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Section 116(2)
1 (1) This paragraph applies where stamp duty under Part 1 of Schedule 13 to the Finance Act 1999 (c. 16) (conveyance or transfer on sale) is chargeable on an instrument that relates partly to goodwill and partly to property other than goodwill.
(2) In such a case—
(a) the consideration in respect of which duty would otherwise be charged shall be apportioned, on a just and reasonable basis, as between the goodwill and the other property, and
(b) the instrument shall be charged only in respect of the consideration attributed to the other property.
(3) This paragraph applies to instruments executed on or after 23rd April 2002.
2 (1) Where part of the property referred to in section 58(1) of the Stamp Act 1891 (c. 39) (consideration to be apportioned between different instruments as parties think fit) consists of goodwill, that provision shall have effect as if “the parties think fit” read “is just and reasonable”.
(2) Where—
(a) part of the property referred to in section 58(2) of the Stamp Act 1891 (property contracted to be purchased by two or more persons etc) consists of goodwill, and
(b) both or (as the case may be) all the relevant persons are connected with one another,
that provision shall have effect as if the words from “for distinct parts of the consideration” to the end of the subsection read “, the consideration shall be apportioned in such manner as is just and reasonable, so that a distinct consideration for each separate part or parcel is set forth in the conveyance relating thereto, and such conveyance is to be charged with ad valorem duty in respect of such distinct consideration.”.
(3) In a case where sub-paragraph (1) or (2) applies and the consideration is apportioned in a manner that is not just and reasonable, the enactments relating to stamp duty shall have effect as if—
(a) the consideration had been apportioned in a manner that is just and reasonable, and
(b) the amount of any distinct consideration set forth in any conveyance relating to a separate part or parcel of property were such amount as is found by a just and reasonable apportionment (and not the amount actually set forth).
(4) For the purposes of sub-paragraph (2)—
(a) a person is a relevant person if he is a person by or for whom the property is contracted to be purchased;
(b) the question whether persons are connected with one another shall be determined in accordance with section 839 of the Taxes Act 1988.
(5) This paragraph applies to instruments executed on or after 23rd April 2002.
3 (1) Goodwill shall be disregarded for the purposes of paragraph 6 of Schedule 13 to the Finance Act 1999 (c. 19) (certification of instrument as not forming part of transaction or series of transactions exceeding specified amount).
(2) Any statement as mentioned in paragraph 6(1) of that Schedule shall be construed as leaving out of account any matter which is to be so disregarded.
(3) This paragraph applies to instruments executed on or after 23rd April 2002.
4 (1) Section 12 of the Finance Act 1895 (c. 16) (property vested by Act or purchased under statutory powers) does not require any person who is authorised to purchase any property as mentioned in that section after 23rd April 2002 to include any goodwill in the instrument of conveyance required by that section to be produced to the Commissioners.
(2) If the property consists wholly of goodwill no instrument of conveyance need be produced to the Commissioners under that section.
(3) This paragraph applies where the Act mentioned in that section, and by virtue of which property is vested or a person is authorised to purchase property, is passed after 23rd April 2002.
5 In this Schedule “the enactments relating to stamp duty” means the Stamp Act 1891 (c. 39) and any enactment amending that Act or that is to be construed as one with that Act.
Section 132
1 This Schedule makes amendments to provisions of Part 2 of the Finance Act 2001 (c. 9) (aggregates levy).
2 In section 16(1) (charge to aggregates levy), for “A levy” substitute “A tax”.
3 (1) Section 17 (meaning of “aggregate” etc) is amended as follows.
(2) In subsection (2) (meaning of “taxable” aggregate), for paragraph (d) substitute—
“(d) it is aggregate that on the commencement date is on a site other than—
(i) its originating site, or
(ii) a site that is required to be registered under the name of a person who is the operator, or one of the operators, of that originating site.”.
(3) In subsection (3)(d) (exemption for aggregate won in the course of road works), in sub-paragraph (ii) for “otherwise than wholly or mainly” substitute “not”.
(4) In subsection (4), in paragraph (d) (exemption for cuttings from oil drilling)—
(a) after “the Petroleum Act 1998” insert “or the Petroleum (Production) Act (Northern Ireland) 1964”;
(b) omit the words from “otherwise” to the end (which restrict the exemption to off-shore drilling).
4 (1) Section 18 (exempt processes) is amended as follows.
(2) In subsection (2)(c) (exemption for production of lime etc), for “some other substance” substitute “anything else”.
(3) In subsection (3) (meaning of “relevant substance”), omit paragraphs (d) (calcite) and (h) (flint).
5 (1) Section 19 (commercial exploitation) is amended as follows.
(2) In subsection (2) (description of sites removal of aggregate from which counts as exploitation), in paragraph (b) for the words from “who is the operator” to the end substitute “under whose name that originating site is also registered”.
(3) After subsection (3) (meaning of “commercial” exploitation) insert—
“(3A) For the purposes of subsection (3)(a) above “business” includes any activity of a Government department, local authority or charity.”.
(4) In subsection (4) (exemption in certain cases where aggregate is won from one site and incorporated into a neighbouring site), for the words “adjacent land” in both places substitute “other land”.
6 In section 22 (which determines who is taken to be responsible for exploitation of aggregate), at the end of subsection (2) (responsibility for “commercial” exploitation) insert—
“For the purposes of this subsection “business” includes any activity of a Government department, local authority or charity.”.
7 In section 24 (the register), in subsection (6) (premises that may be registered) insert after paragraph (c)—
“(ca) for mixing, otherwise than in permitted circumstances (within the meaning given by section 19(7)), any aggregate with any material or substance other than water,”.
8 In section 37 (regulations about cases of insolvency etc), in subsection (7) (meaning of “insolvency procedure) omit paragraphs (g) to (j) (appointment of receiver and other interim or provisional orders).
9 (1) Paragraph 1 of Schedule 4 (notification of registrability etc) is amended as follows.
(2) For sub-paragraph (1) substitute—
“(1) An unregistered person who—
(a) is required to be registered for the purposes of aggregates levy, or
(b) has formed the intention of carrying out taxable activities that are registrable,
shall notify the Commissioners of that fact.
(1A) An unregistered person who—
(a) would be required to be registered for the purposes of aggregates levy but for an exemption by virtue of regulations under section 24(4) of this Act, or
(b) has formed the intention of carrying out taxable activities that would be registrable but for such an exemption,
shall, in such cases or circumstances as may be prescribed in the regulations, notify the Commissioners of that fact.
(1B) For the purposes of sub-paragraphs (1) and (1A) above, taxable activities are “registrable” if a person carrying them out is, by reason of doing so, required by section 24(2) of this Act to be registered for the purposes of aggregates levy.”.
(3) In sub-paragraphs (2) and (5), after “sub-paragraph (1)” insert “or (1A)”.
10 In paragraph 11 of Schedule 8 (restriction on powers to provide for set-off), in sub-paragraph (2) (meaning of “insolvency procedure”) omit paragraphs (f), (g) and (h) (appointment of receiver and other interim or provisional orders).
Finance Act 2002