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PART IV continued
(1) No stamp duty shall be chargeable under Part I or II, or paragraph 16 of Part III, of Schedule 13 to the [1999 c. 16.] Finance Act 1999 on a conveyance or transfer of an estate or interest in land, or on a lease of land,—
(a) to a qualifying landlord controlled by its tenants;
(b) to a qualifying landlord by a qualifying transferor; or
(c) to a qualifying landlord purchasing the estate or interest, or the grant of the lease, with the assistance of a public subsidy.
(2) For the purposes of this section the cases where a qualifying landlord is controlled by its tenants are those cases where the majority of the board members of the qualifying landlord are tenants occupying properties owned or managed by the qualifying landlord.
(3) For the purposes of subsection (2) a “board member” means—
(a) in relation to a qualifying landlord which is a company, a director of the company;
(b) in relation to a qualifying landlord which is a body corporate whose affairs are managed by its members, a member;
(c) in relation to a qualifying landlord which is a body of trustees, a member of that body of trustees;
(d) in relation to a qualifying landlord not falling within any of 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 qualifying landlord.
(4) In subsection (3), “company” has the same meaning as in the [1985 c. 6.] Companies Act 1985 (see section 735(1) of that Act).
(5) In this section “qualifying landlord” means—
(a) in relation to England and Wales, any body registered as a social landlord in a register maintained under section 1(1) of the [1996 c. 52.] Housing Act 1996;
(b) in relation to Scotland—
(i) any housing association registered in the register maintained under section 3(1) of the [1985 c. 69.] Housing Associations Act 1985 by Scottish Homes; or
(ii) any body corporate whose objects correspond to those of a housing association and which, pursuant to a contract with Scottish Homes, is registered in a register kept for the purpose by Scottish Homes;
(c) in relation to Northern Ireland, any housing association registered in the register maintained under Article 14 of the [S.I. 1992/1725 (N.I. 15).] Housing (Northern Ireland) Order 1992.
(6) In this section “qualifying transferor” means any of the following—
(a) a qualifying landlord;
(b) a housing action trust established under Part III of the [1988 c. 50.] Housing Act 1988;
(c) a principal council, within the meaning of the [1972 c. 70.] Local Government Act 1972;
(d) the Common Council of the City of London;
(e) a council constituted under section 2 of the [1994 c. 39.] Local Government etc. (Scotland) Act 1994;
(f) Scottish Homes;
(g) the Department for Social Development in Northern Ireland;
(h) the Northern Ireland Housing Executive.
(7) In this section “public subsidy” means any grant or other financial assistance—
(a) made or given by way of a distribution pursuant to section 25 of the [1993 c. 39.] National Lottery etc. Act 1993 (application of money by distributing bodies);
(b) under section 18 of the [1996 c. 52.] Housing Act 1996 (social housing grants);
(c) under section 126 of the [1996 c. 53.] Housing Grants, Construction and Regeneration Act 1996 (financial assistance for regeneration and development);
(d) under section 2 of the [1988 c. 43.] Housing (Scotland) Act 1988 (general functions of Scottish Homes); or
(e) under Article 33 of the [S.I. 1992/1725 (N.I. 15).] Housing (Northern Ireland) Order 1992 (housing association grants).
(8) Where stamp duty would be chargeable on an instrument but for paragraph (c) of subsection (1), that subsection shall only have effect in relation to the instrument if the instrument is certified to the Board by the qualifying landlord concerned as being an instrument on which stamp duty is by virtue of that paragraph not chargeable.
(9) An instrument on which stamp duty is not chargeable by virtue only of this section shall not be taken to be duly stamped unless—
(a) it is stamped with the duty to which it would be liable but for this section; 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 any duty.
(10) This section applies to instruments executed after the day on which this Act is passed.
(1) This section applies to an instrument of any of the following descriptions executed in the period beginning with 22nd March 2000 and ending with the day on which this Act is passed—
(a) an instrument transferring or vesting an estate or interest in land in such circumstances as are mentioned in section 119 (transfer of land to connected company), in a case specified in section 120 (excepted cases);
(b) a conveyance or transfer of an estate or interest in land, or a lease of land, to a qualifying landlord within the meaning of section 130 (transfers to registered social landlords, etc.) from a qualifying transferor within subsection (6)(c), (d), (e), (f) or (h) of that section.
(2) If the instrument is not stamped until after the day on which this Act is passed, the law in force at the time of its execution shall be deemed for stamp duty purposes to be that which would have applied if it had been executed after that day.
(3) If the Commissioners are satisfied that—
(a) the instrument was stamped on or before the day on which this Act is passed,
(b) stamp duty was chargeable in respect of it, and
(c) had it been stamped after that day no stamp duty, or less stamp duty, would have been chargeable,
they shall pay to such person as they consider appropriate an amount equal to the duty (and any interest or penalty) that would not have been payable if the law in force at the time of execution of the instrument had been that which would have applied had it been executed after that day.
(4) Any such payment must be claimed before 1st April 2001.
(5) Entitlement to a payment is subject to compliance with such conditions as the Commissioners may determine with respect to the production of the instrument, to its being stamped so as to indicate that it has been produced under this section or to other matters.
(6) For the purposes of section 10 of the [1866 c. 39.] Exchequer and Audit Departments Act 1866 (Commissioners to deduct repayments from gross revenues) any amount paid under this section shall be treated as a repayment.
(7) This section shall be construed as one with the [1891 c. 39.] Stamp Act 1891.
(1) Amend section 55 of the [1987 c. 16.] Finance Act 1987 (Crown exemption from stamp duty) as follows.
(2) In subsection (1) (which specifies the bodies relieved from stamp duty)—
(a) after “agreed to be made” insert “(a)”;
(b) after “Minister of the Crown or” insert “(b)”; and
(c) after “Treasury, or” insert “(c)”.
(3) In subsection (1), after “National Assembly for Wales,” insert “or
(d) to the Northern Ireland Assembly Commission,”.
(4) Subsection (3) has effect in relation to instruments executed on or after 28th March 2000.
(5) This section shall be deemed to have come into force on 28th March 2000.
(1) In section 79 of the [1986 c. 41.] Finance Act 1986 (loan capital), after subsection (7) insert—
“(7A) Subsection (4) above shall not be prevented from applying to an instrument by virtue of subsection (6)(b) above by reason only that the loan capital concerned carries a right to interest which—
(a) reduces in the event of the results of a business or part of a business improving, or the value of any property increasing, or
(b) increases in the event of the results of a business or part of a business deteriorating, or the value of any property diminishing.”.
(2) For the purposes of stamp duty, subsection (1) above has effect where the instrument is executed on or after 21st March 2000.
(3) For the purposes of stamp duty reserve tax, subsection (1) above has effect—
(a) in relation to the charge to tax under section 87 of the Finance Act 1986, where—
(i) the agreement to transfer is conditional and the condition is satisfied on or after 21st March 2000, or
(ii) the agreement is not conditional and is made on or after that date;
(b) in relation to the charge to tax under section 93(1) of that Act, where securities are transferred, issued or appropriated on or after 21st March 2000 (whenever the arrangement was made);
(c) in relation to the charge to tax under section 96(1) of that Act, where securities are transferred or issued on or after 21st March 2000 (whenever the arrangement was made);
(d) in relation to the charge to tax under section 93(10) of that Act, where securities are issued or transferred on sale, under terms there mentioned, on or after 21st March 2000;
(e) in relation to the charge to tax under section 96(8) of that Act, where securities are issued or transferred on sale, under terms there mentioned, on or after 21st March 2000.
(1) In Part III of the [1986 c. 41.] Finance Act 1986 (stamp duty), after section 72 insert—
(1) Where an instrument transfers relevant securities of a company incorporated in the United Kingdom between a depositary receipt system and a clearance system—
(a) the provisions of section 67(2) to (5) or, as the case may be, section 70(2) to (5) above shall not apply, and
(b) the stamp duty chargeable on the instrument is £5.
(2) A transfer between a depositary receipt system and a clearance system means a transfer—
(a) from (or to) a company that at the time of the transfer falls within section 67(6) above, and
(b) to (or from) a company that at that time falls within section 70(6) above.
(3) This section does not apply to a transfer from a clearance system (that is, from such a company as is mentioned in subsection (2)(b) above) if at the time of the transfer an election is in force under section 97A below in relation to the clearance services for the purposes of which the securities are held immediately before the transfer.”.
(2) In Part IV of the [1986 c. 41.] Finance Act 1986 (stamp duty reserve tax), after section 97A insert—
(1) There shall be no charge to tax under section 93 or 96 above where securities are transferred between a depositary receipt system and a clearance system.
(2) A transfer between a depositary receipt system and a clearance system means a transfer—
(a) from (or to) a company which at the time of the transfer falls within section 67(6) above, and
(b) to (or from) a company which at that time falls within section 70(6) above.
(3) This section does not apply to a transfer from a clearance system (that is, from such a company as is mentioned in subsection (2)(b) above) if at the time of the transfer an election is in force under section 97A above in relation to the clearance services for the purposes of which the securities are held immediately before the transfer.”.
(3) In sections 67(9), 70(9), 95(1) and 97(1) of the [1986 c. 41.] Finance Act 1986 (transfers between depositary receipt systems or between clearance systems), the words “and is resident in the United Kingdom” and “and is so resident” shall cease to have effect.
(4) In section 97A of that Act (clearance services: election for alternative system of charge), after subsection (12) add—
“(13) Nothing in section 70(9) or 97(1) above has effect to prevent a charge to stamp duty or stamp duty reserve tax arising—
(a) on a transfer to which subsection (5) above applies, or
(b) on a deemed transfer under subsection (11) above.”.
(5) The amendments in this section have effect as follows—
(a) subsection (1), and subsections (3) and (4) as they apply for stamp duty purposes, apply in relation to instruments executed after the day on which this Act is passed;
(b) subsection (2), and subsections (3) and (4) as they apply for the purposes of stamp duty reserve tax, apply where the securities are transferred after that day.
Finance Act 2000