Commentary on Sections Section 1
21.Section 1 amends section 55 Finance Act 2003, which provides rules for calculating the amount of SDLT chargeable, and introduces the Schedule.
22.The section inserts new subsections (1B) and (1C) in section 55. New subsection (1B) provides that the amount of tax due in respect of a transaction comprising wholly residential property is to be calculated by applying each rate of tax to the appropriate part of the relevant consideration and adding together the different amounts. It substitutes a new Table A in section 55 setting out the rates and thresholds to be used.
23.New subsection (1C) provides that the amount of tax due in respect of a transaction which is one of a number of linked transactions comprising wholly residential property is to be calculated by applying each rate of tax to the appropriate part of the relevant consideration (which in this case is the aggregate chargeable consideration for all the linked transactions), adding together the different amounts, and then apportioning the resulting amount to the transaction in proportion to its share of the relevant consideration.
24.The section amends subsection (2) of section 55 to ensure that the existing calculation rules continue to apply to a transaction, or linked transactions, which consist of or include land that is not residential property.