Textual Amendments
F1Sch. 17A inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 22(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14) (with Sch. 39 paras. 11, 13(5))
3(1)This paragraph applies to—U.K.
(a)a lease for a fixed term and thereafter until determined, or
(b)a lease for a fixed term that may continue beyond the fixed term by operation of law.
(2)For the purposes of this Part (except [F2sections 77 and 77A] (notifiable transactions)), a lease to which this paragraph applies is treated—
(a)in the first instance as if it were a lease for the original fixed term and no longer,
(b)if the lease continues after the end of that term, as if it were a lease for a fixed term one year longer than the original fixed term,
(c)if the lease continues after the end of the term resulting from the application of paragraph (b), as if it were a lease for a fixed term two years longer than the original fixed term,
and so on.
[F3(3)Where the effect of sub-paragraph (2) in relation to the continuation of the lease for a period (or further period) of one year after the end of a fixed term is that a transaction becomes notifiable, the purchaser must deliver a return in respect of that transaction before the end of the period of 14 days after the end of that one year period.
(3ZA)Where the effect of sub-paragraph (2) in relation to the continuation of the lease for a period (or further period) of one year after the end of a fixed term is that—
(a)tax is payable in respect of a transaction where none was payable before and sub-paragraph (3) does not apply, or
(b)additional tax is payable in respect of a transaction,
the purchaser must deliver a further return in respect of that transaction before the end of the period of 30 days after the end of that one year period.
(3ZB)For the purposes of sub-paragraphs (3) and (3ZA), any tax or additional tax payable is calculated according to the effective date of the transaction.
(3ZC)Where a purchaser is required to deliver a return under sub-paragraph (3) or a further return under sub-paragraph (3ZA)—
(a)that return must include a self-assessment of the amount of tax chargeable in respect of the transaction on the basis of the information contained in the return, and
(b)the tax or additional tax payable must be paid not later than the filing date for that return.]
[F4(3A)But no tax or additional tax is payable in respect of a transaction as a result of the continuation of a lease for a period (or further period) of one year under sub-paragraph (2) if, during that one year period, the tenant under the lease is granted a new lease of the same or substantially the same premises in circumstances where paragraph 9A applies.]
[F5(3B)Sub-paragraph (2) is subject to paragraph 3A.]
(4)The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this paragraph as they apply to a return under section 76 (general requirement to deliver land transaction return), with the adaptation that references to the effective date of the transaction shall be read as references to [F6the last day of the one year period for which the lease is continued or (as the case may be) further continued.]
(5)For the purposes of [F7sections 77 and 77A] (notifiable transactions) a lease to which this paragraph applies is a lease for whatever is its fixed term.
[F8(6)Where—
(a)a lease would be treated as continuing for a period (or further period) of one year under sub-paragraph (2), but
(b)(ignoring that sub-paragraph) the lease actually terminates at a time during that period,
the lease is to be treated as continuing under sub-paragraph (2) only until that time; and the references in sub-paragraphs (3) and (4) to that one year period are accordingly to be read as references to so much of that year as ends with that time.]
Textual Amendments
F2Words in Sch. 17A para. 3(2) substituted (with effect in accordance with s. 94(5) of the amending Act) by Finance Act 2008 (c. 9), Sch. 30 para. 14
F3Sch. 17A para. 3(3)-(3ZC) substituted for Sch. 17A para. 3(3) (with effect in accordance with s. 46(10) of the amending Act) by Finance Act 2019 (c. 1), s. 46(8)(a)
F4Sch. 17A para. 3(3A) inserted (with effect in accordance with Sch. 41 para. 8(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 41 para. 2(3)
F5Sch. 17A para. 3(3B) inserted (with effect in accordance with Sch. 41 para. 8(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 41 para. 2(4)
F6Words in Sch. 17A para. 3(4) substituted (with effect in accordance with Sch. 41 para. 8(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 41 para. 2(5)
F7Words in Sch. 17A para. 3(5) substituted (with effect in accordance with s. 94(5) of the amending Act) by Finance Act 2008 (c. 9), Sch. 30 para. 14
F8Sch. 17A para. 3(6) inserted (with effect in accordance with Sch. 41 para. 8(1) of the amending Act) by Finance Act 2013 (c. 29), Sch. 41 para. 2(6)
Modifications etc. (not altering text)
C1Sch. 17A para. 3(1)(2) applied (with modifications) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Pensions Schemes (Taxable Property Provisions) Regulations 2006 (S.I. 2006/1958), regs. 1(1), 7
[F93A(1)This paragraph applies where—U.K.
(a)(ignoring this paragraph) paragraph 3 would apply to treat a lease (“the original lease”) as if it were a lease for a fixed term one year longer than the original term,
(b)during that one year period the tenant under that lease is granted a new lease of the same or substantially the same premises,
(c)the term of the new lease begins during that one year period, and
(d)paragraph 9A (backdated lease granted to tenant holding over) does not apply.
(2)Paragraph 3 does not apply to treat the lease as continuing after the original term.
(3)The term of the new lease is treated for the purposes of this Part as beginning immediately after the original term.
(4)Any rent which, in the absence of this paragraph, would be payable under the original lease in respect of that one year period is to be treated as payable under the new lease (and paragraph 1A of Schedule 5 does not apply to it).
(5)Where the fixed term of a lease has previously been extended (on one or more occasions) under paragraph 3, this paragraph applies as if references to the original term were references to the fixed term as previously so extended.]]
Textual Amendments
F9Sch. 17A para. 3A inserted (with effect in accordance with Sch. 41 para. 8(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 41 para. 3