Finance Act 2003

For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 (c. 7) substitute—

This section shall be deemed to have come into force at 6 o’clock in the evening of 9th April 2003.

In section 36(1AA)(a) of the Alcoholic Liquor Duties Act 1979 (c. 4) (rate of duty on beer), for “£11.89” substitute “£12.22”.

This section shall be deemed to have come into force at midnight on 13th April 2003.

For Part 1 of the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (rates of duty on wine and made-wine) substitute—

This section shall be deemed to have come into force at midnight on 13th April 2003.

In section 6AA(3) of that Act (biodiesel duty) for “£0.2582” substitute “£0.2710”.

In section 13A(1) of that Act (rebate on unleaded petrol) for “£0.0586” substitute “£0.0601”.

This section shall come into force on 1st October 2003.

In section 14(1) of that Act (furnace fuel) for “£0.0274” substitute “£0.0382”.

This section shall be deemed to have come into force at 6 o’clock in the evening of 9th April 2003.

Part 1 of the Betting and Gaming Duties Act 1981 (c. 63) (betting duties) is amended as follows.

In section 5 (net stake receipts) at the end of subsection (3) (negative net stake receipts to be disregarded) insert “except as provided for by section 5AA”.

After that section insert—

Omit section 5A (multiple bets) (which becomes unnecessary as a result of the amendment made by subsection (3) above).

After section 7 (duty charged on net pool betting receipts) insert—

The amendments made by this section apply in relation to any accounting period beginning on or after 1st September 2003 for which the net stake receipts in respect of a particular class of bets, or (as the case may be) the net pool betting receipts, is a negative amount.

Part 1 of the Betting and Gaming Duties Act 1981 (c. 63) (betting duties) is amended as follows.

After section 5AA (inserted by section 6 above) insert—

The amendments made by this section apply in relation to any accounting period beginning on or after 1st June 2003.

Any winnings paid in respect of a straddling bet to which section 5AB of the Betting and Gaming Duties Act 1981 (c. 63) would apply but for subsection (6) above shall be treated for the purposes of that Act as paid in the broker’s accounting period in which the bet was made (“the earlier accounting period”).

Subsection (7) shall not have effect to reduce the general betting duty payable by the broker for the earlier accounting period; but the amount of the reduction that would (but for this subsection) have been made for that period shall be set against any liability of the broker to general betting duty for accounting periods in the following three years, taking earlier periods before later ones until the amount is exhausted.

In section 12(4) of the Betting and Gaming Duties Act 1981 (general betting duty: supplementary provisions), in the definition of “on-course bet” for “a meeting” substitute “a horse or dog race meeting”.

This section applies to bets made on or after 1st September 2003.

For sections 17 to 20 of the Betting and Gaming Duties Act 1981 (bingo duty) substitute—

In paragraph 1 of Schedule 3 to the Betting and Gaming Duties Act 1981 (c. 63) (bingo duty: exemptions: domestic bingo) for “Bingo duty shall not be charged in respect of” substitute “In calculating liability to bingo duty no account shall be taken of”.

For paragraph 2 of Schedule 3 to the Betting and Gaming Duties Act 1981 (bingo duty: exemptions: small-scale bingo) substitute—

After paragraph 2A of Schedule 3 to the Betting and Gaming Duties Act 1981 (c. 63) insert—

In paragraph 5(1) of Schedule 3 to the Betting and Gaming Duties Act 1981 (c. 63) (bingo duty: exemptions: commercial amusements) for “Bingo duty shall not be charged in respect of” substitute “In calculating liability to bingo duty no account shall be taken of”.

In paragraph 6 of Schedule 3 to that Act (bingo duty: exemptions: machine bingo) for “Bingo duty shall not be charged in respect of” substitute “In calculating liability to bingo duty no account shall be taken of”.

In paragraph 10(1) of Schedule 3 to that Act (notification and registration of bingo-promoters) for “which will, or may, be chargeable with bingo duty” substitute “in connection with which bingo duty may be chargeable”.

This section shall have effect in relation to bingo played on or after 27th October 2003 (with which day the first accounting period for the purposes of section 17 of the Betting and Gaming Duties Act 1981 shall begin).

In section 21 of the Betting and Gaming Duties Act 1981 (amusement machine licences), for subsections (3B) to (3D) (meaning of “fifty-penny machine”) substitute—

In section 25(1) of that Act (definition of “amusement machine”), in paragraph (c) for “coin or token” substitute “coin, token or other thing”.

In section 26(2) of that Act (interpretation), for the definitions of “two-penny machine”, “five-penny machine” and “ten-penny machine” substitute—

In section 26 of the Betting and Gaming Duties Act 1981 (c. 63) (interpretation etc), omit the definition of “coin” in subsection (2).

After that section insert—

This section does not apply in relation to any amusement machine licence granted before the day on which this Act is passed or to anything done under such a licence.

In section 24(5) of the Betting and Gaming Duties Act 1981 (c. 63) (penalty for unlicensed amusement machines), for paragraph (c) (liability of person responsible for, inter alia, issuing or exchanging coins etc for amusement machine) substitute—

In Schedule 4A to that Act (unlicensed amusement machines), for paragraph (c) of paragraph 7(3) (which makes similar provision) substitute—

For the Table in section 11(2) of the Finance Act 1997 (c. 16) (rates of gaming duty) substitute—

This section has effect in relation to accounting periods beginning on or after 1st April 2003.

For the Table in paragraph 1B of that Schedule (rates of duty applicable to light passenger vehicles registered on or after 1st March 2001 on basis of certificate specifying CO2 emissions figure) substitute—

This section applies to any licence taken out on or after 17th April 2003 for a period beginning on or after 1st May 2003.

After section 15 of the Vehicle Excise and Registration Act 1994 insert—

Section 16 of that Act (which makes provision, in the case of tractive units, for exemptions from the charge to vehicle excise duty at a higher rate on a basis different from that set out in new section 15A) shall cease to have effect.

This section has effect in relation to the use of a tractive unit on or after 9th April 2003.

In this Part—

“appeal tribunal” means a VAT and duties tribunal;

“the Commissioners” means the Commissioners of Customs and Excise;

“the Community Customs Code” means Council Regulation 2913/92/EEC establishing the Community Customs Code;

“Community export duty” means any of the duties, charges or levies which are export duties within the meaning of the Community Customs Code (as at 9th April 2003, see the definition of “export duties” in Article 4(11) of that Code);

“Community import duty” means any of the duties, charges or levies which are import duties within the meaning of the Community Customs Code (as at 9th April 2003, see the definition of “import duties” in Article 4(10) of that Code);

“contravene” includes fail to comply with;

“customs duty of a preferential tariff country” includes a reference to any charge imposed by a preferential tariff country and having an equivalent effect to customs duty payable on the importation of goods into the territory of that country;

“demand notice” means a demand notice within the meaning of section 30;

“import VAT” means value added tax chargeable by virtue of section 1(1)(c) of the Value Added Tax Act 1994 (c. 23) (importation of goods from places outside the member States);

“notice” means notice in writing;

“preferential tariff country” means a country outside the European Community which is, or is a member of a group of countries which is, party to an agreement falling within Article 20(3)(d) of the Community Customs Code (preferential tariff agreements with the Community);

“prescribed” means specified in, or determined in accordance with, regulations made by the Treasury;

“relevant rule”, in relation to any relevant tax or duty, has the meaning given by subsection (8) of section 26 (as read with subsection (9) of that section);

“representative”, in relation to any person, means—

a

his personal representative,

b

his trustee in bankruptcy or interim or permanent trustee,

c

any receiver or liquidator appointed in relation to that person or any of his property,

or any other person acting in a representative capacity in relation to that person.

References in this Part to the Community Customs Code are references to that Code as from time to time amended, whether before or after the coming into force of this Part.

A statutory instrument containing an order under subsection (5) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.

Except for this subsection and section 41 (which accordingly come into force on the passing of this Act), this Part comes into force on such day as the Treasury may by order appoint.

Subsection (1) is subject to the following provisions of this Part.

Nothing in this section applies in relation to any customs duty of a preferential tariff country.

Subsection (1) is subject to the following provisions of this Part.

The power conferred by subsection (1) to prescribe a description of person includes power to prescribe any person (without further qualification) as such a description.

Different penalties may be prescribed under subsection (1) for different cases or different circumstances.

Any amount prescribed under subsection (1) as the amount of a penalty must not be more than £2,500.

The Treasury may by order amend subsection (5) by substituting a different amount for the amount for the time being specified in that subsection.

A statutory instrument containing an order under subsection (6) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.

In subsection (8)—

“Community customs rules” means customs rules, as defined in Article 1 of the Community Customs Code;

“relevant international rules” means international agreements so far as applying in relation to a relevant tax or duty and having effect as part of the law of any part of the United Kingdom by virtue of—

a

any Act or statutory instrument, or

b

any directly applicable Community legislation.

If a notice is given under this section, this Part shall apply in relation to the relevant officer as if he were personally liable under section 25 to a penalty which corresponds to that portion of the basic penalty specified in the notice.

Where the affairs of a body corporate are managed by its members, this section applies in relation to the conduct of a member in connection with his functions of management as if he were a director of the body corporate.

In exercising their powers under subsection (1), neither the Commissioners nor an appeal tribunal are entitled to take into account any of the matters specified in subsection (3).

Where a person is liable to a penalty under this Part, the Commissioners may give to that person or his representative a notice in writing (a “demand notice”) demanding payment of the amount due by way of penalty.

A demand notice may not be given more than 2 years after there has come to the knowledge of the Commissioners evidence of facts sufficient in the opinion of the Commissioners to justify the giving of the demand notice.

A person may not under this section require a review of a decision under section 35 (decision on review).

The Commissioners are not required under section 33 to review any decision unless the notice requiring the review is given before the end of the permitted period.

For the purposes of this section the “permitted period” is the period of 45 days beginning with the day on which the relevant notice is given.

Nothing in subsection (1) prevents the Commissioners from agreeing on request to review a decision in a case where the notice required by that subsection is not given within the permitted period.

Where the Commissioners withdraw or vary the decision, they may also take such further steps (if any) in consequence of the withdrawal or variation as they may consider appropriate.

If the Commissioners do not within the permitted period give notice of their determination on the review to the person who required the review or his representative, they shall be taken for the purposes of this Part to have confirmed the decision.

The provision that may be made by rules under paragraph 9 of Schedule 12 to the Value Added Tax Act 1994 (rules of procedure for tribunals) includes provision for costs awarded against an appellant on an appeal by virtue of this Part to be recoverable as if the amount awarded were an amount of customs duty which the appellant is required to pay.

References in this section to a relevant tax or duty do not include a reference to customs duty of a preferential tariff country.

Any power conferred on the Treasury by this Part to make regulations or an order shall be exercisable by statutory instrument.

Any statutory instrument containing regulations under this Part shall be subject to annulment in pursuance of a resolution of the House of Commons.

A tax (to be known as “stamp duty land tax”) shall be charged in accordance with this Part on land transactions.

The tax is under the care and management of the Commissioners of Inland Revenue (referred to in this Part as “the Board”).

In this Part a “land transaction” means any acquisition of a chargeable interest.

As to the meaning of “chargeable interest” see section 48.

Except as otherwise provided, this Part applies however the acquisition is effected, whether by act of the parties, by order of a court or other authority, by or under any statutory provision or by operation of law.

References in this Part to the “purchaser” and “vendor”, in relation to a land transaction, are to the person acquiring and the person disposing of the subject-matter of the transaction.

These expressions apply even if there is no consideration given for the transaction.

A person is not treated as a purchaser unless he has given consideration for, or is a party to, the transaction.

References in this Part to the subject-matter of a land transaction are to the chargeable interest acquired (the “main subject-matter”), together with any interest or right appurtenant or pertaining to it that is acquired with it.

This section applies where a contract for a land transaction is entered into under which the transaction is to be completed by a conveyance.

A person is not regarded as entering into a land transaction by reason of entering into the contract, but the following provisions have effect.

If the transaction is completed without previously having been substantially performed, the contract and the transaction effected on completion are treated as parts of a single land transaction.

In this case the effective date of the transaction is the date of completion.

If the contract is substantially performed without having been completed, the contract is treated as if it were itself the transaction provided for in the contract.

In this case the effective date of the transaction is when the contract is substantially performed.

Where subsection (4) applies and the contract is (to any extent) afterwards rescinded or annulled, or is for any other reason not carried into effect, the tax paid by virtue of that subsection shall (to that extent) be repaid by the Inland Revenue.

Repayment must be claimed by amendment of the land transaction return made in respect of the contract.

The transferee is not regarded as entering into a land transaction by reason of the transfer of rights, but section 44 (contract and conveyance) has effect in accordance with the following provisions of this section.

Where there are successive transfers of rights, subsection (3) has effect in relation to each of them.

The substantial performance or completion of the secondary contract arising from an earlier transfer of rights at the same time as, and in connection with, the substantial performance or completion of the secondary contract arising from a subsequent transfer of rights shall be disregarded.

Where a transfer of rights relates to part only of the subject-matter of the original contract, subsection (8)(b) of section 44 (restriction of charge to tax on subsequent conveyance) has effect as if the reference to the amount of tax chargeable on that contract were a reference to an appropriate proportion of that amount.

Section 839 of the Taxes Act 1988 (connected persons) applies for the purposes of subsection (3)(b)(i).

In this section “contract” includes any agreement and “conveyance” includes any instrument.

The reference in subsection (1)(a) to an option binding the grantor to enter into a land transaction includes an option requiring the grantor either to enter into a land transaction or to discharge his obligations under the option in some other way.

The effective date of the transaction in the case of the acquisition of an option or right such as is mentioned in subsection (1) is when the option or right is acquired (as opposed to when it becomes exercisable).

Nothing in this section applies to so much of an option or right of pre-emption as constitutes or forms part of a land transaction apart from this section.

Where a land transaction is entered into by the purchaser (alone or jointly) wholly or partly in consideration of another land transaction being entered into by him (alone or jointly) as vendor, this Part applies in relation to each transaction as if each were distinct and separate from the other.

A transaction is treated for the purposes of this Part as entered into by the purchaser wholly or partly in consideration of another land transaction being entered into by him as vendor in any case where an obligation to give consideration for a land transaction that a person enters into as purchaser is met wholly or partly by way of that person entering into another transaction as vendor.

As to the amount of the chargeable consideration in the case of exchanges and similar transactions, see—

paragraphs 5 and 6 of Schedule 4 (exchanges, partition etc), and

section 58 (relief for certain exchanges of residential property).

In the application of this Part in Scotland the reference in subsection (3)(a) to a rentcharge shall be read as a reference to a feu duty or a payment mentioned in section 56(1) of the Abolition of Feudal Tenure etc. (Scotland) Act 2000 (asp 5).

The Treasury may by regulations provide that any other description of interest or right in relation to land in the United Kingdom is an exempt interest.

The regulations may contain such supplementary, incidental and transitional provision as appears to the Treasury to be appropriate.

A land transaction is a chargeable transaction if it is not a transaction that is exempt from charge.

Schedule 3 provides for certain transactions to be exempt from charge.

Other transactions are exempt from charge under other provisions of this Part.

Schedule 4 makes provision as to the chargeable consideration for a transaction.

The regulations may make different provision in relation to different descriptions of transaction or consideration and different circumstances.

Where the whole or part of the chargeable consideration for a transaction is contingent, the amount or value of the consideration shall be determined for the purposes of this Part on the assumption that the outcome of the contingency will be such that the consideration is payable or, as the case may be, does not cease to be payable.

Where the whole or part of the chargeable consideration for a transaction is uncertain or unascertained, its amount or value shall be determined for the purposes of this Part on the basis of a reasonable estimate.

In this Part—

“contingent”, in relation to consideration, means—

a

that it is to be paid or provided only if some uncertain future event occurs, or

b

that it is to cease to be paid or provided if some uncertain future event occurs; and

“uncertain”, in relation to consideration, means that its amount or value depends on uncertain future events.

This section has effect subject to—

section 80 (adjustment where contingency ceases or consideration is ascertained), and

section 90 (application to defer payment in case of contingent or uncertain consideration).

For the purposes of this Part the consideration to be taken into account is limited to twelve years’ annual payments.

Where the amount payable varies, or may vary, from year to year, the twelve highest annual payments shall be taken.

No account shall be taken for the purposes of this Schedule of any provision for adjustment of the amount payable in line with the retail price index.

References in this section to annual payments are to payments in respect of each successive period of twelve months beginning with the effective date of the transaction.

For the purposes of this section the amount or value of any payment shall be determined (if necessary) in accordance with section 51 (contingent, uncertain or unascertained consideration).

References in this section to an annuity include any consideration (other than rent) that falls to be paid or provided periodically.

References to payment shall be read accordingly.

Section 839 of the Taxes Act 1988 (connected persons) has effect for the purposes of this section.

In this section—

“company” means any body corporate;

“shares” includes stock and the reference to shares in a company includes a reference to securities issued by a company.

Where this section applies paragraph 1 of Schedule 3 (exemption of transactions for which there is no chargeable consideration) does not apply.

But this section has effect subject to any other provision affording exemption or relief from stamp duty land tax.

This section is subject to the exceptions provided for in section 54.

Section 53 (chargeable consideration: transaction with connected company) does not apply in the following cases.

In the following provisions “the company” means the company that is the purchaser in relation to the transaction in question.

Case 1 is where immediately after the transaction the company holds the property as trustee in the course of a business carried on by it that consists of or includes the management of trusts.

The amount of tax chargeable in respect of a chargeable transaction is a percentage of the chargeable consideration for the transaction.

This section has effect subject to—

section 74 (collective enfranchisement by leaseholders), and

section 75 (crofting community right to buy),

(which provide for the rate of tax to be determined by reference to a fraction of the relevant consideration).

In the case of a transaction for which the whole or part of the chargeable consideration is rent this section has effect subject to section 56 and Schedule 5 (amount of tax chargeable: rent).

References in this Part to the “rate of tax” are to the percentage determined under this section.

Schedule 6 provides for relief in the case of transactions relating to land in a disadvantaged area.

In that Schedule—

Part 1 defines “disadvantaged area”,

Part 2 relates to transactions where the land to which the transaction relates is wholly situated in a disadvantaged area,

Part 3 relates to transactions where the land to which the transaction relates is partly situated in a disadvantaged area, and

Part 4 contains supplementary provisions.

Where the conditions in subsection (1)(a) to (c) are met but the area of land acquired by the house-building company or the connected company exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the old dwelling.

“Dwelling” includes land occupied and enjoyed with the dwelling as its garden or grounds.

A “house-building company” means a company that carries on the business of constructing or adapting buildings or parts of buildings for use as dwellings.

Section 839 of the Taxes Act 1988 (connected persons) applies for the purpose of determining whether a company is connected with a house-building company.

Where subsection (6)(b) applies, the permitted area is taken to consist of that part of the old dwelling that would be the most suitable for occupation and enjoyment with the dwelling as its garden or grounds if the rest of the land were separately occupied.

Where the conditions in subsection (1)(a) to (c) are met but the area of land acquired exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the dwelling.

“Dwelling” includes land occupied and enjoyed with the dwelling as its garden or grounds.

Where subsection (7)(b) applies, the permitted area is taken to consist of that part of the dwelling that would be the most suitable for occupation and enjoyment with the dwelling as its garden or grounds if the rest of the land were separately occupied.

A compulsory purchase facilitating development is exempt from charge.

For the purposes of subsection (2)(a) it does not matter how the acquisition is effected (so that provision applies where the acquisition is effected by agreement).

In subsection (2)(b) a “vesting order” means an order made under any statutory provision to authorise the acquisition of land otherwise than by agreement.

The following are public authorities for the purposes of subsection (1)(b)—

Schedule 7 provides for relief from stamp duty land tax.

In that Schedule—

Part 1 makes provision for group relief,

Part 2 makes provision for reconstruction and acquisition reliefs.

Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.

A land transaction is exempt from charge if it is entered into for the purposes of or in connection with a qualifying transfer of the whole or part of the business of a mutual insurance company (“the mutual”) to a company that has share capital (“the acquiring company”).

Shares in the issuing company must be offered, under the scheme, to at least 90% of the persons who are members of the mutual immediately before the transfer.

For the purposes of this section a company is the wholly-owned subsidiary of another company (“the parent”) if the company has no members except the parent and the parent’s wholly-owned subsidiaries or persons acting on behalf of the parent or the parent’s wholly-owned subsidiaries.

In this section—

“contract of insurance” has the meaning given by Article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544);

“employee”, in relation to a mutual insurance company or its wholly-owned subsidiary, includes any officer or director of the company or subsidiary and any other person taking part in the management of the affairs of the company or subsidiary;

“general insurance company” means a company that has permission under Part 4 of the Financial Services and Markets Act 2000 (c. 8), or paragraph 15 of Schedule 3 to that Act (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule), to effect or carry out contracts of insurance;

“insurance company” means a company that carries on the business of effecting or carrying out contracts of insurance;

“insurance business transfer scheme” has the same meaning as in Part 7 of the Financial Services and Markets Act 2000;

“the life assurance Directive” means the Council Directive of 5th November 2002 concerning life assurance (No.2002/83/EC);

“mutual insurance company” means an insurance company carrying on business without having any share capital;

“the 3rd non-life insurance Directive” means the Council Directive of 18th June 1992 on the co-ordination of laws, regulations and administrative provisions relating to direct insurance other than life insurance and amending Directives 73/239/EEC and 88/357/EEC (No. 92/49/EEC);

“pensioner”, in relation to a mutual insurance company or its wholly-owned subsidiary, means a person entitled (whether presently or prospectively) to a pension, lump sum, gratuity or other like benefit referable to the service of any person as an employee of the company or subsidiary.

A transaction by which a chargeable interest is transferred by a person (“the transferor”) to a limited liability partnership in connection with its incorporation is exempt from charge if the following three conditions are met.

The first condition is that the effective date of the transaction is not more than one year after the date of incorporation of the limited liability partnership.

In this section “limited liability partnership” means a limited liability partnership formed under the Limited Liability Partnerships Act 2000 (c. 12) or the Limited Liability Partnerships Act (Northern Ireland) 2002 (c. 12 (N. I.)).

A land transaction entered into on, or in consequence of, or in connection with, a reorganisation effected by or under a statutory provision is exempt from charge if the purchaser and vendor are both public bodies.

The following are public bodies for the purposes of this section—

For the purposes of this section a new association is a successor to an existing association if any part of the existing association’s area is comprised in the new association’s area.

Schedule 8 provides for relief from stamp duty land tax for acquisitions by charities.

Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return.

The reference in subsection (1)(a) to a registered social landlord “controlled by its tenants” is to a registered social landlord the majority of whose board members are tenants occupying properties owned or managed by it.

“Board member”, in relation to a registered social landlord, means—

a

if it is a company, a director of the company,

b

if it is a body corporate whose affairs are managed by its members, a member,

c

if it is body of trustees, a trustee,

d

if it is not within paragraphs (a) to (c), a member of the committee of management or other body to which is entrusted the direction of the affairs of the registered social landlord.

The second transaction is exempt from charge if the provisions of this Part relating to the first transaction are complied with (including the payment of any tax chargeable).

References in this section to an individual shall be read, in relation to times after the death of the individual concerned, as references to his personal representatives.

The second transaction is exempt from charge if the financial institution complies with the provisions of this Part relating to the first transaction (including the payment of any tax chargeable).

References in this section to an individual shall be read, in relation to times after the death of the individual concerned, as references to his personal representatives.

This section applies where a chargeable transaction is entered into by an RTE company in pursuance of a right of collective enfranchisement.

In that case, the rate of tax is determined by reference to the fraction of the relevant consideration produced by dividing the total amount of that consideration by the number of flats in respect of which the right of collective enfranchisement is being exercised.

The tax chargeable is then determined by applying that rate to the chargeable consideration for the transaction.

References in this section to the relevant consideration have the same meaning as in section 55.

In that case, the rate of tax is determined by reference to the fraction of the relevant consideration produced by dividing the total amount of that consideration by the number of crofts being bought.

The tax chargeable is then determined by applying that rate to the amount of the chargeable consideration for the transaction in question.

In this section “crofting community right to buy” means the right exercisable by a crofting community body under Part 3 of the Land Reform (Scotland) Act 2003 (asp 2).

References in this section to the relevant consideration have the same meaning as in section 55.

In the case of every notifiable transaction the purchaser must deliver a return (a “land transaction return”) to the Inland Revenue before the end of the period of 30 days after the effective date of the transaction.

The Inland Revenue may by regulations amend subsection (1) so as to require a land transaction return to be delivered before the end of such shorter period after the effective date of the transaction as may be prescribed or, if the regulations so provide, on that date.

This section specifies what land transactions are notifiable.

Any other acquisition of a major interest in land is notifiable unless it is exempt from charge under Schedule 3.

An acquisition of a chargeable interest other than a major interest in land is notifiable if there is chargeable consideration in respect of which tax is chargeable at a rate of 1% or higher, or in respect of which tax would be so chargeable but for a relief.

Schedule 10 has effect with respect to land transaction returns, assessments and related matters.

In that Schedule—

Part 1 contains general provisions about returns;

Part 2 imposes a duty to keep and preserve records;

Part 3 makes provision for enquiries into returns;

Part 4 provides for a Revenue determination if no return is delivered;

Part 5 provides for Revenue assessments;

Part 6 provides for relief in case of excessive assessment; and

Part 7 provides for appeals against Revenue decisions on tax.

The Treasury may by regulations make such amendments of that Schedule, and such consequential amendments of any other provisions of this Part, as appear to them to be necessary or expedient from time to time.

Schedule 11 makes further provision about self-certificates.

In that Schedule—

Part 1 contains general provisions,

Part 2 imposes a duty to keep and preserve records, and

Part 3 makes provision for enquiries into self-certificates.

The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a land transaction return.

If the effect of the new information is that less tax is payable in respect of a transaction than has already been paid, the amount overpaid shall on a claim by the purchaser be repaid together with interest as from the date of payment.

The Inland Revenue may treat the return as not having been delivered or the document as not having been made or provided.

Anything done on that basis shall be as valid and effective for all purposes as it would have been if the return had not been made or the document had not been made or provided.

But if as a result a person is charged with tax and he proves to the satisfaction of the General or Special Commissioners having jurisdiction in the case that he has already paid tax in respect of the transaction in question, relief shall be given, by reducing the charge or by repayment as the case may require.

An assessment, determination, notice or other document required to be used in assessing, charging, collecting and levying tax or determining a penalty under this Part must be in accordance with the forms prescribed from time to time by the Board and a document in the form so prescribed and supplied or approved by the Board is valid and effective.

A notice or other document to be served under this Part on a person may be delivered to him or left at his usual or last known place of abode.

A notice or other document to be given, served or delivered under this Part may be served by post.

The purchaser is liable to pay the tax in respect of a chargeable transaction.

As to the liability of purchasers acting jointly see—

section 103(2)(c) (joint purchasers);

Part 2 of Schedule 15 (partners); and

paragraph 5 of Schedule 16 (trustees).

Tax payable in respect of a land transaction must be paid at the same time that a land transaction return is made in respect of the transaction.

Tax payable as a result of the amendment of a return must be paid forthwith or, if the amendment is made before the filing date for the return, not later than that date.

Tax payable in accordance with a determination or assessment by the Inland Revenue must be paid within 30 days after the determination or assessment is issued.

This section does not affect the date from which interest is payable (as to which, see section 87).

Interest is payable on the amount of any unpaid tax from the end of the period of 30 days after the relevant date until the tax is paid.

The Inland Revenue may by regulations amend subsection (1) so as to make interest run from the end of such shorter period after the relevant date as may be prescribed or, if the regulations so provide, from that date.

Subsection (3)(c) applies in a case within section 51 (contingent, uncertain or unascertained consideration) if payment is not deferred under section 90, with the result that interest on any tax payable under section 80 (adjustment where contingency ceases or consideration is ascertained) runs from the effective date of the transaction.

If an amount is lodged with the Inland Revenue in respect of the tax, the amount on which interest is payable is reduced by that amount.

Interest is calculated at the rate applicable under section 178 of the Finance Act 1989 (c. 26) (power of Treasury to prescribe rates of interest).

A repayment by the Inland Revenue to which this section applies shall be made with interest at the rate applicable under section 178 of the Finance Act 1989 for the period between the relevant time (as defined below) and the date when the order for repayment is issued.

This section also applies to a repayment by the Inland Revenue of an amount lodged with them in respect of the tax payable in respect of a transaction.

In that case the relevant time is the date on which the amount was lodged with them.

No interest is payable under this section in respect of a payment made in consequence of an order or judgment of a court having power to allow interest on the payment.

Interest paid to any person under this section is not income of that person for any tax purposes.

The Inland Revenue may make provision by regulations for carrying this section into effect.

The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a land transaction return.

An application under this section does not affect the purchaser’s obligations as regards payment of tax in respect of chargeable consideration that has already been paid or provided or is not contingent and whose amount is ascertained or ascertainable at the time the application is made.

This applies as regards both the time of payment and the calculation of the amount payable.

The provisions of Schedule 12 have effect with respect to the collection and recovery of tax.

In that Schedule—

Part 1 contains general provisions, and

Part 2 relates to court proceedings.

Schedule 13 has effect with respect to the powers of the Inland Revenue to call for documents and information for the purposes of stamp duty land tax.

In that Schedule—

Part 1 confers power on an authorised officer to call for documents or information from the taxpayer;

Part 2 confers power on an authorised officer to call for documents from a third party;

Part 3 confers power on an authorised officer to call for the papers of a tax accountant;

Part 4 imposes restrictions on the powers under Parts 1 to 3;

Part 5 confers powers on the Board to call for documents or information;

Part 6 provides for an order of a judicial authority for the delivery of documents;

Part 7 provides for entry with a warrant to obtain evidence of an offence;

Part 8 relates to falsification etc of documents.

A person who is required by a notice under Part 1, 2 or 3 of Schedule 13 to deliver a document or to provide information, or to make a document available for inspection, and who fails to comply with the notice is liable to a penalty not exceeding £300.

If the failure continues after a penalty has been imposed under subsection (3), he is liable to a further penalty or penalties not exceeding £60 for each day on which the failure continues after the day on which the penalty under that subsection was imposed (but excluding any day for which a penalty under this subsection has already been imposed).

No penalty shall be imposed under subsection (3) or (4) in respect of a failure at any time after the failure has been remedied.

A person who is required by a notice under Part 1, 2 or 3 of Schedule 13 to deliver a document or to provide information, or to make a document available for inspection, and who fraudulently or negligently delivers, provides or makes available any incorrect document or information is liable to a penalty not exceeding £3,000.

If for the purposes of this Part the Board authorise an officer of theirs to inspect any property for the purpose of ascertaining its market value, or any other matter relevant for the purposes of this Part, the person having custody or possession of the property shall permit the officer so authorised to inspect it at such reasonable times as the Board may consider necessary.

A person who wilfully delays or obstructs an officer of the Board acting in pursuance of this section commits an offence and is liable on summary conviction to a fine not exceeding level 1 on the standard scale.

A person commits an offence if he is knowingly concerned in the fraudulent evasion of tax by him or any other person.

For the purposes of this Part a person shall be deemed not to have failed to do anything required to be done within a limited time if he did it within such further time, if any, as the Inland Revenue may allow.

Schedule 14 has effect with respect to the determination of penalties under this Part and related appeals.

The Board may in their discretion mitigate a penalty under this Part, or stay or compound any proceedings for the recovery of such a penalty.

They may also, after judgment, further mitigate or entirely remit the penalty.

Nothing in the provisions of this Part relating to penalties affects any criminal proceedings for an offence.

In this Part “company”, except as otherwise expressly provided, means any body corporate or unincorporated association, but does not include a partnership.

Service on a company of any document under or in pursuance of this Part may be effected by serving it on the proper officer.

The proper officer may retain out of any money coming into his hands on behalf of the company sufficient sums to pay that tax and, so far as he is not so reimbursed, he is entitled to be indemnified by the company in respect of the liability imposed on him.

Each of the parts of an umbrella scheme is regarded for the purposes of this Part as a separate unit trust scheme and the scheme as a whole is not so regarded.

In this Part, subject to any regulations under subsection (5)—

“unit trust scheme” has the same meaning as in the Financial Services and Markets Act 2000 (c. 8), and

“unit holder” means a person entitled to a share of the investments subject to the trusts of a unit trust scheme.

The Treasury may by regulations provide that a scheme of a description specified in the regulations is to be treated as not being a unit trust scheme for the purposes of this Part.

Any such regulations may contain such supplementary and transitional provisions as appear to the Treasury to be necessary or expedient.

Section 469A of the Taxes Act 1988 (court common investment funds treated as authorised unit trusts) applies for the purposes of this Part as it applies for the purposes of that Act, with the substitution for references to an authorised unit trust of references to a unit trust scheme.

An unit trust scheme is not to be treated as a company for the purposes of—

section 53 (deemed market value rule for transactions with connected companies), or

Schedule 7 (group relief, reconstruction relief or acquisition relief).

In this section—

“open-ended investment company” has the meaning given by section 236 of the Financial Services and Markets Act 2000 (c. 8);

“prescribed” means prescribed by regulations under this section; and

“unit trust scheme” and “umbrella scheme” have the same meaning as in section 101.

This section applies to a land transaction where there are two or more purchasers who are or will be jointly entitled to the interest acquired.

If the transaction is a notifiable transaction, a single land transaction return is required.

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 purchasers.

A Revenue determination or discovery assessment relating to the transaction must be made against all the purchasers 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.

This section has effect subject to—

the provisions of Schedule 15 relating to partnerships, and

the provisions of Schedule 16 relating to trustees.

Schedule 15 has effect with respect to the application of this Part in relation to partnerships.

In that Schedule—

Part 1 defines “partnership” and contains other general provisions, and

Part 2 deals with ordinary partnership transactions, and

Part 3 excludes certain transactions from stamp duty land tax.

The parent or guardian of a minor is responsible for discharging any obligations of the minor under this Part that are not discharged by the minor himself.

A receiver appointed by a court in the United Kingdom having the direction and control of any property is responsible for discharging any obligations under this Part in relation to a transaction affecting that property as if the property were not under the direction and control of the court.

Subject to the following provisions of this section, this Part applies in relation to public offices and departments of the Crown.

But nothing in this Part shall require the payment by any such office or department of tax that would ultimately be borne by the Crown.

A land transaction under which the purchaser is any of the following is exempt from charge:

The powers conferred by Part 7 of Schedule 13 (entry with warrant to obtain information) are not exercisable in relation to premises occupied for the purposes of the Crown.

Transactions are “linked” for the purposes of this Part if they form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser or, in either case, persons connected with them.

Section 839 of the Taxes Act 1988 (connected persons) has effect for the purposes of this subsection

Where there are two or more linked transactions with the same effective date, the purchaser, or all of the purchasers if there is more than one, may make a single land transaction return as if all of those transactions that are notifiable were a single notifiable transaction.

The Treasury may if they consider it expedient in the public interest make provision by regulations for the variation of this Part in its application to land transactions of any description.

This section has effect subject to section 110 (approval of regulations by House of Commons).

Regulations under this section may include such supplementary, transitional and incidental provision as appears to the Treasury to be necessary or expedient.

The power conferred by this section may be exercised at any time after the passing of this Act.

An instrument containing regulations under section 109 (general power to vary this Part by regulations) must be laid before the House of Commons after being made.

If the regulations are not approved by the House of Commons before the end of the period of 28 days beginning with the day on which they are made, they shall cease to have effect at the end of that period (if they have not already ceased to have effect under subsection (3)).

If on any day during that period of 28 days the House of Commons, in proceedings on a motion that (or to the effect that) the regulations be approved, comes to a decision rejecting the regulations, they shall cease to have effect at the end of that day.

Where regulations cease to have effect under this section, their ceasing to have effect is without prejudice to anything done in reliance on them.

As to claims for repayment, see section 111.

Where regulations cease to have effect under section 110, any amount paid by way of tax, or interest or penalty, that would not have been payable but for the regulations shall, on a claim, be repaid by the Inland Revenue.

Section 89 (interest on repayment of tax overpaid etc) applies to a repayment under this section.

A claim for repayment must be made within two years after the effective date of the transaction in question.

The regulations may make such consequential amendments of Schedule 6 (disadvantaged areas relief) as appear to the Treasury to be appropriate.

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.

The power conferred by this section is not exercisable after the implementation date.

References in this Part to “the Inland Revenue” are to any officer of the Board, except as otherwise provided.

Any power of the Inland Revenue to make regulations is exercisable only by the Board.

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.

Except as otherwise provided, any power of the Treasury or the Inland Revenue to make an order or regulations under this Part, or under any other enactments relating to stamp duty land tax (including enactments passed after this Act), is exercisable by statutory instrument.

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),

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

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 enactments passed after this Act), shall be subject to annulment in pursuance of a resolution of the House of Commons.

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 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).

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.

In this section “building” includes part of a building.

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, then, for the purposes of this Part as it applies in relation to that transaction, those dwellings are treated as not being residential property.

References in this Part to a “major interest” in land shall be construed as follows.

Except as otherwise provided, the effective date of a land transaction for the purposes of this Part is the date of completion.

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

A lease granted for a fixed term and thereafter until determined is treated for 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.

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.

Schedule 18 contains certain amendments consequential on the provisions of this Part.

The Treasury may by regulations make such other amendments and repeals as appear to them appropriate in consequence of the provisions of this Part.

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.