Office of Public Sector Information
SCHEDULE 7 continued
22 (1) Section 779 of the Taxes Act 1988 (sale and lease-back: limitation on tax reliefs) shall not apply where the liability of the transferor or of the person associated with that transferor is as a result of—
(a) the creation, in accordance with a transfer scheme, of any interest or right in favour of a transferee or the BBC;
(b) any other transaction for which a transfer scheme provides; or
(c) the grant by a company which is a transferee under a transfer scheme (“the relevant company”) to the BBC or to another company which is a transferee (whether under that or any other transfer scheme) of any interest or right, at a time when the relevant company remains a wholly-owned subsidiary of the BBC, in a case where the ability of the relevant company to grant that interest or right derives from the transfer to the company in accordance with a transfer scheme of an estate or interest in land.
(2) In this paragraph “transferor” has the same meaning as in section 779 of the Taxes Act 1988 and “associated” shall be construed in accordance with that section.
23 (1) Section 780 of the Taxes Act 1988 (sale and lease-back: taxation of consideration) shall not apply where—
(a) the assignment of the original lease, and
(b) the grant or assignment of the new lease,
each fall within sub-paragraph (2).
(2) The assignment of the original lease, or the grant or assignment of the new lease, falls within this sub-paragraph if—
(a) it is a relevant transfer; or
(b) it takes place between the BBC and a successor company at a time when the successor company remains a wholly-owned subsidiary of the BBC; or
(c) it takes place between two successor companies at a time when both remain wholly-owned subsidiaries of the BBC.
(3) The reference in sub-paragraph (1) to the assignment of the original lease and the grant or assignment of the new lease shall be construed in accordance with section 780 of the Taxes Act 1988 and sub-paragraph (2) shall be construed accordingly.
24 (1) For the purposes of section 781 of the Taxes Act 1988 (assets leased to traders and others) where the interest of the lessor or the lessee under a lease, or any other interest in an asset, is transferred in accordance with a transfer scheme to the BBC or a transferee, the transfer shall be treated as being effected without any capital sum having been obtained in respect of that interest by the BBC or the transferee.
(2) Section 782 of the Taxes Act 1988 (deduction of payment under leases: special cases) shall not apply to any payments made by the BBC or a company which is a transferee under a transfer scheme if the payments are made—
(a) under any lease created in favour of the BBC or such a company by virtue of, or in pursuance of an obligation imposed by, a provision contained in a transfer scheme by virtue of paragraph 2 of Schedule 5; or
(b) under any lease—
(i) which is granted to or by a successor company at a time when it remains a wholly-owned subsidiary of the BBC; and
(ii) which is a lease of an asset which at any time before the creation of the lease was used by the BBC for the purposes of a trade carried on by the BBC and which was, when so used, owned by the BBC.
(3) In this paragraph “lease” and “asset” have the meaning given by section 785 of the Taxes Act 1988.
25 (1) Stamp duty shall not be chargeable on any agreement or instrument to the extent that it is certified by the Secretary of State to the Commissioners of Inland Revenue as being—
(a) a restructuring scheme,
(b) a restructuring scheme modification agreement, or
(c) an instrument giving effect to a restructuring scheme modification agreement,
or as having been made in accordance with, or in pursuance of an obligation imposed by, a restructuring scheme.
(2) No agreement or instrument which is certified as mentioned in sub-paragraph (1) shall be taken to be duly stamped unless—
(a) it is stamped with the duty to which it would be liable, apart from that sub-paragraph; or
(b) it has, in accordance with section 12 of the [1891 c. 39.] Stamp Act 1891, been stamped with a particular stamp denoting that it is not chargeable with that duty or that it is duly stamped.
(3) Section 12 of the [1895 c. 16.] Finance Act 1895 (collection of stamp duty in cases of property vested by Act or purchased under statutory power) shall not operate to require—
(a) the delivery to the Commissioners of Inland Revenue of a copy of this Act, or
(b) the payment of stamp duty under that section on any copy of this Act,
and shall not apply in relation to any instrument on which, by virtue of the preceding provisions of this paragraph, stamp duty is not chargeable.
(4) In this paragraph—
“restructuring scheme modification agreement” means a modification agreement, so far as relating to a restructuring scheme;
“restructuring scheme” means a preparatory scheme, so far as it provides for the transfer of property, rights or liabilities in accordance with the scheme—
from the BBC to a wholly-owned subsidiary of the BBC;
to the BBC from a wholly-owned subsidiary of the BBC; or
from one wholly-owned subsidiary of the BBC to another.
26 (1) An agreement to transfer chargeable securities, as defined in section 99 of the [1986 c. 41.] Finance Act 1986, from the BBC to a wholly-owned subsidiary of the BBC shall not give rise to a charge to stamp duty reserve tax if the agreement is made for the purposes of, or for purposes connected with, a restructuring scheme.
(2) An agreement shall not give rise to a charge to stamp duty reserve tax if the agreement is a restructuring scheme modification agreement.
(3) In this paragraph “restructuring scheme” and “restructuring scheme modification agreement” have the same meaning as in paragraph 25.
27 (1) If the effect of any transfer scheme is modified in pursuance of a modification agreement, then the Corporation Tax Acts and this Schedule, other than paragraphs 25 and 26, shall have effect as if—
(a) the scheme originally made had been the scheme as modified; and
(b) anything done by or in relation to the person who without the modification became entitled or subject in accordance with the scheme to any property, rights or liabilities had, so far as relating to the property, rights or liabilities to which another person becomes entitled or subject in consequence of the modification, been done by or in relation to that other person.
(2) If, in a case falling within sub-paragraph (1), the transfer scheme, as originally made, was a preparatory scheme, the scheme as modified shall be taken to be a preparatory scheme, whether or not any company which was a wholly-owned subsidiary of the BBC at the time when the preparatory scheme took effect remains a wholly-owned subsidiary of the BBC at the time when the modification takes effect.
28 (1) The Secretary of State shall not make an order under this Schedule in relation to any transferee under a transfer scheme except—
(a) with the consent of the Treasury;
(b) after consultation with the BBC; and
(c) if the transferee is not a wholly-owned subsidiary of the BBC, after consultation with the transferee.
(2) Any power of the Secretary of State to make an order under this Part of this Schedule—
(a) shall be exercisable by statutory instrument; and
(b) shall include power to make different provision for different cases, including different provision in relation to different assets or descriptions of assets.
Broadcasting Act 1996