Commentary on Sections (and Schedules) Schedule 1: Referendum about commencement of income tax provisions Section 16: Disapplication of UK stamp duty land tax
156.Section 16 provides for SDLT to be disapplied by reference to the “effective date” of a land transaction for SDLT purposes. This is normally the date on which the purchase contract is completed but may be earlier if the transaction is “substantially performed” (that is, if the consideration for the transaction is paid or the property is occupied) before this date.
157.Subsection (1) introduces the amendments to the SDLT provisions in Part 4 of FA 2003, and subsection (2) amends the definition of “chargeable interests” in section 48 by limiting it to interests in land in England and Northern Ireland.
158.Subsection (3) introduces Schedule 2, which is discussed in more detail at paragraph 168 below.
159.Subsection (4) applies the amendments introduced by the section and Schedule 2 to land transactions with an effective date on or after a date appointed by HM Treasury.
160.Subsection (5) makes transitional provisions to ensure that SDLT continues to apply to transactions where a contract is entered into on or before the date on which the Wales Act receives Royal Assent.
161.Subsection (6) disapplies the transitional rules in subsection (5) where certain events in relation to the transaction occur after Royal Assent.