10(1)Where the whole or part of the consideration for a land transaction consists of the carrying out of works of construction, improvement or repair of a building or other works to enhance the value of land, then—U.K.
(a)to the extent that the conditions specified in sub-paragraph (2) are met, the value of the works does not count as chargeable consideration, and
(b)to the extent that those conditions are not met, the value of the works shall be taken into account as chargeable consideration.
(2)The conditions referred to in sub-paragraph (1) are—
(a)that the works are carried out after the effective date of the transaction,
(b)that the works are carried out on land acquired or to be acquired under the transaction or on other land held by the purchaser or a person connected with him, and
(c)that it is not a condition of the transaction that the works are carried out by the vendor or a person connected with him.
(a)subsection (8) of section 44 (contract and conveyance),
(b)paragraph 12A of Schedule 17A (agreement for lease), or
F3(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
there are two notifiable transactions (the first being the contract or agreement and the second being the transaction effected on completion or, as the case may be, the grant or execution of the lease),] the condition in sub-paragraph (2)(a) is treated as met in relation to the second transaction if it is met in relation to the first.]
(3)In this paragraph—
(a)references to the acquisition of land are to the acquisition of a major interest in it;
(b)the value of the works shall be taken to be the amount that would have to be paid in the open market for the carrying out of the works in question.
(4)Section 839 of the Taxes Act 1988 (connected persons) has effect for the purposes of this paragraph.
[F4(5)This paragraph is subject to paragraph 17 (arrangements involving public or educational bodies).]
Textual Amendments
F1Sch. 4 para. 10(2A) inserted (with effect in accordance with Sch. 39 para. 13(3)-(6) of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 9(2)
F2Words in Sch. 4 para. 10(2A) substituted (with effect in accordance with s. 297(9) of the amending Act) by Finance Act 2004 (c. 12), s. 297(8)
F3Sch. 4 para. 10(2A)(c) omitted (with effect in accordance with s. 29(4) of the amending Act) by virtue of Scotland Act 2012 (c. 11), s. 44(2)(b)(3)(b), Sch. 3 para. 24(3) (with s. 29(5)(6)); S.I. 2015/637, art. 2
F4Sch. 4 para. 10(5) added (19.12.2003) by The Stamp Duty Land Tax (Amendment of Schedule 4 to the Finance Act 2003) Regulations 2003 (S.I. 2003/3293), regs. 1, 2(3)