Finance Act 2003

GovernmentA Minister of the Crown or government department. . .A Northern Ireland department The Welsh Ministers, the First Minister for Wales and the Counsel General to the Welsh Government
Government
A Minister of the Crown or government department
. . .
A Northern Ireland department
The Welsh Ministers, the First Minister for Wales and the Counsel General to the Welsh Government
Local government: EnglandA county or district council constituted under section 2 of the Local Government Act 1972 (c. 70)The council of a London boroughThe Common Council of the City of LondonThe Greater London AuthorityTransport for LondonThe Council of the Isles of Scilly
Local government: England
A county or district council constituted under section 2 of the Local Government Act 1972 (c. 70)
The council of a London borough
The Common Council of the City of London
The Greater London Authority
Transport for London
The Council of the Isles of Scilly
Local government: WalesA county or county borough council constituted under section 21 of the Local Government Act 1972
Local government: Wales
A county or county borough council constituted under section 21 of the Local Government Act 1972
. . .
Local government: Northern IrelandA district council within the meaning of the Local Government Act (Northern Ireland) 1972 (c. 9 (N.I.))
Local government: Northern Ireland
A district council within the meaning of the Local Government Act (Northern Ireland) 1972 (c. 9 (N.I.))
Health: England and WalesA Strategic Health Authority established under section 13 of the National Health Service Act 2006A Special Health Authority established under section 28 of that Act or section 22 of the National Health Service (Wales) Act 2006 A Primary Care Trust established under section 18 of the National Health Service Act 2006 A Local Health Board established under section 11 of the National Health Service (Wales) Act 2006 A National Health Service Trust established under section 25 of the National Health Service Act 2006 or section 18 of the National Health Service (Wales) Act 2006
Health: England and Wales
A Strategic Health Authority established under section 13 of the National Health Service Act 2006
A Special Health Authority established under section 28 of that Act or section 22 of the National Health Service (Wales) Act 2006
A Primary Care Trust established under section 18 of the National Health Service Act 2006
A Local Health Board established under section 11 of the National Health Service (Wales) Act 2006
A National Health Service Trust established under section 25 of the National Health Service Act 2006 or section 18 of the National Health Service (Wales) Act 2006
. . .
Health: Northern Ireland The Regional Agency for Public Health and Social Well-beingA Health and Social Care trust established under Article 10 of the Health and Personal Social Services (Northern Ireland) Order 1991 (S.I. 1991/194 (N.I. 1))
Health: Northern Ireland
The Regional Agency for Public Health and Social Well-being
A Health and Social Care trust established under Article 10 of the Health and Personal Social Services (Northern Ireland) Order 1991 (S.I. 1991/194 (N.I. 1))
Other planning authoritiesAny other authority that—is a local planning authority within the meaning of the Town and Country Planning Act 1990 (c. 8), ......
Other planning authorities
Any other authority that—is a local planning authority within the meaning of the Town and Country Planning Act 1990 (c. 8), ......
Prescribed personsA person prescribed for the purposes of this section by Treasury order
Prescribed persons
A person prescribed for the purposes of this section by Treasury order

Group relief and reconstruction or acquisition relief

62

• (1) Schedule 7 provides for relief from stamp duty land tax.

• (2) In that Schedule—

• Part 1 makes provision for group relief,

• Part 2 makes provision for reconstruction and acquisition reliefs.

• (3) Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.

Demutualisation of insurance company

63

• (1) A land transaction is exempt from charge if it is entered into for the purposes of or in connection with a qualifying transfer of the whole or part of the business of a mutual insurance company (“the mutual”) to a company that has share capital (“the acquiring company”).

• (2) A transfer is a qualifying transfer if—

• (a) it is a transfer of business consisting of the effecting or carrying out of contracts of insurance and takes place under an insurance business transfer scheme, or

• (b) it is a transfer of business of a general insurance company carried on through a permanent establishment in the United Kingdom and takes place in accordance with authorisation granted outside the United Kingdom for the purposes of the Solvency 2 Directive, and the requirements of subsection (3) and (4) are met in relation to the shares of a company (“the issuing company”) which is either the acquiring company or a company of which the acquiring company is a wholly-owned subsidiary.

• (3) Shares in the issuing company must be offered, under the scheme, to at least 90% of the persons who are members of the mutual immediately before the transfer.

• (4) Under the scheme all of the shares in the issuing company that will be in issue immediately after the transfer has been made, other than shares that are to be or have been issued pursuant to an offer to the public, must be offered to the persons who (at the time of the offer) are—

• (a) members of the mutual,

• (b) persons who are entitled to become members of the mutual, or

• (c) employees, former employees or pensioners of—

• (i) the mutual, or

• (ii) a wholly-owned subsidiary of the mutual.

• (5) The Treasury may by regulations—

• (a) amend subsection (3) by substituting a lower percentage for the percentage mentioned there;

• (b) provide that any or all of the references in subsections (3) and (4) to members shall be construed as references to members of a class specified in the regulations.

Regulations under paragraph (b) may make different provision for different cases.

• (6) For the purposes of this section a company is the wholly-owned subsidiary of another company (“the parent”) if the company has no members except the parent and the parent’s wholly-owned subsidiaries or persons acting on behalf of the parent or the parent’s wholly-owned subsidiaries.

• (7) In this section—

• “contract of insurance” has the meaning given by Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544);

• “employee”, in relation to a mutual insurance company or its wholly-owned subsidiary, includes any officer or director of the company or subsidiary and any other person taking part in the management of the affairs of the company or subsidiary;

• “general insurance company” means a company that has permission under Part 4A of the Financial Services and Markets Act 2000 (c. 8) ... to effect or carry out contracts of insurance;

• “insurance company” means a company that carries on the business of effecting or carrying out contracts of insurance;

• “insurance business transfer scheme” has the same meaning as in Part 7 of the Financial Services and Markets Act 2000;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “mutual insurance company” means an insurance company carrying on business without having any share capital;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• “pensioner”, in relation to a mutual insurance company or its wholly-owned subsidiary, means a person entitled (whether presently or prospectively) to a pension, lump sum, gratuity or other like benefit referable to the service of any person as an employee of the company or subsidiary.

• “the Solvency 2 Directive” means Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II).

Demutualisation of building society

64

A land transaction effected by section 97(6) or (7) of the Building Societies Act 1986 (c. 53) (transfer of building society’s business to a commercial company) is exempt from charge.

Incorporation of limited liability partnership

65

• (1) A transaction by which a chargeable interest is transferred by a person (“the transferor”) to a limited liability partnership in connection with its incorporation is exempt from charge if the following three conditions are met.

• (2) The first condition is that the effective date of the transaction is not more than one year after the date of incorporation of the limited liability partnership.

• (3) The second condition is that at the relevant time the transferor—

• (a) is a partner in a partnership comprised of all the persons who are or are to be members of the limited liability partnership (and no-one else), or

• (b) holds the interest transferred as nominee or bare trustee for one or more of the partners in such a partnership.

• (4) The third condition is that—

• (a) the proportions of the interest transferred to which the persons mentioned in subsection (3)(a) are entitled immediately after the transfer are the same as those to which they were entitled at the relevant time, or

• (b) none of the differences in those proportions has arisen as part of a scheme or arrangement of which the main purpose, or one of the main purposes, is avoidance of liability to any duty or tax.

• (5) In this section “the relevant time” means—

• (a) where the transferor acquired the interest after the incorporation of the limited liability partnership, immediately after he acquired it, and

• (b) in any other case, immediately before its incorporation.

• (6) In this section “limited liability partnership” means a limited liability partnership formed under the Limited Liability Partnerships Act 2000 (c. 12) or the Limited Liability Partnerships Act (Northern Ireland) 2002 (c. 12 (N. I.)).

Transfers involving public bodies

66

• (1) A land transaction entered into on, or in consequence of, or in connection with, a reorganisation effected by or under a statutory provision is exempt from charge if the purchaser and vendor are both public bodies.

• (2) The Treasury may by order provide that a land transaction that is not entered into as mentioned in subsection (1) is exempt from charge if—

• (a) the transaction is effected by or under a prescribed statutory provision, and

• (b) either the purchaser or the vendor is a public body.

In this subsection “prescribed” means prescribed in an order made under this subsection.

• (3) A “reorganisation” means changes involving—

• (a) the establishment, reform or abolition of one or more public bodies,

• (b) the creation, alteration or abolition of functions to be discharged or discharged by one or more public bodies, or

• (c) the transfer of functions from one public body to another.

• (4) The following are public bodies for the purposes of this section—

• Government, Parliament etcA Minister of the CrownThe Scottish MinistersA Northern Ireland departmentThe Welsh Ministers, the First Minister for Wales and the Counsel General to the Welsh GovernmentThe Corporate Officer of the House of LordsThe Corporate Officer of the House of CommonsThe Scottish Parliamentary Corporate BodyThe Northern Ireland Assembly CommissionThe National Assembly for Wales Commission

• Local government: EnglandA county or district council constituted under section 2 of the Local Government Act 1972 (c. 70)The council of a London boroughThe Greater London AuthorityThe Common Council of the City of LondonThe Council of the Isles of Scilly

• Local government: WalesA county or county borough council constituted under section 21 of the Local Government Act 1972

• Local government: ScotlandA council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39)

• Local government: Northern IrelandA district council within the meaning of the Local Government Act (Northern Ireland) 1972 (c. 9 (N.I.))

• Health: England and WalesA Strategic Health Authority established under section 13 of the National Health Service Act 2006A Special Health Authority established under section 28 of that Act or section 22 of the National Health Service (Wales) Act 2006 A Primary Care Trust established under section 18 of the National Health Service Act 2006A Local Health Board established under section 11 of the National Health Service (Wales) Act 2006 A National Health Service Trust established under section 25 of the National Health Service Act 2006 or section 18 of the National Health Service (Wales) Act 2006

• Health: ScotlandThe Common Services Agency established under section 10(1) of the National Health Service (Scotland) Act 1978 (c. 29)A Health Board established under section 2(1)(a) of that ActA National Health Service Trust established under section 12A(1) of that ActA Special Health Board established under section 2(1)(b) of that Act

• Health: Northern Ireland The Regional Agency for Public Health and Social Well-beingA Health and Social Care trust established under Article 10 of the Health and Personal Social Services (Northern Ireland) Order 1991 (S.I. 1991/194 (N.I. 1))

• Other planning authoritiesAny other authority that—is a local planning authority within the meaning of the Town and Country Planning Act 1990 (c. 8), oris the planning authority for any of the purposes of the planning Acts within the meaning of the Town and Country Planning (Scotland) Act 1997 (c. 8)...

• Statutory bodiesA body (other than a company) that is established by or under a statutory provision for the purpose of carrying out functions conferred on it by or under a statutory provision

• Prescribed personsA person prescribed for the purposes of this section by Treasury order

• (5) In this section references to a public body include—

• (a) a company in which all the shares are owned by such a body, and

• (b) a wholly-owned subsidiary of such a company.

• (6) In this section “company” means a company as defined by section 1 of the Companies Act 2006 ....

Transfer in consequence of reorganisation of parliamentary constituencies

67

• (1) Where—

• (a) an Order in Council is made under the Parliamentary Constituencies Act 1986 (c. 56) (orders specifying new parliamentary constituencies), and

• (b) an existing local constituency association transfers a chargeable interest to—

• (i) a new association that is a successor to the existing association, or

• (ii) a related body that as soon as practicable transfers the interest or right to a new association that is a successor to the existing association,

the transfer, or where paragraph (b)(ii) applies each of the transfers, is exempt from charge.

• (2) In relation to any such order as is mentioned in subsection (1)(a)—

• (a) “the date of the change” means the date on which the order comes into operation;

• (b) “former parliamentary constituency” means an area that, for the purposes of parliamentary elections, was a constituency immediately before that date but is no longer such a constituency after that date;

• (c) “new parliamentary constituency” means an area that, for the purposes of parliamentary elections, is such a constituency after that date but was not such a constituency immediately before that date.

• (3) In relation to the date of the change—

• (a) “existing local constituency association” means a local constituency association whose area was the same, or substantially the same, as the area of a former parliamentary constituency or two or more such constituencies, and

• (b) “new association” means a local constituency association whose area is the same, or substantially the same, as that of a new parliamentary constituency or two or more such constituencies.

• (4) In this section—

• (a) “local constituency association” means an unincorporated association (whether described as an association, a branch or otherwise) whose primary purpose is to further the aims of a political party in an area that at any time is or was the same or substantially the same as the area of a parliamentary constituency or two or more parliamentary constituencies, and

• (b) “related body”, in relation to such an association, means a body (whether corporate or unincorporated) that is an organ of the political party concerned.

• (5) For the purposes of this section a new association is a successor to an existing association if any part of the existing association’s area is comprised in the new association’s area.

Charities relief

68

• (1) Schedule 8 provides for relief from stamp duty land tax for acquisitions by charities.

• (2) Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.

Acquisition by bodies established for national purposes

69

A land transaction is exempt from charge if the purchaser is any of the following—

• (a) the Historic Buildings and Monuments Commission for England;

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

• (c) the Trustees of the British Museum;

• (d) the Trustees of the National Heritage Memorial Fund;

• (e) the Trustees of the Natural History Museum.

Right to buy transactions, shared ownership leases etc

70

Schedule 9 makes provision for relief in the case of right to buy transactions, shared ownership leases and certain related transactions.

Certain acquisitions by registered social landlord

71

• (A1) A land transaction under which the purchaser is a profit-making registered provider of social housing is exempt from charge if the transaction is funded with the assistance of a public subsidy.

• (1) A land transaction under which the purchaser is a relevant housing provider is exempt from charge if—

• (a) the purchaser is a non-profit registered provider of social housing controlled by its tenants,

• (b) the vendor is a qualifying body, or

• (c) the transaction is funded with the assistance of a public subsidy.

• (1A) In this section “relevant housing provider” means—

• (a) a non-profit registered provider of social housing, ...

• (b) a housing association registered in the register maintained under Article 14 of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15)), or

• (c) an English local authority that is a registered provider of social housing.

• (2) The reference in subsection (1)(a) to a non-profit registered provider of social housing “controlled by its tenants” is to a non-profit registered provider of social housing the majority of whose board members are tenants occupying properties owned or managed by it.

• “Board member”, in relation to a non-profit registered provider of social housing, means—if it is a company, a director of the company,if it is a body corporate whose affairs are managed by its members, a member,if it is body of trustees, a trustee,if it is not within paragraphs (a) to (c), a member of the committee of management or other body to which is entrusted the direction of the affairs of the non-profit registered provider of social housing.

• (3) In subsection (1)(b) “qualifying body” means—

• (a) a relevant housing provider,

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

• (c) a principal council within the meaning of the Local Government Act 1972 (c. 70),

• (d) the Common Council of the City of London,

• (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (h) the Department for Communities in Northern Ireland, or

• (i) the Northern Ireland Housing Executive.

• (4) In this section “public subsidy” means any grant or other financial assistance—

• (a) made or given by way of a distribution pursuant to section 25 of the National Lottery etc. Act 1993 (c. 39) (application of money by distributing bodies),

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

• (c) under section 126 of the Housing Grants, Construction and Regeneration Act 1996 (c. 53) (financial assistance for regeneration and development),

• (ca) under section 19 of the Housing and Regeneration Act 2008 (financial assistance by the Homes and Communities Agency),

• (cb) made or given by the Greater London Authority,

• (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or

• (e) under Article 33 or 33A of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15)).

• (5) In this section “public subsidy” also means —

• (a) any amount that is receipts of the disposal of social housing, provided the purchaser is entitled to use the amount for the purpose of the provision of social housing, or

• (b) any grant under section 31 of the Local Government Act 2003 (grants towards expenditure incurred or to be incurred by local authorities) towards expenditure incurred or to be incurred on the provision of social housing ....

• (6) In subsection (5) “social housing” has the meaning it has in Part 2 of the Housing and Regeneration Act 2008 (see, in particular, section 68 of that Act).

• (7) In this section “English local authority” means—

• (a) a principal council within the meaning of the Local Government Act 1972, or

• (b) the Common Council of the City of London.

Alternative property finance: land sold to financial institution and leased to individual

72

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

Alternative property finance: land sold to financial institution and re-sold to individual

73

• (1) This section applies where arrangements are entered into between a person and a financial institution under which—

• (a) the institution—

• (i) purchases a major interest in land (“the first transaction”), and

• (ii) sells that interest to the person (“the second transaction”), and

• (b) the person grants the institution a legal mortgage over that interest.

• (2) The first transaction is exempt from charge if the vendor is—

• (a) the person concerned, or

• (b) another financial institution by whom the interest was acquired under other arrangements of the kind mentioned in section 71A(1)... entered into between it and the person.

• (3) The second transaction is exempt from charge if the financial institution complies with the provisions of this Part relating to the first transaction (including the payment of any tax chargeable on a chargeable consideration that is not less than the market value of the interest and, in the case of the grant of a lease at a rent, the rent.).

• (4) This section does not apply if—

• (a) the person enters into the arrangements as trustee and any beneficiary of the trust is not a person, or

• (b) the person enters into the arrangements as partner and any of the other partners is not a person.

• (5) In this section—

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

• (b) “legal mortgage”—

• (i) in relation to land in England ..., means a legal mortgage as defined in section 205(1)(xvi) of the Law of Property Act 1925 (c. 20);

• (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (iii) in relation to land in Northern Ireland, means a mortgage by conveyance of a legal estate or by demise or sub-demise or a charge by way of legal mortgage.

• (6) References in this section to a person shall be read, in relation to times after the death of the person concerned, as references to his personal representatives.

Collective enfranchisement by leaseholders

74

• (1) This section applies where a chargeable transaction is entered into by a person or persons nominated or appointed by qualifying tenants of flats contained in premises in exercise of—

• (a) a right under Part 1 of the Landlord and Tenant Act 1987 (right of first refusal), or

• (b) a right under Chapter 1 of Part 1 of the Leasehold Reform, Housing and Urban Development Act 1993 (right to collective enfranchisement).

• (1A) The amount of tax is determined as follows.

• Step 1 Determine the fraction of the relevant consideration produced by dividing the total amount of that consideration by the number of qualifying flats contained in the premises.

• Step 2 If the amount produced by step 1 is £500,000 or less, determine the amount of tax chargeable in accordance with subsection (1B).

• Step 3 If the amount produced by step 1 is more than £500,000 and the condition in paragraph 3(3) of Schedule 4A is not met with respect to the transaction, determine the amount of tax chargeable in accordance with subsection (1B).

• Step 4 If the amount produced by step 1 is more than £500,000 and the condition in paragraph 3(3) of Schedule 4A is met with respect to the transaction, subsection (1B) does not apply, and the amount of tax chargeable in respect of the transaction is 17% of the chargeable consideration for the transaction.

• (1B) Where step 2 or 3 of subsection (1A) requires the amount of tax chargeable to be determined in accordance with this subsection, it is determined as follows.

• Step 1 Determine the amount of tax chargeable under section 55 as if the relevant consideration for the chargeable transaction were the fraction of the relevant consideration calculated under step 1 of subsection (1A).

• Step 2 Multiply the amount determined at step 1 by the number of qualifying flats contained in the premises.

• (4) In this section—

• “flat” and “qualifying tenant” have the same meaning as in the Chapter or Part of the Act conferring the right being exercised;

• “qualifying flat” means a flat that is held by a qualifying tenant who is participating in the exercise of the right.

• (5) References in this section to the relevant consideration have the same meaning as in section 55.

Crofting community right to buy

75

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

Returns and other administrative matters

Duty to deliver land transaction return

76

• (1) In the case of every notifiable transaction the purchaser must deliver a return (a “land transaction return”) to the Inland Revenue before the end of the period of 14 days after the effective date of the transaction.

• (2) The Inland Revenue may by regulations amend subsection (1) so as to require a land transaction return to be delivered before the end of such shorter period after the effective date of the transaction as may be prescribed or, if the regulations so provide, on that date.

• (3) A land transaction return in respect of a chargeable transaction must—

• (a) include an assessment (a “self-assessment”) of the tax that, on the basis of the information contained in the return, is chargeable in respect of the transaction, ...

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

Notifiable transactions

77

• (1) A land transaction is notifiable if it is—

• (a) an acquisition of a major interest in land that does not fall within one or more of the exceptions in section 77A,

• (b) an acquisition of a chargeable interest other than a major interest in land where there is chargeable consideration in respect of any part of which tax is chargeable at a rate of more than 0% or would be so chargeable but for a relief,

• (c) a land transaction that a person is treated as entering into by virtue of section 44A(3), ...

• (d) a notional land transaction under section 75A or

• (e) a notional or additional land transaction under paragraph 5 of Schedule 2A.

• (2) This section has effect subject to—

• (a) sections 71A(7) ..., and

• (b) paragraph 30 of Schedule 15.

• (3) In this section “relief” does not include an exemption from charge under Schedule 3.

Returns, enquiries, assessments and related matters

78

• (1) Schedule 10 has effect with respect to land transaction returns, assessments and related matters.

• (2) In that Schedule—

• Part 1 contains general provisions about returns;

• Part 2 imposes a duty to keep and preserve records;

• Part 3 makes provision for enquiries into returns;

• Part 4 provides for a Revenue determination if no return is delivered;

• Part 5 provides for Revenue assessments;

• Part 6 provides for relief in case of excessive assessment; and

• Part 7 provides for appeals against Revenue decisions on tax.

• (3) The Treasury may by regulations make such amendments of that Schedule, and such consequential amendments of any other provisions of this Part, as appear to them to be necessary or expedient from time to time.

Registration of land transactions etc

79

• (1) A land transaction to which this section applies, or (as the case may be) a document effecting or evidencing a land transaction to which this section applies, shall not be registered, recorded or otherwise reflected in an entry made—

• (a) in England and Wales, in the register of title maintained by the Chief Land Registrar,

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

• (c) in Northern Ireland, in any register maintained by the Land Registry of Northern Ireland or in the Registry of Deeds for Northern Ireland,

unless there is produced, together with the relevant application, a certificate as to compliance with the requirements of this Part in relation to the transaction or such information about compliance as the Commissioners for Her Majesty's Revenue and Customs may specify in regulations.

This does not apply where the entry is required to be made without any application or so far as the entry relates to an interest or right other than the chargeable interest acquired by the purchaser under the land transaction that gives rise to the application.

• (2) This section applies to every notifiable land transaction other than a transaction treated as taking place—

• (a) under subsection (4) of section 44 (contract and conveyance) or under that section as it applies by virtue of—

• (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (ii) paragraph 12B of Schedule 17A (assignment of agreement for lease),

• (b) under subsection (3) of section 44A (contract providing for conveyance to third party) or under that section as it applies by virtue of section 45A (contract providing for conveyance to third party: effect of transfer of rights).

• (ba) under paragraph 5 of Schedule 2A (transactions entered into before completion of contract),

• (c) under paragraph 12A(2) ... of Schedule 17A (agreement for lease), or

• (d) under paragraph 13 (increase of rent) or 15A (reduction of rent or term) of that Schedule.

In this subsection “contract” includes any agreement and “conveyance” includes any instrument.

• (2A) Subsection (1), so far as relating to the entry of a notice under section 34 of the Land Registration Act 2002 or section 38 of the Land Registration Act (Northern Ireland) 1970 (notice in respect of interest affecting registered land), does not apply where the land transaction in question is the variation of a lease.

• (3) The certificate referred to in subsection (1) must be ...—

• (a) a certificate by the Inland Revenue (a “Revenue certificate”) that a land transaction return has been delivered in respect of the transaction, ...

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

• (4) The Inland Revenue may make provision by regulations about Revenue certificates. The regulations may, in particular—

• (a) make provision as to the conditions to be met before a certificate is issued;

• (b) prescribe the form and content of the certificate;

• (c) make provision about the issue of duplicate certificates if the original is lost or destroyed;

• (d) provide for the issue of multiple certificates where a return is made relating to more than one transaction.

• (5) Part 2 of Schedule 11 imposes a duty to keep and preserve records in respect of transactions that are not notifiable.

• (6) The registrar ...—

• (a) shall allow the Inland Revenue to inspect any certificates ... produced to him under this section and in his possession, and

• (b) may enter into arrangements for affording the Inland Revenue other information and facilities for verifying that the requirements of this Part have been complied with.

Adjustment where contingency ceases or consideration is ascertained

80

• (1) Where section 51 (contingent, uncertain or unascertained consideration) applies in relation to a transaction and—

• (a) in the case of contingent consideration, the contingency occurs or it becomes clear that it will not occur, or

• (b) in the case of uncertain or unascertained consideration, an amount relevant to the calculation of the consideration, or any instalment of consideration, becomes ascertained,

the following provisions have effect to require or permit reconsideration of how this Part applies to the transaction (and to any transaction in relation to which it is a linked transaction).

• (2) If the effect of the new information is that a transaction becomes notifiable, the purchaser must make a return to HMRC within 14 days.

• (2A) If the effect of the new information is that—

• (a) tax is payable in respect of a transaction where none was payable before and subsection (2) does not apply, or

• (b) additional tax is payable in respect of a transaction,

the purchaser must make a further return to HMRC within 30 days.

• (2B) For the purposes of subsections (2) and (2A), any tax or additional tax payable is calculated according to the effective date of the transaction.

• (2C) If a purchaser is required to make a return under subsection (2) or a further return under subsection (2A)—

• (a) that return must contain a self-assessment of the tax chargeable in respect of the transaction on the basis of the information contained in the return, and

• (b) the tax or additional tax payable must be paid not later than the filing date for that return.

• (3) The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a return under section 76 (general requirement to make land transaction return), subject to the adaptation that references to the effective date of the transaction shall be read as references to the date of the event as a result of which the return is required.

• (4) If the effect of the new information is that less tax is payable in respect of a transaction (calculated according to its effective date) than has already been paid,

• (a) the purchaser may, within the period allowed for amendment of the land transaction return, amend the return accordingly;

• (b) after the end of that period he may (if the land transaction return is not so amended) make a claim to the Inland Revenue for repayment of the amount overpaid.

• (4A) Where the transaction (“the relevant transaction”) is the grant or assignment of a lease, no claim may be made under subsection (4)—

• (a) in respect of the repayment (in whole or part) of any loan or deposit that is treated by paragraph 18A of Schedule 17A as being consideration given for the relevant transaction, or

• (b) in respect of the refund of any of the consideration given for the relevant transaction, in a case where the refund—

• (i) is made under arrangements that were made in connection with the relevant transaction, and

• (ii) is contingent on the determination or assignment of the lease or on the grant of a chargeable interest out of the lease.

• (5) This section does not apply so far as the consideration consists of rent (see paragraph 8 of Schedule 17A).

Further return where relief withdrawn

81

• (1) Where relief is withdrawn to any extent under—

• (za) paragraph 11 of Schedule 6A (relief for certain acquisitions of residential property),

• (a) Part 1 of Schedule 7 (group relief),

• (b) Part 2 of that Schedule (reconstruction or acquisition relief), ...

• (ba) paragraph 5, 7 or 8 of Schedule 7A (PAIF seeding relief),

• (bb) paragraph 13, 17 or 18 of Schedule 7A (co-ownership scheme seeding relief), or

• (c) Schedule 8 (charities relief),

the purchaser must deliver a further return before the end of the period of 30 days after the date on which the disqualifying event occurred.

• (1A) Where relief is withdrawn to any extent under—

• (a) any of paragraphs 5G to 5L of Schedule 4A (relief from higher rate under Schedule 4A (higher rate for certain transactions)),

• (aa) Part 3 of Schedule 6C (relief for special tax sites), other than in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies,

• (b) paragraph 6 of Schedule 7A (PAIF seeding relief), or

• (c) paragraph 14 or 16 of Schedule 7A (co-ownership scheme seeding relief),

the purchaser must deliver a further return before the end of the period of 30 days after the relevant date.

• (1B) In subsection (1A) “the relevant date” means—

• (a) in the case of relief under paragraph 5 of Schedule 4A (businesses of letting, trading in or redeveloping properties), the first day in the period mentioned in paragraph 5G(2) on which a requirement under paragraph 5G(3) was not met in the case of the chargeable interest in question;

• (b) in the case of relief under paragraph 5B of that Schedule (trades involving making a dwelling available to the public), the first day in the period mentioned in paragraph 5H(2) on which a requirement under paragraph 5H(3) was not met in the case of the chargeable interest in question;

• (c) in the case of relief under paragraph 5C of that Schedule (financial institutions acquiring dwellings in the course of lending), the first day in the period mentioned in paragraph 5I(2) on which a requirement under paragraph 5I(3) was not met in the case of the chargeable interest in question;

• (ca) in the case of relief under paragraph 5CA of that Schedule (acquisition under a regulated home reversion plan), the first day in the period mentioned in paragraph 5IA(2) of that Schedule on which the purchaser holds the higher threshold interest otherwise than for the purposes of the regulated home reversion plan, unless paragraph 5IA(3)(a) and (b) applies;

• (d) in the case of relief under paragraph 5D of that Schedule (dwellings for occupation by certain employees etc), the first day in the period mentioned in paragraph 5J(2) on which a requirement under paragraph 5J(3) was not met in the case of the chargeable interest in question;

• (da) in the case of relief under paragraph 5EA of that Schedule (acquisition by management company of flat for occupation by caretaker), the first day in the period mentioned in paragraph 5JA(2) of that Schedule on which the purchaser holds the higher threshold interest otherwise than for the purpose of making the flat available for use as caretaker accommodation;

• (e) in the case of relief under paragraph 5F of that Schedule (farmhouses), the first day in the period mentioned in paragraph 5K(2) on which a requirement under paragraph 5K(3) was not met in the case of the chargeable interest in question.

• (ea) in the case of relief under paragraph 5FA of that Schedule (qualifying housing co-operatives), the date determined in accordance with subsection (1C);

• (eb) in the case of relief under Schedule 6C (relief for special tax sites), the last day in the control period on which the qualifying land is used exclusively in a qualifying manner;

• (f) in the case of relief under paragraph 6 of Schedule 7A (PAIF seeding relief: portfolio test)—

• (i) where relief is withdrawn under paragraph 6(1), the last day of the seeding period (see paragraph 3 of that Schedule), or

• (ii) where relief is withdrawn under paragraph 6(3), the first time mentioned in paragraph 6(3)(a) or (b) at which the portfolio test was not met;

• (g) in the case of relief under paragraph 14 of Schedule 7A (co-ownership scheme seeding relief: genuine diversity of ownership condition), the first time mentioned in paragraph 14(1) at which the genuine diversity of ownership condition was not met;

• (h) in the case of relief under paragraph 16 of Schedule 7A (co-ownership scheme seeding relief: portfolio test)—

• (i) where relief is withdrawn under paragraph 16(1), the last day of the seeding period (see paragraph 11 of that Schedule), or

• (ii) where relief is withdrawn under paragraph 16(3), the first time mentioned in paragraph 16(3)(a) or (b) at which the portfolio test was not met.

• (1C) For the purposes of subsection (1B)(ea) (relief under paragraph 5FA of Schedule 4A withdrawn because the conditions in paragraph 5L(3) of that Schedule are met), the date is—

• (a) where paragraph 5L(4) of Schedule 4A does not apply, the first day in the period mentioned in paragraph 5L(3)(a) of that Schedule on which the purchaser is not a qualifying housing body;

• (b) where paragraph 5L(4) or (7) of that Schedule applies and relief is withdrawn because condition A in paragraph 5L(5) of that Schedule is met, the day of succession of the relevant successor;

• (c) where paragraph 5L(4) or (7) of that Schedule applies and relief is withdrawn because condition B in paragraph 5L(6) of that Schedule is met, the first day in the part of the control period that falls after the day of succession of the relevant successor on which the relevant successor is not a qualifying housing body.

• (1D) Where relief is withdrawn to any extent under paragraph 5L of Schedule 4A in a case to which paragraph 5L(4) or (7) applies, the reference in subsection (1A) to the purchaser is to be read as a reference to the relevant successor.

• (2) The return must—

• (a) include a self-assessment of the amount of tax chargeable, ...

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

• (2A) Where subsection (1) or (1A) applies any tax payable must be paid not later than the filing date for the return.

• (3) The provisions of Schedule 10 (returns, assessments and other matters) apply for the purposes of this section with the following modifications—

• (a) references to a return under section 76 (general requirement to deliver land transaction return) are to be read as references to a return under subsection (1) or (1A);

• (b) references to the transaction to which a return relates are to be read as references to the withdrawal of relief in respect of which the return is required under subsection (1) or (1A);

• (c) references to a chargeable transaction to which (as yet) no return relates are to be read as references to the withdrawal of relief under any of the provisions mentioned in subsection (1) or (1A);

• (d) references to the effective date of a transaction—

• (i) in relation to the withdrawal of relief under any of the provisions mentioned in subsection (1), are to be read as references to the date on which the disqualifying event occurs, and

• (ii) in relation to the withdrawal of relief under any of the provisions mentioned in subsection (1A), are to be read as references to the relevant date (see subsections (1B) and (1C));

• (e) where, by virtue of subsection (1D), a return is to be made by the relevant successor, references to the purchaser are to be read as references to the relevant successor;

• (f) paragraph 36(5A) is to be read as if it also permitted an appeal under paragraph 35(1)(e) on the ground that no further return is required.

• (4) In this section “the disqualifying event” means—

• (za) in relation to the withdrawal of relief under Schedule 6A, an event mentioned in paragraph (a), (b) or (c) of paragraph 11(2), (3), (4) or (5) of that Schedule;

• (a) in relation to the withdrawal of group relief, the purchaser ceasing to be a member of the same group as the vendor within the meaning of Part 1 of Schedule 7;

• (b) in relation to the withdrawal of reconstruction or acquisition relief, the change of control of the acquiring company mentioned in paragraph 9(1)(a) of Schedule 7 or, as the case may be, the event mentioned in paragraph 11(1)(a) or (2)(a) of that Schedule;

• (ba) in relation to the withdrawal of PAIF seeding relief—

• (i) the purchaser ceasing to be a property AIF as mentioned in paragraph 5 of Schedule 7A,

• (ii) a person making a relevant disposal of units as mentioned in paragraph 7 of that Schedule, or

• (iii) the grant of permission to a non-qualifying individual to occupy a dwelling as mentioned in paragraph 8 of that Schedule;

• (bb) in relation to the withdrawal of co-ownership scheme seeding relief—

• (i) the purchaser ceasing to be a co-ownership ... contractual scheme as mentioned in paragraph 13 of Schedule 7A,

• (ii) a person making a relevant disposal of units as mentioned in paragraph 17 of that Schedule, or

• (iii) the grant of permission to a non-qualifying individual to occupy a dwelling as mentioned in paragraph 18 of that Schedule;

• (c) in relation to the withdrawal of charities relief, a disqualifying event as defined in paragraph 2(3) or 3(2) of Schedule 8.

• (4A) Terms used in paragraph (eb) of subsection (1B) which are defined for the purposes of Schedule 6C have the same meaning in that paragraph as they have in that Schedule.

• (4B) Paragraph 10 of Schedule 6C applies for the purposes of subsection (1B)(eb) as it applies for the purposes of paragraph 8 of that Schedule.

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

• (6) In subsections (1C), (1D) and (3)(e) (which relate to the withdrawal of relief under paragraph 5L of Schedule 4A) “the relevant successor” means the person who is the most recent successor in the chain of succession at the time relief is withdrawn (and that person could be the first successor, the second successor or a subsequent successor).

• (7) Terms used in subsections (1C) and (6) which are defined for the purposes of paragraph 5L of Schedule 4A have the same meaning in those subsections as they have in that paragraph.

Loss or destruction of, or damage to, return etc

82

• (1) This section applies where—

• (a) a return delivered to the Inland Revenue, or

• (b) any other document relating to tax made by or provided to the Inland Revenue,

has been lost or destroyed, or been so defaced or damaged as to be illegible or otherwise useless.

• (2) The Inland Revenue may treat the return as not having been delivered or the document as not having been made or provided.

• (3) Anything done on that basis shall be as valid and effective for all purposes as it would have been if the return had not been made or the document had not been made or provided.

• (4) But if as a result a person is charged with tax and he proves to the satisfaction of the tribunal that he has already paid tax in respect of the transaction in question, relief shall be given, by reducing the charge or by repayment as the case may require.

Formal requirements as to assessments, penalty determinations etc

83

• (1) An assessment, determination, notice or other document required to be used in assessing, charging, collecting and levying tax or determining a penalty under this Part must be in accordance with the forms prescribed from time to time by the Board and a document in the form so prescribed and supplied or approved by the Board is valid and effective.

• (2) Any such assessment, determination, notice or other document purporting to be made under this Part is not ineffective—

• (a) for want of form, or

• (b) by reason of any mistake, defect or omission in it,

if it is substantially in conformity with this Part and its intended effect is reasonably ascertainable by the person to whom it is directed.

• (3) The validity of an assessment or determination is not affected—

• (a) by any mistake in it as to—

• (i) the name of a person liable, or

• (ii) the amount of the tax charged, or

• (b) by reason of any variance between the notice of assessment or determination and the assessment or determination itself.

Delivery and service of documents

84

• (1) A notice or other document to be served under this Part on a person may be delivered to him or left at his usual or last known place of abode.

• (2) A notice or other document to be given, served or delivered under this Part may be served by post.

• (3) For the purposes of section 7 of the Interpretation Act 1978 (c. 30) (general provisions as to service by post) any such notice or other document to be given or delivered to, or served on, any person by the Inland Revenue is properly addressed if it is addressed to that person—

• (a) in the case of an individual, at his usual or last known place of residence or his place of business;

• (b) in the case of a company—

• (i) at its principal place of business,

• (ii) if a liquidator has been appointed, at his address for the purposes of the liquidation, or

• (iii) at any place prescribed by regulations made by the Inland Revenue.

Liability for and payment of tax

Liability for tax

85

• (1) The purchaser is liable to pay the tax in respect of a chargeable transaction.

• (2) As to the liability of purchasers acting jointly see—

• section 103(2)(c) (joint purchasers);

• Part 2 of Schedule 15 (partners); and

• paragraph 5 of Schedule 16 (trustees).

• (2A) Where relief is withdrawn to any extent under paragraph 5L of Schedule 4A (qualifying housing co-operatives) in a case to which paragraph 5L(4) or (7) applies—

• (a) subsection (1) does not apply in relation to the additional tax payable as a result of the withdrawal of the relief, and

• (b) the relevant successor is liable to pay that additional tax.

• (2B) In subsection (2A) “the relevant successor” has the same meaning as it has in subsections (1C), (1D) and (3)(e) of section 81 (see subsections (6) and (7) of that section).

• (3) Where relief given in respect of a transaction entered into under alternative finance arrangements is withdrawn to any extent under any of paragraphs 6D, 6F, 6G , 6H and 6I of Schedule 4A (higher rate: alternative finance arrangements) or under Part 3 of Schedule 6C (relief for special tax sites) in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies—

• (a) subsection (1) does not apply in relation to the additional tax payable as a result of the withdrawal of the relief, and

• (b) the relevant person is liable to pay that additional tax.

• (4) In subsection (3) “the relevant person” has the same meaning as in section 81ZA (see subsections (6) and (7) of that section).

Payment of tax

86

• (1) Tax payable in respect of a land transaction must be paid not later than the filing date for the land transaction return relating to the transaction.

• (2) Tax payable as a result of the withdrawal of relief under—

• (za) any of paragraphs 5G to 5L of Schedule 4A (higher rate for certain transactions),

• (zb) Part 3 of Schedule 6C (relief for special tax sites), other than in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies,

• (a) Part 1 of Schedule 7 (group relief),

• (b) Part 2 of that Schedule (reconstruction or acquisition relief), ...

• (ba) Part 1 of Schedule 7A (PAIF seeding relief),

• (bb) Part 2 of Schedule 7A (co-ownership scheme seeding relief), or

• (c) Schedule 8 (charities relief),

must be paid not later than the filing date for the return relating to the withdrawal (see section 81).

• (2A) Tax payable as a result of a withdrawal of relief under any of paragraphs 6D, 6F, 6G , 6H and 6I of Schedule 4A (higher rate: alternative finance arrangements) or under Part 3 of Schedule 6C (relief for special tax sites) in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies must be paid not later than the filing date for the return relating to the withdrawal (see section 81ZA(1)).

• (3) Tax payable as a result of the amendment of a return must be paid forthwith or, if the amendment is made before the filing date for the return, not later than that date.

• (4) Tax payable in accordance with a determination or assessment by the Inland Revenue must be paid within 30 days after the determination or assessment is issued.

• (5) The above provisions are subject to—

• (a) section 90 (application to defer payment of tax in case of contingent or uncertain consideration), ...

• (b) paragraphs 39 and 40 of Schedule 10 (postponement of payment pending determination of appeal) , and

• (c) regulation 31 of the Co-ownership Contractual Schemes (Tax) Regulations 2025 (withdrawal of seeding relief: application to postpone payment of tax where appeal against relevant decisions).

• (5A) The above provisions are also subject to paragraph 7 of Schedule 61 to the Finance Act 2009 (payment of tax where land ceases to qualify for relief in respect of alternative finance investment bonds).

• (6) This section does not affect the date from which interest is payable (as to which, see section 87).

Interest on unpaid tax

87

• (1) Interest is payable on the amount of any unpaid tax from the end of the period of 30 days after the relevant date until the tax is paid.

• (1A) But where the relevant date is determined by subsection (3)(aa), (aaa), (ab) or (c) or section 87A(4) or (6), and a return is required to be delivered before the end of the period of 14 days after that relevant date, interest is instead payable on the amount of any unpaid tax from the end of that period until the tax is paid.

• (2) The Inland Revenue may by regulations amend subsection (1) or (1A) so as to make interest run from the end of such shorter period after the relevant date as may be prescribed or, if the regulations so provide, from that date.

• (3) For the purposes of this section “the relevant date” is—

• (za) in the case of an amount payable because relief is withdrawn under any of paragraphs 5G to 5L of Schedule 4A (higher rate for certain transactions), the date which is the relevant date for the purposes of section 81(1A);

• (zb) in the case of an amount payable because relief is withdrawn under any of paragraphs 6D, 6F, 6G, 6H and 6I of Schedule 4A, the date which is the date of the disqualifying event for the purposes of section 81ZA (see subsection (3) of that section);

• (a) in the case of an amount payable because relief is withdrawn under—

• (ia) Schedule 6A (relief for certain acquisitions of residential property),

• (i) Part 1 of Schedule 7 (group relief),

• (ii) Part 2 of that Schedule (reconstruction or acquisition relief), ...

• (iia) paragraph 5, 7 or 8 of Schedule 7A (PAIF seeding relief),

• (iib) paragraph 13, 17 or 18 of Schedule 7A (co-ownership scheme seeding relief), or (except in a case to which section 87A applies)

• (iii) Schedule 8 (charities relief),

the date of the disqualifying event;

• (aza) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (azaa) in the case of an amount payable because relief is withdrawn under Part 3 of Schedule 6C (relief for special tax sites), other than in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies, the date which is the relevant date for the purposes of section 81(1A);

• (azab) in the case of an amount payable because relief is withdrawn under Part 3 of Schedule 6C (relief for special tax sites) in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies, the date which is the date of the disqualifying event for the purposes of section 81ZA (see subsection (3) of that section);

• (azb) in the case of an amount payable under paragraph 6(3) of Schedule 7A (PAIF seeding relief: portfolio test), the first time mentioned in paragraph 6(3)(a) or (b) at which the portfolio test was not met;

• (azc) in the case of an amount payable under paragraph 14(1) of Schedule 7A (co-ownership scheme seeding relief: genuine diversity of ownership condition) because the genuine diversity of ownership condition was not met at a time mentioned in paragraph 14(1)(b) or (c), the first time mentioned in paragraph 14(1)(b) or (c) at which that condition was not met;

• (azd) in the case of an amount payable under paragraph 16(3) of Schedule 7A (co-ownership scheme seeding relief: portfolio test), the first time mentioned in paragraph 16(3)(a) or (b) at which the portfolio test was not met;

• (aa) in the case of an amount payable under section 81A in respect of an earlier transaction because of the effect of a later linked transaction, the effective date of the later transaction;

• (aaa) in the case of an amount payable under paragraph 3(3) of Schedule 17A (leases that continue after a fixed term) by reason of the continuation of a lease for a period (or further period) under paragraph 3(2) or (6) of that Schedule, the final day of the period (or further period),

• (ab) in the case of an amount payable under paragraph ... 4(3) of Schedule 17A (... treatment of leases for an indefinite term), the day on which the lease becomes treated as being for a longer fixed term;

• (b) in the case of a deferred payment under section 90, the date when the deferred payment is due;

• (c) in any other case, the effective date of the transaction.

• (4) In subsection (3)(a) “the disqualifying event” has the same meaning as in section 81(4) (except in a case to which section 87A applies).

• (5) Subsection (3)(c) applies in a case within section 51 (contingent, uncertain or unascertained consideration) if payment is not deferred under section 90, with the result that interest on any tax payable under section 80 (adjustment where contingency ceases or consideration is ascertained) runs from the effective date of the transaction.

• (6) If an amount is lodged with the Inland Revenue in respect of the tax, the amount on which interest is payable is reduced by that amount.

• (7) Interest is calculated at the rate applicable under section 178 of the Finance Act 1989 (c. 26) (power of Treasury to prescribe rates of interest).

Interest on penalties

88

A penalty under this Part shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the date it is determined until payment.

Interest on repayment of tax overpaid etc

89

• (1) A repayment by the Inland Revenue to which this section applies shall be made with interest at the rate applicable under section 178 of the Finance Act 1989 for the period between the relevant time (as defined below) and the date when the order for repayment is issued.

• (2) This section applies to—

• (a) any repayment of tax, and

• (b) any repayment of a penalty under this Part.

In that case the relevant time is the date on which the payment of tax or penalty was made.

• (3) This section also applies to a repayment by the Inland Revenue of an amount lodged with them in respect of the tax payable in respect of a transaction. In that case the relevant time is the date on which the amount was lodged with them.

• (4) No interest is payable under this section in respect of a payment made in consequence of an order or judgment of a court having power to allow interest on the payment.

• (5) Interest paid to any person under this section is not income of that person for any tax purposes.

Application to defer payment in case of contingent or uncertain consideration

90

• (1) The purchaser may apply to the Inland Revenue to defer payment of tax in a case where the amount payable depends on the amount or value of chargeable consideration that—

• (a) at the effective date of the transaction is contingent or uncertain, and

• (b) falls to be paid or provided on one or more future dates of which at least one falls, or may fall, more than six months after the effective date of the transaction.

• (2) The Inland Revenue may make provision by regulations for carrying this section into effect.

• (3) The regulations may in particular—

• (a) specify when an application is to be made;

• (b) impose requirements as to the form and contents of an application;

• (c) require the applicant to provide such information as the Inland Revenue may reasonably require for the purposes of determining whether to accept an application;

• (d) specify the grounds on which an application may be refused;

• (e) specify the procedure for reaching a decision on an application;

• (f) make provision for postponing payment of tax when an application has been made;

• (g) provide for an appeal to the tribunal against a refusal to accept an application, and make provision in relation to such an appeal corresponding to any provision made in relation to appeals under Part 7 of Schedule 10 (appeals against Revenue decisions on tax);

• (h) provide for the effect of accepting an application;

• (i) require the purchaser to make a return or further return, and to make such payments or further payments of tax as may be specified, in such circumstances as may be specified.

• (4) The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a land transaction return.

• (5) An application under this section does not affect the purchaser’s obligations as regards payment of tax in respect of chargeable consideration that has already been paid or provided or is not contingent and whose amount is ascertained or ascertainable at the time the application is made.

This applies as regards both the time of payment and the calculation of the amount payable.

• (6) Regulations under this section may provide that where—

• (a) a payment is made as mentioned in subsection (5), and

• (b) an application under this section is accepted in respect of other chargeable consideration taken into account in calculating the amount of that payment,

section 80 (adjustment where contingency ceases or consideration is ascertained) does not apply in relation to the payment and, instead, any necessary adjustment shall be made in accordance with the regulations.

• (7) This section does not apply so far as the consideration consists of rent.

Collection and recovery of tax etc

91

• (1) The provisions of Schedule 12 have effect with respect to the collection and recovery of tax.

• Part 1 contains general provisions, and

• Part 2 relates to court proceedings.

• (2) The provisions of that Schedule have effect in relation to the collection and recovery of any unpaid amount by way of—

• (a) penalty under this Part, or

• (b) interest under this Part (on unpaid tax or penalty),

as if it were an amount of unpaid tax.

Payment by cheque

92

For the purposes of this Part where—

• (a) payment to the Inland Revenue is made by cheque, and

• (b) the cheque is paid on its first presentation to the banker on whom it is drawn,

the payment is treated as made on the day on which the cheque was received by the Inland Revenue.

Compliance

Information powers

93

• (1) Schedule 13 has effect with respect to the powers of the Inland Revenue to call for documents and information for the purposes of stamp duty land tax.

• (2) In that Schedule—

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• ...

• ...

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• Part 6 provides for an order of a judicial authority for the delivery of documents;

• . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• Part 8 relates to falsification etc of documents.

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

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

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

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

Power to inspect premises

94

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

Offence of fraudulent evasion of tax

95

• (1) A person commits an offence if he is knowingly concerned in the fraudulent evasion of tax by him or any other person.

• (2) A person guilty of an offence under this section is liable—

• (a) on summary conviction to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum, or both;

• (b) on conviction on indictment, to imprisonment for a term not exceeding 14 years or a fine, or both.

Penalty for assisting in preparation of incorrect return etc

96

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

Power to allow further time and reasonable excuse for failure

97

• (1) For the purposes of this Part a person shall be deemed not to have failed to do anything required to be done within a limited time if he did it within such further time, if any, as the Inland Revenue may allow.

• (2) Where a person had a reasonable excuse for not doing anything required to be done for the purposes of this Part—

• (a) he shall be deemed not to have failed to do it unless the excuse ceased, and

• (b) after the excuse ceased, he shall be deemed not to have failed to do it if he did it without unreasonably delay after the excuse had ceased.

Admissibility of evidence not affected by offer of settlement etc

98

• (1) Statements made or documents produced by or on behalf of a person are not inadmissible in proceedings to which this section applies by reason only that it has been drawn to his attention—

• (a) that where serious tax fraud has been committed the Board may accept a money settlement and that the Board will accept such a settlement, and will not pursue a criminal prosecution, if he makes a full confession of all tax irregularities, or

• (b) that the extent to which he is helpful and volunteers information is a factor that will be taken into account in determining the amount of any penalty,

and that he was or may have been induced thereby to make the statements or produce the documents.

• (2) The proceedings to which this section applies are—

• (a) any criminal proceedings against the person in question for any form of fraudulent conduct in connection with or in relation to tax;

• (b) any proceedings against him for the recovery of any tax due from him;

• (c) any proceedings for a penalty or on appeal against the determination of a penalty.

General provisions about penalties

99

• (1) Schedule 14 has effect with respect to the determination of penalties under this Part and related appeals.

• (2) The Board may in their discretion mitigate a penalty under this Part, or stay or compound any proceedings for the recovery of such a penalty.

They may also, after judgment, further mitigate or entirely remit the penalty.

• (2A) Where a person is liable to more than one tax-related penalty in respect of the same land transaction, each penalty after the first shall be reduced so that his liability to such penalties, in total, does not exceed the amount of whichever is (or, but for this subsection, would be) the greatest one.

• (3) Nothing in the provisions of this Part relating to penalties affects any criminal proceedings for an offence.

Application of provisions

Companies

100

• (1) In this Part “company”, except as otherwise expressly provided, means any body corporate or unincorporated association, but does not include a partnership.

• (2) Everything to be done by a company under this Part shall be done by the company acting through—

• (a) the proper officer of the company, or

• (b) another person having for the time being having the express, implied or apparent authority of the company to act on its behalf for the purpose.

Paragraph (b) does not apply where a liquidator has been appointed for the company.

• (3) Service on a company of any document under or in pursuance of this Part may be effected by serving it on the proper officer.

• (4) Tax due from a company that—

• (a) is not a body corporate, or

• (b) is incorporated under the law of a country or territory outside the United Kingdom,

may, without prejudice to any other method of recovery, be recovered from the proper officer of the company.

• (5) The proper officer may retain out of any money coming into his hands on behalf of the company sufficient sums to pay that tax and, so far as he is not so reimbursed, he is entitled to be indemnified by the company in respect of the liability imposed on him.

• (6) For the purposes of this Part—

• (a) the proper officer of a body corporate is the secretary, or person acting as secretary, of the company, and

• (b) the proper officer of an unincorporated association, or of a body corporate that does not have a proper officer within paragraph (a), is the treasurer, or person acting as treasurer, of the company.

This subsection does not apply if a liquidator or administrator has been appointed for the company.

• (7) If a liquidator or administrator has been appointed for the company, then, for the purposes of this Part—

• (a) the liquidator or, as the case may be, the administrator is the proper officer, and

• (b) if two or more persons are appointed to act jointly or concurrently as the administrator of the company, the proper officer is—

• (i) such one of them as is specified in a notice given to the Inland Revenue by those persons for the purposes of this section, or

• (ii) where the Inland Revenue is not so notified, such one or more of those persons as the Inland Revenue may designate as the proper officer for those purposes.

Unit trust schemes

101

• (1) This Part (with the exception of the provision mentioned in subsection (7) below) applies in relation to a unit trust scheme as if—

• (a) the trustees were a company, and

• (b) the rights of the unit holders were shares in the company.

• (2) Each of the parts of an umbrella scheme is regarded for the purposes of this Part as a separate unit trust scheme and the scheme as a whole is not so regarded.

• (3) An “umbrella scheme” means a unit trust scheme—

• (a) that provides arrangements for separate pooling of the contributions of participants and the profits or income out of which payments are to be made for them, and

• (b) under which the participants are entitled to exchange rights in one pool for rights in another.

A “part” of an umbrella scheme means such of the arrangements as relate to a separate pool.

• (4) In this Part, subject to any regulations under subsection (5)—

• “unit trust scheme” has the same meaning as in the Financial Services and Markets Act 2000 (c. 8), and

• “unit holder” means a person entitled to a share of the investments subject to the trusts of a unit trust scheme.

• (5) The Treasury may by regulations provide that a scheme of a description specified in the regulations is to be treated as not being a unit trust scheme for the purposes of this Part.

Any such regulations may contain such supplementary and transitional provisions as appear to the Treasury to be necessary or expedient.

• (6) Section 620 of the Corporation Tax Act 2010 (court investment funds treated as authorised unit trusts) applies for the purposes of this Part as it applies for the purposes of that Act, with the substitution for references to an authorised unit trust of references to a unit trust scheme.

• (7) An unit trust scheme is not to be treated as a company for the purposes of—

• ...

• Schedule 7 (group relief, reconstruction relief or acquisition relief) , or

• Schedule 9A (increased rates for non-resident transactions).

Open-ended investment companies

102

• (1) The Treasury may by regulations make such provision as they consider appropriate for securing that the provisions of this Part have effect in relation to—

• (a) open-ended investment companies of such description as may be prescribed in the regulations, and

• (b) transactions involving such companies,

in a manner corresponding, subject to such modifications as the Treasury consider appropriate, to the manner in which they have effect in relation to unit trust schemes and transactions involving such trusts.

• (2) The regulations may, in particular, make provision—

• (a) modifying the operation of any prescribed provision in relation to open-ended investment companies so as to secure that arrangements for treating the assets of such a company as assets comprised in separate pools are given an effect corresponding to that of equivalent arrangements constituting the separate parts of an umbrella scheme;

• (b) treating the separate parts of the undertaking of an open-ended investment company in relation to which such provision is made as distinct companies for the purposes of this Part.

• (3) Regulations under this section may—

• (a) make different provision for different cases, and

• (b) contain such incidental, supplementary, consequential and transitional provision as the Treasury think fit.

• (4) In this section—

• “open-ended investment company” has the meaning given by section 236 of the Financial Services and Markets Act 2000 (c. 8);

• “prescribed” means prescribed by regulations under this section; and

• “unit trust scheme” and “umbrella scheme” have the same meaning as in section 101.

Joint purchasers

103

• (1) This section applies to a land transaction where there are two or more purchasers who are or will be jointly entitled to the interest acquired.

• (2) The general rules are that—

• (a) any obligation of the purchaser under this Part in relation to the transaction is an obligation of the purchasers jointly but may be discharged by any of them,

• (b) anything required or authorised by this Part to be done in relation to the purchaser must be done by or in relation to all of them, and

• (c) any liability of the purchaser under this Part in relation to the transaction (in particular, any liability arising by virtue of the failure to fulfil an obligation within paragraph (a)), is a joint and several liability of the purchasers.

These rules are subject to the following provisions.

• (3) If the transaction is a notifiable transaction, a single land transaction return is required.

• (4) The declaration required by paragraph 1(1)(c) of Schedule 10 ... (declaration that return ... is complete and correct) must be made by all the purchasers.

• (5) If the Inland Revenue give notice of an enquiry into the return ...—

• (a) the notice must be given to each of the purchasers,

• (b) the powers of the Inland Revenue as to the production of documents and provision of information for the purposes of the enquiry are exercisable separately (and differently) in relation to each of the purchasers,

• (c) any of the purchasers may apply for a direction that a closure notice be given (and all of them are entitled to to be parties to the application), and

• (d) the closure notice must be given to each of the purchasers.

• (6) A Revenue determination or discovery assessment relating to the transaction must be made against all the purchasers and is not effective against any of them unless notice of it is given to each of them whose identity is known to the Inland Revenue.

• (7) In the case of an appeal arising from proceedings under this Part relating to the transaction—

• (a) the appeal may be brought by any of the purchasers,

• (b) notice of the appeal must be given to any of them by whom it is not brought,

• (c) the agreement of all the purchasers is required if the appeal is to be settled by agreement,

• (d) if it is not settled, and is notified to the tribunal, any of them are entitled to be parties to the appeal, and

• (e) the tribunal’s decision on the appeal binds all of them.

• (7A) In a case where subsection (7) applies and some (but not all) of the purchasers require HMRC to undertake a review under paragraph 36B or 36C of Schedule 10—

• (a) notification of the review must be given by HMRC to each of the other purchasers whose identity is known to HMRC,

• (b) any of the other purchasers may be a party to the review if they notify HMRC in writing,

• (c) the notice of HMRC’s conclusions must be given to each of the other purchasers whose identity is known to HMRC,

• (d) paragraph 36F of Schedule 10 (effect of conclusions of review) applies in relation to all of the purchasers, and

• (e) any of the purchasers may notify the appeal to the tribunal under paragraph 36G.

• (8) This section has effect subject to—

• the provisions of Schedule 15 relating to partnerships, and

• the provisions of Schedule 16 relating to trustees.

Partnerships

104

• (1) Schedule 15 has effect with respect to the application of this Part in relation to partnerships.

• (2) In that Schedule—

• Part 1 defines “partnership” and contains other general provisions, and

• Part 2 deals with ordinary partnership transactions, and

• Part 3 makes special provision for certain transactions.

Trustees

105

Schedule 16 has effect with respect to the application of this Part in relation to trustees.

Persons acting in a representative capacity etc

106

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

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

• (3) The personal representatives of a person who is the purchaser under a land transaction—

• (a) are responsible for discharging the obligations of the purchaser under this Part in relation to the transaction, and

• (b) may deduct any payment made by them under this Part out of the assets and effects of the deceased person.

• (4) A receiver appointed by a court in the United Kingdom having the direction and control of any property is responsible for discharging any obligations under this Part in relation to a transaction affecting that property as if the property were not under the direction and control of the court.

Crown application

107

• (1) This Part binds the Crown, subject to the following provisions of this section.

• (2) A land transaction under which the purchaser is any of the following is exempt from charge:

GovernmentA Minister of the CrownThe Scottish MinistersA Northern Ireland department The Welsh Ministers, the First Minister for Wales and the Counsel General to the Welsh Government
Government
A Minister of the Crown
The Scottish Ministers
A Northern Ireland department
The Welsh Ministers, the First Minister for Wales and the Counsel General to the Welsh Government
Parliament etcThe Corporate Officer of the House of LordsThe Corporate Officer of the House of CommonsThe Scottish Parliamentary Corporate BodyThe Northern Ireland Assembly Commission The National Assembly for Wales Commission
Parliament etc
The Corporate Officer of the House of Lords
The Corporate Officer of the House of Commons
The Scottish Parliamentary Corporate Body
The Northern Ireland Assembly Commission
The National Assembly for Wales Commission

• (3) The powers conferred by Part 7 of Schedule 13 (entry with warrant to obtain information) are not exercisable in relation to premises occupied for the purposes of the Crown.

• (4) Nothing in this section shall be read as making the Crown liable to prosecution for an offence.

Supplementary provisions

Linked transactions

108

• (1) Transactions are “linked” for the purposes of this Part if they form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser or, in either case, persons connected with them.

Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this subsection

• (1A) A transaction is not a linked transaction if —

• (a) the transaction relates to land in Scotland, or

• (b) the transaction relates to land in Wales (whether by virtue of section 48A(2) or otherwise).

• (2) Where there are two or more linked transactions with the same effective date, the purchaser, or all of the purchasers if there is more than one, may make a single land transaction return as if all of those transactions that are notifiable were a single notifiable transaction.

• (3) Where two or more purchasers make a single return in respect of linked transactions, section 103 (joint purchasers) applies as if—

• (a) the transactions in question were a single transaction, and

• (b) those purchasers were purchasers acting jointly.

• (4) This section is subject to section 47(1).

General power to vary this Part by regulations

109

• (1) The Treasury may if they consider it expedient in the public interest make provision by regulations for the variation of this Part in its application to land transactions of any description.

• (2) The power conferred by this section includes, in particular, power to alter—

• (a) the descriptions of land transaction that are chargeable or notifiable;

• (b) the descriptions of land transaction in respect of which tax is chargeable at any existing rate or amount, or in respect of which tax is calculated in accordance with any particular provision.

• (2A) The power under subsection (2)(b) includes power to alter the conditions for the application to a chargeable transaction of paragraph 3 of Schedule 4A (higher rate for certain transactions), other than the condition that the transaction must be a high-value residential transaction.

• (3) The power conferred by this section does not, except as mentioned in subsections (2)(b) and (2A), include power to vary any threshold, rate or amount specified in—

• (a) section 55 (amount of tax chargeable: general), ...

• (aa) section 74(1A) (exercise of collective rights by tenants of flats),

• (ab) Schedule 4A (amount of tax chargeable: high-value interests in dwellings), or

• (b) Schedule 5 (amount of tax chargeable: rent).

• (4) This section has effect subject to section 110 (approval of regulations by House of Commons).

• (5) Regulations under this section do not apply in relation to any transaction of which the effective date is after the end of—

• (a) the period of 18 months beginning with the day on which the regulations were made, or

• (b) such shorter period as may be specified in the regulations.

This does not affect the power to make further provision by regulations under this section to the same or similar effect.

• (6) Regulations under this section may include such supplementary, transitional and incidental provision as appears to the Treasury to be necessary or expedient.

• (7) The power conferred by this section may be exercised at any time after the passing of this Act.

Approval of regulations under general power

110

• (1) An instrument containing regulations under section 109 (general power to vary this Part by regulations) must be laid before the House of Commons after being made.

• (2) If the regulations are not approved by the House of Commons before the end of the period of 28 days beginning with the day on which they are made, they shall cease to have effect at the end of that period (if they have not already ceased to have effect under subsection (3)).

• (3) If on any day during that period of 28 days the House of Commons, in proceedings on a motion that (or to the effect that) the regulations be approved, comes to a decision rejecting the regulations, they shall cease to have effect at the end of that day.

• (4) In reckoning any such period of 28 days take no account of any time during which—

• (a) Parliament is prorogued or dissolved, or

• (b) the House of Commons is adjourned for more than four days.

• (5) Where regulations cease to have effect under this section, their ceasing to have effect is without prejudice to anything done in reliance on them.

As to claims for repayment, see section 111.

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

• (7) This section does not apply to regulations containing only provision varying Schedule 6ZA or paragraph 16 of Schedule 9 which does not increase any person's liability to tax.

Claim for repayment if regulations under general power not approved

111

• (1) Where regulations cease to have effect under section 110, a claim may be made to the Inland Revenue for repayment of any tax, interest or penalty that would not have been payable but for the regulations.