Finance Act 1974

• (b) an interest under an agreement for a lease which on the material date is subject to an agreement to grant a lease of which the term will expire within the said period.

• (2) The provisions of subsections (1)(b), (c) and (d) and (2) to (3A) of section 84 of the Taxes Act shall have effect in ascertaining for the purposes of this paragraph when the term of a lease or prospective lease will expire as they have effect in ascertaining the duration of a lease for the purposes of sections 80 to 82 of that Act, but as if—

• (a) in the said subsection (1)(b), after the word “premium” there were inserted the words “(if any)”;

• (b) in the said subsection (2), for the words from “the time of the grant of the lease” to “entered into” there were substituted the words “the material date referred to in paragraph 4(1) of Schedule 9 to the Finance Act 1974”;

• (c) in the said subsection (3A), the reference to the provisions of subsections (1) to (3) of the said section 84 were a reference to those provisions as applied by this paragraph;

• (d) in the case of a prospective lease, references to what its terms do were references to what, in accordance with the agreement under which the lease is to be granted, its terms are to do.

5

In the case of a relevant chargeable building, subsection (1) of the principal section shall not apply to an interest in the relevant land which does not fall within paragraph 2, 3 or 4 of this Schedule if the market value of that interest on the material date is less than £10,000.

Provisions supplementary to paragraph 3

6

• (1) The following provisions of this paragraph shall have effect for the purposes of paragraph 3 of this Schedule.

• (2) Without prejudice to sub-paragraphs (3) and (4) below, if at the time when a lease or agreement for a lease was granted or entered into the parties thereto were not at arm’s length, the rent to which the lessor or party agreeing to grant a lease is or is to be entitled shall be deemed to be what it would be if, the other terms of the lease or agreement remaining as they are, the amount of the rent had been negotiated by the parties at arm’s length.

• (3) Where the payment of any premium, fine or other capital sum (whether in lieu of or in addition to rent)—

• (a) is required under a lease or otherwise under the terms subject to which a lease is granted, or on the granting of a lease; or

• (b) will be so required by virtue of an agreement for a lease; or

• (c) is on the making of an agreement for a lease required from the party to whom the lease is to be granted,

the amount per annum of the rent to which the lessor or party by whom the lease is to be granted is or is to be entitled under or by virtue of the lease or agreement shall be deemed to be (if there is or is to be no actual rent) or to include (in addition to the actual rent, where there is or is to be any) the annual equivalent of that sum or, if there are two or more such sums, the aggregate of their respective annual equivalents.

• (4) Where the terms subject to which a lease is or is to be granted impose or are to impose on the lessee an obligation to carry out any work on the premises, the lease shall for the purposes of sub-paragraph (3) above be deemed to have required, or to be one that will require the payment of a premium to the lessor (in addition to any other premium) of an amount equal to the amount by which the value of the interest of the lessor immediately after the commencement of the lease exceeds or will exceed what its then value would have been or would be if the said terms did not or were not to impose that obligation on the lessee.

Exemption for interest in land occupied on the material date in right of that interest

7

• (1) Where, in the case of a relevant chargeable building, subsection (1) of the principal section would, apart from this paragraph, apply to an interest (not being the interest of a relevant person) which a person has in the relevant land on the material date, the following provisions of this paragraph shall apply if on that date any part of the relevant land is occupied by him in right of that interest.

• (2) Subject to the following provisions of this paragraph, the said subsection (1) shall not apply to that interest of that person in so much of the relevant land as is on the material date occupied by him in right thereof.

• (3) If before the end of the five-year period that person ceases to occupy any part of the relevant land, being a part in which he had an interest on the material date and to which the said subsection (1) would apply but for sub-paragraph (2) above, the said sub-paragraph (2) shall cease to apply to the interest which he had on that date in that part, and the said subsection (1) shall apply thereto accordingly.

• (4) For the purposes of this paragraph a person who on any date occupies not less than 90 per cent. of the floor area of the relevant chargeable building shall be deemed to occupy on that date the whole, and not to have ceased on that date to occupy any part, of so much of the relevant land as is then subject to his interest (and references to occupation and ceasing to occupy shall be construed accordingly).

Exemption for interest in land disposed of after the material date

8

• (1) Where, in the case of a relevant chargeable building, subsection (1) of the principal section or sub-paragraph (3) of paragraph 2 of this Schedule would, apart from this paragraph, apply to an interest which a person has in the relevant land on the material date, or, as the case may be, the subsequent date within the meaning of that sub-paragraph, then, subject to the following provisions of this paragraph, that subsection or sub-paragraph, as the case may be, shall not apply, and be deemed never to have applied, to that interest if the whole of that interest is disposed of by him within the period of three years beginning with that date or such longer period as the Board may by notice in writing allow.

• (2) The preceding sub-paragraph shall not be taken to affect the application of the said subsection (1) to interests in the relevant land which are not excluded therefrom by that sub-paragraph.

• (3) Sub-paragraph (1) above shall not apply if by virtue of any enactment the person disposing of his interest in the relevant land (“the disposer”) and the person to whom the disposal is made fall to be treated as if the latter’s acquisition of it were for a consideration of such amount as would secure that on the disposal by the disposer neither a gain nor a loss would accrue to the disposer.

Exemption by reference to occupation within three years of the material date of land then intended to be occupied

9

• (1) The following provisions of this paragraph shall have effect for the purposes of paragraphs 2 and 7 of this Schedule in the case of a relevant chargeable building.

• (2) If on the material date a person—

• (a) has an interest in a part of the relevant land which is not then occupied by him; and

• (b) intends to occupy that part in right of that interest,

then, if within the period of three years beginning with that date he goes into occupation of that part in right of that interest, he shall be deemed to have been in occupation of that part in right of that interest throughout the period beginning with the material date and ending with the time when he so went into occupation of it (even if that part was wholly or partly occupied by others for some or all of that period).

• (3) If the interest in question is an agreement for a lease and the person goes into occupation of the part in question under a lease granted in pursuance of that agreement, sub-paragraph (2) above shall apply as if he had gone into occupation in right of the agreement.

Exemption for interests in land subject on 18th December 1973 to certain leases or agreements for a lease

10

• (1) In the case of a relevant chargeable building, subsection (1) of the principal section shall not apply to the interest of a person in the relevant land, on his making a claim, in so far as—

• (a) that interest is subject to a lease which was granted before 18 th December 1973; or

• (b) that person had before that date entered into an agreement, whether unconditional or conditional, to grant a lease of the whole or part of so much of the relevant land as is subject to that interest,

and, in either case, the rent reserved or to be reserved under the lease, and any premium payable under or in respect of the lease or agreement, does not depend wholly or mainly on the value of the chargeable building (or of any part of that building) on the completion of the relevant development.

• (2) Where, in the case of a relevant chargeable building, a person having an interest in the relevant land had before 18 th December 1973 arranged (without entering into a binding contract)—

• (a) to grant to another person a lease of the whole or part of so much of the relevant land as is subject to that interest; or

• (b) to enter into with another person such an agreement as is mentioned in sub-paragraph (1)(b) above,

and—

• (i) the arrangement was made in writing, or is evidenced by a memorandum or note thereof so made before that date; and

• (ii) he grants such a lease to or (as the case may be) enters into such an agreement with that other person before 18 th December 1974 on terms which do not differ materially from the terms of the arrangement or, if they so differ, are not more beneficial to the first-mentioned person,

then the lease or agreement shall be treated for the purposes of sub-paragraph (1) above as if granted or entered into before 18 th December 1973.

Groups of companies

11

• (1) For the purposes of determining whether a chargeable building falls within subsection (1) or subsection (3) of the principal section, any lease granted by a member of a group of companies to another member of the group shall be disregarded.

• (2) For the purposes of this Schedule, land occupied by a member of a group of companies may be treated as occupied by any other member of the group.

• (3) Section 272 of the Taxes Act (groups of companies: definitions) shall apply for the purposes of this paragraph as it applies for the purposes of sections 273 to 281 of that Act.

Tied premises

12

• (1) For the purposes of this Chapter a person carrying on a trade who is a lessor of tied premises shall be treated as occupying those premises.

• (2) The preceding sub-paragraph shall be construed in accordance with section 140(2) of the Taxes Act (income tax and corporation tax on tied premises).

Power to make assessments etc. in connection with certain deemed disposals

13

• (1) Where in accordance with this Schedule subsection (1) of the principal section or sub-paragraph (3) of paragraph 2 of this Schedule comes to apply to a person’s interest in any land in consequence of his ceasing to occupy that land, an assessment to tax chargeable in consequence of that subsection or sub-paragraph so coming to apply to that interest may be made at any time within six years from the time when that subsection or sub-paragraph so came to apply to that interest.

• (2) Where—

• (a) under the said subsection (1) or sub-paragraph (3) a person is to be treated as having disposed of and reacquired an interest in any land; or

• (b) under paragraph 8 above the said subsection (1) is deemed never to have applied to a particular interest in land,

all such recomputations of liability in respect of other disposals, and all such adjustments of tax, whether by way of assessment or by way of discharge or repayment of tax, as may be required in consequence of the said subsection (1), sub-paragraph (3) or paragraph 8 shall be carried out.

• (3) The preceding provisions of this paragraph shall have effect notwithstanding any limit on the time for making assessments; and in this paragraph “tax” means capital gains tax, income tax or corporation tax.

Postponement of payment of tax

14

• (1) Subject to sub-paragraph (2) below, where an interest in land is under subsection (1) of the principal section or sub-paragraph (3) of paragraph 2 of this Schedule deemed to have been disposed of, the total tax chargeable in respect of a gain accruing on the disposal may, at the option of the person liable to pay it, be paid by eight equal yearly instalments or sixteen half-yearly instalments, but subject to the payment of interest under Part IX (except sections 87 and 88) of the Taxes Management Act 1970.

• (2) Where on the occasion on which the said subsection (1) or sub-paragraph (3) comes to apply to a person’s interest in any land he becomes entitled to one or more capital sums (whether by way of premium or otherwise), then—

• (a) if the total tax chargeable in respect of a gain accruing on the disposal of that interest which under that subsection or sub-paragraph he is deemed to have made does not exceed one-half of that capital sum or of the aggregate of those capital sums, as the case may be, sub-paragraph (1) above shall not apply to the tax chargeable in respect of that gain; and

• (b) if the total tax chargeable as aforesaid exceeds one-half of that capital sum or of the aggregate of those capital sums, as the case may be, sub-paragraph (1) above shall apply only to so much of the total tax as exceeds that half.

• (3) Where tax is payable by instalments by virtue of this paragraph, the first instalment shall be due at the expiration of twelve months from the time of the disposal and the interest on the unpaid portion of the tax shall be added to each instalment and paid accordingly; but the tax for the time being unpaid, with interest to the date of payment, may be paid at any time, and, subject to the following sub-paragraph, shall become due and payable forthwith if the interest in land deemed to have been disposed of as aforesaid is disposed of for valuable consideration under a subsequent disposal (whether or not the subsequent disposal is made by the person who is deemed to have acquired it under the first disposal).

• (4) Where a subsequent disposal such as is described in the preceding sub-paragraph is a part disposal of the interest in land deemed to have been disposed of as aforesaid, a fraction only of the tax for the time being unpaid shall, with interest to the date of payment, become due and payable forthwith, and that fraction shall be the fraction of the sums mentioned in the following sub-paragraph which is allowable as a deduction in computing under [Chapter II of Part II of the Capital Gains Tax Act 1979 ] the amount of the gain accruing on the part disposal.

• (5) The sums referred to in the preceding sub-paragraph are the sums which, if so much of the interest in land there mentioned as immediately before the time of the part disposal in question remained undisposed of had been disposed of at that time, would be allowable by virtue of [ section 32(1)(a) and (b) of the Capital Gains Tax Act 1979 ] as a deduction in computing under [Chapter II of Part II of that Act] the gain accruing on that disposal of that much of that interest.

• (6) [ Section 40 of the Capital Gains Tax Act 1979 ] (payment of tax by instalments) shall not apply in relation to the payment of tax in respect of a gain accruing on a disposal of an interest in land to which sub-paragraph (1) above applies.

• (7) In this paragraph “tax” means capital gains tax, income tax or corporation tax.

Consideration for deemed disposal to be disregarded in certain circumstances in computing capital gain

15

Where an interest in land is under subsection (1) of the principal section or sub-paragraph (3) of paragraph 2 of this Schedule deemed to have been disposed of, the consideration for which the disposal is deemed to have been made shall for the purposes of [the Capital Gains Tax Act 1979 ] be disregarded if, had it been actually paid, it would under [section 31 of that Act] fall to be excluded from the consideration for the disposal taken into account in the computation under [Chapter II of Part II of that Act] of the gain accruing on the disposal.

Deemed disposals in cases involving the grant of a lease for a premium

16

• (1) Where an interest in land is under subsection (1) of the principal section or paragraph 2(3) of this Schedule deemed to have been disposed of on a particular date and before that date (but after 17th December 1973) there was a part disposal of that interest by way of the grant of a lease or sub-lease at a premium, then, if income tax has become chargeable under section 80 of the Taxes Act on any amount by reference to that premium so that an exclusion or deduction of that amount falls to be made under paragraph 5(1) or (2) of [Schedule 3 to the Capital Gains Tax Act 1979 ], the two following sub-paragraphs shall apply; and in those sub-paragraphs “the said interest” means the interest in land first mentioned in this sub-paragraph.

• (2) In computing under [Chapter II of Part II of the Capital Gains Tax Act 1979 ] the amount of the gain accruing on the disposal of the said interest—

• (a) the consideration for the disposal shall be treated as increased by an amount equal to the premium paid in respect of the grant of the said lease or sub-lease;

• (b) the sums allowable by virtue of paragraphs (a) and (b) of [section 32(1) of that Act] as a deduction from the consideration for the disposal shall be treated as including any part of those sums which is as a result of an apportionment under [section 35 of that Act] allowable as a deduction in computing under [the said Chapter II ] the amount of the gain accruing on the part disposal; and

• (c) the gain as computed in accordance with (a) and (b) above shall then be reduced by the amount of any gain which (after any exclusion or deduction falling to be made under the said paragraph 5(1) or (2)) accrued on the part disposal, and the amount resulting from that reduction shall (subject to section 38(2) of this Act) be taken as the amount of the gain accruing on the disposal of the said interest.

• (3) In a case falling within sub-paragraph (1) above involving more than one part disposal in relation to which sub-paragraph (2) above is applicable, the provisions of sub-paragraph (2)(a) and (b) above shall operate cumulatively as regards those part disposals, and the reference in sub-paragraph (2)(c) above to the gain as computed in accordance with those provisions shall be construed accordingly.

• (4) In this and the following paragraph “premium” has the same meaning as in paragraph 5(1) and (2) of [Schedule 3 to the Capital Gains Tax Act 1979 ].

17

Where an interest in land is under subsection (1) of the principal section or paragraph 2(3) of this Schedule deemed to have been disposed of on a particular date and on that date there was a part disposal of that interest in consequence of the grant out of that interest of a lease in respect of which a premium was required under that lease or otherwise under the terms subject to which that lease was granted, that part disposal shall be disregarded for all purposes of [the Capital Gains Tax Act 1979 ].

18

Where an interest in land consisting of a reversion on a lease is under subsection (1) of the principal section or paragraph 2(3) of this Schedule deemed to have been disposed of, paragraph 7 of [Schedule 3 to the Capital Gains Tax 1979 ] (deduction allowable under [Section 32(1)(b) of that Act] in respect of amount chargeable to tax under section 80(2) of the Taxes Act as being a premium the payment of which is deemed to be required by a lease) shall not apply for the purposes of the computation of any gain accruing on the disposal.

SCHEDULE 10

Recovery of tax from persons not primarily liable

1

The following provisions (which provide for the recovery of tax in respect of chargeable gains from persons other than those primarily liable) that is to say—

• (a) [ sections 52(4) and 59 of the Capital Gains Tax Act 1979 ]; and

• (b) sections 266, 277, 278(5) and (6) and 279(4) and (5) of the Taxes Act,

shall apply in relation to development gains and income tax or corporation tax in respect of development gains as they apply in relation to chargeable gains and capital gains tax or corporation tax in respect of chargeable gains.

Postponement of payment of tax

2

Subject to paragraph 14(6) of Schedule 9 to this Act, [sections 8 and 40 of the Capital Gains Tax Act 1979 ] (payment by instalments of tax in respect of chargeable gains) shall apply in relation to the payment of income tax or corporation tax in respect of development gains as they apply in relation to the payment of capital gains tax or corporation tax in respect of chargeable gains.

Returns by relevant persons

3

• (1) Every person who to the best of his knowledge and belief is or becomes a relevant person in relation to a relevant chargeable building shall not later than one year after the material date or, if that date fell before the passing of this Act, one year after the passing of this Act, give notice to the inspector that he is a relevant person in relation to that building.

• (2) In the preceding sub-paragraph “relevant person”, “relevant chargeable building” and “material date” have the same meaning as in Schedule 9 to this Act.

• (3) If any person fails to give a notice which he is required to give under this paragraph he shall be liable to a penalty not exceeding £100.

Information

4

• (1) The inspector may by notice in writing require—

• (a) any company which is or which he considers may be (within the meaning of section 41 of this Act) a close company or a land-owning company; or

• (b) the trustees of any settlement which is or which he considers may be a land settlement within the meaning of section 42 of this Act,

to furnish him within such time (not being less than thirty days) as may be specified in the notice with such particulars as he thinks necessary for the purposes of Chapter I or II of Part III of this Act.

• (2) For the purposes of the said Chapter I or II the inspector may by notice in writing require any person who is or whom the inspector considers may be the owner of an interest in land situated in the United Kingdom to state in writing within such time as aforesaid—

• (a) whether he has any interest in the land and, if so, the nature of that interest; and

• (b) the name and address of any other person known or believed by that person to have an interest in that land.

• (3) The inspector may by notice in writing require any person who is or whom the inspector considers may be a relevant person in relation to a relevant chargeable building to furnish him within such time as aforesaid with such particulars as the inspector thinks necessary for determining whether he is a relevant person in relation to that building and, if so—

• (a) what is for the purposes of Chapter II of Part III of this Act the material date in relation to that building; and

• (b) whether paragraph 2(2) of Schedule 9 to this Act applies to his interest in the relevant land and, if so, what in relation to that interest is the subsequent date for purposes of that paragraph.

In this sub-paragraph “relevant person” and “relevant chargeable building” have the same meaning as in the said Schedule 9.

• (4) Any powers conferred on the inspector by the preceding provisions of this paragraph may be exercised by the Board, and references in those provisions to the inspector shall be construed accordingly.

• (5) In this paragraph “interest in land” has the meaning given by section 44(1) of this Act.

Amendments of the Taxes Management Act 1970

5

• (1) The Taxes Management Act 1970 shall have effect subject to the following provisions of this paragraph.

• (2) In section 28 of that Act (non-resident companies and trusts)—

• (a) the references to [sections 15 and 17 of the Capital Gains Tax Act 1979 ] shall be construed as including references to those sections as they have effect by virtue of paragraphs 2 and 3 of Schedule 8 to this Act; and

• (b) the references to chargeable gains and to capital gains tax shall be construed as including respectively references to development gains and to income or corporation tax in respect of development gains.

• (3) In section 47 of the said Act of 1970 (special jurisdiction relating to tax on chargeable gains) the reference to an appeal against an assessment to tax on chargeable gains shall be construed as including a reference to an appeal against an assessment to income tax or corporation tax in respect of development gains.

• (4) The power of the Board to make regulations under section 57 of the said Act 1970 shall include power to make regulations entitling persons, in addition to those who would be so entitled apart from the regulations, to appear on appeals against assessments to capital gains tax, income tax or corporation tax made by virtue of Chapter II of Part III of this Act.

• (5) In subsection (1)(d) of the said section 57 (power to enable any of two or more persons whose liability to capital gains tax may be affected by any matter to have the matter determined), the reference to capital gains tax shall be construed as including a reference to income tax or corporation tax in respect of development gains.

• (6) In section 98 of the said Act of 1970 (penalties for failure to furnish particulars etc.) there shall be added in the first column of the Table the words “Paragraph 4 of Schedule 10 to the Finance Act 1974”

SCHEDULE 11

PART I — PROVISIONS HAVING EFFECT IN GREAT BRITAIN

1

• (1) This Part of this Schedule, except paragraphs 6 and 7 shall be deemed to have had effect as from 1st may 1974 ; and paragraphs 6(1) and (7) shall have effect as from 1st August 1974.

• (2) This Part of this Schedule shall not extend to Northern Ireland.

• (3) The Commissioners may make such arrangements operating for such periods as they think proper for the charge of duty on any instrument giving effect to a stock exchange transaction (as defined in section 4 of the Stock Transfer Act 1963) in respect of which settlement was due before 2st May 1974 to be the same as if this Act had not been passed, and any instrument stamped in accordance with such arrangements shall be deemed to be duly stamped for all purposes.

Bearer instruments

2

Conveyance or transfer on sale

3

For the Table set out in Part I of Schedule 11 to the Finance Act 1963 (ad valorem duty on conveyance or transfer on sale), as substituted by paragraph 10 of Schedule 7 to the Finance Act 1970 and amended by section 125(1) of the Finance Act 1972, substitute—

Amount or value of consideration	Special rate for certain instruments certified at £20,000	Special rate for certain instruments certified at £25,000	Special rate for certain instruments certified at £30,000	Ordinary rate
Not exceeding £5.	5p	5p	10p	10p
Exceeding £5 but not exceeding £100.	5p for every £10 or part of £10 of the consideration	10p for every £10 or part of £10 of the consideration	15p for every £10 or part of £10 of the consideration	20p for every £10 or part of £10 of the consideration
Exceeding £100 but not exceeding £300.	10p for every £20 or part of £20 of the consideration	20p for every £20 or part of £20 of the consideration	30p for every £20 or part of £20 of the consideration	40p for every £20 or part of £20 of the consideration
Exceeding £300.	25p for every £50 or part of £50 of the consideration	50p for every £50 or part of £50 of the consideration	75p for every £50 or part of £50 of the consideration	£1 for every £50 or part of £50 of the consideration

4

• (1) Section 55 of the Finance Act 1963 (rates of ad valorem duty on conveyance or transfer on sale) shall be amended as follows.

• (2) For paragraphs (a) to (c) of subsection (1) (exemption from, and reduced and ordinary rates of, such duty), as amended by section 125(1) of the Finance Act 1972, substitute—

(a) where the amount or value of the consideration is £15,000 or under and the instrument is certified within the meaning of section 34 of the Finance Act 1958 at £15,000, nil; (b) where the amount or value of the consideration is £20,000 or under and the instrument is certified as aforesaid at £20,000, the rate specified in column 2 of Part I of Schedule 11 to this Act; (c) where the amount or value of the consideration is £25,000 or under and the instrument is certified as aforesaid at £25,000, the rate specified in column 3 of Part I of that Schedule ; (d) where the amount or value of the consideration is £30,000 or under and the instrument is certified as aforesaid at £30,000, the rate specified in column 4 of Part I of that Schedule ; (e) in any other case, the rate specified in column 5 of Part I of that Schedule.

• (3) In subsection (2), for " paragraphs (a) and (b)" and " paragraph (c)" substitute " paragraphs (a) to (d) " and " paragraph (e) " respectively.

5

Composition in respect of certain transfers etc.

6

• (1) In section 115(3) of the Stamp Act 1891 (rate of composition payable in respect of transfers of certain stock etc.) as it has effect by virtue of section 37(2) of the Finance Act 1920 and section 57(1) of the Finance Act 1963, for " one shilling" (to be read under the Decimal Currency Act 1969 as 5p) substitute " 10p ".

• (2) The duty chargeable under the said section 115 on any half-yearly account required to be delivered on or within seven days before 1st August 1974 shall be the same as if the account had been delivered on that 1st August; and where any such account has been delivered before the passing of this Act and the full amount of the duty thereon has not been paid in accordance with this paragraph, a supplementary account shall be delivered, and the additional duty shall be paid, within fifteen days after the passing of this Act.

• (3) The said section 115 shall apply in relation to a neglect or failure to deliver a supplementary account or to pay any additional duty in compliance with the preceding sub-paragraph as it applies in relation to a neglect or failure under that section.

7

• (1) In subsection (2) of section 37 of the Finance Act 1939 (rate of composition payable in respect of transfers of commonwealth government stock), as amended by paragraph 13(2) of Schedule 7 to the Finance Act 1970, for " 1s." (to be read under the Decimal Currency Act 1969 as 5p) substitute " 10p ".

• (2) Any agreement entered into for the purposes of the said section 37 before the passing of this Act shall, so far as it relates to payments to be made on or after 1st August 1974, have effect as if it provided for the making of those payments at the rate at which duty is chargeable under that section by virtue of the preceding sub-paragraph.

8

• (1) In subsection (3) of section 65 of the Finance Act 1971 (rate of composition payable in respect of transfer duty on certain loan capital), for " 15p " substitute " 30p ".

• (2) The preceding sub-paragraph shall not apply in relation to any agreement entered into for the purposes of the said section 65 before 1st May 1974.

Duplicates and counterparts

9

In the heading “Duplicates or Counterpart of any instrument chargeable with any duty” in Schedule 1 to the Stamp Act 1891 (same duty as original instrument if that is less than 5s., otehrwise duty of 5s.), for “5s.” in both places (to be read under the Decimal Currency Act 1969 as 25p) substitute “ 50p ”.

Lease or tack

10

• (1) The heading “Lease or Tack” in Schedule 1 to the Stamp Act 1891 shall be amended as follows.

• (2) The duty chargeable under paragraph (2)(a) and paragraph (4) shall be £1 and £2 respectively (instead of 50p and £1 as provided by section 56(2) of the Finance Act 1963), and the rates of duty specified in the said paragraphs (2)(a) and (4) shall be amended accordingly.

• (3) For the table set out in paragraph (3), as substituted by section 56(1) of the Finance Act 1963 and amended by section 125(3) of the Finance Act 1972, substitute—

	If the term does not exceed 7 years or is indefinite	If the term exceeds 7 years but does not exceed 35 years	If the term exceeds 35 years but does not exceed 100 years	If the term exceeds 100 years
	£p	£p	£p	£p
Not exceeding £5 per annum.	Nil	0.10	0.60	1.20
Exceeding £5 and not exceeding £10.	Nil	0.20	1.20	2.40
Exceeding £10 and not exceeding £15.	Nil	0.30	1.80	3.60
Exceeding £15 and not exceeding £20.	Nil	0.40	2.40	4.80
Exceeding £20 and not exceeding £25.	Nil	0.50.	3.00	6.00
Exceeding £25 and not exceeding £50.	Nil	1.00	6.00	12.00
Exceeding £50 and not exceeding £75.	Nil	1.50	9.00	18.00
Exceeding £75 and not exceeding £100.	Nil	2.00	12.00	24.00
Exceeding £100 and not exceeding £150.	Nil	3.00	18.00	36.00
Exceeding £150 and not exceeding £200.	Nil	4.00	24.00	48.00
Exceeding £200 and not exceeding £250.	Nil	5.00	30.00	60.00
Exceeding £250 and also for any fraction part thereof.	0.50	1.00	6.00	12.00

PART II — PROVISIONS HAVING EFFECT IN NORTHERN IRELAND

11

• (1) This Part of this Schedule shall have effect as from 1st August 1974.

• (2) This Part of this Schedule shall not extend to Great Britain.

• (3) The Commissioners may make such arrangements operating for such period as they think proper for the charge of duty on any instrument giving effect to a stock exchange transaction (as defined in section 4 of the Stock Transfer Act (Northern Ireland) 1963) in respect of which settlemtn was due before 1st August 1974 to be the same as this Act had not been passed, and any instrument stamped in accordance with such arrangements shall be deemed to be duly stamped for all purposes.

Bearer instruments

12

Conveyance or transfer on sale

13

For the Table set out in Part I of Schedule 1 to the Finance Act (Northern Ireland) 1963 (ad valorem duty on conveyance or transfer on sale), as substituted by paragraph 10 of Schedule 2 to the Finance Act (Northern Ireland) 1970 and amended by Article 12(1) of the Finance (Northern Ireland) Order 1972, substitute—

Amount or value of consideration	Special rate for certain instruments certified at £20,000	Special rate for certain instruments certified at £25,000	Special rate for certain instruments certified at £30,000	Ordinary rate
Not exceeding £5.	5p	5p	10p	10p
Exceeding £5 but not exceeding £100.	5p for every £10 or part of £10 of the consideration	10p for every £10 or part of £10 of the consideration	15p for every £10 or part of £10 of the consideration	20p for every £10 or part of £10 of the consideration
Exceeding £100 but not exceeding £300.	10p for every £20 or part of £20 of the consideration	20p for every £20 or part of £20 of the consideration	30p for every £20 or part of £20 ot the consideration	40p for every £20 or part of £20 of the consideration
Exceeding £300.	25p for every £50 or part of £50 of the consideration	50p for every £50 or part of £50 of the consideration	75p for every £50 or part of £50 of the consideration	£1 for every £50 or part of £50 of the consideration

14

• (1) Section 4 of the Finance Act (Northern Ireland) 1963 (rates of ad valorem duty on conveyance or transfer on sale) shall be amended as follows.

• (2) For paragraphs (a) to (c) of subsection (1) (exemption from, and reduced and ordinary rates of, such duty), as amended by Article 12(1) of the Finance (Northern Ireland) Order 1972, substitute—

(a) where the amount or value of the consideration is £15,000 or under and the instrument is certified within the meaning of section 7(4) of the Finance Act (Northern Ireland) 1958 at £15,000, nil; (b) where the amount or value of the consideration is £20,000 or under and the instrument is certified as aforesaid at £20,000, the rate specified in column 2 of Part I of Schedule 1 to this Act; (c) where the amount or value of the consideration is £25,000 or under and the instrument is certified as aforesaid at £25,000, the rate specified in column 3 of Part I of that Schedule ; (d) where the amount or value of the consideration is £30,000 or under and the instrument is certified as aforesaid at £30,000, the rate specified in column 4 of Part I of that Schedule ; (e) in any other case, the rate specified in column 5 of Part I of that Schedule.

• (3) In subsection (2), for " paragraphs (a) and (b)" and " paragraph (c) " substitute " paragraphs (a) to (d) " and " paragraph (e) " respectively.

15

Composition in respect of certain transfers etc.

16

17

• (1) In paragraph (4) of Article 11 of the Finance (Northern Ireland) Order 1972 (rate of composition payable in respect of transfer duty on certain loan capital), for " 15p " substitute " 30p ".

• (2) The preceding sub-paragraph shall not apply in relation to any agreement entered into for the purposes of the said Article 11 before 1st August 1974.

Duplicates and counterparts

18

In the heading “Duplicate or Counterpart of any instrument chargeable with any duty” in Schedule 1 to the Stamp Act 1891 (same duty as on original instrument if that is less than 5s., otherwise duty of 5s.), for “5s.” in both places (to be read under the Decimal Currency Act 1969 as 25p) substitute “ 50p ”.

Lease or tack

19

• (1) The heading “Lease or Tack” in Schedule 1 to the Stamp Act 1891 shall be amended as follows.

• (2) The duty chargeable under paragraph (2)(a) and paragraph (4) shall be £1 and £2 respectively (instead of 50p and £1 as provided by section 5(2) of the Finance Act (Northern Ireland) 1963), and the rates of duty specified in the said paragraphs (2)(a) and (4) shall be amended accordingly.

• (3) For the Table set out in paragraph (3), as substituted by section 5(1) of the Finance Act (Northern Ireland) 1963 and amended by Article 12(3) of the Finance (Northern Ireland) Order 1972, substitute—

	If the term does not exceed 7 years or is indefinite	If the term exceeds 7 years but does not exceed 35 years	If the term exceeds 35 years but does not exceed 100 years	If the term exceeds 100 years
	£p	£p	£p	£p
Not exceeding £5 per annum.	Nil	0.10	0.60	1.20
Exceeding £5 and not exceeding £10.	Nil	0.20	1.20	2.40
Exceeding £10 and not exceeding £15.	Nil	0.30	1.80	3.60
Exceeding £15 and not exceeding £20.	Nil	0.40	2.40	4.80
Exceeding £20 and not exceeding £25.	Nil	0.50.	3.00	6.00
Exceeding £25 and not exceeding £50.	Nil	1.00	6.00	12.00
Exceeding £50 and not exceeding £75.	Nil	1.50	9.00	18.00
Exceeding £75 and not exceeding £100.	Nil	2.00	12.00	24.00
Exceeding £100 and not exceeding £150.	Nil	3.00	18.00	36.00
Exceeding £150 and not exceeding £200.	Nil	4.00	24.00	48.00
Exceeding £200 and not exceeding £250.	Nil	5.00	30.00	60.00
Exceeding £250 and also for any fraction part thereof.	0.50	1.00	6.00	12.00

PART III

20

• (1) This Part of this Schedule shall have effect as from 1st August 1974 (but without prejudice to the operation of paragraphs 2 to 4 of this Schedule as regards the period before that date).

• (2) For the purposes of this Part of this Schedule—

• (a) " authorised depositary" means a person who is an authorised depositary for the purposes of the Exchange Control Act 1947 ; and

• (b) an authorised depositary consisting of a branch of a business shall be treated in all respects as if the branch were a body corporate.

21

• (1) In the case of a transfer to which this paragraph applies, the enactments relating to stamp duty shall have effect as if paragraphs 2 to 4 of this Schedule and such of the repeals contained in Parts III and IV of Schedule 14 to this Act as are consequential on any of those paragraphs had not been enacted.

• (2) This paragraph applies to any transfer of stock or marketable securities as regards which the following conditions are satisfied, that is to say—

• (a) the transferee—

• (i) is resident outside the scheduled territories and is not acquiring the stock or securities as a nominee ; or

• (ii) wherever resident, is acquiring the stock or securities as a nominee for a person who is resident outside the scheduled terrorities ;

• (b) the transfer is for full consideration in money or money's worth; and

• (c) the instrument of transfer or bearer instrument (as the case may be) in respect of which duty is chargeable in connection with the transfer bears or has attached to or otherwise associated with it, in such manner as the Commissioners may direct, a certificate by an authorised depositary, in such form as the Commissioners may direct, stating or indicating that the conditions mentioned in sub-paragraphs (a) and (b) above are satisfied as regards the transfer.

• (3) In this paragraph—

• " resident outside the scheduled territories " means, subject to sub-paragraph (4) below, so resident for the purposes of the Exchange Control Act 1947 ; and

• " the scheduled territories " means the territories specified in Schedule 1 to the Exchange Control Act 1947 as for the time being in force.

• (4) A person who, when acting in his capacity as a trustee of a particular trust, is treated by the Bank of England as resident outside the scheduled territories for the purposes of the Exchange Control Act 1947 shall, when acting in that capacity, be treated likewise for the purposes of this paragraph.

• (5) Section 20(5) of the Exchange Control Act 1947 (meaning of nominee and person for whom another is a nominee) shall apply for the purposes of this paragraph as it applies for the purposes of Part m of that Act.

• (6) In relation to Northern Ireland sub-paragraph (1) above shall have effect with the substitution for the references to paragraphs 2 to 4 of this Schedule of references to paragraphs 12 to 14 thereof.

22

• (1) An authorised depositary who for the purposes of the preceding paragraph—

• (a) gives with respect to any transfer of stock or marketable securities a certificate containing any statement which is false in a material particular ; or

• (b) gives with respect to any such transfer a certificate indicating that the conditions mentioned in sub-paragraph (2)(a) and (b) of that paragraph are satisfied when either of those conditions is not satisfied,

shall be liable to a fine not exceeding the aggregate of £50 and an amount equal to twice the amount by which the stamp duty which ought to be charged in respect of the instrument in respect of which duty is chargeable in connection with the transfer exceeds the stamp duty paid in respect of that instrument.

• (2) In any proceedings for the recovery of a fine under this paragraph it shall be a defence for the defendant to prove that at the time when he gave the certificate in question he had made all such enquiries as he ought reasonably to have made with respect to the matters covered by the certificate and neither knew nor had reason to believe that any of those matters was other than as stated in or indicated by the certificate.

23

• (1) This paragraph applies to the following documents and records that is to say all books, accounts and other documents and records whatsoever which—

• (a) relate to any transfer of stock or marketable securities with respect to which a certificate has at any time been given by an authorised depositary for the purposes of paragraph 21 of this Schedule ; and

• (b) are, or have at any time been, documents or records of that depositary.

• (2) Any person who has under his control any documents or records to which this paragraph applies—

• (a) shall, whenever required to do so by an authorised officer of the Commissioners, produce to that officer for inspection all documents and records to which this paragraph applies which that person has under his control, or such of those documents and records as the officer may specify ; and

• (b) if he has the documents or records in question under his control in connection with any business or profession carried on by him, shall, if so required by the officer, admit the officer to any premises at which that business or profession is carried on and produce them there to the officer for inspection :

Provided that nothing in this sub-paragraph shall be taken to require any person who has acted as counsel or solicitor for any person to disclose any privileged communication made to him in that capacity.

• (3) Any person who fails to comply with any requirement imposed under the preceding sub-paragraph by an authorised officer of the Commissioners shall be liable to a fine of £50.

SCHEDULE 12

1

In section 15(2) of the Finance Act 1894 for the words between " university " and " and no " there shall be substituted the words " or local authority (as defined in section 52 of the Finance Act 1974) ".

2

In section 40(2) of the Finance Act 1930 for the words " county council or municipal corporation" there shall be substituted the words " local authority (as defined in section 52 of the Finance Act 1974) ".

3

In section 40(1)(b) of the Finance Act 1931 after the words " local authority " there shall be inserted the words " (as defined in section 52 of the Finance Act 1974) ".

4

In section 33(5)(e) of the Finance Act 1951 for the words from " means " to the end there shall be substituted the words " has the meaning assigned to it by section 52 of the Finance Act 1974 ".

5

In section 8(3)(b) of the Finance Act (Northern Ireland) 1951 the following sub-paragraph shall be substituted for sub-paragraph (i) —

(i) a local authority as defined in section 52 of the Finance Act 1974

.

6

In section 74 of the Finance Act 1952—

• (a) in subsection (1)(b) and in subsection (3) for the words " from any local authority or from another such board or committee " there shall be substituted the words " from another local authority "; and

• (b) in subsection (4) for the words from " references " to the end there shall be subsituted the words "' local authority' has the meaning assigned to it by section 52 of the Finance Act 1974 ".

7

In section 29 of the Finance Act 1967 for the words " section 66(2) of the Finance Act 1965 " (which now refer to section 353 of the Taxes Act) there shall be substituted the words " section 52 of the Finance Act 1974 ".

8

In section 6(3) of the Finance Act (Northern Ireland) 1967 for the words following "' local authority'" there shall be substituted the words " has the meaning assigned to it by section 52 of the Finance Act 1974 ".

9

In section 353 of the Taxes Act subsections (2) and (3) shall be omitted.

10

In section 526(5) of the Taxes Act, in the definition of " local authority ", after the words " given by " there shall be inserted the words " section 52 of the Finance Act 1974 and ".

11

In section 31 of the Finance Act 1971 subsection (2) shall be omitted.

12

In Schedule 25 to the Finance Act 1972 and in Schedule 1 to the Finance (Northern Ireland) Order 1972 after the words " local authority " there shall be inserted the words " as defined in section 52 of the Finance Act 1974 ".

SCHEDULE 13

The Selective Employment Payments Act 1966

1

For section 1(1) of the Selective Employment Payments Act 1966 there shall be substituted the following subsections—

(1) Where— (a) a person has been employed by an employer for not less than eight hours in a week in an employment to which this section applies and has been remunerated for that employment (whether or not he did any work in that employment in that week); and (b) the case falls within subsection (1) of section 26 of the Finance Act 1967, then, subject to the provisions of subsection (1A) of this section and section 7 of this Act, the Secretary of State shall make to the employer in respect of that person and that week a payment of an amount specified in that section. (1A) An employer shall not be eligible for a payment under this section in respect of a person in respect of a week if as regards that week he was a party to any arrangements knowingly entered into by him for the sole purpose of enabling himself and one or more other employers each to obtain such a payment in respect of that person and that week.

2

In section 1(2)(b) of that Act, for the words "employed persons " there shall be substituted the words " employed earners ".

3

In section 3(2) of that Act, for the words from "has paid" to " employed persons " there shall be substituted the words " has had in his employment in any week qualifying persons ".

4

In section 3 of that Act, at the end there shall be added as subsection (5)—

(5) In this section ' qualifying person', in relation to an employer as regards any week, means a person who has been employed by the employer for not less than eight hours in that week and has been remunerated for that employment (whether or not he did any work in that employment in that week)

.

5

In section 7(1)(b) of that Act, for the words from the second "of" to "respect of" there shall be substituted the words " of remuneration to ".

6

In section 10(1) of that Act, after the definition of " company " there shall be inserted the following—

• " employed earner " and " employer " have the same meanings respectively as they have for the purposes of the Social Security Act 1973 ;

.

The Finance Act 1967

7

In section 26(2) of the Finance Act 1967, after the word " question" there shall be inserted the words " for not less than eight hours ".

8

In section 26(4) of that Act, after paragraph (b) there shall be added the following paragraphs—

(c) of the remuneration paid to that person in respect of that week ; and (d) of the date of birth and sex of that person.

SCHEDULE 14

PART I — INTEREST

PART II — SHARE OPTION AND SHARE INCENTIVE SCHEMES

Part III — Stamp Duty Repeals Having Effect from 1st May 1974

Part IV — Stamp Duty Repeals having effect from 1st August 1974

PART V

PART VI — MISCELLANEOUS

PART VII — SPENT ENACTMENTS

Increase of certain duties on betting.

Returns of persons treated as employees.

7–16

18–20

22

25–28

31–33

36

Development losses.

Disposals of interests in land effected indirectly.

Disposals of interests in settled property.

Special rates of charge for development gains accruing to trustees, personal representatives or unit trust schemes.

Supplementary

Charge to tax: first letting or occupation of building after material development.

Interpretation, etc.

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

Computation of amount given by subsection (3)(c) of principal section in certain cases within [paragraph 9(4) of Schedule 5 to the Capital Gains Tax Act 1979 ]

Disposals under arrangements made before 18th December 1973

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

Computation of amount given by subsection (4) of principal section in certain cases within [paragraph 9(4) of Schedule 5 to the Capital Gains Tax Act 1979 ]

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

3-4

6–8

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

13 - 14

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

20

1–5

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

7–12

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

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

These repeals do not apply in relation to interest excepted from subsection (3) of section 19 of this Act by subsection (4) of that section.

These repeals do not affect the cases excepted by section 20 of this Act.

These repeals have effect as from 1st May 1974.

These repeals take effect on 1st August 1974.

Regional Employment Premiums

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

Editorial notes