Finance Act 2003

127 Circumstances in which relief for company acquisitions withdrawn

(1) Section 113 of the Finance Act 2002 (c. 23) (stamp duty: withdrawal of relief for company acquisitions) is amended as follows.

(2) In subsection (1)(b) (circumstances in which relief withdrawn: change of control of acquiring company within two years) for “two years” substitute “three years”.

(3) In subsection (1)(c) (circumstances in which relief withdrawn: acquiring company holding estate or interest when control changes)—

(a) in the opening words, after “the acquiring company” insert “or a relevant associated company”;

(b) in sub-paragraph (i) for “to it” substitute “to the acquiring company”; and

(c) for the closing words substitute “and that has not subsequently been transferred at market value by a duly stamped instrument on which ad valorem duty was paid and in respect of which section 76 relief was not claimed”.

(4) In subsection (3) for “what the acquiring company holds” substitute “what is held by that company or, as the case may be, by that company and any relevant associated companies”.

(5) After subsection (3) insert—

“(3A) In this section “relevant associated company”, in relation to the acquiring company, means a company—

(a) that is controlled by the acquiring company immediately before the control of that company changes, and

(b) of which control changes in consequence of the change of control of that company.”.

(6) In Schedule 35 to the Finance Act 2002 (withdrawal of relief for company acquisitions: supplementary provisions), in paragraphs 3(3)(b) and 4(3)(b) (withdrawal of relief on later change of control)—

(a) in the opening words, after “the acquiring company” insert “or a relevant associated company”,

(b) in sub-paragraph (i) for “to it” substitute “to the acquiring company”, and

(c) for the closing words substitute “and that has not subsequently been transferred at market value by a duly stamped instrument on which ad valorem duty was paid and in respect of which section 76 relief was not claimed”.

(7) This section applies to instruments executed after 14th April 2003.

(8) But this section does not apply to an instrument giving effect to a contract made on or before 9th April 2003, unless—

(a) the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right, or

(b) the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract because of an assignment (or, in Scotland, assignation) or further contract made after that date.

(9) This section shall be deemed to have come into force on 15th April 2003.