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Finance Bill


Finance Bill
Part 5 — Stamp duty

    76

 
 

tax

section 121

 
 

uncertain (in relation to

section 51(3)

 
 

consideration)

  
 

unit holder

section 101(4)

 
 

unit trust scheme

section 101(4)

 

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vendor

section 43(4)

 
 

Final provisions

 123   Consequential amendments

     (1)    Schedule 18 contains certain amendments consequential on the provisions of

this Part.

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     (2)    The Treasury may by regulations make such other amendments and repeals as

appear to them appropriate in consequence of the provisions of this Part.

     (3)    The regulations may, in particular, make such provision as the Treasury think

fit for reproducing in relation to stamp duty land tax the effect of enactments

providing for exemption from stamp duty.

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 124   Commencement and transitional provisions

Schedule 19 makes provision for and in connection with the coming into force

of the provisions of this Part.

Part 5

Stamp duty

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

securities

     (1)    Stamp duty is chargeable under Schedule 13 of the Finance Act 1999 (c. 16) only

on instruments relating to stock or marketable securities.

     (2)    Section 12 of the Finance Act 1895 (c. 16) (collection of stamp duty in cases of

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property vested by Act or purchased under statutory powers) does not apply

to property other than stock or marketable securities.

     (3)    This section shall be construed as one with the Stamp Act 1891 (c. 39).

     (4)    Part 1 of Schedule 20 to this Act contains provisions supplementing this section

and Part 2 of that Schedule provides for consequential amendments and

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repeals.

     (5)    This section and that Schedule have effect—

           (a)           in relation to an instrument effecting a land transaction, if the

transaction—

                  (i)                 is an SDLT transaction within the meaning of Schedule 19 to this

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Act (stamp duty land tax: commencement and transitional

provisions), or

 

 

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Part 5 — Stamp duty

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                  (ii)                would be such a transaction but for an exemption or relief from

stamp duty land tax;

           (b)           in relation to an instrument effecting a transaction other than a land

transaction, if the instrument is executed on or after the

implementation date for the purposes of stamp duty land tax (see

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paragraph 2(2) of that Schedule).

            For this purpose an instrument        effecting both a land transaction and a

transaction other than a land transaction is treated as if it were two instruments

to which paragraph (a) and paragraph (b) above respectively applied.

     (6)    Where in the case of an instrument effecting both a land transaction and a

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transaction other than a land transaction the result of applying subsection (5)

is that stamp duty is chargeable on either or both of the deemed instruments,

the enactments relating to stamp duty have effect as if—

           (a)           there were two instruments as mentioned in the closing words of that

subsection,

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           (b)           the consideration had been apportioned between them in a just and

reasonable manner, and

           (c)           the amount found on that apportionment to be attributable to the

chargeable instrument, or (as the case may be) to each of them, had

been set forth distinctly in that instrument.

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     (7)    In subsections (5) and (6) “land transaction” has the same meaning as in Part 4

of this Act.

     (8)    This section and Schedule 20 have effect subject to paragraph 13(2) and (3) of

Schedule 15 to this Act (continued application of stamp duty in relation to

certain partnership transactions).

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 126   Circumstances in which group relief withdrawn

     (1)    Section 111 of the Finance Act 2002 (c. 23) (stamp duty: withdrawal of group

relief) is amended as follows.

     (2)    In subsection (1)(b) (circumstances in which relief withdrawn: transferee

company ceasing to be member of group within two years) for “two years”

30

substitute “three years”.

     (3)    In subsection (1)(c) (circumstances in which relief withdrawn: transferee

company holding estate or interest when it ceases to be member of group)—

           (a)           in the opening words—

                  (i)                 for “it ceases” substitute “the transferee company ceases”, and

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                  (ii)                for “it holds” substitute “it or a relevant associated company

holds”;

           (b)           in sub-paragraph (i) for “to it” substitute “to the transferee company”;

and

           (c)           for the closing words substitute “and that has not subsequently been

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transferred at market value by a duly stamped instrument on which ad

valorem duty was paid and in respect of which group relief was not

claimed”.

     (4)    In subsection (3)—

           (a)           after “transferred” insert “to the transferee company”, and

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           (b)           for “what the transferee company holds at the time it ceases to be a

member” substitute “what is held by that company or, as the case may

 

 

Finance Bill
Part 5 — Stamp duty

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be, that company and any relevant associated companies, at the time it

or they cease to be members”.

     (5)    After subsection (4) insert—

           “(4A)              In this section “relevant associated company”, in relation to the

transferee company, means a company that—

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                  (a)                 is a member of the same group as the transferee company

immediately before that company ceases to be a member of the

same group as the transferor company, and

                  (b)                 ceases to be a member of the same group as the transferor

company in consequence of the transferee company so

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ceasing.”.

     (6)    In paragraph 4(3) of Schedule 34 to the Finance Act 2002 (c. 23) (withdrawal of

group relief: supplementary provisions), in paragraph (b)—

           (a)           in the opening words—

                  (i)                 for “it ceases” substitute “the transferee company ceases”, and

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                  (ii)                for “it holds” substitute “it or a relevant associated company (as

defined in sub-paragraph (4) below) holds”;

           (b)           in sub-paragraph (i) for “to it” substitute “to the transferee company”;

and

           (c)           for the closing words substitute “and that has not subsequently been

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transferred at market value by a duly stamped instrument on which ad

valorem duty was paid and in respect of which group relief was not

claimed”.

     (7)    In the closing words of that sub-paragraph, for the words from “as if” to the

end substitute “as if the transferee had then ceased to be a member of the same

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group as the transferor company and had then held the estate or interest

referred to in paragraph (b).”.

     (8)    After that sub-paragraph insert—

                       “(4)                In sub-paragraph (3)(b) “relevant associated company”, in relation to

the transferee company, means a company that is in the same group

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as the transferee company immediately before the transferee

company ceases to be a member of the new group and which ceases

to be a member of the new group in consequence of the transferee

company so ceasing.”.

     (9)    This section applies to instruments executed after 14th April 2003.

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     (10)   But this section does not apply to an instrument giving effect to a contract

made on or before 9th April 2003, unless—

           (a)           the instrument is made in consequence of the exercise after that date of

any option, right of pre-emption or similar right, or

           (b)           the instrument transfers the property in question to, or vests it in, a

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person other than the purchaser under the contract because of an

assignment (or, in Scotland, assignation) or further contract made after

that date.

     (11)   This section shall be deemed to have come into force on 15th April 2003.

 

 

Finance Bill
Part 5 — Stamp duty

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 127   Circumstances in which relief for company acquisitions withdrawn

     (1)    Section 113 of the Finance Act 2002 (c. 23) (stamp duty: withdrawal of relief for

company acquisitions) is amended as follows.

     (2)    In subsection (1)(b) (circumstances in which relief withdrawn: change of

control of acquiring company within two years) for “two years” substitute

5

“three years”.

     (3)    In subsection (1)(c) (circumstances in which relief withdrawn: acquiring

company holding estate or interest when control changes)—

           (a)           in the opening words, after “the acquiring company” insert “or a

relevant associated company”;

10

           (b)           in sub-paragraph (i) for “to it” substitute “to the acquiring company”;

and

           (c)           for the closing words substitute “and that has not subsequently been

transferred at market value by a duly stamped instrument on which ad

valorem duty was paid and in respect of which section 76 relief was not

15

claimed”.

     (4)    In subsection (3) for “what the acquiring company holds” substitute “what is

held by that company or, as the case may be, by that company and any relevant

associated companies”.

     (5)    After subsection (3) insert—

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           “(3A)              In this section “relevant associated company”, in relation to the

acquiring company, means a company—

                  (a)                 that is controlled by the acquiring company immediately before

the control of that company changes, and

                  (b)                 of which control changes in consequence of the change of

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control of that company.”.

     (6)    In Schedule 35 to the Finance Act 2002 (withdrawal of relief for company

acquisitions: supplementary provisions), in paragraphs 3(3)(b) and 4(3)(b)

(withdrawal of relief on later change of control)—

           (a)           in the opening words, after “the acquiring company” insert “or a

30

relevant associated company”,

           (b)           in sub-paragraph (i) for “to it” substitute “to the acquiring company”,

and

           (c)           for the closing words substitute “and that has not subsequently been

transferred at market value by a duly stamped instrument on which ad

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valorem duty was paid and in respect of which section 76 relief was not

claimed”.

     (7)    This section applies to instruments executed after 14th April 2003.

     (8)    But this section does not apply to an instrument giving effect to a contract

made on or before 9th April 2003, unless—

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           (a)           the instrument is made in consequence of the exercise after that date of

any option, right of pre-emption or similar right, or

           (b)           the instrument transfers the property in question to, or vests it in, a

person other than the purchaser under the contract because of an

assignment (or, in Scotland, assignation) or further contract made after

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that date.

     (9)    This section shall be deemed to have come into force on 15th April 2003.

 

 

 
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