Finance Act 1999

Revenue weight of vehicle	Revenue weight of vehicle	Rate	Rate	Rate
(1) Exceeding	(2) Not Exceeding	(3) Two axle vehicle	(4) Three axle vehicle	(5) Four or more axle vehicle
kgs	kgs	£	£	£
3,500	7,500	155	155	155
7,500	12,000	155	155	155
12,000	13,000	155	155	155
13,000	14,000	155	155	155
14,000	15,000	155	155	155
15,000	17,000	320	155	155
17,000	19,000	600	155	155
19,000	21,000	600	155	155
21,000	23,000	600	470	155
23,000	25,000	600	1,230	155
25,000	27,000	600	1,340	470
27,000	29,000	600	1,340	1,320
29,000	31,000	600	1,340	2,360
31,000	44,000	600	1,340	3,400

6

For the Table in paragraph 11(1) (tractive units not satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) there shall be substituted—

Revenue weight of tractive unit	Revenue weight of tractive unit	Rate for tractive unit with two axles	Rate for tractive unit with two axles	Rate for tractive unit with two axles	Rate for tractive unit with three or more axles	Rate for tractive unit with three or more axles	Rate for tractive unit with three or more axles
(1) Exceeding	(2) Not exceeding	(3) Any no. of semi- trailer axles	(4) 2 or more semi- trailer axles	(5) 3 or more semi- trailer axles	(6) Any no. of semi- trailer axles	(7) 2 or more semi- trailer axles	(8) 3 or more semi- trailer axles
kgs	kgs	£	£	£	£	£	£
3,500	7,500	160	160	160	160	160	160
7,500	12,000	300	300	300	300	300	300
12,000	16,000	460	460	460	460	460	460
16,000	20,000	520	460	460	460	460	460
20,000	23,000	810	460	460	460	460	460
23,000	26,000	1,190	590	460	590	460	460
26,000	28,000	1,190	1,130	460	1,130	460	460
28,000	31,000	1,740	1,740	1,090	1,740	660	460
31,000	33,000	2,530	2,530	1,740	2,530	1,000	460
33,000	34,000	5,170	5,170	1,740	2,530	1,470	570
34,000	35,000	5,170	5,170	2,840	2,530	2,100	860
35,000	36,000	6,750	6,750	2,840	2,530	2,100	860
36,000	38,000	9,250	9,250	3,210	2,820	2,820	1,280
38,000	41,000	9,250	9,250	5,750	4,250	4,250	2,500
41,000	44,000	9,250	9,250	5,750	7,250	7,250	1,280

7

In paragraph 11A(3) (tractive units satisfying reduced pollution requirements and with a revenue weight exceeding 44,000 kilograms), for “£4,670” there shall be substituted “ £4,170 ”.

8

For the Table in paragraph 11B (tractive units satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) there shall be substituted—

Revenue weight of tractive unit	Revenue weight of tractive unit	Rate for tractive unit with two axles	Rate for tractive unit with two axles	Rate for tractive unit with two axles	Rate for tractive unit with three or more axles	Rate for tractive unit with three or more axles	Rate for tractive unit with three or more axles
(1) Exceeding	(2) Not exceeding	(3) Any no. of semi- trailer axles	(4) 2 or more semi- trailer axles	(5) 3 or more semi- trailer axles	(6) Any no. of semi- trailer axles	(7) 2 or more semi- trailer axles	(8) 3 or more semi- trailer axles
kgs	kgs	£	£	£	£	£	£
3,500	7,500	155	155	155	155	155	155
7,500	12,000	155	155	155	155	155	155
12,000	16,000	155	155	155	155	155	155
16,000	20,000	155	155	155	155	155	155
20,000	23,000	155	155	155	155	155	155
23,000	26,000	190	155	155	155	155	155
26,000	28,000	190	155	155	155	155	155
28,000	31,000	740	740	155	740	155	155
31,000	33,000	1,530	1,530	740	1,530	155	155
33,000	34,000	4,170	4,170	740	1,530	470	155
34,000	35,000	4,170	4,170	1,840	1,530	1,100	155
35,000	36,000	5,750	5,750	1,840	1,530	1,100	155
36,000	38,000	8,250	8,250	2,210	1,820	1,820	280
38,000	41,000	8,250	8,250	4,750	3,250	3,250	1,500
41,000	44,000	8,250	8,250	4,750	6,250	6,250	280

9

• (1) Subject to the following provisions of this paragraph, the preceding provisions of this Schedule apply in relation to licences taken out after 9th March 1999.

• (2) Sub-paragraph (3) below applies where—

• (a) a pre-commencement licence was taken out for a goods vehicle at a rate applicable to a vehicle with a revenue weight falling within a specified range of weights; and

• (b) the revenue weight of the vehicle at any time on or after 17th April 1999 (though still within the specified range of weights mentioned in paragraph (a) above) is or has been one which, for the purposes of taking out a licence for that vehicle after 9th March 1999, would fall in a range of weights attracting a rate of duty higher than that attracted by the vehicle’s licensed weight.

• (3) For the purposes of section 15 of the Vehicle Excise and Registration Act 1994 (vehicles becoming chargeable at a higher rate) any use of the vehicle on a public road at a time on or after 17th April 1999 when its revenue weight is or was within sub-paragraph (2)(b) above shall be treated as a use of the vehicle so as to subject it to a rate of duty higher than that at which the pre-commencement licence was taken out.

• (4) Sub-paragraph (5) below applies where—

• (a) a pre-commencement licence was taken out for a goods vehicle at a rate applicable to a vehicle with a revenue weight falling within a specified range of weights;

• (b) the revenue weight of the vehicle is or has been increased at a time after 9th March 1999; and

• (c) the revenue weight of the vehicle immediately after the increase (though still within the specified range of weights mentioned in paragraph (a) above) is or was one which, for the purposes of taking out a licence for that vehicle after 9th March 1999, would fall in a range of weights attracting a rate of duty higher than that attracted by the vehicle’s licensed weight.

• (5) For the purposes of section 15 of the Vehicle Excise and Registration Act 1994 (vehicles becoming chargeable at a higher rate) any use of the vehicle on a public road after the increase in its revenue weight shall be treated (if it would not otherwise be so treated by virtue of sub-paragraph (3) above) as a use of the vehicle so as to subject it to a rate of duty higher than that at which the pre-commencement licence was taken out.

• (6) In this paragraph—

• “licensed weight”, in relation to a vehicle, means the revenue weight of the vehicle at the time when the pre-commencement licence for that vehicle was taken out; and

• “pre-commencement licence” means a licence taken out on or before 9th March 1999 and in force after that date.

SCHEDULE 2

Amendment of Value Added Tax Act 1994

1

• (1) Section 43 of the Value Added Tax Act 1994 (groups of companies) shall be amended as follows.

• (2) In subsection (1), for the words “the following provisions of this section” there shall be substituted the words “ sections 43A to 43C ”.

• (3) Subsections (3) to (8) shall cease to have effect.

2

The following shall be inserted after section 43 of the Value Added Tax Act 1994—

(43A) (1) Two or more bodies corporate are eligible to be treated as members of a group if each is established or has a fixed establishment in the United Kingdom and— (a) one of them controls each of the others, (b) one person (whether a body corporate or an individual) controls all of them, or (c) two or more individuals carrying on a business in partnership control all of them. (2) For the purposes of this section a body corporate shall be taken to control another body corporate if it is empowered by statute to control that body’s activities or if it is that body’s holding company within the meaning of section 736 of the Companies Act 1985. (3) For the purposes of this section an individual or individuals shall be taken to control a body corporate if he or they, were he or they a company, would be that body’s holding company within the meaning of that section. (43B) (1) This section applies where an application is made to the Commissioners for two or more bodies corporate, which are eligible under section 43A(1), to be treated as members of a group. (2) This section also applies where two or more bodies corporate are treated as members of a group and an application is made to the Commissioners— (a) for another body corporate, which is eligible under section 43A(1) to be treated as a member of the group, to be treated as a member of the group, (b) for a body corporate to cease to be treated as a member of the group, (c) for a member to be substituted as the group’s representative member, or (d) for the bodies corporate no longer to be treated as members of a group. (3) An application with respect to any bodies corporate— (a) must be made by one of them or by the person controlling them, and (b) in the case of an application for the bodies to be treated as a group, must appoint one of them as the representative member. (4) Where this section applies in relation to an application it shall, subject to subsection (6) below, be taken to be granted with effect from— (a) the day on which the application is received by the Commissioners, or (b) such earlier or later time as the Commissioners may allow. (5) The Commissioners may refuse an application, within the period of 90 days starting with the day on which it was received by them, if it appears to them— (a) in the case of an application such as is mentioned in subsection (1) above, that the bodies corporate are not eligible under section 43A(1) to be treated as members of a group, (b) in the case of an application such as is mentioned in subsection (2)(a) above, that the body corporate is not eligible under section 43A(1) to be treated as a member of the group, or (c) in any case, that refusal of the application is necessary for the protection of the revenue. (6) If the Commissioners refuse an application it shall be taken never to have been granted. (43C) (1) The Commissioners may, by notice given to a body corporate, terminate its treatment as a member of a group from a date— (a) which is specified in the notice, and (b) which is, or falls after, the date on which the notice is given. (2) The Commissioners may give a notice under subsection (1) above only if it appears to them to be necessary for the protection of the revenue. (3) Where— (a) a body is treated as a member of a group, and (b) it appears to the Commissioners that the body is not, or is no longer, eligible under section 43A(1) to be treated as a member of the group, the Commissioners shall, by notice given to the body, terminate its treatment as a member of the group from a date specified in the notice. (4) The date specified in a notice under subsection (3) above may be earlier than the date on which the notice is given but shall not be earlier than— (a) the first date on which, in the opinion of the Commissioners, the body was not eligible to be treated as a member of the group, or (b) the date on which, in the opinion of the Commissioners, the body ceased to be eligible to be treated as a member of the group.

3

For section 83(k) of the Value Added Tax Act 1994 (appeals) there shall be substituted—

(k) the refusal of an application such as is mentioned in section 43B(1) or (2); (ka) the giving of a notice under section 43C(1) or (3);

.

4

After section 84(4) of the Value Added Tax Act 1994 (appeals: supplementary) there shall be inserted—

(4A) Where an appeal is brought against the refusal of an application such as is mentioned in section 43B(1) or (2) on the grounds stated in section 43B(5)(c)— (a) the tribunal shall not allow the appeal unless it considers that the Commissioners could not reasonably have been satisfied that there were grounds for refusing the application, (b) the refusal shall have effect pending the determination of the appeal, and (c) if the appeal is allowed, the refusal shall be deemed not to have occurred. (4B) Where an appeal is brought against the giving of a notice under section 43C(1) or (3)— (a) the notice shall have effect pending the determination of the appeal, and (b) if the appeal is allowed, the notice shall be deemed never to have had effect. (4C) Where an appeal is brought against the giving of a notice under section 43C(1), the tribunal shall not allow the appeal unless it considers that the Commissioners could not reasonably have been satisfied that there were grounds for giving the notice. (4D) Where— (a) an appeal is brought against the giving of a notice under section 43C(3), and (b) the grounds of appeal relate wholly or partly to the date specified in the notice, the tribunal shall not allow the appeal in respect of the date unless it considers that the Commissioners could not reasonably have been satisfied that it was appropriate.

5

• (1) Schedule 9A to the Value Added Tax Act 1994 (groups: anti-avoidance) shall be amended as follows.

• (2) At the end of paragraph 2 (which becomes sub-paragraph (1) of that paragraph) there shall be inserted—

(2) This paragraph shall not apply where the relevant event is the termination of a body corporate’s treatment as a member of a group by a notice under section 43C(1) or (3).

• (3) In paragraph 3(8), for the words “under section 43” there shall be substituted “ such as is mentioned in section 43B ”.

• (4) In paragraph 7(1), for the words “section 43” there shall be substituted “ sections 43 to 43C ”.

Transitional provisions

6

• (1) In this paragraph—

• “the old law” means sections 43, 83 and 84 of, and Schedule 9A to, the Value Added Tax Act 1994 as they have effect without the amendments in paragraphs 1 to 5 of this Schedule, and

• “the new law” means sections 43 to 43C, 83 and 84 of, and Schedule 9A to, that Act as they have effect by virtue of paragraphs 1 to 5 of this Schedule.

• (2) Where, immediately before this Schedule comes into force, two or more bodies corporate are treated as members of a group by virtue of the old law—

• (a) they shall continue to be treated as members of a group, and

• (b) in their treatment as members of a group after this Schedule comes into force, they shall be treated as if any application under the old law by virtue of which they are treated as members of a group had been an equivalent application under the new law.

• (3) Where an application under section 43 of the Value Added Tax Act 1994 is received by the Commissioners, and has neither taken effect nor been refused before the day on which this Act is passed, the old law shall apply to determine whether the application is to take effect; but where it is determined under this sub-paragraph that an application is to take effect—

• (a) it shall be treated as if it were an equivalent application under the new law, and

• (b) it shall be taken to have been granted under the new law at the time when it would have taken effect in accordance with the old law.

• (4) In a case to which sub-paragraph (2) or (3) above applies, the power under section 43C(3) shall not be used to terminate the treatment of a body corporate as a member of a group—

• (a) on the ground that the body corporate is not established, and does not have a fixed establishment, in the United Kingdom, and

• (b) from a date before 1st January 2000.

• (5) Where an application which purports to be an application under the old law is received by the Commissioners after the day on which this Act is passed—

• (a) it shall be treated as if it were an application under the new law, and

• (b) section 43B of the new law shall apply notwithstanding any provision in the application for a date from which it is to take effect.

SCHEDULE 3

The Schedule inserted after Schedule 13A to the Taxes Act 1988 is as follows—

SCHEDULE 4

Amendments of Part IX of the Taxes Act 1988

1

• (1) Section 353 of the Taxes Act 1988 (general provision for relief for interest payments) is amended as follows.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) In subsections (1A) and (1B), omit the words “354 or”.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

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

3

• (1) Section 367 of the Taxes Act 1988 (supplementary provisions) is amended as follows.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) In subsection (5), for “sections 356A to 357 and” substitute “ section ”.

4

In section 369 of the Taxes Act 1988 (mortgage interest payable under deduction of tax), for subsection (1A) substitute—

(1A) In subsection (1) above “the applicable percentage” means the percentage which is the basic rate for the year of assessment in which the payment has become or becomes due.

5

• (1) Section 370 of the Taxes Act 1988 (meaning of “relevant loan interest”) is amended as follows.

• (2) In subsection (1)—

• (a) for “sections 372” substitute “ sections 373 ”; and

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) In subsection (5), for the words from “sections” to “each” substitute “ section 365 shall ”.

6

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

7

• (1) Section 373 of the Taxes Act 1988 (loans in excess of the qualifying maximum, and joint borrowers) is amended as follows.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) In subsection (6), for “sections 370 to 372” substitute “ section 370 ”.

8

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

9

• (1) In section 375 of the Taxes Act 1988 (interest ceasing to be relevant loan interest, etc.), after subsection (8A) insert—

(8B) Subsections (1), (5) and (6) above shall not apply where interest ceases to be relevant loan interest by virtue of section 38 of the Finance Act 1999.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

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

11

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

12

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

13

In section 378 of the Taxes Act 1988 (supplementary regulations)—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) in subsection (3), for “377”, wherever occurring, substitute “ 376A ”.

14

In section 379 of the Taxes Act 1988 (interpretation of sections 369 to 378)—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) after the definition of “relevant loan interest” insert the following definition—

“separated” means separated under an order of a court of competent jurisdiction or by deed of separation or in such circumstances that the separation is likely to be permanent.

Other amendments

15

• (1) Section 488 of the Taxes Act 1988 (tax liability of co-operative housing associations) is amended as follows.

• (2) In subsection (1)—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16

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

17

• (1) Section 222 of the Taxation of Chargeable Gains Act 1992 (relief on disposal of private residence) is amended as follows.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) After subsection (8) insert—

(8A) Subject to subsections (8B), (8C) and (9) below, for the purposes of subsection (8) above living accommodation is job-related for a person if— (a) it is provided for him by reason of his employment, or for his spouse by reason of her employment, in any of the following cases— (i) where it is necessary for the proper performance of the duties of the employment that the employee should reside in that accommodation; (ii) where the accommodation is provided for the better performance of the duties of the employment, and it is one of the kinds of employment in the case of which it is customary for employers to provide living accommodation for employees; (iii) where, there being a special threat to the employee’s security, special security arrangements are in force and the employee resides in the accommodation as part of those arrangements; or (b) under a contract entered into at arm’s length and requiring him or his spouse to carry on a particular trade, profession or vocation, he or his spouse is bound— (i) to carry on that trade, profession or vocation on premises or other land provided by another person (whether under a tenancy or otherwise); and (ii) to live either on those premises or on other premises provided by that other person. (8B) If the living accommodation is provided by a company and the employee is a director of that or an associated company, subsection (8A)(a)(i) or (ii) above shall not apply unless— (a) the company of which the employee is a director is one in which he or she has no material interest; and (b) either— (i) the employment is as a full-time working director, or (ii) the company is non-profit making, that is to say, it does not carry on a trade nor do its functions consist wholly or mainly in the holding of investments or other property, or (iii) the company is established for charitable purposes only. (8C) Subsection (8A)(b) above does not apply if the living accommodation concerned is in whole or in part provided by— (a) a company in which the borrower or his spouse has a material interest; or (b) any person or persons together with whom the borrower or his spouse carries on a trade or business in partnership. (8D) For the purposes of this section— (a) a company is an associated company of another if one of them has control of the other or both are under the control of the same person; and (b) “employment”, “director”, “full-time working director”, “material interest” and “control”, in relation to a body corporate, have the same meanings as they have for the purposes of Chapter II of Part V of the Taxes Act.

• (4) In subsection (9)—

• (a) for “Section 356(3)(b) and (5) of the Taxes Act” substitute “ Subsections (8A)(b) and (8C) above ”; and

• (b) for “within the meaning of that section” substitute “ for the purposes of that subsection ”.

Commencement

18

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) Paragraph 15 above has effect in relation to any claim for (or for part of) the year 2000-01 or any subsequent year of assessment.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) Paragraph 17 above has effect for the year 2000-01 and subsequent years of assessment.

• (5) The other provisions of this Schedule have effect in relation to any payment of interest falling within subsection (3) or (4) of section 38 of this Act.

SCHEDULE 5

Payments on dissolution, etc., or loss of office

1

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

Payments in respect of overnight expenses or EU travel

2

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

Office-holders’ transport and subsistence

3

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

Trustees’ income from parliamentary pension funds

4

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

Relevant statutory schemes

5

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

Pensions of members of the Scottish Executive

6

• (1) Sub-paragraph (2) below applies if provision under the Scotland Act 1998 is made for the salary paid to members of the Scottish Parliament who are also members of the Scottish Executive to be lower than that of other members of the Scottish Parliament.

• (2) In that case, sections 629 ... of the Taxes Act 1988 (under which part of the salary of the holder of certain offices is treated as remuneration as a member of the House of Commons) apply in relation to the salary of a member of the Scottish Executive who is also a member of the Scottish Parliament as they apply in relation to the salary of the holder of a qualifying office within the meaning of those sections who is also a member of the House of Commons, with such modifications as the Treasury may specify by order.

• (3) In this paragraph references to a member of the Scottish Executive include a junior Scottish Minister.

SCHEDULE 6

Application of this Schedule

1

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

Tax treatment of receipts by way of reverse premium

2

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

Arrangements not at arm’s length

3

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

Special rules for insurance companies carrying on life assurance business

4

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

Exclusion of receipts taken into account for capital allowances

5

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

...

6

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

Exclusion of consideration under sale and lease-back arrangement

7

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

Connected persons and relevant arrangements

8

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

SCHEDULE 7

After Schedule 5B to the Taxation of Chargeable Gains Act 1992 (EIS re-investment) insert—

SCHEDULE 8

EIS deferred gains: gains accruing on part disposal

Introductory

1

Schedule 5B to the Taxation of Chargeable Gains Act 1992 (relief in respect of re-investment under the enterprise investment scheme) is amended as follows.

Paragraph 4

2

• (1) In paragraph 4(1) (amount of gain accruing on chargeable event), for paragraph (b) substitute—

(b) the amount of the gain shall be equal to so much of the deferred gain as is attributable to the shares in relation to which the chargeable event occurs.

• (2) For paragraph 4(5)(a) (amount of gain where shares represented by other assets) substitute—

(a) so much of the deferred gain as is attributable to those shares shall be treated, in determining for the purposes of this paragraph the amount of the deferred gain to be treated as attributable to each of those assets, as apportioned in such manner as may be just and reasonable between those assets; and

.

• (3) After paragraph 4(5) insert—

(6) In order to determine, for the purposes of this paragraph, the amount of the deferred gain attributable to any shares, a proportionate part of the amount of the gain shall be attributed to each of the relevant shares held, immediately before the occurrence of the chargeable event in question, by the investor or a person who has acquired any of the relevant shares from the investor on a disposal within marriage. (7) In this paragraph “the deferred gain” means— (a) the amount of the original gain against which expenditure has been set under this Schedule, less (b) the amount of any gain treated as accruing under this paragraph previously as a result of a disposal of any of the relevant shares.

Paragraph 19

3

• (1) In paragraph 19(1) (interpretation) omit the definition of “relevant shares”.

• (2) After paragraph 19(1) insert—

(1A) For the purposes of this Schedule, “the relevant shares”, in relation to a case to which this Schedule applies, means the shares which— (a) are acquired by the investor in making the qualifying investment, and (b) where the qualifying investment is made before the time at which the original gain accrues, are still held by the investor at that time. This is subject to sub-paragraphs (1B) and (1D) below. (1B) If any corresponding bonus shares in the same company are issued to the investor or any person who has acquired any of the relevant shares from the investor on a disposal within marriage, this Schedule shall apply as if references to the relevant shares were to all the shares comprising the relevant shares and the bonus shares so issued. (1C) In sub-paragraph (1B) above “corresponding bonus shares” means bonus shares which— (a) are issued in respect of the relevant shares; and (b) are of the same class, and carry the same rights, as those shares. (1D) If, in circumstances in which paragraph 8 above applies, new shares are issued in exchange for old shares, references in this Schedule to the relevant shares, so far as they relate to the old shares, shall be construed as references to the new shares and not to the old shares. (1E) In sub-paragraph (1D) above “new shares” and “old shares” have the same meaning as in paragraph 8 above.

Consequential amendments

4

In consequence of paragraph 3 above—

• (a) in paragraph 2 (postponement of original gain), in sub-paragraphs (1) and (4), for “relevant shares” substitute “ the relevant shares ”;

• (b) in paragraph 2(2) and (3), for “any relevant shares” substitute “ the relevant shares ”;

• (c) in paragraph 2(2)(b), for “those relevant shares” substitute “ the relevant shares ”;

• (d) in paragraph 3 (chargeable events), in sub-paragraph (1) and paragraphs (a) and (b) of sub-paragraph (5), for “any relevant shares” substitute “ any of the relevant shares ”;

• (e) in paragraph 4 (gain accruing on chargeable event), in sub-paragraphs (1) and (5), for “any relevant shares” substitute “ any of the relevant shares ”;

• (f) in paragraph 4(5)(b), for “the same relevant shares” substitute “ the same shares ”;

• (g) in paragraph 5(1) (person to whom gain accrues), for “any relevant shares” substitute “ any of the relevant shares ”;

• (h) in paragraph 6(1) (deferral claims), for “relevant shares” substitute “ the relevant shares ”;

• (i) in paragraph 16(1) and (2) (information about chargeable events), for “any relevant shares” substitute “ any of the relevant shares ”; and

• (j) in paragraph 19(1) (interpretation), in the definition of “the five year period”, for “any relevant shares” substitute “ any of the relevant shares ”.

SCHEDULE 9

1

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

2

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

3

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

4

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

5

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

SCHEDULE 10

Definition of “pension business”

1

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

Approval of retirement benefit schemes

2

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

Discretionary approval of retirement benefit schemes

3

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

Non-approved retirement benefit schemes

4

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

5

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

6

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

Charge on pensions commuted in special circumstances

7

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

Charge on unauthorised payments

8

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

Definition of “retirement benefits scheme”

9

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

Interpretation of Chapter I

10

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

Overseas pensions

11

In section 615(6)(b) of the Taxes Act 1988 (funds annuities from which are paid without deduction of tax to non-UK residents), after “purpose” there shall be inserted “ (subject to any enactment or Northern Ireland legislation requiring or allowing provision for the value of any rights to be transferred between schemes or between members of the same scheme) ”.

Rules prohibiting surrender or assignment of annuities etc.

12

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

Annuity payable on the death of a member

13

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

Rule in section 636A prohibiting assignment or surrender

14

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

Meaning of “relevant earnings”

15

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

Purchased life annuities

16

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

Interpretation of Part XIV

17

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

Commencement etc.

18

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

SCHEDULE 11

Income and Corporation Taxes Act 1988 (c. 1)

1

Section 411A of the Taxes Act 1988 (group relief in substitution for loss relief) shall cease to have effect.

2

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

Finance Act 1989 (c. 26)

3

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

Capital Allowances Act 1990 (c. 1)

4

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

5

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

6

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

7

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

Finance Act 1994 (c. 9)

8

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

Finance Act 1998 (c. 36)

9

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

SCHEDULE 12

Stamp Act 1891 (c. 39)

1

For section 12 of the Stamp Act 1891 (assessment of duty by Commissioners) substitute—

(12) (1) Subject to such regulations as the Commissioners may think fit to make, the Commissioners may be required by any person to adjudicate with reference to any executed instrument upon the questions— (a) whether it is chargeable with duty; (b) with what amount of duty it is chargeable; (c) whether any penalty is payable under section 15B (penalty on late stamping); (d) what penalty is in their opinion correct and appropriate. (2) The Commissioners may require to be furnished with an abstract of the instrument and with such evidence as they may require as to the facts and circumstances relevant to those questions. (3) The Commissioners shall give notice of their decision upon those questions to the person by whom the adjudication was required. (4) If the Commissioners decide that the instrument is not chargeable with any duty, it may be stamped with a particular stamp denoting that it has been the subject of adjudication and is not chargeable with any duty. (5) If the Commissioners decide that the instrument is chargeable with duty and assess the amount of duty chargeable, the instrument when stamped in accordance with their decision may be stamped with a particular stamp denoting that it has been the subject of adjudication and is duly stamped. (6) Every instrument stamped in accordance with subsection (4) or (5) shall be admissible in evidence and available for all purposes notwithstanding any objection relating to duty. (12A) (1) An instrument which has been the subject of adjudication by the Commissioners under section 12 shall not, if it is unstamped or insufficiently stamped, be stamped otherwise than in accordance with the Commissioners’ decision on the adjudication. (2) If without reasonable excuse any such instrument is not duly stamped within 30 days after the date on which the Commissioners gave notice of their decision, or such longer period as the Commissioners may allow, the person by whom the adjudication was required is liable to a penalty not exceeding £300. (3) A statutory declaration made for the purposes of section 12 shall not be used against the person making it in any proceedings whatever, except in an inquiry as to the duty with which the instrument to which it relates is chargeable or as to the penalty payable on stamping that instrument. (4) Every person by whom any such declaration is made shall, on payment of the duty chargeable upon the instrument to which it relates, and any interest or penalty payable on stamping, be relieved from any penalty to which he may be liable by reason of the omission to state truly in the instrument any fact or circumstance required by this Act to be so stated.

.

2

For section 13 of the Stamp Act 1891 (appeal against assessment of duty) substitute—

(13) (1) A person who is dissatisfied with a decision of the Commissioners on an adjudication under section 12 may appeal against it. (2) The appeal must be brought within 30 days of notice of the decision on the adjudication being given under section 12(3). (3) An appeal may only be brought on payment of— (a) duty and any penalty in conformity with the Commissioners’ decision, and (b) any interest that in conformity with that decision would be payable on stamping the instrument on the day on which the appeal is brought. (4) An appeal which relates only to the penalty payable on late stamping may be brought to the Special Commissioners in accordance with section 13A below. (5) Any other appeal may be brought in accordance with section 13B below to the High Court of the part of the United Kingdom in which the case has arisen. (13A) (1) The following provisions apply in relation to an appeal under section 13(4). (2) Notice of appeal must be given in writing to the Commissioners, specifying the grounds of appeal. (3) On the hearing of the appeal the Special Commissioners may allow the appellant to put forward a ground not specified in the notice of appeal, and take it into consideration, if satisfied that the omission was not wilful or unreasonable. (4) The powers conferred by sections 46A(1)(c) and (2) to (4) and sections 56B to 56D of the Taxes Management Act 1970 (power of Lord Chancellor to make regulations as to jurisdiction, practice and procedure in relation to appeals) are exercisable in relation to appeals to which this section applies. (5) On the appeal the Special Commissioners may— (a) if it appears to them that no penalty should be paid, set the decision aside; (b) if the amount determined appears to them to be appropriate, confirm the decision; (c) if the amount determined appears to them to be excessive, reduce it to such other amount (including nil) as they consider appropriate; (d) if the amount determined appears to them to be insufficient, increase it to such amount as they consider appropriate. (6) Section 56A of the Taxes Management Act 1970 (general right of appeal on point of law) applies in relation to a decision of the Special Commissioners under this section. (7) Without prejudice to that right of appeal, an appeal lies against the amount of a penalty determined by the Special Commissioners under this section, at the instance of the person liable to the penalty, to the High Court. (8) On an appeal under subsection (7) the court has the same powers as are conferred on the Special Commissioners by subsection (5) above. (13B) (1) The following provisions apply in relation to an appeal under section 13(5). (2) The appellant may for the purposes of the appeal require the Commissioners to state and sign a case setting out the questions upon which they were required to adjudicate and their decision upon them. (3) The Commissioners shall thereupon state and sign a case and deliver the same to the person by whom it is required, and the case may, within 30 days thereafter, be set down by him for hearing. (4) On the appeal the court shall determine the questions submitted and may give such directions as it thinks fit with respect to the repayment of any duty or penalty paid in conformity with the Commissioners’ decision.

.

3

• (1) Section 14 of the Stamp Act 1891 (terms upon which instruments not duly stamped may be received in evidence) is amended as follows.

• (2) In subsection (1)—

• (a) for the words from “if the instrument” to “it may” substitute “ the instrument may ”, and

• (b) for “the penalty” substitute “ any interest or penalty ”.

• (3) In subsection (2) for “the duty and penalty” (three times) substitute “ the duty and any interest or penalty ”.

• (4) In subsection (3)—

• (a) for “any duty or penalty” substitute “ any duty, interest or penalty ”, and

• (b) for “the duty and penalty” substitute “ the duty, interest and penalty ”.

• (5) In subsection (4) for “first executed” substitute “ executed ”.

Finance Act 1994 (c. 9)

4

For section 240 of the Finance Act 1994 (time for presenting agreements for leases) substitute—

(240) (1) This section applies if there are presented for stamping at the same time in pursuance of Schedule 13 to the Finance Act 1999— (a) an agreement for a lease, and (b) the lease which gives effect to the agreement, and the duty (if any) chargeable on the agreement is paid. (2) Section 15A of that Act (interest payable on late stamping) applies in relation to the agreement as if the reference to the day on which the instrument was executed were to the day on which the lease was executed. (3) For the purposes of section 15B of that Act (penalty on late stamping) the agreement is treated— (a) as if it had been executed at the same time and place as the lease, and (b) where the lease was executed outside the United Kingdom, as if it had been first received in the United Kingdom at the same time as the lease. (4) For the purposes of this section a lease gives effect to an agreement if the lease is granted subsequent to the agreement and either is in conformity with the agreement or relates to substantially the same property and term as the agreement. (5) References in this section to an agreement for a lease include missives of let in Scotland. (240A) (1) A lease shall not be treated as duly stamped unless— (a) it contains a certificate that there is no agreement to which it gives effect, or (b) it is stamped with a stamp denoting— (i) that there is an agreement to which it gives effect which is not chargeable with duty, or (ii) the duty paid on the agreement to which it gives effect. (2) For the purposes of this section a lease gives effect to an agreement if the lease is granted subsequent to the agreement and either is in conformity with the agreement or relates to substantially the same property and term as the agreement. (3) References in this section to a lease do not include, and references in this section to an agreement do include, missives of let in Scotland.

SCHEDULE 13

Part I — Conveyance or transfer on sale

Charge

1

• (1) Stamp duty is chargeable on a conveyance or transfer on sale.

• (2) For this purpose “transfer on sale” includes every instrument, and every decree or order of a court or commissioners, by which any property, or any estate or interest in property, is, on being sold, transferred to or vested in the purchaser or another person on behalf of or at the direction of the purchaser.

• (3) Sub-paragraph (1) is subject to sub-paragraphs (3A) to (6).

• (3A) Stamp duty is not chargeable under sub-paragraph (1) on a transfer of stock or marketable securities where—

• (a) the amount or value of the consideration for the sale is £1,000 or under, and

• (b) the instrument is certified at £1,000.

• (4) Where a company acquires any shares in itself by virtue of section 690 of the Companies Act 2006 (power of company to purchase own shares) or otherwise, sub-paragraph (1) does not apply to any instrument by which the shares are transferred to the company.

• (5) Where a company holds any shares in itself by virtue of section 724 of that Act (treasury shares) or otherwise, sub-paragraph (1) does not apply to any instrument to which sub-paragraph (6) applies.

• (6) This sub-paragraph applies to any instrument for the sale or transfer of any of the shares by the company, other than an instrument which, in the absence of sub-paragraph (5), would be an instrument in relation to which—

• (a) section 67(2) of the Finance Act 1986 (transfer to person whose business is issuing depositary receipts etc), or

• (b) section 70(2) of that Act (transfer to person who provides clearance services etc),

applied.

Rates of duty

2

Duty under this Part is chargeable by reference to the amount or value of the consideration for the sale.

3

In the case of a conveyance or transfer of stock or marketable securities the rate is 0.5%.

4

In the case of any other conveyance or transfer on sale the rates of duty are as follows—

5

The above provisions are subject to any enactment setting a different rate or setting an upper limit on the amount of duty chargeable.

Meaning of instrument being certified at an amount

6

• (1) The references in paragraphs 1(3A) and 4 above to an instrument being certified at a particular amount mean that it contains a statement that the transaction effected by the instrument does not form part of a larger transaction or series of transactions in respect of which the amount or value, or aggregate amount or value, of the consideration exceeds that amount.

• (2) For this purpose a sale or contract or agreement for the sale of goods, wares or merchandise shall be disregarded—

• (a) in the case of an instrument which is not an actual conveyance or transfer of the goods, wares or merchandise (with or without other property);

• (b) in the case of an instrument treated as such a conveyance or transfer only by virtue of paragraph 7 (contracts or agreements chargeable as conveyances on sale);

and any statement as mentioned in sub-paragraph (1) shall be construed as leaving out of account any matter which is to be so disregarded.

Contracts or agreements chargeable as conveyances on sale

7

• (1) A contract or agreement for the sale of—

• (a) any equitable estate or interest in property, or

• (b) any estate or interest in property except—

• (i) land,

• (ii) goods, wares or merchandise,

• (iii) stock or marketable securities,

• (iv) any ship or vessel, or a part interest, share or property of or in any ship or vessel, or

• (v) property of any description situated outside the United Kingdom,

is chargeable with the samead valorem duty, to be paid by the purchaser, as if it were an actual conveyance on sale of the estate, interest or property contracted or agreed to be sold.

• (2) Where the purchaser has paidad valorem duty and before having obtained a conveyance or transfer of the property enters into a contract or agreement for the sale of the same, the contract or agreement is chargeable, if the consideration for that sale is in excess of the consideration for the original sale, with thead valorem duty payable in respect of the excess consideration but is not otherwise chargeable.

• (3) Where duty has been paid in conformity with sub-paragraphs (1) and (2), the conveyance or transfer to the purchaser or sub-purchaser, or any other person on his behalf or by his direction, is not chargeable with any duty.

• (4) In that case, upon application and upon production of the contract or agreement (or contracts or agreements) duly stamped, the Commissioners shall either—

• (a) denote the payment of thead valorem duty upon the conveyance or transfer, or

• (b) transfer thead valorem duty to the conveyance or transfer.

8

• (1) Where a contract or agreement would apart from paragraph 7 not be chargeable with any duty and a conveyance or transfer made in conformity with the contract or agreement is presented to the Commissioners for stamping with the ad valorem duty chargeable on it—

• (a) within the period of six months after the execution of the contract or agreement, or

• (b) within such longer period as the Commissioners may think reasonable in the circumstances of the case,

the conveyance or transfer shall be stamped accordingly, and both it and the contract or agreement shall be deemed to be duly stamped.

• (2) Nothing in this paragraph affects the provisions as to the stamping of a conveyance or transfer after execution.

9

Thead valorem duty paid upon a contract or agreement by virtue of paragraph 7 shall be repaid by the Commissioners if the contract or agreement is afterwards rescinded or annulled or is for any other reason not substantially performed or carried into effect so as to operate as or be followed by a conveyance or transfer.

Part II — Lease

Charge

10

Stamp duty is chargeable on a lease.

Rates of duty

11

In the case of a lease for a definite term less than a year the duty is as follows—

12

• (1) In the case of a lease of land for any other definite term, or for an indefinite term, the duty is determined as follows.

• (2) If the consideration or part of the consideration moving to the lessor or to any other person consists of any money, stock, security or other property, the duty in respect of that consideration is the same as that on a conveyance on a sale for the same consideration.

But if—

• (a) part of the consideration is rent, and

• (b) that rent exceeds £600 a year,

the duty is calculated as if paragraph 1 of the Table in paragraph 4 of this Schedule were omitted.

• (3) If the consideration or part of the consideration is rent, the duty in respect of that consideration is determined by reference to the rate or average rate of the rent (whether reserved as a yearly rent or not), as follows.

1.	Term not more than 7 years or indefinite—(a) if the rent is £5000 or less(b) if the rent is more than £5000	Nil1%
2.	Term more than 7 years but not more than 35 years	2%
3.	Term more than 35 years but not more than 100 years	12%
4.	Term more than 100 years	24%

13

Stamp duty of £5 is chargeable on a lease not within paragraph 11 or 12 above.

Agreement for a lease charged as a lease

14

• (1) An agreement for a lease is chargeable with the same duty as if it were an actual lease made for the term and consideration mentioned in the agreement.

• (2) Where duty has been duly paid on an agreement for a lease and subsequent to that agreement a lease is granted which either—

• (a) is in conformity with the agreement, or

• (b) relates to substantially the same property and term as the agreement,

the duty which would otherwise be charged on the lease is reduced by the amount of the duty paid on the agreement.

• (3) Sub-paragraph (1) does not apply to missives of let in Scotland that constitute an actual lease.

Subject to that, references in this paragraph to an agreement for a lease include missives of let in Scotland.

Lease for fixed term and then until determined

15

• (1) For the purposes of this Part a lease granted for a fixed term and thereafter until determined is treated as a lease for a definite term equal to the fixed term together with such further period as must elapse before the earliest date at which the lease can be determined.

• (2) Paragraph 14 (agreement for a lease charged as a lease) shall be construed accordingly.

Part III — Other instruments

...

16

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

...

17

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

Dispositions in Scotland

18

• (1) The following are chargeable with duty as a conveyance on sale—

• (a) a disposition of heritable property in Scotland to singular successors or purchasers;

• (b) a disposition of heritable property in Scotland to a purchaser containing a clause declaring all or any part of the purchase money a real burden upon, or affecting, the heritable property thereby disponed, or any part of it;

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duplicate or counterpart

19

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) The duplicate or counterpart of an instrument chargeable with duty is not duly stamped unless—

• (a) it is stamped as an original instrument, or

• (b) it appears by some stamp ... on it that the full and proper duty has been paid on the original instrument of which it is the duplicate or counterpart.

• (3) Sub-paragraph (2) does not apply to the counterpart of an instrument chargeable as a lease, if that counterpart is not executed by or on behalf of any lessor or grantor.

Instrument increasing rent

20

• (1) An instrument (not itself a lease)—

• (a) by which it is agreed that the rent reserved by a lease should be increased, or

• (b) which confirms or records any such agreement made otherwise than in writing,

is chargeable with the same duty as if it were a lease in consideration of the additional rent made payable by it.

• (2) Sub-paragraph (1) does not apply to an instrument giving effect to provision in the lease for periodic review of the rent reserved by it.

Partition or division

21

• (1) Where on the partition or division of an estate or interest in land consideration exceeding £100 in amount or value is paid or given, or agreed to be paid or given, for equality, the principal or only instrument by which the partition or division is effected is chargeable with the same ad valorem duty as a conveyance on sale for the consideration, and with that duty only.

• (2) Where there are several instruments for completing the title of either party, the principal instrument is to be ascertained, and the other instruments shall be charged with duty, as provided by sections 58(3) and 61 of the Stamp Act 1891 in the case of several instruments of conveyance.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

...

22

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

...

23

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

Part IV — General exemptions

24

The following are exempt from stamp duty under this Schedule—

• (a) transfers of shares in the government or parliamentary stocks or funds or strips (within the meaning of section 47 of the Finance Act 1942) of such stocks or funds;

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) testaments, testamentary instruments and dispositionsmortis causa in Scotland;

• (d) renounceable letters of allotment, letters of rights or other similar instruments where the rights under the letter or other instrument are renounceable not later than six months after its issue.

25

Stamp duty is not chargeable under this Schedule on any description of instrument in respect of which duty was abolished by—

• (a) section 64 of the Finance Act 1971 or section 5 of the Finance Act (Northern Ireland) 1971 (abolition of duty on mortgages, bonds, debentures etc.), or

• (b) section 173 of the Finance Act 1989 (life insurance policies and superannuation annuities).

26

Nothing in this Schedule affects any other enactment conferring exemption or relief from stamp duty.

SCHEDULE 14

General amendments

1

• (1) Any reference (express or implied) in any enactment, instrument or other document to any of the headings in Schedule 1 to the Stamp Act 1891 (other than the heading “Bearer Instrument”) shall be construed, so far as is required for continuing its effect, as being or, as the case may require, including a reference to the corresponding provision of Schedule 13 to this Act.

• (2) Sub-paragraph (1)—

• (a) has effect subject to any express amendment made by this Act, and

• (b) is without prejudice to the general application of section 17(2) of the Interpretation Act 1978 (general effect of repeal and re-enactment).

2

In the enactments relating to stamp duty for “lease or tack”, wherever occurring, substitute “ lease ”.

Finance Act 1930 (c. 28)

3

In section 42(1) of the Finance Act 1930 (relief from transfer duty in case of transfer between associated companies) for “the heading “Conveyance or Transfer on Sale” in the First Schedule to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

Finance Act (Northern Ireland) 1954 (c. 23 (N.I.))

4

In section 11(1) of the Finance Act (Northern Ireland) 1954 (relief from transfer duty in case of transfer between associated companies) for “the heading “Conveyance or Transfer on sale” in the First Schedule to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

Finance Act 1970 (c. 24)

5

In section 33(1) of the Finance Act 1970 (composition by stock exchange in respect of transfer duty), for the words from “the heading” to “1891” substitute “ Part I or paragraph 16 of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale or otherwise) ”.

Finance Act 1980 (c. 48)

6

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

Finance Act 1982 (c. 39)

7

In section 129(1) of the Finance Act 1982 (exemption from duty on grants, transfers to charities, etc.) for the words from “by virtue of any of the following headings” to “ “Lease or Tack”,” substitute “ under Part I or II, or paragraph 16, of Schedule 13 to the Finance Act 1999 ”.

Finance Act 1985 (c. 54)

8

• (1) Section 81 of the Finance Act 1985 (renounceable letters of allotment, etc.) is amended as follows.

• (2) For subsection (2) substitute—

(2) The instrument shall not be exempt by virtue of paragraph 24(d) of Schedule 13 to the Finance Act 1999 (renounceable letters of allotment, etc.) from stamp duty under or by reference to Part I of that Schedule (conveyance or transfer on sale).

.

• (3) In subsection (3) for the words from “section 126(1)” to “126(2) or (3)” substitute “ section 79(4) of the Finance Act 1986 does not apply by virtue of section 79(5) or (6) ”.

9

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

10

In section 83 of the Finance Act 1985 (duty on transfers in connection with divorce etc.)—

• (a) in subsection (1) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”;

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

In section 84 of the Finance Act 1985 (duty on instruments varying dispositions on death etc.)—

• (a) in subsection (1) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”;

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Finance Act 1986 (c. 41)

12

• (1) Section 67 of the Finance Act 1986 (depositary receipts) is amended as follows.

• (2) For subsections (2) and (3) substitute—

(2) If stamp duty is chargeable on the instrument under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale), the rate at which that duty is chargeable is 1.5% of the amount or value of the consideration for the sale to which the instrument gives effect. (3) If stamp duty is chargeable on the instrument under paragraph 16 of Schedule 13 to the Finance Act 1999 (conveyance or transfer otherwise than on sale), then, subject to subsection (5), the rate at which that duty is chargeable is 1.5% of the value of the securities at the date the instrument is executed.

.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13

• (1) Section 70 of the Finance Act 1986 (clearance services) is amended as follows.

• (2) For subsections (2) and (3) substitute—

(2) If stamp duty is chargeable on the instrument under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale), the rate at which that duty is chargeable is 1.5% of the amount or value of the consideration for the sale to which the instrument gives effect. (3) If stamp duty is chargeable on the instrument under paragraph 16 of Schedule 13 to the Finance Act 1999 (conveyance or transfer otherwise than on sale), then, subject to subsection (5), the rate at which that duty is chargeable is 1.5% of the value of the securities at the date the instrument is executed.

.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14

In section 75(2) of the Finance Act 1986 (acquisitions: further provisions about reliefs) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

15

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

16

In section 77(1) of the Finance Act 1986 (acquisition of target company’s share capital) for “the heading ’Conveyance or Transfer on Sale’ in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

17

In section 79 of the Finance Act 1986 (loan capital: new provisions), for subsection (8) substitute—

(8) Where stamp duty is chargeable under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) on an instrument which transfers loan capital, the rate at which duty is charged under that Part shall be 0.5% of the amount or value of the consideration for the sale to which the instrument gives effect.

.

18

In section 80B(7) of the Finance Act 1986 (intermediaries: power of Treasury to specify rate of duty), for “10p for every £100 or part of £100” substitute “ 0.1% ”.

19

In section 80C(8) of the Finance Act 1986 (repos and stock lending: power of Treasury to specify rate of duty), for “10p for every £100 or part of £100” substitute “ 0.1% ”.

20

• (1) Section 88 of the Finance Act 1986 (stamp duty reserve tax: special cases) is amended as follows.

• (2) In subsection (1) for paragraphs (aa) and (ab) substitute—

(aa) paragraph 24(d) of Schedule 13 to the Finance Act 1999 (renounceable letters of allotment etc.),

.

• (3) In subsection (1A)(b) for “50p” substitute “ £5 ”.

Finance Act 1987 (c. 16)

21

In section 50(1) of the Finance Act 1987 (warrants to purchase government stock etc.), for the words from “either of the following headings” to the end substitute “ Part I, or paragraph 16, of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale or otherwise) ”.

22

In section 55(1) of the Finance Act 1987 (Crown exemption), for the words from “by virtue of any of the following headings” to “ “Lease or Tack”,” substitute “ under Part I or II, or paragraph 16, of Schedule 13 to the Finance Act 1999 ”.

Finance Act 1989 (c. 26)

23

In section 175(1) of the Finance Act 1989 (stock exchange nominees: power to exclude double charge), in paragraph (a) (circumstances in which power exercisable) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

National Health Service and Community Care Act 1990 (c. 19)

24

In section 61(3) of the National Health Service and Community Care Act 1990 for the words from “by virtue of any of the following headings” to “ “Lease or Tack”,” substitute “ under Part I or II, or paragraph 16, of Schedule 13 to the Finance Act 1999 ”.

Finance Act 1991 (c. 31)

25

In section 110 of the Finance Act 1991 (stamp duty to be abolished in certain cases), for subsections (1) to (4) substitute—

(1) Where apart from this section stamp duty under any of the provisions of Schedule 13 to the Finance Act 1999 would be chargeable on an instrument, stamp duty shall not be so chargeable if the property consists entirely of exempt property.

.

26

In section 111(1) of the Finance Act 1991 (stamp duty to be reduced in certain cases) for “the heading “conveyance or transfer on sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

27

In section 113 of the Finance Act 1991 (certification of instruments for stamp duty purposes), for subsections (1) to (3) substitute—

(1) For the purposes of paragraph 6(1) of Schedule 13 to the Finance Act 1999 (meaning of instrument being certified at an amount)— (a) a sale or contract or agreement for the sale of exempt property within the meaning of section 110 above shall be disregarded; and (b) any statement as mentioned in that provision shall be construed as leaving out of account any matter which is to be so disregarded.

.

Finance Act 1993 (c. 34)

28

• (1) Section 202 of the Finance Act 1993 (rent to mortgage: England and Wales) is amended as follows.

• (2) In subsection (2) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

• (3) In subsection (4)(a)—

• (a) for “the heading ’Lease or Tack’ in Schedule 1 to the Stamp Act 1891” substitute “ Part II of Schedule 13 to the Finance Act 1999 (lease) ”; and

• (b) for “the heading ’Conveyance or Transfer on Sale’ in that Schedule” substitute “ Part I of that Schedule (conveyance or transfer on sale) ”.

• (4) In subsection (4)(b) for “the heading ’Conveyance or Transfer on Sale’” substitute “ Part I of that Schedule ”.

29

In section 203(2) of the Finance Act 1993 (rent to loan: Scotland), for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

Finance Act 1994 (c. 9)

30

In section 241(1) of the Finance Act 1994 (consideration consisting of property)—

• (a) in paragraph (a) for “lease or tack” substitute “ lease ”;

• (b) in paragraph (b) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

31

• (1) Section 242 of the Finance Act 1994 (consideration not ascertainable from conveyance or lease) is amended as follows.

• (2) In subsections (1) (twice), (2) and (3) (twice) for “lease or tack” substitute “ lease ”.

• (3) In the opening words of subsection (1) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “ Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) ”.

• (4) In subsection (2) for “paragraph (3) of the heading “Lease or Tack” in Schedule 1 to that Act” substitute “ paragraph 12 of Schedule 13 to the Finance Act 1999 ”.

32

In section 243 of the Finance Act 1994 (agreements to surrender leases) for “any duty chargeable under the Stamp Act 1891” substitute “ stamp duty ”.

Finance Act 1995 (c. 4)

33

In section 151 of the Finance Act 1995 (lease or tack: associated bodies)—

• (a) in subsection (1) for “the heading “Lease or Tack” in Schedule 1 to the Stamp Act 1891” substitute “ Part II of Schedule 13 to the Finance Act 1999 (lease) ”;

• (b) in subsections (1) (twice), (2), (3) and (6) (four times) for “lease or tack” substitute “ lease ”.

SCHEDULE 15

Part I — Charging provisions

...

1

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

Charge on transfer of stock by means of instrument

2

Stamp duty is chargeable on the transfer in the United Kingdom of the stock constituted by or transferable by means of a bearer instrument if ...—

• (a) duty would be chargeable under Part I of Schedule 13 (conveyance or transfer on sale) if the transfer were effected by an instrument other than a bearer instrument, or

• (b) the stock constituted by or transferable by means of a bearer instrument consists of units under a unit trust scheme.

Meaning of “bearer instrument”

3

In this Schedule “bearer instrument” means—

• (a) a marketable security transferable by delivery;

• (b) a share warrant or stock certificate to bearer or instrument to bearer (by whatever name called) having the like effect as such a warrant or certificate;

• (c) a deposit certificate to bearer;

• (d) any other instrument to bearer by means of which stock can be transferred; or

• (e) an instrument issued by a non-UK company that is a bearer instrument by usage.

Rates of duty

4

The duty chargeable under this Schedule is 1.5% of the market value of the stock constituted by or transferable by means of the instrument, unless paragraph 5 ... applies.

5

In the case of—

• (a) a deposit certificate in respect of stock of a single non-UK company, or

• (b) an instrument issued by a non-UK company that is a bearer instrument by usage (and is not otherwise within the definition of “bearer instrument” in paragraph 3),

the duty is 0.2% of the market value of the stock constituted by or transferable by means of the instrument.

6

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

Ascertainment of market value

7

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

8

• (1) For the purposes of duty under paragraph 2 (charge on transfer of stock by means of instrument) the market value of the stock constituted by or transferable by means of the instrument is ascertained as follows.

• (2) In the case of a transfer pursuant to a contract of sale, the market value shall be taken to be the value of the stock on the date when the contract is made.

• (3) In any other case, the market value shall be taken to be the value of the stock on the day preceding that on which the instrument is presented to the Commissioners for stamping, or, if it is not so presented, on the date of the transfer.

Meaning of “deposit certificate”

9

In this Schedule a “deposit certificate” means an instrument acknowledging the deposit of stock and entitling the bearer to rights (whether expressed as units or otherwise) in or in relation to the stock deposited or equivalent stock.

Bearer instruments by usage

10

• (1) In this Schedule a “bearer instrument by usage” means an instrument —

• (a) which is used for the purpose of transferring the right to stock, and

• (b) delivery of which is treated by usage as sufficient for the purposes of a sale on the market, whether that delivery constitutes a legal transfer or not.

• (2) A bearer instrument by usage is treated—

• (a) as transferring the stock on delivery of the instrument, and

• (b) as issued by the person by whom or on whose behalf it was first issued, whether or not it was then capable of being used for transferring the right to the stock without execution by the holder.

Meaning of “company”, “UK company” and “non-UK company”

11

In this Schedule—

• “company” includes any body of persons, corporate or unincorporate;

• “UK company” means— a company that is formed or established in the United Kingdom (other than an SE which has its registered office outside the United Kingdom following a transfer in accordance with Article 8 of Council Regulation (EC) 2157/2001 on the Statute for a European Company (Societas Europaea)), ora UK Societas;

• “non-UK company” means a company that is not a UK company.

Meaning of “stock” and “transfer”

12

• (1) In this Schedule “stock” includes securities.

• (2) References in this Schedule to stock include any interest in, or in any fraction of, stock or in any dividends or other rights arising out of stock and any right to an allotment of or to subscribe for stock.

• (3) In this Schedule “transfer” includes negotiation, and “transferable”, “transferred” and “transferring” shall be construed accordingly.

Part II — Exemptions

Foreign loan securities

13

Stamp duty is not chargeable on a bearer instrument issued outside the United Kingdom in respect of a loan which is expressed in a currency other than sterling and which is not—

• (a) offered for subscription in the United Kingdom, or

• (b) offered for subscription with a view to an offer for sale in the United Kingdom of securities in respect of the loan.

Stock exempt from duty on transfer

14

Stamp duty is not chargeable under this Schedule on an instrument constituting, or used for transferring, stock (other than units in a unit trust) that is exempt from all stamp duties on transfer.

Instruments in respect of which duty previously abolished

15

Stamp duty is not chargeable under this Schedule on any description of instrument in respect of which duty was abolished by—

• (a) section 64 of the Finance Act 1971 or section 5 of the Finance Act (Northern Ireland) 1971 (abolition of duty on mortgages, bonds, debentures etc.), or

• (b) section 173 of the Finance Act 1989 (life insurance policies and superannuation annuities).

Renounceable letters of allotment

16

Stamp duty is not chargeable under this Schedule on renounceable letters of allotment, letters of rights or other similar instruments where the rights under the letter or other instrument are renounceable not later than six months after its issue.

Instruments relating to non-sterling stock

17

• (1) Stamp duty is not chargeable under this Schedule on ... an instrument which relates to stock expressed—

• (a) in a currency other than sterling, or

• (b) in units of account defined by reference to more than one currency (whether or not including sterling).

...

• (2) Where the stock to which the instrument relates consists of a loan for the repayment of which there is an option between sterling and one or more other currencies, sub-paragraph (1) applies if the option is exercisable only by the holder of the stock and does not apply in any other case.

18

Where the capital stock of a company is not expressed in terms of any currency, it shall be treated for the purposes of paragraph 17 as expressed in the currency of the territory under the law of which the company is formed or established.

19

• (1) A unit under a unit trust scheme or a share in a foreign mutual fund shall be treated for the purposes of paragraph 17 as capital stock of a company formed or established in the territory by the law of which the scheme or fund is governed.

• (2) A “foreign mutual fund” means a fund administered under arrangements governed by the law of a territory outside the United Kingdom under which subscribers to the fund are entitled to participate in, or receive payments by reference to, profits or income arising to the fund from the acquisition, holding, management or disposal of investments.

• (3) In relation to a foreign mutual fund “share” means the right of a subscriber, or of another in his right, to participate in or receive payments by reference to profits or income so arising.

Variation of original terms or conditions

20

Where a bearer instrument issued by or on behalf of a non-UK company in respect of a loan expressed in sterling—

• (a) has been stampedad valorem, or

• (b) has been stamped in accordance with paragraph 12A, or

• (c) has been stamped with the denoting stamp referred to in paragraph 21(2)(b) below,

duty is not chargeable under this Schedule by reason only that the instrument is amended on its face pursuant to an agreement for the variation of any of its original terms or conditions.

Part III — Supplementary provisions

...

21

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

22

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

Duty chargeable on transfer of stock by means of instrument

23

• (1) This paragraph applies where duty is chargeable under paragraph 2 of this Schedule.

• (2) Where the instrument is presented to the Commissioners for stamping—

• (a) the person presenting it, and

• (b) the owner of the instrument,

shall furnish to the Commissioners such particulars in writing as the Commissioners may require for determining the amount of duty chargeable.

• (3) If the instrument is not duly stamped each person who in the United Kingdom—

• (a) transfers any stock by or by means of the instrument, or

• (b) is concerned as broker or agent in any such transfer,

is liable to a penalty not exceeding the aggregate of £300 and the amount of duty chargeable.

• (4) Those persons are also jointly and severally liable to pay to Her Majesty—

• (a) the duty chargeable, and

• (b) interest on the unpaid duty from the date of the transfer in question until the duty is paid.

Supplementary provisions as to interest

24

• (1) The following provisions apply to interest under paragraph 22(2) or 23(4).

• (2) If an amount is lodged with the Commissioners in respect of the duty, the amount on which interest is payable is reduced by that amount.

• (3) Interest is payable at the rate prescribed under section 178 of the Finance Act 1989 for the purposes of section 15A of the Stamp Act 1891 (interest on late stamping).

• (4) The amount of interest shall be rounded down (if necessary) to the nearest multiple of £5.

No interest is payable if the amount is less than £25.

• (5) The interest shall be paid without any deduction of income tax and shall not be taken into account in computing income or profits for any tax purposes.

Penalty for false statement

25

A person who in furnishing particulars under this Part of this Schedule wilfully or negligently furnishes particulars that are false in any material respect is liable to a penalty not exceeding the aggregate of £300 and twice the amount by which the stamp duty chargeable exceeds that paid.

26

An instrument in respect of which duty is chargeable under paragraph 2 of this Schedule which—

• (a) has been stampedad valorem, ...

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

shall be treated as duly stamped for all purposes other than paragraph 25.

SCHEDULE 16

General amendment

1

• (1) Any reference (express or implied) in any enactment, instrument or other document to the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891 shall be construed, so far as is required for continuing its effect, as being or, as the case may require, including a reference to Schedule 15 to this Act.

• (2) Sub-paragraph (1)—

• (a) has effect subject to any express amendment made by this Act, and

• (b) is without prejudice to the general application of section 17(2) of the Interpretation Act 1978 (general effect of repeal and re-enactment).

Finance Act 1963 (c. 25)

2

In section 67 of the Finance Act 1963 (prohibition of circulation of blank transfers) for subsection (4) substitute—

(4) In this section— (a) “stock” includes securities; (b) references to stock include any interest in, or in any fraction of, stock or in any dividends or other rights arising out of stock and any right to an allotment of or to subscribe for stock; and (c) “transfer” includes any instrument used for transferring stock. (4A) Nothing in this section applies to— (a) an instrument which is chargeable with duty at the rate specified in paragraph 5 of Schedule 15 to the Finance Act 1999 (certain bearer instruments issued by or on behalf of non-UK companies) and is duly stamped, or (b) renounceable letters of allotment, letters of rights or other similar instruments where the rights under the letter or other instrument are renounceable not later than six months after its issue.

.

Finance Act 1976 (c. 40)

3

In section 131(3) of the Finance Act 1976 (exemption for instruments issued by Inter-American Development Bank) for “the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “ Schedule 15 to the Finance Act 1999 (bearer instruments) ”.

Finance Act 1984 (c. 43)

4

In section 126(3)(c) and (5) of the Finance Act 1984 (exemption for bearer instruments issued by designated international organisations) for “the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “ Schedule 15 to the Finance Act 1999 (bearer instruments) ”.

Finance Act 1986 (c. 41)

5

In section 79(2) of the Finance Act 1986 (exemption for instruments relating to loan capital), for “the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “ Schedule 15 to the Finance Act 1999 (bearer instruments) ”.

6

• (1) Section 90 of the Finance Act 1986 (exceptions from general charge to stamp duty reserve tax) is amended as follows.

• (2) In subsection (3) for paragraph (a) substitute—

(a) a non-UK bearer instrument;

.

• (3) In subsection (3A) for “an inland bearer instrument within the meaning of the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “ a UK bearer instrument ”.

• (4) In subsection (3B) for “exemption 3 in the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “ the exemption conferred by paragraph 16 of Schedule 15 to the Finance Act 1999 (renounceable letters of allotment etc.) ”.

• (5) In subsection (3C) for paragraph (b) substitute—