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Finance Bill
Schedule 16 — Stamp duty land tax: trusts and powers

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Acquisition etc by bare trustee attributed to beneficial owner

  3        Where a person acquires a chargeable interest as bare trustee, this Part

applies as if the interest were vested in, and the acts of the trustee in relation

to it were the acts of, the person or persons for whom he is trustee.

Acquisition by trustees of settlement

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  4        Where persons acquire a chargeable interest as trustees of a settlement, they

are treated for the purposes of this Part, as it applies in relation to that

acquisition, as purchasers of the whole of the interest acquired (including

the beneficial interest).

Responsibility of trustees of settlement

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  5       (1)      Where the trustees of a settlement are liable—

              (a)             to make a payment of tax or interest on unpaid tax,

              (b)             to make a payment in accordance with an assessment under

paragraph 29 of Schedule 10 (recovery of excessive repayment), or

              (c)             to a penalty under this Part or to interest on such a penalty,

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                   the payment, penalty or interest may be recovered (but only once) from any

one or more of the responsible trustees.

          (2)      No amount may be recovered by virtue of sub-paragraph (1)(c) from a

person who did not become a responsible trustee until after the relevant

time.

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          (3)      The responsible trustees, in relation to a land transaction, are the persons

who are trustees at the effective date of the transaction and any person who

subsequently becomes a trustee.

          (4)      The relevant time for this purpose is—

              (a)             in relation to so much of a penalty as is payable in respect of any day,

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or to interest on so much of a penalty as is so payable, the beginning

of that day;

              (b)             in relation to any other penalty, or interest on such a penalty, the time

when the act or omission occurred that caused the penalty to become

payable.

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Relevant trustees for purposes of return etc

  6       (1)      A return or self-certificate in relation to a land transaction may be made or

given by any one or more of the trustees who are the responsible trustees in

relation to the transaction.

                   The trustees by whom such a return or self-certificate is made are referred to

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below as “the relevant trustees”.

          (2)      The declaration required by paragraph 1(1)(c) of Schedule 10 or paragraph

2(1)(c) of Schedule 11 (declaration that return or self-certificate is complete

and correct) must be made by all the relevant trustees.

          (3)      If the Inland Revenue give notice of an enquiry into the return or self-

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certificate—

              (a)             the notice must be given to each of the relevant trustees,

              (b)             the powers of the Inland Revenue as to the production of documents

and provision of information for the purposes of the enquiry are

 

 

Finance Bill
Schedule 16 — Stamp duty land tax: trusts and powers

    241

 

exercisable separately (and differently) in relation to each of the

relevant trustees,

              (c)             any of the relevant trustees may apply for a direction that a closure

notice be given (and all of them are entitled to appear and be heard

on the application), and

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              (d)             the closure notice must be given to each of the relevant trustees.

                   Provided that a notice is not invalidated by virtue of paragraph (a) or (d) if

it is given to each of the relevant trustees whose identity is known to the

Inland Revenue.

          (4)      A Revenue determination or discovery assessment relating to the

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transaction must be made against all of the relevant trustees 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.

          (5)      In the case of an appeal arising from proceedings under this Part relating to

the transaction—

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              (a)             the appeal may be brought by any of the relevant trustees,

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

brought,

              (c)             the agreement of all the relevant trustees is required if the appeal is

to be settled by agreement,

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              (d)             if it is not settled, any of them are entitled to appear and be heard,

and

              (e)             the decision on the appeal binds all of them.

Consideration for exercise of power of appointment or discretion

  7        Where a chargeable interest is acquired by virtue of—

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              (a)             the exercise of a power of appointment, or

              (b)             the exercise of a discretion vested in trustees of a settlement,

           there shall be treated as consideration for the acquisition of the interest or

right by virtue of the exercise of the power or discretion any consideration

given for the person in whose favour the appointment was made or the

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discretion was exercised becoming an object of the power or discretion.

           

           

           

           

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Finance Bill
Schedule 17 — Stamp duty land tax: General and Special Commissioners, appeals and other proceedings

    242

 

Schedule 17

Section 115

 

Stamp duty land tax: General and Special Commissioners, appeals and other

proceedings

General and Special Commissioners: application of general provisions

  1        Part 1 of the Taxes Management Act 1970 (c. 9) (administration) has effect as

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if this Part of this Act were part of the Taxes Acts.

Prescribed matters to be determined by Commissioners or Lands Tribunal

  2       (1)      The Lord Chancellor may make regulations providing that a question,

dispute, appeal or other matter that is of a prescribed description and arises

in relation to the provisions of this Part is to be determined—

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              (a)             by the General Commissioners,

              (b)             by the Special Commissioners,

              (c)             by the General or Special Commissioners, or

              (d)             by the relevant Lands Tribunal.

          (2)      In this paragraph—

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               “prescribed” means prescribed in regulations under this paragraph;

               “relevant Lands Tribunal” means—

                     (a)                    in relation to land in England and Wales, the Lands

Tribunal;

                     (b)                    in relation to land in Scotland, the Lands Tribunal for

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Scotland;

                     (c)                    in relation to land in Northern Ireland, the Lands Tribunal

for Northern Ireland.

General or Special Commissioners: jurisdiction

  3       (1)      Where the General or Special Commissioners have jurisdiction in respect of

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a matter, the Lord Chancellor may make regulations for determining—

              (a)             whether the General or Special Commissioners, or both of them, are

to have the jurisdiction, and

              (b)             if both of them are to have the jurisdiction, how it is to be divided

between them.

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          (2)      Where the General Commissioners have jurisdiction in respect of a matter,

the General Commissioners for that division which is determined in

accordance with regulations made by the Lord Chancellor under this

paragraph are to have the jurisdiction.

          (3)      The Lord Chancellor may make regulations—

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              (a)             providing that, in certain circumstances, the Special Commissioners

are to have jurisdiction in respect of a matter instead of the General

Commissioners or the General Commissioners are to have

jurisdiction instead of the Special Commissioners;

              (b)             providing that, in certain circumstances, the General Commissioners

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for one division are have to jurisdiction in respect of a matter instead

of the General Commissioners for another division.

 

 

Finance Bill
Schedule 17 — Stamp duty land tax: General and Special Commissioners, appeals and other proceedings

    243

 

Proceedings brought out of time

  4       (1)                        An appeal under this Part to the General or Special Commissioners may be

brought out of time with the consent in writing of an officer of the Board or

the Board.

          (2)               Consent shall be given if the officer or, as the case may be, the Board are

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satisfied—

              (a)             that there was a reasonable excuse for not bringing the appeal within

the time limit, and

              (b)             that an application for consent was made without unreasonable

delay.

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          (3)                        If the officer or, as the case may be, the Board are not so satisfied, they shall

refer the matter for determination by the Commissioners.

          (4)                        If there is a right to elect to bring the appeal before the Special

Commissioners instead of before the General Commissioners, the

Commissioners to whom an application under this paragraph is to be

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referred are the General Commissioners, unless the election has been made

before the application is referred.

Quorum etc of the Commissioners

  5        The Lord Chancellor may make regulations about the number of General or

Special Commissioners required or permitted to perform functions in

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relation to a relevant matter.

Procedure

  6       (1)      The Lord Chancellor may make regulations about the practice and

procedure to be followed in connection with matters in respect of which the

Special or General Commissioners have jurisdiction.

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          (2)      The regulations may, in particular, include provision—

              (a)             enabling the Commissioners to join as a party to the proceedings a

person who would not otherwise be a party;

              (b)             for requiring a party to the proceedings to provide information and

make documents available for inspection by—

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                    (i)                   the Commissioners,

                    (ii)                  any party to the proceedings, or

                    (iii)                 an officer of the Board;

              (c)             for requiring persons to attend the hearing to give evidence and

produce documents;

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              (d)             as to evidence generally in relation to proceedings;

              (e)             enabling the Commissioners to review their decisions;

              (f)             for the imposition of penalties not exceeding an amount specified in

the regulations;

              (g)             for the determination and recovery of penalties imposed by virtue of

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paragraph (f) and for appeals against such penalties.

 

 

Finance Bill
Schedule 17 — Stamp duty land tax: General and Special Commissioners, appeals and other proceedings

    244

 

Consequences of determination by the Commissioners

  7        The Lord Chancellor may make regulations prescribing the consequences of

any determination by the General or Special Commissioners in respect of a

relevant matter.

Costs

5

  8        The Lord Chancellor may make regulations about—

              (a)             the award by the General or Special Commissioners of the costs of,

or incidental to, a determination by them in respect of a relevant

matter;

              (b)             the recovery of costs so awarded.

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Finality of decisions of the Commissioners

  9       (1)      The Lord Chancellor may make regulations about the following matters—

              (a)             the circumstances in which—

                    (i)                   a determination by the General or Special Commissioners in

respect of a relevant matter, or

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                    (ii)                  an award of costs under regulations under paragraph 8,

                              may or may not be questioned;

              (b)             if a determination or award may be questioned, how it may be

questioned.

          (2)      The regulations may—

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              (a)             authorise or require the Commissioners, in circumstances specified

in the regulations, to state a case for the opinion of a court;

              (b)             make provision as to the practice and procedure to be followed in

connection with cases so stated;

              (c)             make provision in relation to cases so stated corresponding to any

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provision made by section 56 of the Taxes Management Act 1970

(c. 9) (statement of case for opinion of High Court) or by that section

as modified in its application to Northern Ireland by section 58 of

that Act.

          (3)      The regulations may—

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              (a)             provide for an appeal to lie to a court on a question of law arising

from a decision of the Commissioners;

              (b)             make provision as to the practice and procedure to be followed in

connection with such appeals;

              (c)             make provision in relation to such appeals corresponding to any

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provision made by section 56A of the Taxes Management Act 1970

(appeals from the Special Commissioners) or by that section as

modified in its application to Northern Ireland by section 58 of that

Act.

Publication of reports of decisions

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  10      (1)      The Lord Chancellor may make regulations authorising the Special

Commissioners to publish reports of such of their decisions as they consider

appropriate.

 

 

Finance Bill
Schedule 18 — Stamp duty land tax: consequential amendments

    245

 

          (2)               The regulations shall provide that any report published that is not a report

of proceedings heard in public must be in a form that so far as possible

prevents the identification of any person whose affairs are dealt with in the

report.

          (3)                        No obligation of secrecy to which the Special Commissioners are subject

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prevents their publishing reports of their decisions in accordance with

provision made by virtue of this paragraph.

Supplementary provisions

  11      (1)      Any power to make regulations under this Schedule is exercisable only with

the consent of the Scottish Ministers.

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          (2)      Regulations under this Schedule shall be made by statutory instrument

which shall be subject to annulment in pursuance of a resolution of either

House of Parliament.

          (3)      Regulations under this Schedule may—

              (a)             apply any other enactment, with or without modifications;

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              (b)             make different provision for different cases or different

circumstances;

              (c)             contain such supplementary, incidental, consequential and

transitional provision as the Lord Chancellor thinks appropriate.

          (4)      In this Schedule—

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              (a)             “relevant matter”, in relation to the General or Special

Commissioners, means a matter in respect of which they have

jurisdiction;

              (b)             references to the provisions of this Part include any instrument made

under such a provision;

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              (c)             references to the General or Special Commissioners having

jurisdiction are to the Commissioners having jurisdiction by virtue of

the provisions of this Part;

              (d)             references to the General or Special Commissioners having

jurisdiction in respect of a matter include cases where a question,

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dispute, appeal or other matter that arises in relation to the

provisions of this Part is to be determined by the Commissioners.

Schedule 18

Section 123

 

Stamp duty land tax: consequential amendments

Provisional Collection of Taxes Act 1968

35

  1        In section 1(1) of the Provisional Collection of Taxes Act 1968 (c. 2), after

“stamp duty reserve tax,” insert “stamp duty land tax,”.

Inheritance Tax Act 1984

  2        In section 190(4) of the Inheritance Tax Act 1984 (c. 51) (sale of land from

deceased’s estate: determination of price), after “stamp duty” insert “or

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stamp duty land tax”.

 

 

Finance Bill
Schedule 19 — Stamp duty land tax: commencement and transitional provisions

    246

 

Income and Corporation Taxes Act 1988

  3       (1)      The Income and Corporation Taxes Act 1988 (c. 1) is amended as follows.

          (2)      In section 209B(4) (hedging arrangements), in subsection (4) for “or stamp

duty” substitute “(including stamp duty or stamp duty land tax)”.

          (3)      In section 213 (exempt distributions), in subsection (11)(a) for “stamp duty”

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substitute “stamp duty or stamp duty land tax”.

          (4)      In section 214 (chargeable payments connected with exempt distributions),

in subsection (2) for “stamp duty” substitute “stamp duty or stamp duty

land tax”.

          (5)      In section 215 (advance clearance by Board of distributions and payments),

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in subsection (2) for “stamp duty” substitute “stamp duty or stamp duty

land tax”.

          (6)      In section 827 (penalties and interest not allowed as deductions for tax

purposes), after subsection (1E) insert—

              “(1F)                Where a person is liable to make a payment by way of—

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                    (a)                   any penalty under Part 4 of the Finance Act 2003 (stamp duty

land tax), or

                    (b)                   interest under any provision of that Part,

                              the payment shall not be allowed as a deduction in computing any

income, profits or losses for any tax purposes.”.

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Finance Act 1989

  4        In section 178(2) of the Finance Act 1989 (c. 26) (power of Treasury to set

rates of interest: enactments to which the section applies), after paragraph

(q) add—

                    “(r)                      sections 87, 88 and 89 of the Finance Act 2003.”.

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Taxation of Chargeable Gains Act 1992

  5        In section 38(2) of the Taxation of Chargeable Gains Act 1992 (c. 12)

(incidental costs of acquisition or disposal), after “stamp duty” insert “or

stamp duty land tax”.

Income Tax (Earnings and Pensions) Act 2003

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  6        In section 277 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1)

(removal benefits and expenses: acquisition of property), in subsection (3)(e)

after “stamp duty” insert “or stamp duty land tax”.

Schedule 19

Section 124

 

Stamp duty land tax: commencement and transitional provisions

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Introduction

  1       (1)      Subject to the provisions of this Schedule, the provisions of this Part come

into force on the passing of this Act.

 

 

 
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