
- (1) This paragraph applies to a transaction (“*the acquisition transaction*”)—
- (a) that is a higher rates residential property transaction under paragraph 20,
- (b) the effective date of which is during the period beginning with 13 February 2026 and ending with 31 March 2031, and
- (c) the chargeable consideration for which is £400,000 or less.
- (2) The acquisition transaction ceases to be a higher rates residential property transaction under paragraph 20 if—
- (a) in another transaction (“*the disposal transaction*”) the buyer in the acquisition transaction grants a lease of the purchased dwelling (“*the leased dwelling*”) to a local authority,
- (b) the lease is for a term of at least 5 years but not more than 20 years,
- (c) the rent payable under the lease is no greater than the maximum local housing allowance applicable at the effective date of the disposal transaction in respect of the leased dwelling, and
- (d) the effective date of the disposal transaction is during the period of 18 months beginning with the effective date of the acquisition transaction.
- (3) If the lease granted in the disposal transaction is terminated by the buyer in the acquisition transaction before the 5th anniversary of the effective date of the disposal transaction, sub-paragraph (2) is treated as if it never applied to the acquisition transaction.
- (4) For further provision in connection with—
- (a) a transaction to which sub-paragraph (2) applies, see paragraph 23A;
- (b) a transaction to which sub-paragraph (3) applies, see paragraph 23B.
- (5) For the purposes of sub-paragraph (2), paragraph 20(1) of Schedule 6 (agreement for lease that is substantially performed is treated as a grant of a lease) does not apply.
### Subsequent disposal to local authorities exception: transaction involving multiple dwellings
##### 21A
- (1) This paragraph applies to a transaction (“*the acquisition transaction*”)—
- (a) that is a higher rates residential property transaction under paragraph 21, and
- (b) the effective date of which is during the period beginning with 13 February 2026 and ending with 31 March 2031.
- (2) Sub-paragraph (4) applies to the acquisition transaction if—
- (a) in another transaction (“*the disposal transaction*”) the buyer in the acquisition transaction grants a lease of one or more of the purchased dwellings that consisted of the main subject-matter of the acquisition transaction (“*leased dwelling*”) to a local authority,
- (b) the chargeable consideration attributable to the leased dwelling or each leased dwelling (as the case may be) is £400,000 or less,
- (c) the lease is for a term of at least 5 years but not more than 20 years,
- (d) the rent payable under the lease is no greater than the maximum local housing allowance applicable at the effective date of the disposal transaction in respect of the leased dwelling or each leased dwelling (as the case may be), and
- (e) the effective date of the disposal transaction is during the period of 18 months beginning with the effective date of the acquisition transaction.
- (3) For the purpose of sub-paragraph (2)(b), the chargeable consideration attributable to a leased dwelling is so much of the chargeable consideration for the acquisition transaction that is attributable, on a just and reasonable basis, to the interest in that leased dwelling.
- (4) The tax chargeable in respect of the acquisition transaction is reduced by the relevant amount.
- (5) If the disposal transaction is the grant of a lease of a single leased dwelling, the “*relevant amount*” is the difference between—
- (a) the tax that would have been chargeable under section 27 in respect of the interest in the leased dwelling had it been the main subject-matter of a separate chargeable transaction (“*the notional transaction*”) that was a higher rates residential property transaction for the purposes of regulations under section 24(1)(b), and
- (b) the tax that would have been chargeable under section 27 on the same notional transaction were it a residential property transaction for the purposes of regulations under section 24(1)(a).
- (6) If the disposal transaction is the grant of a lease of more than one leased dwelling, the “*relevant amount*” is the difference between—
- (a) the sum of the amounts of tax that would have been chargeable under section 27 in respect of the interest in each leased dwelling had each interest been the main subject-matter of separate chargeable transactions (“*the notional transactions*”) and each notional transaction were a higher rates residential property transaction for the purposes of regulations under section 24(1)(b), and
- (b) the sum of the amounts of tax that would have been chargeable under section 27 on the same notional transactions were they residential property transactions for the purposes of regulations under section 24(1)(a).
- (7) For the purposes of determining the tax that would have been chargeable under sub-paragraphs (5)(a) and (5)(b) or (6)(a) and (6)(b) (as the case may be), the chargeable consideration for a notional transaction is the amount determined under sub-paragraph (3) in respect of the leased dwelling the interest in which is treated as being the main subject-matter of the notional transaction.
- (8) If the lease granted in the disposal transaction is terminated by the buyer in the acquisition transaction before the 5th anniversary of the effective date of the disposal transaction, sub-paragraph (4) is treated as if it never applied to the acquisition transaction.
- (9) For further provision in connection with—
- (a) a transaction to which sub-paragraph (4) applies, see paragraph 23A;
- (b) a transaction to which sub-paragraph (8) applies, see paragraph 23B.
- (10) For the purposes of sub-paragraph (2), paragraph 20(1) of Schedule 6 (agreement for lease that is substantially performed is treated as a grant of a lease) does not apply.
### Further provision in connection with subsequent disposal to local authorities exception
##### 23A
- (1) This paragraph applies where—
- (a) an acquisition transaction (within the meaning of paragraph 9A(1) or 20A(1) (as the case may be)) ceases to be a higher rates residential property transaction for the purpose of regulations under section 24(1)(b) by reason of paragraph 9A(2) or 20A(2) (as the case may be), or
- (b) the tax chargeable in respect of an acquisition transaction (within the meaning of paragraph 18A(1) or 21A(1) (as the case may be)) is reduced by reason of paragraph 18A(4) or 21A(4) (as the case may be).
- (2) Sub-paragraph (3) applies where—
- (a) the effective date of the disposal transaction (within the meaning of paragraph 9A(2)(a), 18A(2)(a), 20A(2)(a) or 21A(2)(a) (as the case may be)) falls on or before the filing date for the return in respect of the acquisition transaction (within the meaning of paragraph 9A(1), 18A(1), 20A(1) or 21A(1) (as the case may be)), and
- (b) the return has not been made.
- (3) The buyer may not, when making the return in respect of the acquisition transaction—
- (a) treat the transaction as though it had never been a higher rates residential property transaction by virtue of paragraph 9A(2) or 20A(2) (as the case may be);
- (b) treat the tax chargeable in respect of the transaction as though it had always been reduced by virtue of paragraph 18A(4) or 21A(4) (as the case may be).
- (4) Sub-paragraph (5) applies where—
- (a) the effect of the acquisition transaction (within the meaning of paragraph 9A(1) or 20A(1) (as the case may be)) ceasing to be a higher rates residential transaction is that less tax is payable in respect of it than the buyer has already paid in accordance with a return made for that transaction, or
- (b) the effect of the tax chargeable in respect of the acquisition transaction (within the meaning of paragraph 18A(1) or 21A(1) (as the case may be)) being reduced is that less tax is payable in respect of it than the buyer has already paid in accordance with a return made for that transaction.
- (5) In order to obtain a repayment of the amount of tax overpaid the buyer—
- (a) may not amend the return made in respect of the acquisition transaction, but
- (b) may make a claim for repayment of the amount overpaid in accordance with Chapter 7 of Part 3 of TCMA.
- (6) Nothing in sub-paragraph (5) prevents the buyer from amending the return for any other purpose.
- (7) For the purposes of sub-paragraph (5)(b), section 78 of TCMA applies as if for “4 years” to the end there were substituted “12 months beginning with the effective date of the disposal transaction (within the meaning of paragraph 9A, 18A, 20A or 21A (as the case may be) of Schedule 5 to the LTTA).”
##### 23B
- (1) This paragraph applies where—
- (a) the buyer in an acquisition transaction (within the meaning of paragraph 9A(1), 18A(1), 20A(1) or 21A(1) (as the case may be)) has made a claim for repayment of an amount overpaid in accordance with paragraph 23A, and
- (b) paragraph 9A(3), 18A(8), 20A(3) or 21A(8) (as the case may be) applies.
- (2) The buyer must make a further return to the WRA.
- (3) A return made under this paragraph must—
- (a) be made before the end of the period of 30 days beginning with the day after the relevant date, and
- (b) include a self-assessment.
- (4) The “relevant date” is the date that the lease mentioned in paragraph 9A(3), 18A(8), 20A(3) or 21A(8) (as the case may be) is terminated.
2017-05-24
Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Ac
original version
Text at this date