Schedule
29.The Schedule aims to make Part 4 Finance Act 2003 consistent with the substantive changes made by section 1 of the Act. In particular, it makes consequential amendments to SDLT provisions at section 74, section 75, Schedule 6B and Schedule 7 Finance Act 2003 which operate to reduce or limit the amount of tax due in respect of a transaction, rather than exempting it from charge altogether.
30.Section 74 Finance Act 2003 provides relief where lessees of flats exercise certain statutory rights collectively to purchase the freehold of their block. The existing relief sets the rate of SDLT according to the consideration given for the freehold divided by the number of qualifying flats. The Schedule provides that the amount of tax due is to be arrived at by dividing the consideration given for the freehold by the number of qualifying flats, calculating the amount of tax due on that sum and multiplying the result by the number of qualifying flats.
31.Section 75 Finance Act 2003 provides relief where members of a crofting community in Scotland exercise a statutory right to purchase their crofts in a single transaction through a community body. The existing relief sets the rate of SDLT according to the consideration given for the transaction divided by the number of crofts bought. The Schedule provides that the amount of tax due is to be arrived at by dividing the consideration given by the number of crofts, calculating the amount of tax due on that sum and multiplying the result by the number of crofts bought.
32.Schedule 6B Finance Act 2003 provides relief where multiple dwellings are acquired in a single transaction or in linked transactions. The existing relief sets the rate of SDLT according to the total consideration given for the dwellings divided by the number of dwellings, subject to a minimum rate of 1%. The present Schedule provides that the amount of tax due is to be arrived at by dividing the consideration given for the dwellings by the number of dwellings, calculating the amount of tax due on that sum and multiplying the result by the number of dwellings. If the resulting amount of tax is less than 1% of the total dwellings consideration, the latter figure is substituted. For linked transactions, the amount of tax is then apportioned to each transaction in proportion to its share of the total dwellings consideration.
33.Schedule 7 Finance Act 2003 provides (inter alia) acquisition relief, which applies where a land transaction is entered into as part of the transfer of a business undertaking. The effect of the relief is to restrict the rate of SDLT on such transactions to 0.5%, which is the rate of stamp duty or stamp duty reserve tax which would apply to a transfer of shares in such an undertaking. The present Schedule provides that the amount of SDLT charged is limited to 0.5% of the chargeable consideration for the transaction.
34.The Schedule makes a number of minor consequential amendments to SDLT legislation, mainly to replace references to a rate of tax with references to an amount of tax.