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Finance Bill
Part 4 — Stamp duty land tax

    69

 

     (2)    Section 89 (interest on repayment of tax overpaid etc) applies to a repayment

under this section.

     (3)    A claim for repayment must be made within two years after the effective date

of the transaction in question.

     (4)    The Inland Revenue may make provision by regulations—

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           (a)           for varying the time limit for making a claim;

           (b)           as to any other conditions that must be met before repayment is made.

 112   Power to amend certain provisions before implementation

     (1)    The Treasury may by regulations amend the following provisions of this

Part—

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           (a)           Schedule 5 (amount of tax chargeable: rent);

           (b)           subsection (2) of section 55 (amount of tax chargeable: general) so far as

relating to the thresholds at which different rates of tax become

payable.

     (2)    The regulations may make such consequential amendments of Schedule 6

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(disadvantaged areas relief) as appear to the Treasury to be appropriate.

     (3)    A statutory instrument containing regulations under this section shall not be

made unless a draft of the instrument has been laid before and approved by

resolution of the House of Commons.

     (4)    The power conferred by this section is not exercisable after the implementation

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date.

 113   Functions conferred on “the Inland Revenue”

     (1)    References in this Part to “the Inland Revenue” are to any officer of the Board,

except as otherwise provided.

     (2)    Any power of the Inland Revenue to make regulations is exercisable only by

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the Board.

     (3)    In Schedule 10 (returns, assessments and other administrative matters)—

           (a)           functions of the Inland Revenue under these provisions are exercisable

by the Board or an officer of the Board—

                  (i)                 paragraph 28 (discovery assessment),

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                  (ii)                paragraph 29 (assessment to recover excessive repayment);

           (b)           functions of the Inland Revenue under these provisions are functions of

the Board—

                  (i)                 paragraph 33 (relief in case of double assessment),

                  (ii)                paragraph 34 (relief in case of mistake in return).

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     (4)    Nothing in this section affects any provision of this Part that expressly confers

functions on the Board, an officer of the Board, a collector or a specific officer

of the Board.

 114   Orders and regulations made by the Treasury or the Inland Revenue

     (1)    Except as otherwise provided, any power of the Treasury or the Inland

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Revenue to make an order or regulations under this Part, or under any other

 

 

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enactments relating to stamp duty land tax (including enactments passed after

this Act), is exercisable by statutory instrument.

     (2)    Subsection (1) does not apply in relation to the power conferred by—

                    paragraph 8 of Schedule 5 to this Act (tax chargeable in respect of rent:

power to prescribe temporal discount rate),

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                    section 178(5) of the Finance Act 1989 (c. 26) (power to prescribe rates of

interest).

     (3)    Except as otherwise provided, a statutory instrument containing any order or

regulations made by the Treasury or the Inland Revenue under this Part, or

under any other enactments relating to stamp duty land tax (including

10

enactments passed after this Act), shall be subject to annulment in pursuance

of a resolution of the House of Commons.

     (4)    Subsection (3) does not apply to a statutory instrument made under the power

conferred by—

                    section 61(3) (compliance with planning obligations: power to add to list

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of public authorities);

                    paragraph 1(3) of Schedule 9 (right to buy transactions: power to add to

list of relevant public sector bodies);

                    paragraph 2(2) of Schedule 19 (commencement and transitional

provisions: power to appoint implementation date).

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 115   General and Special Commissioners, appeals and other proceedings

Schedule 17 makes provision about the General and Special Commissioners,

appeals and other proceedings before the Commissioners and related matters.

Interpretation etc

 116   Meaning of “residential property”

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     (1)    In this Part “residential property” means—

           (a)           a building that is used or suitable for use as a dwelling, or is in the

process of being constructed or adapted for such use, and

           (b)           land that is or forms part of the garden or grounds of a building within

paragraph (a) (including any building or structure on such land), or

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           (c)           an interest in or right over land that subsists for the benefit of a building

within paragraph (a) or of land within paragraph (b);

            and “non-residential property” means any property that is not residential

property.

            This is subject to the rule in subsection (7) in the case of a transaction involving

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six or more dwellings.

     (2)    For the purposes of subsection (1) a building used for any of the following

purposes is used as a dwelling—

           (a)           residential accommodation for school pupils;

           (b)           residential accommodation for students, other than accommodation

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falling with subsection (3)(b);

           (c)           residential accommodation for members of the armed forces;

 

 

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Part 4 — Stamp duty land tax

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           (d)           an institution that is the sole or main residence of at least 90% of its

residents and does not fall within any of paragraphs (a) to (f) of

subsection (3).

     (3)    For the purposes of subsection (1) a building used for any of the following

purposes is not used as a dwelling—

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           (a)           a home or other institution providing residential accommodation for

children;

           (b)           a hall of residence for students in further or higher education;

           (c)           a home or other institution providing residential accommodation with

personal care for persons in need of personal care by reason of old age,

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disablement, past or present dependence on alcohol or drugs or past or

present mental disorder;

           (d)           a hospital or hospice;

           (e)           a prison or similar establishment;

           (f)           a hotel or inn or similar establishment.

15

     (4)    Where a building is used for a purpose specified in subsection (3), no account

shall be taken for the purposes of subsection (1)(a) of its suitability for any

other use.

     (5)    Where a building that is not in use is suitable for use for at least one of the

purposes specified in subsection (2) and at least one of those specified in

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subsection (3)—

           (a)           if there is one such use for which it is most suitable, or if the uses for

which it is most suitable are all specified in the same sub-paragraph, no

account shall be taken for the purposes of subsection (1)(a) of its

suitability for any other use,

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           (b)           otherwise, the building shall be treated for those purposes as suitable

for use as a dwelling.

     (6)    In this section “building” includes part of a building.

     (7)    Where six or more separate dwellings are the subject of a single transaction

involving the transfer of a major interest in, or the grant of a lease over, them,

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then, for the purposes of this Part as it applies in relation to that transaction,

those dwellings are treated as not being residential property.

     (8)    The Treasury may by order—

           (a)           amend subsections (2) and (3) so as to change or clarify the cases where

use of a building is, or is not to be, use of a building as a dwelling for

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the purposes of subsection (1);

           (b)           amend or repeal subsection (7) and the reference to that subsection in

subsection (1).

            Any such order may contain such incidental, supplementary, consequential or

transitional provision as appears to the Treasury to be necessary or expedient.

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 117   Meaning of “major interest” in land

     (1)    References in this Part to a “major interest” in land shall be construed as

follows.

     (2)    In relation to land in England or Wales, the references are to—

           (a)           an estate in fee simple absolute, or

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           (b)           a term of years absolute,

 

 

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            whether subsisting at law or in equity.

     (3)    In relation to land in Scotland, the references are to—

           (a)           the interest of an owner of land, or

           (b)           the tenant’s right over or interest in a property subject to a lease.

            Until the appointed day for the purposes of the Abolition of Feudal Tenure etc.

5

(Scotland) Act 2000 (asp 5), the reference in paragraph (a) to the interest of the

owner shall be read, in relation to feudal property, as a reference to the estate

or interest of the proprietor of the dominium utile.

     (4)    In relation to land in Northern Ireland, the references are to—

           (a)           any freehold estate, or

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           (b)           any leasehold estate,

            whether subsisting at law or in equity.

 118   Meaning of “market value”

For the purposes of this Part “market value” shall be determined as for the

purposes of the Taxation of Chargeable Gains Act 1992 (c. 12) (see sections 272

15

to 274 of that Act).

 119   Meaning of “effective date” of a transaction

     (1)    Except as otherwise provided, the effective date of a land transaction for the

purposes of this Part is the date of completion.

     (2)    Other provision as to the effective date of certain descriptions of land

20

transaction is made by—

                    section 44(4) (contract and conveyance: contract substantially performed

without having been completed), and

                    section 46(3) (options and rights of pre-emption).

 120   Meaning of “lease” and other supplementary provisions

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     (1)    In the application of this Part to England and Wales or Northern Ireland “lease”

means—

           (a)           an interest or right in or over land for a term of years (whether fixed or

periodic), or

           (b)           a tenancy at will or other interest or right in or over land terminable by

30

notice at any time.

     (2)    In this Part—

           (a)           references to a lease for a definite term are to a lease for a fixed term,

and

           (b)           references to a lease for an indefinite term are to—

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                  (i)                 a periodic tenancy or other interest or right terminable by a

period of notice,

                  (ii)                a tenancy at will in England and Wales or Northern Ireland, or

                  (iii)               any other interest or right terminable by notice at any time.

     (3)    A lease granted for a fixed term and thereafter until determined is treated for

40

the purposes of this Part as a lease for a definite term equal to the fixed term

together with such further period as must elapse before the earliest date at

which the lease can be determined.

 

 

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     (4)    In the application of this Part to Scotland references to the reversion on a lease

shall be read as references to the interest of the landlord in the property subject

to the lease.

     (5)           Where tax has been paid in respect of a land transaction (“the first transaction”)

that involves missives of let in Scotland that constitute a lease, and subsequent

5

to those missives of let a lease is granted (“the second transaction”) which

either—

           (a)           is in conformity with the missives of let, or

           (b)           relates to substantially the same property and period as the missives of

let,

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            the tax that would otherwise be charged in respect of the second transaction is

reduced by the amount of tax paid in respect of the first transaction in respect

of the missives of let.

 121   Minor definitions

In this Part—

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                      “assignment”, in Scotland, means assignation;

                      “completion”, in Scotland, means—

                  (a)                 in relation to a lease, when it is executed by the parties (that is

to say, by signing) or constituted by any means;

                  (b)                 in relation to any other transaction, the settlement of the

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transaction;

                      “employee” includes an office-holder and related expressions have a

corresponding meaning;

                      “jointly entitled” means—

                  (a)                 in England and Wales, beneficially entitled as joint tenants or

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tenants in common,

                  (b)                 in Scotland, entitled as joint owners or owners in common,

                  (c)                 in Northern Ireland, beneficially entitled as joint tenants,

tenants in common or coparceners;

                      “land” includes—

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                  (a)                 buildings and structures, and

                  (b)                 land covered by water;

                      “registered social landlord” means—

                  (a)                 in relation to England and Wales, a body registered as a social

landlord in a register maintained under section 1(1) of the

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Housing Act 1996 (c. 52);

                  (b)                 in relation to Scotland, a body registered in the register

maintained under section 57 of the Housing (Scotland) Act 2001

(asp 10);

                  (c)                 in relation to Northern Ireland, a housing association registered

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in the register maintained under Article 14 of the Housing

(Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15));

                      “standard security” has the meaning given by the Conveyancing and

Feudal Reform (Scotland) Act 1970 (c. 35);

                      “statutory provision” means any provision made by or under an Act of

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Parliament, an Act of the Scottish Parliament or any Northern Ireland

legislation;

                      “surrender”, in Scotland, means renunciation;

 

 

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                      “tax”, unless the context otherwise requires, means tax under this Part.

 122   Index of defined expressions

In this Part the expressions listed below are defined or otherwise explained by

the provisions indicated—

 

acquisition relief

Schedule 7, paragraph 8(1)

 

5

 

assignment (in Scotland)

section 121

 
 

bare trust

Schedule 16, paragraph 1(2)

 
 

the Board (in relation to the

section 42(3)

 
 

Inland Revenue)

  
 

chargeable consideration

section 50 and Schedule 4

 

10

 

chargeable interest

section 48(1)

 
 

chargeable transaction

section 49

 
 

charities relief

Schedule 8, paragraph 1(1)

 
 

closure notice

Schedule 10, paragraph 23(1)

 
  

(in relation to a land

 

15

  

transaction return); Schedule

 
  

11, paragraph 16(1) (in relation

 
  

to a self-certificate)

 
 

company

section 100 (except as otherwise

 
  

expressly provided)

 

20

 

completion (in Scotland)

section 121

 
 

contingent (in relation to

section 51(3)

 
 

consideration)

  
 

delivery (in relation to a land

Schedule 10, paragraph 2(2)

 
 

transaction return)

  

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discovery assessment

Schedule 10, paragraph 28(1)

 
 

effective date (in relation to a

section 119

 
 

land transaction)

  
 

employee

section 121

 
 

exempt interest

section 48(2) to (5)

 

30

 

filing date (in relation to a land

Schedule 10, paragraph 2(1)

 
 

transaction return)

  
 

implementation date

Schedule 19, paragraph 2(2)

 
 

the Inland Revenue

section 113

 
 

jointly entitled

section 121

 

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land

section 121

 
 

land transaction

section 43(1)

 
 

land transaction return

section 76(1)

 
 

lease (and related expressions)

section 120

 
 

linked transactions

section 108

 

5

 

main subject-matter (in relation

section 43(6)

 
 

to a land transaction)

  
 

major interest (in relation to

section 117

 
 

land)

  
 

market value

section 118

 

10

 

notice of enquiry

Schedule 10, paragraph 12(1)

 
  

(in relation to a land

 
  

transaction return); Schedule

 
  

11, paragraph 7(1) (in relation

 
  

to a self-certificate)

 

15

 

notifiable (in relation to a land

section 77

 
 

transaction)

  
 

partnership (and related

Schedule 15, paragraphs 1 to 4

 
 

expressions)

  
 

purchaser

section 43(4)

 

20

 

rate of tax

section 55(7)

 
 

reconstruction relief

Schedule 7, paragraph 7(1)

 
 

registered social landlord

section 121

 
 

residential property

section 116

 
 

Revenue determination

Schedule 10, paragraph 25(1)

 

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self-assessment

section 76(3)(a)

 
 

self-certificate

section 79(3)(b)

 
 

settlement

Schedule 16, paragraph 1(1)

 
 

standard security

section 121

 
 

statutory provision

section 121

 

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subject-matter (in relation to a

section 43(6)

 
 

land transaction)

  
 

substantial performance (in

section 44(5) to (7)

 
 

relation to a contract)

  
 

surrender (in Scotland)

section 121

 

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