Finance Act 2003

• (i) before the end of the period of three years beginning with the effective date of the relevant transaction, or

• (ii) in pursuance of, or in connection with, arrangements made before the end of that period,

• (c) apart from this paragraph, group relief in relation to the relevant transaction would not be withdrawn under paragraph 3, and

• (d) any previous transaction falls within sub-paragraph (2),

paragraphs 3, 4 and 4ZA have effect in relation to the relevant transaction as if the vendor in relation to the earliest previous transaction falling within sub-paragraph (2) were the vendor in relation to the relevant transaction.

• (1A) Sub-paragraph (1) has effect subject to sub-paragraph (3A).

• (2) A previous transaction falls within this sub-paragraph if—

• (a) the previous transaction is exempt from charge by virtue of paragraph 1, 7 or 8,

• (b) the effective date of the previous transaction is less than three years before the date of the event falling within sub-paragraph (1)(a),

• (c) the chargeable interest acquired under the relevant transaction by the purchaser in relation to that transaction is the same as, comprises, forms part of, or is derived from, the chargeable interest acquired under the previous transaction by the purchaser in relation to the previous transaction, and

• (d) since the previous transaction, the chargeable interest acquired under that transaction has not been acquired by any person under a transaction that is not exempt from charge by virtue of paragraph 1, 7 or 8.

• (3) For the purposes of this paragraph there is a change in the control of a company if—

• (a) any person who controls the company (alone or with others) ceases to do so,

• (b) a person obtains control of the company (alone or with others), or

• (c) the company is wound up.

References to “control” in this paragraph shall be construed in accordance with sections 450 and 451 of the Corporation Tax Act 2010.

• (3A) Sub-paragraph (1) does not apply where—

• (a) there is a change in the control of the purchaser because a loan creditor (within the meaning given by section 453 of the Corporation Tax Act 2010) obtains control of, or ceases to control, the purchaser, and

• (b) the other persons who controlled the purchaser before that change continue to do so.

• (4) If two or more transactions effected at the same time are the earliest previous transactions falling within sub-paragraph (2), the reference in sub-paragraph (1) to the vendor in relation to the earliest previous transaction is a reference to the persons who are the vendors in relation to the earliest previous transactions.

• (5) In this paragraph “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.

Withdrawal of money etc from partnership after transfer of chargeable interest

17A

• (1) This paragraph applies where—

• (a) there is a transfer of a chargeable interest to a partnership (“the land transfer”);

• (b) the land transfer falls within paragraph (a), (b) or (c) of paragraph 10(1);

• (c) during the period of three years beginning with the date of the land transfer, a qualifying event occurs.

• (d) at the time of the qualifying event, an election has not been made in respect of the land transfer under paragraph 12A.

• (2) A qualifying event is—

• (a) a withdrawal from the partnership of money or money's worth which does not represent income profit by the relevant person—

• (i) withdrawing capital from his capital account,

• (ii) reducing his interest, or

• (iii) ceasing to be a partner, or

• (b) in a case where the relevant person has made a loan to the partnership—

• (i) the repayment (to any extent) by the partnership of the loan, or

• (ii) a withdrawal by the relevant person from the partnership of money or money's worth which does not represent income profit.

• (3) For this purpose the relevant person is—

• (a) where the land transfer falls within paragraph 10(1)(a) or (b), the person who makes the land transfer, and

• (b) where the land transfer falls within paragraph 10(1)(c), the partner concerned or a person connected with him.

• (4) The qualifying event—

• (a) shall be taken to be a land transaction, and

• (b) is a chargeable transaction.

• (5) The partners shall be taken to be the purchasers under the transaction.

• (6) Paragraphs 6 to 8 (responsibility of partners) have effect in relation to the transaction.

• (7) The chargeable consideration for the transaction shall be taken to be—

• (a) in a case falling within sub-paragraph (2)(a), equal to the value of the money or money's worth withdrawn from the partnership,

• (b) in a case falling within sub-paragraph (2)(b)(i), equal to the amount repaid, and

• (c) in a case falling within sub-paragraph (2)(b)(ii), equal to so much of the value of the money or money's worth withdrawn from the partnership as does not exceed the amount of the loan,

but (in any case) shall not exceed the market value, as at the effective date of the land transfer, of the chargeable interest transferred by the land transfer, reduced by any amount previously chargeable to tax.

• (8) Where—

• (a) a qualifying event gives rise to a charge under this paragraph, and

• (b) the same event gives rise to a charge under paragraph 14 (transfer for consideration of interest in property-investment partnership),

the amount of the charge under this paragraph is reduced (but not below nil) by the amount of the charge under that paragraph.

Loan or deposit in connection with grant or assignment of lease

18A

• (1) Where, under arrangements made in connection with the grant of a lease—

• (a) the lessee, or any person connected with him or acting on his behalf, pays a deposit, or makes a loan, to any person, and

• (b) the repayment of all or part of the deposit or loan is contingent on anything done or omitted to be done by the lessee or on the death of the lessee,

the amount of the deposit or loan (disregarding any repayment) is to be taken for the purposes of this Part to be consideration other than rent given for the grant of the lease.

• (2) Where, under arrangements made in connection with the assignment of a lease—

• (a) the assignee, or any person connected with him or acting on his behalf, pays a deposit, or makes a loan, to any person, and

• (b) the repayment of all or part of the deposit or loan is contingent on anything done or omitted to be done by the assignee or on the death of the assignee,

the amount of the deposit or loan (disregarding any repayment) is to be taken for the purposes of this Part to be consideration other than rent given for the assignment of the lease.

• (3) Sub-paragraph (1) or (2) does not apply in relation to a deposit if the amount that would otherwise fall within the sub-paragraph in question in relation to the grant or (as the case requires) assignment of the lease is not more than twice the relevant maximum rent.

• (4) The relevant maximum rent is—

• (a) in relation to the grant of a lease, the highest amount of rent payable in respect of any consecutive twelve month period in the first five years of the term;

• (b) in relation to the assignment of a lease, the highest amount of rent payable in respect of any consecutive twelve month period in the first five years of the term remaining outstanding as at the date of the assignment,

the highest amount of rent being determined (in either case) in the same way as the highest amount of rent mentioned in paragraph 7(3).

• (5) Tax is not chargeable by virtue of this paragraph—

• (a) merely because of paragraph 9A of Schedule 5 (which excludes the 0% band in Table B in section 55(2) in cases where the relevant rent attributable to non-residential property is not less than £1,000 a year), or

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

• (6) Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this paragraph.

Transactions in connection with dissolution of civil partnership etc

3A

A transaction between one party to a civil partnership and the other is exempt from charge if it is effected —

• (a) in pursuance of an order of a court made on granting in respect of the parties an order or decree for the dissolution or annulment of the civil partnership or their judicial separation;

• (b) in pursuance of an order of a court made in connection with the dissolution or annulment of the civil partnership, or the parties' judicial separation, at any time after the granting of such an order or decree for dissolution, annulment or judicial separation as mentioned in paragraph (a);

• (c) in pursuance of —

• (i) an order of a court made at any time under any provision of Schedule 5 to the Civil Partnership Act 2004 that corresponds to section 22A, 23A or 24A of the Matrimonial Causes Act 1973, or

• (ii) an incidental order of a court made under any provision of the Civil Partnership Act 2004 that corresponds to section 8(2) of the Family Law (Scotland) Act 1985 by virtue of section 14(1) of that Act of 1985;

• (d) at any time in pursuance of an agreement of the parties made in contemplation of or otherwise in connection with the dissolution or annulment of the civil partnership, their judicial separation or the making of a separation order in respect of them.

Gifts with reservation

Authorised unit trusts, OEICs and common investment funds

Use of electronic means of payment under other provisions

Definition of liabilities and assets of National Loans Fund

Payments in error from or to National Loans Fund

Deemed supplies

Acquisition by property trader from personal representatives

Transfer of chargeable interest to a partnership: general

Transfer of chargeable interest to a partnership: chargeable consideration including rent

Transfer of chargeable interest from a partnership: sum of the lower proportions

Exclusion of market rent leases

Acquisition of interest in partnership not chargeable except as specially provided

Interpretation: partnership property and partnership share

Interpretation: transfer of chargeable interest to a partnership

Application of disadvantaged areas relief

Application of charities relief

Application of disadvantaged areas relief

Interpretation: arrangements

Interpretation: transfer of chargeable interest to a partnership

Transactions that are not notifiable

Interpretation: transfer of chargeable interest to a partnership

Meaning of “restricted shares”

Purchaser bearing inheritance tax liability

16A

Where—

• (a) there is a land transaction that is—

• (i) a transfer of value within section 3 of the Inheritance Tax Act 1984 (transfers of value), or

• (ii) a disposition, effected by will or under the law of intestacy, of a chargeable interest comprised in the estate of a person immediately before his death,

and

• (b) the purchaser is or becomes liable to pay, agrees to pay or does in fact pay any inheritance tax due in respect of the transfer or disposition,

his liability, agreement or payment does not count as chargeable consideration for the transaction.

Purchaser bearing capital gains tax liability

16B

• (1) Where—

• (a) there is a land transaction under which the chargeable interest in question—

• (i) is acquired otherwise than by a bargain made at arm’s length, or

• (ii) is treated by section 18 of the Taxation of Chargeable Gains Act 1992 (connected persons) as so acquired,

and

• (b) the purchaser is or becomes liable to pay, or does in fact pay, any capital gains tax due in respect of the corresponding disposal of the chargeable interest,

his liability or payment does not count as chargeable consideration for the transaction.

• (2) Sub-paragraph (1) does not apply if there is chargeable consideration for the transaction (disregarding the liability or payment referred to in sub-paragraph (1)(b)).

Costs of enfranchisement

16C

Costs borne by the purchaser under section 9(4) of the Leasehold Reform Act 1967 or section 33 of the Leasehold Reform, Housing and Urban Development Act 1993 (costs of enfranchisement) do not count as chargeable consideration.

73A

Sections 71A to 73 do not apply to arrangements in which the first transaction is exempt from charge by virtue of Schedule 7.

Transfer of chargeable interest to a partnership: chargeable consideration including rent

Introduction

Transfer of chargeable interest to a partnership: chargeable consideration including rent

Transfer of chargeable interest to a partnership: sum of the lower proportions

Transactions that are not notifiable

Interpretation: transfer of chargeable interest to a partnership

Transfer of chargeable interest to a partnership: general

Transfer of chargeable interest from a partnership: sum of the lower proportions

Application of disadvantaged areas relief

Application of group relief

Application of charities relief

Transactions that are not notifiable

Interpretation: transfer of chargeable interest to a partnership

Meaning of “lease”

Reallocation of trust property as between beneficiaries

8

Where—

• (a) the trustees of a settlement reallocate trust property in such a way that a beneficiary acquires an interest in certain trust property and ceases to have an interest in other trust property, and

• (b) the beneficiary consents to ceasing to have an interest in that other property,

the fact that he gives consent does not mean that there is chargeable consideration for the acquisition.

Backdated lease granted to tenant holding over

9A

• (1) This paragraph applies where—

• (a) the tenant under a lease continues in occupation after the date on which, under its terms, the lease terminates (“the contractual termination date”),

• (b) he is granted a new lease of the same or substantially the same premises, and

• (c) the term of the new lease is expressed to begin on or immediately after the contractual termination date.

• (2) The term of the new lease is treated for the purposes of this Part as beginning on the date on which it is expressed to begin.

• (3) The rent payable under the new lease in respect of any period falling—

• (a) after the contractual termination date, and

• (b) before the date on which the new lease is granted,

is treated for the purposes of this Part as reduced by the amount of taxable rent that is payable in respect of that period otherwise than under the new lease.

• (4) For the purposes of sub-paragraph (3) rent is “taxable” if or to the extent that it is taken into account in determining liability to stamp duty land tax.

• (5) Sub-paragraph (3) does not have effect so as to require the rent payable under the new lease to be treated as a negative amount.

Exemption where homeworker’s additional expenses met by employer

Payroll giving: extension of 10% supplement to 5th April 2004

PAYE: regulations and notional payments

Payroll giving: extension of 10% supplement to 5th April 2004

Extension of first-year allowances for ICT expenditure by small enterprises

Repos etc

Exemption for fuel used in recycling processes

Supplies not known to be taxable when made, etc

Deemed supplies

Supplies not known to be taxable when made, etc

Gifts with reservation

Definition of liabilities and assets of National Loans Fund

Electricity from renewable sources etc

Higher rate of tax: divided companies

Application of CFC provisions to Hong Kong and Macao companies

Transfer of chargeable interest to a partnership: general

Transfer of chargeable interest to a partnership: chargeable consideration including rent

Application of charities relief

Application of disadvantaged areas relief

Interpretation: arrangements

Transfer of chargeable interest from a partnership consisting wholly of bodies corporate

Reallocation of trust property as between beneficiaries

Meaning of “lease”

58B

• (1) The Treasury may make regulations granting relief on the first acquisition of a dwelling which is a “zero-carbon home”.

• (2) For the purposes of this section—

• (a) a building, or a part of a building, is a dwelling if it is constructed for use as a single dwelling, and

• (b) “first acquisition”, in relation to a dwelling, means its acquisition when it has not previously been occupied.

• (3) For the purpose of subsection (2) land occupied or enjoyed with a dwelling as a garden or grounds is part of the dwelling.

• (4) The regulations shall define “zero-carbon home” by reference to specified aspects of the energy efficiency of a building; for which purpose “energy efficiency” includes—

• (a) consumption of energy,

• (b) conservation of energy, and

• (c) generation of energy.

• (5) The relief may take the form of—

• (a) exemption from charge, or

• (b) a reduction in the amount of tax chargeable.

• (6) Regulations under this section shall not have effect in relation to acquisitions on or after 1st October 2012.

• (7) The Treasury may by order—

• (a) substitute a later date for the date in subsection (6);

• (b) make transitional provision, or provide savings, in connection with the effect of subsection (6).

58C

• (1) Regulations under section 58B—

• (a) shall include provision about the method of claiming relief (including documents or information to be provided), and

• (b) in particular, shall include provision about the evidence to be adduced to show that a dwelling satisfies the definition of “zero-carbon home”.

• (2) Regulations made by virtue of subsection (1)(b) may, in particular—

• (a) refer to a scheme or process established by or for the purposes of an enactment about building;

• (b) establish or provide for the establishment of a scheme or process of certification;

• (c) specify, or provide for the approval of, one or more schemes or processes for certifying energy efficiency.

• (d) provide for the charging of fees of a reasonable amount in respect of services provided as part of a scheme or process of certification.

• (3) In defining “zero-carbon home” regulations under section 58B may include requirements which may be satisfied in relation to a dwelling either—

• (a) by features of the building which, or part of which, constitutes the dwelling, or

• (b) by other installations or utilities.

• (4) Regulations under section 58B may modify the effect of section 108, or another provision of this Part about linked transactions, in relation to a set of transactions of which at least one is the first acquisition of a dwelling which is a zero-carbon home.

• (5) In determining whether section 116(7) applies, and in the application of section 116(7), a transaction shall be disregarded if or in so far as it involves the first acquisition of a dwelling which is a zero-carbon home.

• (6) Regulations under section 58B—

• (a) may provide for relief to be wholly or partly withdrawn if a dwelling ceases to be a zero-carbon home, and

• (b) may provide for the reduction or withholding of relief where a person acquires more than one zero-carbon home within a specified period.

• (7) Regulations under section 58B may include provision for relief to be granted in respect of acquisitions occurring during a specified period before the regulations come into force.

Options and rights of pre-emption

Acquisitions by certain health service bodies

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

73B

• (1) An interest held by a financial institution as a result of the first transaction within the meaning of section 71A(1)(a)... is an exempt interest for the purposes of stamp duty land tax.

• (2) That interest ceases to be an exempt interest if—

• (a) the lease or agreement mentioned in section 71A(1)(c)... ceases to have effect, or

• (b) the right under section 71A(1)(d)... ceases to have effect or becomes subject to a restriction.

• (3) Subsection (1) does not apply if the first transaction is exempt from charge by virtue of Schedule 7.

• (4) Subsection (1) does not make an interest exempt in respect of—

• (a) the first transaction itself, or

• (b) a further transaction or third transaction within the meaning of section 71A(4)....

75A

• (1) This section applies where—

• (a) one person (V) disposes of a chargeable interest and another person (P) acquires either it or a chargeable interest deriving from it,

• (b) a number of transactions (including the disposal and acquisition) are involved in connection with the disposal and acquisition (“the scheme transactions”), and

• (c) the sum of the amounts of stamp duty land tax payable in respect of the scheme transactions is less than the amount that would be payable on a notional land transaction effecting the acquisition of V's chargeable interest by P on its disposal by V.

• (2) In subsection (1) “transaction” includes, in particular—

• (a) a non-land transaction,

• (b) an agreement, offer or undertaking not to take specified action,

• (c) any kind of arrangement whether or not it could otherwise be described as a transaction, and

• (d) a transaction which takes place after the acquisition by P of the chargeable interest.

• (3) The scheme transactions may include, for example—

• (a) the acquisition by P of a lease deriving from a freehold owned or formerly owned by V;

• (b) a sub-sale to a third person;

• (c) the grant of a lease to a third person subject to a right to terminate;

• (d) the exercise of a right to terminate a lease or to take some other action;

• (e) an agreement not to exercise a right to terminate a lease or to take some other action;

• (f) the variation of a right to terminate a lease or to take some other action.

• (4) Where this section applies—

• (a) any of the scheme transactions which is a land transaction shall be disregarded for the purposes of this Part, but

• (b) there shall be a notional land transaction for the purposes of this Part effecting the acquisition of V's chargeable interest by P on its disposal by V.

• (5) The chargeable consideration on the notional transaction mentioned in subsections (1)(c) and (4)(b) is the largest amount (or aggregate amount)—

• (a) given by or on behalf of any one person by way of consideration for the scheme transactions, or

• (b) received by or on behalf of V (or a person connected with V within the meaning of section 1122 of the Corporation Tax Act 2010) by way of consideration for the scheme transactions.

• (6) The effective date of the notional transaction is—

• (a) the last date of completion for the scheme transactions, or

• (b) if earlier, the last date on which a contract in respect of the scheme transactions is substantially performed.

• (7) This section does not apply where subsection (1)(c) is satisfied only by reason of—

• (a) sections 71A to 73, or

• (b) a provision of Schedule 9.

75B

• (1) In calculating the chargeable consideration on the notional transaction for the purposes of section 75A(5), consideration for a transaction shall be ignored if or in so far as the transaction is merely incidental to the transfer of the chargeable interest from V to P.

• (2) A transaction is not incidental to the transfer of the chargeable interest from V to P—

• (a) if or in so far as it forms part of a process, or series of transactions, by which the transfer is effected,

• (b) if the transfer of the chargeable interest is conditional on the completion of the transaction, or

• (c) if it is of a kind specified in section 75A(3).

• (3) A transaction may, in particular, be incidental if or in so far as it is undertaken only for a purpose relating to—

• (a) the construction of a building on property to which the chargeable interest relates,

• (b) the sale or supply of anything other than land, or

• (c) a loan to P secured by a mortgage, or any other provision of finance to enable P, or another person, to pay for part of a process, or series of transactions, by which the chargeable interest transfers from V to P.

• (4) In subsection (3)—

• (a) paragraph (a) is subject to subsection (2)(a) to (c),

• (b) paragraph (b) is subject to subsection (2)(a) and (c), and

• (c) paragraph (c) is subject to subsection (2)(a) to (c).

• (5) The exclusion required by subsection (1) shall be effected by way of just and reasonable apportionment if necessary.

• (6) In this section a reference to the transfer of a chargeable interest from V to P includes a reference to a disposal by V of an interest acquired by P.

75C

• (1) A transfer of shares or securities shall be ignored for the purposes of section 75A if but for this subsection it would be the first of a series of scheme transactions.

• (2) The notional transaction under section 75A attracts any relief under this Part which it would attract if it were an actual transaction (subject to the terms and restrictions of the relief).

• (3) The notional transaction under section 75A is a land transaction entered into for the purposes of or in connection with the transfer of an undertaking or part for the purposes of paragraphs 7 and 8 of Schedule 7, if any of the scheme transactions is entered into for the purposes of or in connection with the transfer of the undertaking or part.

• (4) In the application of section 75A(5) no account shall be taken of any amount paid by way of consideration in respect of a transaction to which any of sections 60, 61, 63, 64, 65, 66, 67, 69, 71 and 74, or a provision of Schedule 6A, 7A or 8, applies.

• (5) In the application of section 75A(5) an amount given or received partly in respect of the chargeable interest acquired by P and partly in respect of another chargeable interest shall be subjected to just and reasonable apportionment.

• (6) Section 53 applies to the notional transaction under section 75A.

• (7) Paragraph 5 of Schedule 4 applies to the notional transaction under section 75A.

• (8) For the purposes of section 75A—

• (a) an interest in a property-investment partnership (within the meaning of paragraph 14 of Schedule 15) is a chargeable interest in so far as it concerns land owned by the partnership, ...

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

• (8A) Nothing in Part 3 of Schedule 15 applies to the notional transaction under section 75A.

• (9) For the purposes of section 75A a reference to an amount of consideration includes a reference to the value of consideration given as money's worth.

• (10) Stamp duty land tax paid in respect of a land transaction which is to be disregarded by virtue of section 75A(4)(a) is taken to have been paid in respect of the notional transaction by virtue of section 75A(4)(b).

• (11) The Treasury may by order provide for section 75A not to apply in specified circumstances.

• (12) An order under subsection (11) may include incidental, consequential or transitional provision and may make provision with retrospective effect.

Crofting community right to buy

Anti-avoidance

Meaning of “market value”

Minor definitions

Abolition of stamp duty except on instruments relating to stock or marketable securities

Circumstances in which relief for company acquisitions withdrawn

Approved share plans and schemes

PAYE on notional payments: reimbursement period

Charge and rates for 2003-04

Employee securities and options

Consequential amendments

Payroll giving: extension of 10% supplement to 5th April 2004

Transfers of value: attribution of gains to beneficiaries

Loan relationships: amendments

Authorised unit trusts, OEICs and common investment funds

Supplies not known to be taxable when made, etc

Personal pension arrangements: limit on contributions

Payments for service of national debt

Higher rate of tax: divided companies

Transfer of chargeable interest to a partnership: chargeable consideration including rent

Transfer of partnership interest pursuant to earlier arrangements

Exclusion of market rent leases

Application of charities relief

Transfer of chargeable interest to a partnership: chargeable consideration including rent

7

• (1) In this Schedule “shared ownership trust” means a trust of land, within the meaning of section 1 of the Trusts of Land and Appointment of Trustees Act 1996, which satisfies the following conditions.

• (2) Condition 1 is that the trust property is—

• (a) a dwelling, and

• (b) in England ...

• (3) Condition 2 is that one of the beneficiaries (“the social landlord”) is a qualifying body ....

• (4) Condition 3 is that the terms of the trust—

• (a) provide for one or more of the individual beneficiaries (“the purchaser”) to have exclusive use of the trust property as the only or main residence of the purchaser,

• (b) require the purchaser to make an initial payment to the social landlord (“the initial capital”),

• (c) require the purchaser to make additional payments to the social landlord by way of compensation under section 13(6)(a) of the Trusts of Land and Appointment of Trustees Act 1996 (“rent-equivalent payments”),

• (d) enable the purchaser to make other additional payments to the social landlord (“equity-acquisition payments”),

• (e) determine the initial beneficial interests of the social landlord and of the purchaser by reference to the initial capital,

• (f) specify a sum, equating or relating to the market value of the dwelling, by reference to which the initial capital was calculated, and

• (g) provide for the purchaser's beneficial interest in the trust property to increase, and the social landlord's to diminish (or to be extinguished), as equity-acquisition payments are made.

• (5) Section 118 (meaning of “market value”) does not apply to this paragraph.

• (6) In Condition 1 “dwelling” includes—

• (a) a building which is being constructed or adapted for use as a dwelling,

• (b) land which is to be used for the purpose of the construction of a dwelling, and

• (c) land which is, or is to become, the garden or grounds of a dwelling.

• (7) In Condition 2 “qualifying body” means—

• (a) a qualifying body within the meaning of paragraph 5(2)(a) to (f), or

• (b) a private registered provider of social housing within paragraph 5(2)(g) (subject to sub-paragraph (8)).

• (8) A private registered provider of social housing within paragraph 5(2)(g) (“R”) is only a qualifying body in relation to a shared ownership trust if the following has been or is being funded with the assistance of a grant or other financial assistance made or given under section 19 of the Housing and Regeneration Act 2008 or by the Greater London Authority —

• (a) the purchase or construction of the trust property by R (or a person connected with R), or

• (b) the adaptation of the trust property by R (or a person connected with R) for use as a dwelling.

• (9) Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of sub-paragraph (8).

8

For the purposes of the application of stamp duty land tax in relation to a shared ownership trust, the person (or persons) identified as the purchaser in accordance with paragraph 7, and not the social landlord or any other beneficiary, is (or are) to be treated as the purchaser of the trust property.

9

• (1) This paragraph applies where—

• (a) a shared ownership trust is declared, and

• (b) the purchaser elects for tax to be charged in accordance with this paragraph.

• (2) An election must be included in—

• (a) the land transaction return for the declaration of the shared ownership trust, or

• (b) an amendment of that return.

• (3) An election may not be revoked.

• (4) Where this paragraph applies—

• (a) the chargeable consideration for the declaration of the shared ownership trust shall be taken to be the amount stated in accordance with paragraph 7(4)(f), and

• (b) no account shall be taken for the purposes of stamp duty land tax of rent-equivalent payments.

• (5) The transfer to the purchaser of an interest in the trust property upon the termination of the trust is exempt from charge if—

• (a) an election was made under this paragraph, and

• (b) any tax chargeable in respect of the declaration of the shared ownership trust has been paid.

10

• (1) An equity-acquisition ... payment under a shared ownership trust, and the consequent increase in the purchaser's beneficial interest, shall be exempt from charge if—

• (a) an election was made under paragraph 9, and

• (b) any tax chargeable in respect of the declaration of trust has been paid.

• (2) An equity-acquisition ... payment under a shared ownership trust, and the consequent increase in the purchaser's beneficial interest, shall also be exempt from charge if following the increase the purchaser's beneficial interest does not exceed 80% of the total beneficial interest in the trust property.

11

Where no election has been made under paragraph 9 in respect of a shared ownership trust—

• (a) the initial capital shall be treated for the purposes of stamp duty land tax as chargeable consideration other than rent, and

• (b) any rent-equivalent ... payment by the purchaser shall be treated for the purposes of stamp duty land tax as a payment of rent.

2A

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

2B

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

Transactions that are not notifiable

Application of group relief

27A

• (1) This paragraph applies where in calculating the sum of the lower proportions in relation to a transaction (in accordance with paragraph 12)—

• (a) a company (“the connected company”) would have been a corresponding partner of a relevant owner (“the original owner”) but for the fact that paragraph (b) of Step Two includes connected persons only if they are individuals, and

• (b) the connected company and the original owner are members of the same group.

• (2) The charge in respect of the transaction shall be reduced to the amount that would have been payable had the connected company been a corresponding partner of the original owner for the purposes of calculating the sum of the lower proportions.

• (3) The provisions of Part 1 of Schedule 7 apply to group relief under sub-paragraph (2) above as to group relief under paragraph 1(1) of Schedule 7, but—

• (a) with the omission of paragraph 2(2)(a),

• (b) with the substitution for “the purchaser” in paragraph 3(1)(a) of “a partner who was, at the effective date of the transaction, a partner and a member of the same group as the transferor (“the relevant partner”)”, and

• (c) with the other modifications specified in paragraph 27(3) to (6) above.

Meaning of “restricted shares”

Application of exemptions and reliefs

73AB

• (1) Section 71A... does not apply to alternative finance arrangements if those arrangements, or any connected arrangements, include arrangements for a person to acquire control of the relevant financial institution.

• (2) That includes arrangements for a person to acquire control of the relevant financial institution only if one or more conditions are met (such as the happening of an event or doing of an act).

• (3) In this section—

• “alternative finance arrangements” means the arrangements referred to in section 71A(1)...;

• “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);

• “connected arrangements” means any arrangements entered into in connection with the making of the alternative finance arrangements (including arrangements involving one or more persons who are not parties to the alternative finance arrangements);

• “relevant financial institution” means the financial institution which enters into the alternative finance arrangements.

• (4) Section 1124 of the Corporation Tax Act 2010 applies for the purposes of determining who has control of the relevant financial institution.

77A

• (1) The exceptions referred to in section 77(1)(a) are as follows.

• (1) An acquisition which is exempt from charge under Schedule 3.

• (2) An acquisition (other than the grant, assignment or surrender of a lease) where the chargeable consideration for that acquisition, together with the chargeable consideration for any linked transactions, is less than £40,000.

• (3) The grant of a lease for a term of 7 years or more where—

• (a) any chargeable consideration other than rent is less than £40,000, and

• (b) the relevant rent is less than £1,000.

• (4) The assignment or surrender of a lease where—

• (a) the lease was originally granted for a term of 7 years or more, and

• (b) the chargeable consideration for the assignment or surrender is less than £40,000.

• (5) The grant of a lease for a term of less than 7 years where the chargeable consideration does not exceed the zero rate threshold.

• (6) The assignment or surrender of a lease where—

• (a) the lease was originally granted for a term of less than 7 years, and

• (b) the chargeable consideration for the assignment or surrender does not exceed the zero rate threshold.

• (2) Chargeable consideration for an acquisition does not exceed the zero rate threshold if it does not consist of or include—

• (a) any amount in respect of which tax is chargeable at a rate of more than 0%, or

• (b) any amount in respect of which tax would be so chargeable but for a relief.

• (3) In this section—

• “annual rent” has the meaning given in paragraph 9A of Schedule 5,

• “relevant rent” means—the annual rent, orin the case of the grant of a lease to which paragraph 11 or 19 of Schedule 15 applies, the relevant chargeable proportion of the annual rent (as calculated in accordance with that paragraph), and

• “relief” does not include an exemption from charge under Schedule 3.

Abolition of stamp duty except on instruments relating to stock or marketable securities

Minor definitions

Circumstances in which relief for company acquisitions withdrawn

Employee securities and options

Sub-contractor deductions etc: interest on late payment or repayment

Consequential amendments

Deferred unascertainable consideration: election for treatment of loss

Consequential amendments

Non-resident companies: extent of charge to income tax

Relevant discounted securities: withdrawal of relief for costs and losses, etc

Amendments about registration, payment etc

Amendments about registration, payment etc

Use of electronic means of payment under other provisions

Ordinary accounts and investment accounts

Payments for service of national debt

Qualifying land

Partnership interests: application of provisions about exchanges etc.

Transfer of chargeable interest from a partnership: partnership share attributable to partner

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

9A

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

Transfer of chargeable interest from a partnership: chargeable consideration including rent

Group relief not withdrawn where vendor leaves group

4ZA

• (1) Group relief is not withdrawn under paragraph 3 where the purchaser ceases to be a member of the same group as the vendor because the vendor leaves the group.

• (2) The vendor is regarded as leaving the group if the companies cease to be members of the same group by reason of a transaction relating to shares in—

• (a) the vendor, or

• (b) another company that—

• (i) is above the vendor in the group structure, and

• (ii) as a result of the transaction ceases to be a member of the same group as the purchaser.

• (3) For the purpose of sub-paragraph (2) a company is “above” the vendor in the group structure if the vendor, or another company that is above the vendor in the group structure, is a 75% subsidiary of the company.

• (4) But if there is a change in the control of the purchaser after the vendor leaves the group, paragraphs 3, 4(6) and (7), 5 and 6 have effect as if the purchaser had then ceased to be a member of the same group as the vendor (but see sub-paragraph (7)).

• (5) For the purposes of this paragraph there is a change in the control of the purchaser if—

• (a) a person who controls the purchaser (alone or with others) ceases to do so,

• (b) a person obtains control of the purchaser (alone or with others), or

• (c) the purchaser is wound up.

• (6) For the purposes of sub-paragraph (5) a person does not control, or obtain control of, the purchaser if that person is under the control of another person or other persons.

• (7) Sub-paragraph (4) does not apply where—

• (a) there is a change in the control of the purchaser because a loan creditor (within the meaning given by section 453 of the Corporation Tax Act 2010) obtains control of, or ceases to control, the purchaser, and

• (b) the other persons who controlled the purchaser before that change continue to do so.

• (8) In this paragraph references to “control” shall be interpreted in accordance with sections 450 and 451 of the Corporation Tax Act 2010 (subject to sub-paragraph (6)).

Shared ownership lease: grant not linked with staircasing transactions etc

4B

• (1) For the purpose of determining the amount of tax chargeable on the grant of a shared ownership lease of a dwelling, the grant shall be treated as if it were not linked to—

• (a) any acquisition of an interest in the dwelling to which paragraph 4A applies, or

• (b) a transfer of the reversion to the lessee or lessees under the terms of the lease.

• (2) In this paragraph “shared ownership lease” has the same meaning as in paragraph 4A.

12

For the purpose of determining the amount of tax chargeable on the declaration of a shared ownership trust, the declaration shall be treated as if it were not linked to—

• (a) any equity-acquisition payment under the trust or any consequent increase in the purchaser's beneficial interest in the trust property, or

• (b) a transfer to the purchaser of an interest in the trust property upon the termination of the trust.

Transfer of chargeable interest from a partnership: chargeable consideration including rent

12A

• (1) Paragraph 10 does not apply to a transfer of a chargeable interest to a property-investment partnership if the purchaser in relation to the transaction elects for that paragraph not to apply.

• (2) Where an election under this paragraph is made in respect of a transaction—

• (a) paragraph 18 (if relevant) is also disapplied,

• (b) the chargeable consideration for the transaction shall be taken to be the market value of the chargeable interest transferred, and

• (c) the transaction falls within Part 2 of this Schedule.

• (3) An election under this paragraph must be included in the land transaction return made in respect of the transaction or in an amendment of that return.

• (4) Such an election is irrevocable and a land transaction return may not be amended so as to withdraw the election.

• (5) Where an election under this paragraph in respect of a transaction (the “main transaction”) is made in an amendment of a land transaction return—

• (a) the election has effect as if it had been made on the date on which the land transaction return was made, and

• (b) any land transaction return in respect of an affected transaction may be amended (within the period allowed for amendment of that return) to take account of that election.

• (6) In sub-paragraph (5) “affected transaction”, in relation to the main transaction, means a transaction—

• (a) to which paragraph 14 applied, and

• (b) with an effective date on or after the effective date of the main transaction.

• (7) In this paragraph “property-investment partnership” has the meaning given in paragraph 14(8).

Transfer of chargeable interest from a partnership consisting wholly of bodies corporate

Application of charities relief

Transactions that are not notifiable

Transactions that are not notifiable

Meaning of “restricted shares”

Profits attributable to permanent establishment: disregard of profits of certain investment transactions

5A

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

33A

• (1) HMRC must offer a person (P) a review of a decision that has been notified to P if an appeal lies under section 33 in respect of the decision.

• (2) The offer of the review must be made by notice given to P at the same time as the decision is notified to P.

• (3) This section does not apply to the notification of the conclusions of a review.

33B

• (1) HMRC must review a decision if—

• (a) they have offered a review of the decision under section 33A, and

• (b) P notifies HMRC accepting the offer within 30 days from the date of the document containing the notification of the offer.

• (2) But P may not notify acceptance of the offer if P has already appealed to the appeal tribunal under section 33F.

• (3) HMRC shall not review a decision if P has appealed to the appeal tribunal under section 33F in respect of the decision.

33C

• (1) If under section 33A, HMRC have offered P a review of a decision, HMRC may within the relevant period notify P that the relevant period is extended.

• (2) If notice is given the relevant period is extended to the end of 30 days from—

• (a) the date of the notice, or

• (b) any other date set out in the notice or a further notice.

• (3) In this section “relevant period” means—

• (a) the period of 30 days referred to in section 33B(1)(b), or

• (b) if notice has been given under subsection (1) that period as extended (or as most recently extended) in accordance with subsection (2).

33D

• (1) This section applies if—

• (a) HMRC have offered a review of a decision under section 33A, and

• (b) P does not accept the offer within the time allowed under section 33B(1)(b) or 33C(2).

• (2) HMRC must review the decision under section 33B if—

• (a) after the time allowed, P notifies HMRC in writing requesting a review out of time,

• (b) HMRC are satisfied that P had a reasonable excuse for not accepting the offer or requiring review within the time allowed, and

• (c) HMRC are satisfied that P made the request without unreasonable delay after the excuse had ceased to apply.

• (3) HMRC shall not review a decision if P has appealed to the appeal tribunal under section 33F in respect of the decision.

33E

• (1) This section applies if HMRC are required to undertake a review under section 33B or 33D.

• (2) The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.

• (3) For the purpose of subsection (2), HMRC must, in particular, have regard to steps taken before the beginning of the review—

• (a) by HMRC in reaching the decision, and

• (b) by any person in seeking to resolve disagreement about the decision.

• (4) The review must take account of any representations made by P at a stage which gives HMRC a reasonable opportunity to consider them.

• (5) The review may conclude that the decision is to be—

• (a) upheld,

• (b) varied, or

• (c) cancelled.

• (6) HMRC must give P notice of the conclusions of the review and their reasoning within—

• (a) a period of 45 days beginning with the relevant date, or

• (b) such other period as HMRC and P may agree.

• (7) In subsection (6) “relevant date” means—

• (a) the date HMRC received P’s notification accepting the offer of a review (in a case falling within section 33A), or

• (b) the date on which HMRC decided to undertake the review (in a case falling within section 33D).

• (8) Where HMRC are required to undertake a review but do not give notice of the conclusions within the period specified in subsection (6), the review is to be treated as having concluded that the decision is upheld.

• (9) If subsection (8) applies, HMRC must notify P of the conclusions which the review is treated as having reached.

33F

• (1) An appeal under section 33 is to be made to the appeal tribunal before—

• (a) the end of the period of 30 days beginning with the date of the document notifying the decision to which the appeal relates, or

• (b) if later, the end of the relevant period (within the meaning of section 33C).

• (2) But that is subject to subsections (3) to (5).

• (3) In a case where HMRC are required to undertake a review under section 33B —

• (a) an appeal may not be made until the conclusion date, and

• (b) any appeal is to be made within the period of 30 days beginning with the conclusion date.

• (4) In a case where HMRC are requested to undertake a review in accordance with section 33D—

• (a) an appeal may not be made to an appeal tribunal—

• (i) unless HMRC have notified P as to whether or not a review will be undertaken, and

• (ii) if HMRC have notified P that a review will be undertaken, until the conclusion date;

• (b) any appeal where paragraph (a)(ii) applies is to be made within the period of 30 days beginning with the conclusion date;

• (c) if HMRC have notified P that a review will not be undertaken, an appeal may be made only if the appeal tribunal gives permission to do so.

• (5) In a case where section 33E(8) applies, an appeal may be made at any time from the end of the period specified in section 33E(6) to the date 30 days after the conclusion date.

• (6) An appeal may be made after the end of the period specified in subsection (1), (3)(b), (4)(b) or (5) if an appeal tribunal gives permission to do so.

• (7) In this section “conclusion date” means the date of the document notifying the conclusions of the review.

36

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

37

Section 85 of the Value Added Tax Act 1994 (settling appeals by agreement) has effect as if the reference to section 83 of that Act included a reference to section 33 above.

Amount of tax chargeable: rent

Compliance with planning obligations

Initial transfer of assets to trustees of unit trust scheme

Meaning of “effective date” of a transaction

Circumstances in which group relief withdrawn

Indexed rate bands for 2003-04: PAYE deductions etc

Gifts with reservation

Personal pension arrangements: limit on contributions

Supplies not known to be taxable when made, etc

Authorised unit trusts, OEICs and common investment funds

Gifts with reservation

Consequential claims etc

Mandatory electronic payment

Debt Management Account: abolition of borrowing cap

Appeal: HMRC review or determination by tribunal

36A

• (1) This paragraph applies if notice of appeal has been given to HMRC.

• (2) In such a case—

• (a) the appellant may notify HMRC that the appellant requires HMRC to review the matter in question (see paragraph 36B),

• (b) HMRC may notify the appellant of an offer to review the matter in question (see paragraph 36C), or

• (c) the appellant may notify the appeal to the tribunal (see paragraph 36D).

• (3) See paragraphs 36G and 36H for provision about notifying appeals to the tribunal after a review has been required by the appellant or offered by HMRC.

• (4) This paragraph does not prevent the matter in question from being dealt with in accordance with paragraph 37(1) (settling of appeals by agreement).

Appellant requires review by HMRC

36B

• (1) Sub-paragraphs (2) and (3) apply if the appellant notifies HMRC that the appellant requires HMRC to review the matter in question.

• (2) HMRC must, within the relevant period, notify the appellant of HMRC’s view of the matter in question.

• (3) HMRC must review the matter in question in accordance with paragraph 36E.

• (4) The appellant may not notify HMRC that the appellant requires HMRC to review the matter in question and HMRC shall not be required to conduct a review if—

• (a) the appellant has already given a notification under this paragraph in relation to the matter in question,

• (b) HMRC have given a notification under paragraph 36C in relation to the matter in question, or

• (c) the appellant has notified the appeal to the tribunal under paragraph 36D.

• (5) In this paragraph “relevant period” means—

• (a) the period of 30 days beginning with the day on which HMRC receive the notification from the appellant, or

• (b) such longer period as is reasonable.

HMRC offer review

36C

• (1) Sub-paragraphs (2) to (6) apply if HMRC notify the appellant of an offer to review the matter in question.

• (2) When HMRC notify the appellant of the offer, HMRC must also notify the appellant of HMRC’s view of the matter in question.

• (3) If, within the acceptance period, the appellant notifies HMRC of acceptance of the offer, HMRC must review the matter in question in accordance with paragraph 36E.

• (4) If the appellant does not give HMRC such a notification within the acceptance period, HMRC’s view of the matter in question is to be treated as if it were contained in an agreement in writing under paragraph 37(1) for the settlement of that matter.

• (5) The appellant may not give notice under paragraph 37(2) (desire to withdraw from agreement) in a case where sub-paragraph (4) applies.

• (6) Sub-paragraph (4) does not apply to the matter in question if, or to the extent that, the appellant notifies the appeal to the tribunal under paragraph 36H.

• (7) HMRC may not notify the appellant of an offer to review the matter in question (and, accordingly, HMRC shall not be required to conduct a review) if—

• (a) HMRC have already given a notification under this paragraph in relation to the matter in question,

• (b) the appellant has given a notification under paragraph 36B in relation to the matter in question, or

• (c) the appellant has notified the appeal to the tribunal under paragraph 36D.

• (8) In this paragraph “acceptance period” means the period of 30 days beginning with the date of the document by which HMRC notify the appellant of the offer to review the matter in question.

Notifying appeal to the tribunal

36D

• (1) This paragraph applies in a case where paragraph 36A applies.

• (2) The appellant may notify the appeal to the tribunal.

• (3) If the appellant notifies the appeal to the tribunal, the tribunal is to decide the matter in question.

• (4) Sub-paragraphs (2) and (3) do not apply in a case where—

• (a) HMRC have given a notification of their view of the matter in question under paragraph 36B, or

• (b) HMRC have given a notification under paragraph 36C in relation to the matter in question.

• (5) In a case falling within sub-paragraph (4)(a) or (b), the appellant may notify the appeal to the tribunal, but only if permitted to do so by paragraph 36G or 36H.

Nature of review etc

36E

• (1) This paragraph applies if HMRC are required by paragraph 36B or 36C to review the matter in question.

• (2) The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.

• (3) For the purpose of sub-paragraph (2), HMRC must, in particular, have regard to steps taken before the beginning of the review—

• (a) by HMRC in deciding the matter in question, and

• (b) by any person in seeking to resolve disagreement about the matter in question.

• (4) The review must take account of any representations made by the appellant at a stage which gives HMRC a reasonable opportunity to consider them.

• (5) The review may conclude that HMRC’s view of the matter in question is to be—

• (a) upheld,

• (b) varied, or

• (c) cancelled.

• (6) HMRC must notify the appellant of the conclusions of the review and their reasoning within—

• (a) the period of 45 days beginning with the relevant day, or

• (b) such other period as may be agreed.

• (7) In sub-paragraph (6) “relevant day” means—

• (a) in a case where the appellant required the review, the day when HMRC notified the appellant of HMRC’s view of the matter in question,

• (b) in a case where HMRC offered the review, the day when HMRC received notification of the appellant’s acceptance of the offer.

• (8) Where HMRC are required to undertake a review but do not give notice of the conclusions within the period specified in sub-paragraph (6), the review is treated as having concluded that HMRC’s view of the matter in question (see paragraphs 36B(2) and 36C(2)) is upheld.

• (9) If sub-paragraph (8) applies, HMRC must notify the appellant of the conclusions which the review is treated as having reached.

Effect of conclusions of review

36F

• (1) This paragraph applies if HMRC give notice of the conclusions of a review (see paragraph 36E).

• (2) The conclusions are to be treated as if they were an agreement in writing under paragraph 37(1) for the settlement of the matter in question.

• (3) The appellant may not give notice under paragraph 37(2) (desire to withdraw from agreement) in a case where sub-paragraph (2) applies.

• (4) Sub-paragraph (2) does not apply to the matter in question if, or to the extent that, the appellant notifies the appeal to the tribunal under paragraph 36G.

Notifying appeal to tribunal after review concluded

36G

• (1) This paragraph applies if—

• (a) HMRC have given notice of the conclusions of a review in accordance with paragraph 36E, or

• (b) the period specified in paragraph 36E(6) has ended and HMRC have not given notice of the conclusions of the review.

• (2) The appellant may notify the appeal to the tribunal within the post-review period.

• (3) If the post-review period has ended, the appellant may notify the appeal to the tribunal only if the tribunal gives permission.

• (4) If the appellant notifies the appeal to the tribunal, the tribunal is to determine the matter in question.

• (5) In this paragraph “post-review period” means—

• (a) in a case falling with sub-paragraph (1)(a), the period of 30 days beginning with the date of the document in which HMRC give notice of the conclusions of the review in accordance with paragraph 36E(6), or

• (b) in a case falling within sub-paragraph (1)(b), the period that—

• (i) begins with the day following the last day of the period specified in paragraph 36E(6), and

• (ii) ends 30 days after the date of the document in which HMRC give notice of the conclusions of the review in accordance with paragraph 36E(9).

Notifying appeal to tribunal after review offered but not accepted

36H

• (1) This paragraph applies if—

• (a) HMRC have offered to review the matter in question (see paragraph 36C), and

• (b) the appellant has not accepted the offer.

• (2) The appellant may notify the appeal to the tribunal within the acceptance period.

• (3) But if the acceptance period has ended, the appellant may notify the appeal to the tribunal only if the tribunal gives permission.

• (4) If the appellant notifies the appeal to the tribunal, the tribunal is to determine the matter in question.

• (5) In this paragraph “acceptance period” has the same meaning as in paragraph 36C.

Other interpretation

36I

• (1) In paragraphs 36A to 36H—

• (a) “matter in question” means the matter to which an appeal relates;

• (b) a reference to a notification is a reference to a notification in writing.

• (2) In paragraphs 36A to 36H, a reference to the appellant includes a person acting on behalf of the appellant except in relation to—

• (a) notification of HMRC’s view under paragraph 36B(2),

• (b) notification by HMRC of an offer of review (and of their view of the matter) under paragraph 36C,

• (c) notification of the conclusions of a review under paragraph 36E(6), and

• (d) notification of the conclusions of a review under paragraph 36E(9).

• (3) But if a notification falling within any of the sub-paragraphs of paragraph (2) is given to the appellant, a copy of the notification may also be given to a person acting on behalf of the appellant.

Tribunal determinations

41

The determination of the tribunal in relation to any proceedings under the enactments relating to stamp duty land tax shall be final and conclusive except as otherwise provided in—

• (a) sections 9 to 14 of the Tribunals, Courts and Enforcement Act 2007,

• (b) the Taxes Management Act 1970 applied as modified, or

• (c) the enactments relating to stamp duty land tax.

Assessments and self assessments

42

• (1) In this paragraph any reference to an appeal means an appeal under paragraphs 33(4) or 35(1).

• (2) If, on an appeal notified to the tribunal, the tribunal decides—

• (a) that the appellant is overcharged by a self-assessment; or

• (b) that the appellant is overcharged by an assessment other than a self-assessment,

the assessment shall be reduced accordingly, but otherwise the assessment shall stand good.

• (3) If, on appeal it appears to the tribunal—

• (a) that the appellant is undercharged to stamp duty land tax by a self-assessment; or

• (b) that the appellant is undercharged by an assessment other than a self-assessment,

the assessment shall be increased accordingly.

• (4) Where, on an appeal against an assessment other than a self-assessment which—

• (a) assesses an amount which is chargeable to stamp duty land tax, and

• (b) charges stamp duty land tax on the amount assessed,

it appears to the tribunal as mentioned in sub-paragraphs (2) or (3), it may, unless the circumstances of the case otherwise require, reduce or increase only the amount assessed; and where an appeal is so determined the stamp duty land tax charged by that assessment shall be taken to have been reduced or increased accordingly.

Payment of stamp duty land tax where there is a further appeal

43

• (1) Where a party to an appeal to the tribunal under paragraph 35 makes a further appeal, notwithstanding that the further appeal is pending, stamp duty land tax shall nevertheless be payable or repayable in accordance with the determination of the tribunal or court as the case may be.

• (2) But if the amount charged by the assessment is altered by the order or judgment of the Upper Tribunal or court—

• (a) if too much stamp duty land tax has been paid, the amount overpaid shall be refunded with such interest, if any, as may be allowed by that order or judgment; and

• (b) if too little stamp duty land tax has been charged, the amount undercharged shall be due and payable at the expiration of a period of thirty days beginning with the date on which HMRC issue to the other party a notice of the total amount payable in accordance with the order or judgment.

• (3) Sub-paragraph (4) applies where—

• (a) an accelerated payment notice has been given to a party to the appeal under Chapter 3 of Part 4 of the Finance Act 2014 (and not withdrawn), and

• (b) the assessment to which the appeal relates has effect, or partly has effect, to counteract the whole or part of the asserted advantage (within the meaning of section 219(3) of that Act) by reason of which the notice was given.

• (4) If, on the application of HMRC, the relevant court or tribunal considers it necessary for the protection of the revenue, it may direct that sub-paragraph (1) does not apply so far as the stamp duty land tax relates to the counteraction of the whole or part of the asserted advantage, and—

• (a) give permission to withhold all or part of any repayment, or

• (b) require the provision of adequate security before repayment is made.

• (5) “Relevant court or tribunal” means the tribunal or court from which permission or leave to appeal is sought.

Late notice of appeal

44

• (1) This paragraph applies in a case where—

• (a) notice of appeal may be given to HMRC under this Schedule or any other provision of Part 4 of this Act, but

• (b) no notice is given before the relevant time limit.

• (2) Notice may be given after the relevant time limit if—

• (a) HMRC agree, or

• (b) where HMRC do not agree, the tribunal gives permission.

• (3) If the following conditions are met, HMRC shall agree to notice being given after the relevant time limit.

• (4) Condition A is that the appellant has made a request in writing to HMRC to agree to the notice being given.

• (5) Condition B is that HMRC are satisfied that there was reasonable excuse for not giving the notice before the relevant time limit.

• (6) Condition C is that HMRC are satisfied that request under sub-paragraph (4) was made without unreasonable delay after the reasonable excuse ceased.

• (7) If a request of the kind referred to in sub-paragraph (4) is made, HMRC must notify the appellant whether or not HMRC agree to the appellant giving notice of appeal after the relevant time limit.

• (8) In this paragraph “relevant time limit”, in relation to notice of appeal, means the time before which the notice is to be given (but for this paragraph).

Questions to be determined by the relevant tribunal

45

• (1) Where the question in any dispute on any appeal under paragraph 35(1) is a question of the market value of the subject matter of the land transaction that question shall be determined on a reference by the relevant tribunal.

• (2) In this paragraph “the relevant tribunal” means—

• (a) where the land is in England ... , the Upper Tribunal;

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

• (c) where the land is in Northern Ireland, the Lands Tribunal for Northern Ireland.

Meaning of HMRC

46

In this Schedule “HMRC” means Her Majesty’s Revenue and Customs.

Transfer of chargeable interest from a partnership to a partnership

Transactions that are not notifiable

Transfer of chargeable interest from a partnership: partnership share attributable to partner

Meaning of “restricted shares”

73C

Schedule 61 to the Finance Act 2009 makes provision for relief from charge in the case of arrangements to which section 564G of the Income Tax Act 2007 or section 151N of the Taxation of Chargeable Gains Act 1992 (investment bond arrangements) applies.

Rent to shared ownership lease: charge to tax

13

• (1) The chargeable consideration for transactions forming part of a rent to shared ownership lease scheme is determined in accordance with this paragraph.

• (2) A “rent to shared ownership lease scheme” means a scheme or arrangement under which a qualifying body—

• (a) grants an assured shorthold tenancy of a dwelling to a person (“the tenant”) or persons (“the tenants”), and

• (b) subsequently grants a shared ownership lease of the dwelling or another dwelling to the tenant or one or more of the tenants.

• (3) The following transactions are to be treated as if they were not linked to each other—

• (a) the grant of the assured shorthold tenancy,

• (b) the grant of the shared ownership lease, and

• (c) any other land transaction between the qualifying body and the tenant, or any of the tenants, entered into as part of the scheme.

• (4) For the purpose of determining the effective date of the grant of the shared ownership lease, the possession of the dwelling by the tenant or tenants pursuant to the assured shorthold tenancy is to be disregarded.

• (5) In this paragraph—

• “assured shorthold tenancy” has the same meaning as in Part 1 of the Housing Act 1988;

• “qualifying body” has the same meaning as in paragraph 5;

• “shared ownership lease” has the same meaning as in paragraph 4A.

Rent to shared ownership trust: charge to tax

14

• (1) The chargeable consideration for transactions forming part of a rent to shared ownership trust scheme is determined in accordance with this paragraph.

• (2) A “rent to shared ownership trust scheme” means a scheme or arrangement under which—

• (a) a qualifying body grants an assured shorthold tenancy of a dwelling to a person (“the tenant”) or persons (“the tenants”), and

• (b) the tenant, or one or more of tenants, subsequently becomes the purchaser under a shared ownership trust of the dwelling, or another dwelling, under which the qualifying body is the social landlord.

• (3) The following transactions are to be treated as if they were not linked to each other—

• (a) the grant of the assured shorthold tenancy,

• (b) the declaration of the shared ownership trust, and

• (c) any other land transaction between the qualifying body and the tenant, or any of the tenants, entered into as part of the scheme.

• (4) For the purpose of determining the effective date of the declaration of the shared ownership trust, the possession of the dwelling by the tenant or tenants pursuant to the assured shorthold tenancy is to be disregarded.

• (5) In this paragraph—

• “assured shorthold tenancy” has the same meaning as in Part 1 of the Housing Act 1988;

• “qualifying body” has the same meaning as in paragraph 5;

• “social landlord” and “purchaser”, in relation to a shared ownership trust, have the same meaning as in paragraph 7.

Interpretation: arrangements

Introduction

78A

• (1) Relevant information contained in land transaction returns delivered under section 76 (whether before or after the commencement of this section) is to be available for use—

• (a) by listing officers appointed under section 20 of the Local Government Finance Act 1992, for the purpose of facilitating the compilation and maintenance by them of valuation lists in accordance with Chapter 2 of Part 1 of that Act,

• (b) as evidence in an appeal by virtue of section 24(6) of that Act to a valuation tribunal ...,

• (c) by the Commissioner of Valuation for Northern Ireland, for the purpose of maintaining a valuation list prepared, and from time to time altered, by him in accordance with Part 3 of the Rates (Northern Ireland) Order 1977, and

• (d) by such other persons or for such other purposes as the Treasury may by regulations prescribe.

• (2) In this section, “relevant information” means any information of the kind mentioned in paragraph 1(4) of Schedule 10 (information corresponding to particulars required under previous legislation).

• (3) The Treasury may by regulations amend the definition of relevant information in subsection (2).

• (4) In this section “valuation tribunal” means—

• (a) in relation to England: the Valuation Tribunal for England;

• (b) in relation to Wales: a valuation tribunal established under paragraph 1 of Schedule 11 to the Local Government Finance Act 1988.

Rate of landfill tax

Qualifying land

Consequential claims etc

Accounts of Consolidated Fund and National Loans Fund

Debt Management Account: abolition of borrowing cap

Definition of liabilities and assets of National Loans Fund

Exclusion of market rent leases

Shared ownership trust: introduction

Shared ownership trust: “purchaser”

Shared ownership trust: election for market value treatment

Shared ownership trust: treatment of staircasing transaction

Shared ownership trust: treatment of additional payments where no election made

Shared ownership trust: declaration not linked with staircasing transactions etc

Declaration by agent

Declaration by the relevant Official Solicitor

Preservation of information etc

3A

The duty under paragraph 3 to preserve records may be satisfied—

• (a) by preserving them in any form and by any means, or

• (b) by preserving the information contained in them in any form and by any means,

subject to any conditions or exceptions specified in writing by the Commissioners for Her Majesty's Revenue and Customs.

Application of charities relief

Introduction

57AA

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73CA

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Relief for first-time buyers: shared ownership lease where election made

15

Where—

• (a) paragraph 4 applies, and

• (b) relief is claimed under paragraph 1 of Schedule 6ZA in respect of the grant of the lease concerned,

no tax is chargeable in respect of so much of the chargeable consideration for the grant as consists of rent.

Authorised unit trusts, OEICs and common investment funds

Exemption for fuel used in recycling processes

Debt Management Account: abolition of borrowing cap

Acquisition by property trader from personal representatives

Consequential claims etc

Ordinary accounts and investment accounts

Payments for service of national debt

Accounts of Consolidated Fund and National Loans Fund

Transfer of chargeable interest to a partnership: sum of the lower proportions

Cases in which Commissioners not liable to give effect to a claim

34A

• (1) The Commissioners for Her Majesty's Revenue and Customs are not liable to give effect to a claim under paragraph 34 if or to the extent that the claim falls within a case described in this paragraph.

• (2) Case A is where the amount paid, or liable to be paid, is excessive by reason of—

• (a) a mistake in a claim or election, or

• (b) a mistake consisting of making or giving, or failing to make or give, a claim or election.

• (3) Case B is where the claimant is or will be able to seek relief by taking other steps under this Part of this Act.

• (4) Case C is where the claimant—

• (a) could have sought relief by taking such steps within a period that has now expired, and

• (b) knew, or ought reasonably to have known, before the end of that period that such relief was available.

• (5) Case D is where the claim is made on grounds that—

• (a) have been put to a court or tribunal in the course of an appeal by the claimant relating to the amount paid or liable to be paid, or

• (b) have been put to Her Majesty's Revenue and Customs in the course of an appeal by the claimant relating to that amount that is treated as having been determined by a tribunal (by virtue of paragraph 37 (settling of appeals by agreement)).

• (6) Case E is where the claimant knew, or ought reasonably to have known, of the grounds for the claim before the latest of the following—

• (a) the date on which an appeal by the claimant relating to the amount paid, or liable to be paid, in the course of which the ground could have been put forward (a “relevant appeal”) was determined by a court or tribunal (or is treated as having been so determined),

• (b) the date on which the claimant withdrew a relevant appeal to a court or tribunal, and

• (c) the end of the period in which the claimant was entitled to make a relevant appeal to a court or tribunal.

• (7) Case F is where the amount in question was paid or is liable to be paid—

• (a) in consequence of proceedings enforcing the payment of that amount brought against the claimant by Her Majesty's Revenue and Customs, or

• (b) in accordance with an agreement between the claimant and Her Majesty's Revenue and Customs settling such proceedings.

• (8) Case G is where—

• (a) the amount paid, or liable to be paid, is excessive by reason of a mistake in calculating the claimant's liability to tax, and

• (b) liability was calculated in accordance with the practice generally prevailing at the time.

• (9) Case G does not apply where the amount paid, or liable to be paid, is tax which has been charged contrary to EU law.

• (10) For the purposes of sub-paragraph (9), an amount of tax is charged contrary to EU law if, in the circumstances in question, the charge to tax is contrary to—

• (a) the provisions relating to the free movement of goods, persons, services and capital in Titles II and IV of Part 3 of the Treaty on the Functioning of the European Union, or

• (b) the provisions of any subsequent treaty replacing the provisions mentioned in paragraph (a).

Making a claim

34B

• (1) A claim under paragraph 34 may not be made more than 4 years after the effective date of the transaction.

• (2) A claim under paragraph 34 may not be made by being included in a land transaction return.

The claimant: partnerships

34C

• (1) This paragraph applies where an amount is paid, or is liable to be paid, in respect of a land transaction entered into as purchaser by or on behalf of the members of a partnership (within the meaning of Schedule 15).

• (2) Paragraphs 6 and 8 of Schedule 15 do not apply to a claim under paragraph 34 in respect of the amount.

• (3) A claim under paragraph 34 in respect of the amount—

• (a) may be made by a relevant person who has been nominated to make the claim by all of the relevant persons, and

• (b) may not be made by any other person.

• (4) In relation to such a claim, references in paragraph 34A to the claimant are to any of the relevant persons.

• (5) The relevant persons are—

• (a) any person who was a partner in the partnership at the effective date of the transaction, and

• (b) the personal representative of such a person.

Assessment of claimant in connection with claim

34D

• (1) This paragraph applies where—

• (a) a claim is made under paragraph 34,

• (b) the grounds for giving effect to the claim also provide grounds for a discovery assessment on the claimant in respect of any land transaction, and

• (c) such an assessment could be made but for a relevant restriction.

• (2) The reference to the claimant in subsection (1)(b) includes—

• (a) in relation to a claim for an amount paid or liable to be paid in respect of a land transaction entered into as purchaser by or on behalf of the members of a partnership (within the meaning of Schedule 15), a responsible partner within the meaning of paragraph 6(2) of Schedule 15;

• (b) in relation to a claim for an amount paid or liable to be paid in respect of a land transaction entered into by trustees of a settlement (within the meaning of Schedule 16), a responsible trustee within the meaning of paragraph 5(3) of Schedule 16.

• (3) The following are relevant restrictions—

• (a) the restrictions in paragraph 30, and

• (b) the expiry of a time limit for making a discovery assessment.