C1C2C3C4C5C6Part 4Stamp duty land tax
Pt. 4 modified (coming into force at 2 p.m. on 6.12.2006) by The Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2006 (S.I. 2006/3237), regs. 1, 2, Sch.
Pt. 4 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 194(8)-(12)
Pt. 4 applied (17.7.2014) by Finance Act 2014 (c. 26), ss. 223(8)(9)(d)
Pt. 4 modified (temp.) (22.7.2020) by Stamp Duty Land Tax (Temporary Relief) Act 2020 (c. 15), s. 1 (as amended (10.6.2021) by 2021 c. 26, s. 87(2))
Pt. 4 modified (temp.) (10.6.2021) by 2020 c. 15, s. 1A (as inserted by Finance Act 2021 (c. 26), s. 87(3))
Reliefs
71AF1Alternative property finance: land sold to financial institution and leased to F4person
1
This section applies where arrangements are entered into between F3a person and a financial institution under which—
a
the institution purchases a major interest in land or an undivided share of a major interest in land (“the first transaction”),
b
where the interest purchased is an undivided share, the major interest is held on trust for the institution and the F4person as beneficial tenants in common,
c
the institution (or the person holding the land on trust as mentioned in paragraph (b)) grants to the F4person out of the major interest a lease (if the major interest is freehold) or a sub-lease (if the major interest is leasehold) (“the second transaction”), and
d
the institution and the F4person enter into an agreement under which the F4person has a right to require the institution or its successor in title to transfer to the F4person (in one transaction or a series of transactions) the whole interest purchased by the institution under the first transaction.
2
The first transaction is exempt from charge if the vendor is—
a
the F4person, or
b
another financial institution by whom the interest was acquired under arrangements of the kind mentioned in subsection (1) entered into between it and the F4person.
3
The second transaction is exempt from charge if the provisions of this Part relating to the first transaction are complied with (including the payment of any tax chargeable).
4
Any transfer to the F4person that results from the exercise of the right mentioned in subsection (1)(d) (“a further transaction”) is exempt from charge if—
a
the provisions of this Part relating to the first and second transactions are complied with, and
b
at all times between the second transaction and the further transaction—
i
the interest purchased under the first transaction is held by a financial institution so far as not transferred by a previous further transaction, and
ii
the lease or sub-lease granted under the second transaction is held by the F4person.
5
The agreement mentioned in subsection (1)(d) is not to be treated—
a
as substantially performed unless and until the whole interest purchased by the institution under the first transaction has been transferred (and accordingly section 44(5) does not apply), or
b
as a distinct land transaction by virtue of section 46 (options and rights of pre-emption).
F26
The requirements of subsection (1), or (4)(b)(ii), are not met if—
a
7
A further transaction that is exempt from charge by virtue of subsection (4) is not a notifiable transaction unless the transaction involves the transfer to the F4person of the whole interest purchased by the institution under the first transaction, so far as not transferred by a previous further transaction.
F58
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9
F610
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Pt. 4 construed as one with S.I. 2006/575, reg. 43 (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 43(4)