turnover taxes - arrangements for the refund of value added tax to
taxable persons not established in Community territory (86/560/
23 (1) In this Schedule—
“the 1977 VAT Directive” means the Sixth Council Directive
of 17 May 1977 on the harmonisation of the laws of the
member States relating to turnover taxes - common
system of value added tax: uniform basis of assessment
“the 2002 VAT Directive” means the Council Directive of 7
May 2002 amending and amending temporarily the 1977
VAT Directive as regards the value added tax
arrangements applicable to radio and television
broadcasting services and certain electronically supplied
“Article 26c” has the meaning given by paragraph 2(7)
“the Controller” has the meaning given by paragraph 11(7)
“participant in the special scheme” has the meaning given
by paragraph 16(5) above;
“qualifying supply” has the meaning given by paragraph 3
“registration number” means the number allocated to a
person on his registration under this Schedule in
accordance with paragraph 6(a) above;
“registration request” is to be construed in accordance with
paragraph 4(1)(b) above;
“reporting period” is to be construed in accordance with
paragraph 11(2) above;
“special accounting return” is to be construed in accordance
with paragraph 11(1) above.
(2) References in this Schedule to a qualifying supply being “treated
as made” in a member State are references to its being treated as
(a) in the United Kingdom, by virtue of any provision which
gives effect in the United Kingdom to Article 9(2)(f) of the
1977 VAT Directive (which is inserted by Article 1(1)(b) of
the 2002 VAT Directive), or
(b) in another member State, by virtue of any provision of the
law of that member State which gives effect to that Article.
(3) The provision which, as at 9th April 2003, is to give effect in the
United Kingdom to Article 9(2)(f) of the 1977 VAT Directive (as
mentioned in sub-paragraph (2)(a) above) is article 16A of the
Value Added Tax (Place of Supply of Services) Order 1992 (which
is prospectively inserted by article 3 of the Value Added Tax (Place
of Supply of Services) (Amendment) Order 2003).”.
Stamp duty land tax: transactions exempt from charge
No chargeable consideration
1 A land transaction is exempt from charge if there is no chargeable
consideration for the transaction.
Grant of certain leases by registered social landlords
2 (1) The grant of a lease of a dwelling is exempt from charge if the lease—
(a) is granted by a registered social landlord to one or more individuals
in accordance with arrangements to which this paragraph applies,
(b) is for an indefinite term or is terminable by notice of a month or less.
(2) This paragraph applies to arrangements between a registered social
landlord and a housing authority under which the landlord provides, for
individuals nominated by the authority in pursuance of its statutory
housing functions, temporary rented accommodation which the landlord
itself has obtained on a short-term basis.
The reference above to accommodation obtained by the landlord “on a short-
term basis” is to accommodation leased to the landlord for a term of five
years or less.
(3) A “housing authority” means—
(a) in relation to England and Wales—
(i) a principal council within the meaning of the Local
Government Act 1972 (c. 70), or
(ii) the Common Council of the City of London;
(b) in relation to Scotland, a council constituted under section 2 of the
Local Government etc. (Scotland) Act 1994 (c. 39);
(c) in relation to Northern Ireland—
(i) the Department for Social Development in Northern Ireland,
(ii) the Northern Ireland Housing Executive.
Transactions in connection with divorce etc
3 A transaction between one party to a marriage 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 a decree of divorce, nullity of marriage or judicial separation;
(b) in pursuance of an order of a court made in connection with the
dissolution or annulment of the marriage, or the parties’ judicial
separation, at any time after the granting of such a decree;
(c) in pursuance of—
(i) an order of a court made at any time under section 22A, 23A
or 24A of the Matrimonial Causes Act 1973 (c. 18), or
(ii) an incidental order of a court made under section 8(2) of the
Family Law (Scotland) Act 1985 (c. 37) by virtue of section
14(1) of that Act;
(d) at any time in pursuance of an agreement of the parties made in
contemplation or otherwise in connection with the dissolution or
annulment of the marriage, their judicial separation or the making of
a separation order in respect of them.
Variation of testamentary dispositions etc
4 (1) A transaction following a person’s death that varies a disposition (whether
effected by will, under the law relating to intestacy or otherwise) of property
of which the deceased was competent to dispose is exempt from charge if the
following conditions are met.
(2) The conditions are—
(a) that the transaction is carried out within the period of two years after
a person’s death, and
(b) that no consideration in money or money’s worth other than the
making of a variation of another such disposition is given for it.
(3) This paragraph applies whether or not the administration of the estate is
complete or the property has been distributed in accordance with the
Power to add further exemptions
5 (1) The Treasury may by regulations provide that any description of land
transaction specified in the regulations is exempt from charge.
(2) The regulations may contain such supplementary, incidental and
transitional provision as appears to the Treasury to be appropriate.
Stamp duty land tax: chargeable consideration
Money or money’s worth
1 (1) The chargeable consideration for a transaction is, except as otherwise
expressly provided, any consideration in money or money’s worth given for
the subject-matter of the transaction, directly or indirectly, by the purchaser
or a person connected with him.
(2) Section 839 of the Taxes Act 1988 (connected persons) applies for the
purposes of sub-paragraph (1).
Value added tax
2 The chargeable consideration for a transaction shall be taken to include any
value added tax chargeable in respect of the transaction, other than value
added tax chargeable by virtue of an election under paragraph 2 of Schedule
10 to the Value Added Tax Act 1994 (c. 23) made after the effective date of
3 The amount or value of the chargeable consideration for a transaction shall
be determined without any discount for postponement of the right to receive
it or any part of it.
Just and reasonable apportionment
4 (1) For the purposes of this Part consideration attributable—
(a) to two or more land transactions, or
(b) in part to a land transaction and in part to another matter, or
(c) in part to matters making it chargeable consideration and in part to
shall be apportioned on a just and reasonable basis.
(2) If the consideration is not so apportioned, this Part has effect as if it had been
(3) For the purposes of this paragraph any consideration given for what is in
substance one bargain shall be treated as attributable to all the elements of
the bargain, even though—
(a) separate consideration is, or purports to be, given for different
elements of the bargain, or
(b) there are, or purport to be, separate transactions in respect of
different elements of the bargain.
5 (1) This paragraph applies to determine the chargeable consideration where
one or more land transactions are entered into by a person as purchaser
(alone or jointly) wholly or partly in consideration of one or more other land
transactions being entered into by him (alone or jointly) as vendor.
(2) In this paragraph—
(a) “relevant transaction” means any of those transactions, and
(b) “relevant acquisition” means a relevant transaction entered into as
purchaser and “relevant disposal” means a relevant transaction
entered into as vendor.
(3) The following rules apply if the subject-matter of any of the relevant
transactions is a major interest in land—
(a) where a single relevant acquisition is made, the chargeable
consideration for the acquisition is—
(i) the market value of the subject-matter of the acquisition, and
(ii) if the acquisition is the grant of a lease at a rent, that rent;
(b) where two or more relevant acquisitions are made, the chargeable
consideration for each relevant acquisition is—
(i) the market value of the subject-matter of that acquisition, and
(ii) if the acquisition is the grant of a lease at a rent, that rent.
(4) The following rules apply if the subject-matter of none of the relevant
transactions is a major interest in land—
(a) where a single relevant acquisition is made in consideration of one or
more relevant disposals, the chargeable consideration for the
acquisition is the amount or value of any chargeable consideration
other than the disposal or disposals that is given for the acquisition;
(b) where two or more relevant acquisitions are made in consideration
of one or more relevant disposals, the chargeable consideration for
each relevant acquisition is the appropriate proportion of the
amount or value of any chargeable consideration other than the
disposal or disposals that is given for the acquisitions.
(5) For the purposes of sub-paragraph (4)(b) the appropriate proportion is—
MV is the market value of the subject-matter of the acquisition for
which the chargeable consideration is being determined, and
TMV is the total market value of the subject-matter of all the relevant
(6) This paragraph has effect subject to—
paragraph 6 of this Schedule (partition etc: disregard of existing
section 58 (relief for certain exchanges of residential property).
Partition etc: disregard of existing interest
6 In the case of a land transaction giving effect to a partition or division of a
chargeable interest to which persons are jointly entitled, the share of the
interest held by the purchaser immediately before the partition or division
does not count as chargeable consideration.
Valuation of non-monetary consideration
7 Except as otherwise expressly provided, the value of any chargeable
consideration for a land transaction, other than—
(a) money (whether in sterling or another currency), or
(b) debt as defined for the purposes of paragraph 8 (debt as
shall be taken to be its market value at the effective date of the transaction.
Debt as consideration
8 (1) Where the chargeable consideration for a land transaction consists in whole
or in part of—
(a) the satisfaction or release of debt due to the purchaser or owed by the
(b) the assumption of existing debt by the purchaser,
the amount of debt satisfied, released or assumed shall be taken to be the
whole or, as the case may be, part of the chargeable consideration for the
(2) If the effect of sub-paragraph (1) would be that the amount of the chargeable
consideration for the transaction exceeded the market value of the subject-
matter of the transaction, the amount of the chargeable consideration is
treated as limited to that value.
(3) In this paragraph—
(a) “debt” means an obligation, whether certain or contingent, to pay a
sum of money either immediately or at a future date,
(b) “existing debt”, in relation to a transaction, means debt created or
arising before the effective date of, and otherwise than in connection
with, the transaction, and
(c) references to the amount of a debt are to the principal amount
payable or, as the case may be, the total of the principal amounts
payable, together with the amount of any interest that has accrued
due on or before the effective date of the transaction.
Conversion of amounts in foreign currency
9 (1) References in this Part to the amount or value of the consideration for a
transaction are to its amount or value in sterling.
(2) For the purposes of this Part the sterling equivalent of an amount expressed
in another currency shall be ascertained by reference to the London closing
exchange rate on the effective date of the transaction (unless the parties have
used a different rate for the purposes of the transaction).
Carrying out of works
10 (1) Where the whole or part of the consideration for a land transaction consists
of the carrying out of works of construction, improvement or repair of a
building or other works to enhance the value of land, then—
(a) to the extent that the conditions specified in sub-paragraph (2) are
met, the value of the works does not count as chargeable
(b) to the extent that those conditions are not met, the value of the works
shall be taken into account as chargeable consideration.
(2) The conditions referred to in sub-paragraph (1) are—
(a) that the works are carried out after the effective date of the
(b) that the works are carried out on land acquired or to be acquired
under the transaction or on other land held by the purchaser or a
person connected with him, and
(c) that it is not a condition of the transaction that the works are carried
out by the vendor or a person connected with him.
(3) In this paragraph—
(a) references to the acquisition of land are to the acquisition of a major
interest in it;
(b) the value of the works shall be taken to be the amount that would
have to be paid in the open market for the carrying out of the works
(4) Section 839 of the Taxes Act 1988 (connected persons) has effect for the
purposes of this paragraph.
Provision of services
11 Where the whole or part of the consideration for a land transaction consists
of the provision of services (other than the carrying out of works to which
paragraph 10 applies), the value of that consideration shall be taken to be the
amount that would have to be paid in the open market to obtain those
Land transaction entered into by reason of employment
12 (1) Where a land transaction is entered into by reason of the purchaser’s
employment, or that of a person connected with him, then—
(a) if the transaction gives rise to a charge to tax under Chapter 5 of Part
3 of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (taxable
benefits: living accommodation) and—
(i) no rent is payable by the purchaser, or
(ii) the rent payable by the purchaser is less than the cash
equivalent of the benefit calculated under section 105 or 106
of that Act,
there shall be taken to be payable by the purchaser as rent an amount
equal to the cash equivalent chargeable under those sections;
(b) if the transaction would give rise to a charge under that Chapter but
for section 99 of that Act (accommodation provided for performance
of duties), the consideration for the transaction is the actual
consideration (if any);
(c) if neither paragraph (a) nor paragraph (b) applies, the consideration
for the transaction shall be taken to be not less than the market value
of the subject-matter of the transaction as at the effective date of the
(2) Section 839 of the Taxes Act 1988 (connected persons) has effect for the
purposes of this paragraph.
Obligations under lease
13 (1) In the case of the grant of a lease none of the following counts as chargeable
(a) any undertaking by the tenant to repair, maintain or insure the
demised premises (in Scotland, the leased premises);
(b) any undertaking by the tenant to pay any amount in respect of
services, repairs, maintenance or insurance or the landlord’s costs of
(c) any other obligation undertaken by the tenant that is not such as to
affect the rent that a tenant would be prepared to pay in the open
(d) any guarantee of the payment of rent or the performance of any other
obligation of the tenant under the lease;
(e) any penal rent, or increased rent in the nature of a penal rent, payable
in respect of the breach of any obligation of the tenant under the