Finance Act 1999 (c. 16)

(The document as of February, 2008)

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Commencement etc.

18 (1) In this paragraph--

"the first appointed day" means such day as the Treasury may by order appoint as the first appointed day for the purposes of this paragraph;
"the second appointed day" means such day falling after the first appointed day as the Treasury may by order appoint as the second appointed day for the purposes of this paragraph.

(2) The power of the Treasury to appoint a day as the second appointed day for the purposes of this paragraph shall include power so to appoint different days for different purposes.

(3) Subject to sub-paragraph (4) below, paragraphs 2 and 3(b) above apply for the purposes of the grant or withdrawal at any time on or after the first appointed day of any approval of a retirement benefits scheme (whenever made or approved).

(4) Section 590(3)(bb) and (da) of the Taxes Act 1988 shall be disregarded for the purposes of determining whether any retirement benefits scheme approved before the first appointed day satisfies the prescribed conditions at any time before the second appointed day.

(5) Every retirement benefits scheme which--

(a) has, before the first appointed day, been approved by the Board for the purposes of Chapter I of Part XIV of the Taxes Act 1988, and

(b) by virtue of having been approved before that day continues to be so approved on or after the second appointed day,

shall have effect, so long as it continues to be approved on and after the second appointed day and notwithstanding anything in the rules of the scheme, as if (so far as it does not already do so) it contained provision satisfying the conditions set out in section 590(3)(bb) and (da) of the Taxes Act 1988.

(6) Paragraph 6 above applies to any lump sum provided on or after the second appointed day.

(7) Paragraph 8 above applies to any payment on or after the second appointed day.

(8) Subject to sub-paragraph (9) below, paragraphs 12 to 14 above apply for the purposes of--

(a) the grant at any time on or after the first appointed day of any approval of a personal pension scheme (whenever made);

(b) the withdrawal at any time on or after that day of approval of any personal pension scheme or personal pension arrangements (whenever approved).

(9) Section 636(3A) of the Taxes Act 1988 shall be disregarded for the purposes of determining whether any personal pension scheme approved before the first appointed day, or any of the arrangements made by an individual in accordance with such a scheme, satisfies the prescribed conditions at any time before the second appointed day.

(10) The Board may by regulations provide that, in such circumstances as may be prescribed by the regulations, this Schedule shall apply in the case of retirement benefits schemes approved before the first appointed day with such exceptions, exclusions and modifications as may be so prescribed.

(11) Regulations under sub-paragraph (10) above may include such incidental, supplemental, consequential and transitional provision as the Board think appropriate.

Section 93.

SCHEDULE 11 Company tax returns, etc: minor and consequential amendments

Income and Corporation Taxes Act 1988 (c. 1)

1 Section 411A of the Taxes Act 1988 (group relief in substitution for loss relief) shall cease to have effect.

2 In section 588(5) of the [1998 c. 36.] Taxes Act 1988 (tax treatment of training courses provided for employees), after "Management Act" insert ", or paragraph 41 of Schedule 18 to the Finance Act 1998,".

Finance Act 1989 (c. 26)

3 In section 102(6) of the [1970 c. 9.] Finance Act 1989 (surrender of company tax refund within group), for "section 94(6) of the Taxes Management Act 1970" substitute "paragraph 18 of Schedule 18 to the Finance Act 1998".

Capital Allowances Act 1990 (c. 1)

4 In section 17(3) of the Capital Allowances Act 1990 (carry back of balancing allowances for mining structures etc.), at the end insert "made for the purposes of income tax".

5 In section 33F(1) of the Capital Allowances Act 1990 (procedure for claims for deferment of balancing charge), for "Schedule A1 to this Act" substitute "Part IX of Schedule 18 to the Finance Act 1998".

6 In section 59C of the Capital Allowances Act 1990 (supplemental provisions about elections under section 59B), for subsection (7) substitute--

" (7) Nothing in--

(a) section 42 of, or Schedule 1A to, the Taxes Management Act 1970 (claims and elections for income tax purposes), or

(b) paragraphs 54 to 60 of Schedule 18 to the Finance Act 1998 (claims and elections for corporation tax purposes),

shall apply to a section 59B election. "

7 In section 145(3) of the Capital Allowances Act 1990 (claim to give effect to corporation tax allowances against profits of any description), omit "to which section 42 of the Taxes Management Act 1970 applies".

Finance Act 1994 (c. 9)

8 In section 118 of the Finance Act 1994 (notification requirement for expenditure on machinery or plant), for subsection (7) substitute--

" (7) No relief shall be given under--

(a) section 33, 33A or 42 of the Taxes Management Act 1970, or

(b) paragraph 51 or 56 of Schedule 18 to the Finance Act 1998,

in respect of a claim of error or mistake to the extent that the error or mistake consists of or arises from a failure to fulfil the relevant condition in relation to a chargeable period. "

Finance Act 1998 (c. 36)

9 In paragraph 94 of Schedule 18 to the Finance Act 1998 (company tax returns etc: election to take appeal to Special Commissioners)--

(a) in sub-paragraph (4) for "merits or the appeal" substitute "merits of the appeal"; and

(b) in sub-paragraph (5) for "before the giving" substitute "after the giving".

Section 109(3).

SCHEDULE 12 Stamp duty: interest and penalties on late stamping

Stamp Act 1891 (c. 39)

1 For section 12 of the Stamp Act 1891 (assessment of duty by Commissioners) substitute--

" 12 Adjudication by Commissioners

(1) Subject to such regulations as the Commissioners may think fit to make, the Commissioners may be required by any person to adjudicate with reference to any executed instrument upon the questions--

(a) whether it is chargeable with duty;

(b) with what amount of duty it is chargeable;

(d) what penalty is in their opinion correct and appropriate.

(2) The Commissioners may require to be furnished with an abstract of the instrument and with such evidence as they may require as to the facts and circumstances relevant to those questions.

(3) The Commissioners shall give notice of their decision upon those questions to the person by whom the adjudication was required.

(4) If the Commissioners decide that the instrument is not chargeable with any duty, it may be stamped with a particular stamp denoting that it has been the subject of adjudication and is not chargeable with any duty.

(5) If the Commissioners decide that the instrument is chargeable with duty and assess the amount of duty chargeable, the instrument when stamped in accordance with their decision may be stamped with a particular stamp denoting that it has been the subject of adjudication and is duly stamped.

(6) Every instrument stamped in accordance with subsection (4) or (5) shall be admissible in evidence and available for all purposes notwithstanding any objection relating to duty.

12A Adjudication: supplementary provisions

(1) An instrument which has been the subject of adjudication by the Commissioners under section 12 shall not, if it is unstamped or insufficiently stamped, be stamped otherwise than in accordance with the Commissioners' decision on the adjudication.

(2) If without reasonable excuse any such instrument is not duly stamped within 30 days after the date on which the Commissioners gave notice of their decision, or such longer period as the Commissioners may allow, the person by whom the adjudication was required is liable to a penalty not exceeding £300.

(3) A statutory declaration made for the purposes of section 12 shall not be used against the person making it in any proceedings whatever, except in an inquiry as to the duty with which the instrument to which it relates is chargeable or as to the penalty payable on stamping that instrument.

(4) Every person by whom any such declaration is made shall, on payment of the duty chargeable upon the instrument to which it relates, and any interest or penalty payable on stamping, be relieved from any penalty to which he may be liable by reason of the omission to state truly in the instrument any fact or circumstance required by this Act to be so stated. " .

2 For section 13 of the Stamp Act 1891 (appeal against assessment of duty) substitute--

" 13 Appeal against Commissioners' decision on adjudication

(1) A person who is dissatisfied with a decision of the Commissioners on an adjudication under section 12 may appeal against it.

(2) The appeal must be brought within 30 days of notice of the decision on the adjudication being given under section 12(3).

(3) An appeal may only be brought on payment of--

(a) duty and any penalty in conformity with the Commissioners' decision, and

(b) any interest that in conformity with that decision would be payable on stamping the instrument on the day on which the appeal is brought.

(4) An appeal which relates only to the penalty payable on late stamping may be brought to the Special Commissioners in accordance with section 13A below.

(5) Any other appeal may be brought in accordance with section 13B below to the High Court of the part of the United Kingdom in which the case has arisen.

13A Appeal to the Special Commissioners

(1) The following provisions apply in relation to an appeal under section 13(4).

(2) Notice of appeal must be given in writing to the Commissioners, specifying the grounds of appeal.

(3) On the hearing of the appeal the Special Commissioners may allow the appellant to put forward a ground not specified in the notice of appeal, and take it into consideration, if satisfied that the omission was not wilful or unreasonable.

(4) The powers conferred by sections 46A(1)(c) and (2) to (4) and sections 56B to 56D of the Taxes Management Act 1970 (power of Lord Chancellor to make regulations as to jurisdiction, practice and procedure in relation to appeals) are exercisable in relation to appeals to which this section applies.

(5) On the appeal the Special Commissioners may--

(a) if it appears to them that no penalty should be paid, set the decision aside;

(b) if the amount determined appears to them to be appropriate, confirm the decision;

(c) if the amount determined appears to them to be excessive, reduce it to such other amount (including nil) as they consider appropriate;

(d) if the amount determined appears to them to be insufficient, increase it to such amount as they consider appropriate.

(6) Section 56A of the Taxes Management Act 1970 (general right of appeal on point of law) applies in relation to a decision of the Special Commissioners under this section.

(7) Without prejudice to that right of appeal, an appeal lies against the amount of a penalty determined by the Special Commissioners under this section, at the instance of the person liable to the penalty, to the High Court.

(8) On an appeal under subsection (7) the court has the same powers as are conferred on the Special Commissioners by subsection (5) above.

13B Appeal to the High Court

(1) The following provisions apply in relation to an appeal under section 13(5).

(2) The appellant may for the purposes of the appeal require the Commissioners to state and sign a case setting out the questions upon which they were required to adjudicate and their decision upon them.

(3) The Commissioners shall thereupon state and sign a case and deliver the same to the person by whom it is required, and the case may, within 30 days thereafter, be set down by him for hearing.

(4) On the appeal the court shall determine the questions submitted and may give such directions as it thinks fit with respect to the repayment of any duty or penalty paid in conformity with the Commissioners' decision. " .

3 (1) Section 14 of the Stamp Act 1891 (terms upon which instruments not duly stamped may be received in evidence) is amended as follows.

(2) In subsection (1)--

(a) for the words from "if the instrument" to "it may" substitute "the instrument may", and

(b) for "the penalty" substitute "any interest or penalty".

(3) In subsection (2) for "the duty and penalty" (three times) substitute "the duty and any interest or penalty".

(4) In subsection (3)--

(a) for "any duty or penalty" substitute "any duty, interest or penalty", and

(b) for "the duty and penalty" substitute "the duty, interest and penalty".

(5) In subsection (4) for "first executed" substitute "executed".

Finance Act 1994 (c. 9)

4 For section 240 of the Finance Act 1994 (time for presenting agreements for leases) substitute--

" 240 Time for presenting agreement for lease

(1) This section applies if there are presented for stamping at the same time in pursuance of Schedule 13 to the Finance Act 1999--

(a) an agreement for a lease, and

(b) the lease which gives effect to the agreement,

and the duty (if any) chargeable on the agreement is paid.

(2) Section 15A of that Act (interest payable on late stamping) applies in relation to the agreement as if the reference to the day on which the instrument was executed were to the day on which the lease was executed.

(3) For the purposes of section 15B of that Act (penalty on late stamping) the agreement is treated--

(a) as if it had been executed at the same time and place as the lease, and

(b) where the lease was executed outside the United Kingdom, as if it had been first received in the United Kingdom at the same time as the lease.

(4) For the purposes of this section a lease gives effect to an agreement if the lease is granted subsequent to the agreement and either is in conformity with the agreement or relates to substantially the same property and term as the agreement.

(5) References in this section to an agreement for a lease include missives of let in Scotland.

240A Requirements before lease treated as duly stamped

(1) A lease shall not be treated as duly stamped unless--

(a) it contains a certificate that there is no agreement to which it gives effect, or

(b) it is stamped with a stamp denoting--

(i) that there is an agreement to which it gives effect which is not chargeable with duty, or

(ii) the duty paid on the agreement to which it gives effect.

(2) For the purposes of this section a lease gives effect to an agreement if the lease is granted subsequent to the agreement and either is in conformity with the agreement or relates to substantially the same property and term as the agreement.

(3) References in this section to a lease do not include, and references in this section to an agreement do include, missives of let in Scotland. "

Section 112(3).

SCHEDULE 13 Stamp duty: instruments chargeable and rates of duty

Part I Conveyance or transfer on sale

Charge

1 (1) Stamp duty is chargeable on a conveyance or transfer on sale.

(2) For this purpose "conveyance on sale" includes every instrument, and every decree or order of a court or commissioners, by which any property, or any estate or interest in property, is, on being sold, transferred to or vested in the purchaser or another person on behalf of or at the direction of the purchaser.

Rates of duty

2 Duty under this Part is chargeable by reference to the amount or value of the consideration for the sale.

3 In the case of a conveyance or transfer of stock or marketable securities the rate is 0.5%.

4 In the case of any other conveyance or transfer on sale the rates of duty are as follows--

1.	Where the amount or value of the consideration is £60,000 or under and the instrument is certified at £60,000	Nil
2.	Where the amount or value of the consideration is £250,000 or under and the instrument is certified at £250,000	1%
3.	Where the amount or value of the consideration is £500,000 or under and the instrument is certified at £500,000	2.5%
4.	Any other case	3.5%

5 The above provisions are subject to any enactment setting a different rate or setting an upper limit on the amount of duty chargeable.

Meaning of instrument being certified at an amount

6 (1) The references in paragraph 4 above to an instrument being certified at a particular amount mean that it contains a statement that the transaction effected by the instrument does not form part of a larger transaction or series of transactions in respect of which the amount or value, or aggregate amount or value, of the consideration exceeds that amount.

(2) For this purpose a sale or contract or agreement for the sale of goods, wares or merchandise shall be disregarded--

(a) in the case of an instrument which is not an actual conveyance or transfer of the goods, wares or merchandise (with or without other property);

(b) in the case of an instrument treated as such a conveyance or transfer only by virtue of paragraph 7 (contracts or agreements chargeable as conveyances on sale);

and any statement as mentioned in sub-paragraph (1) shall be construed as leaving out of account any matter which is to be so disregarded.

Contracts or agreements chargeable as conveyances on sale

7 (1) A contract or agreement for the sale of--

(a) any equitable estate or interest in property, or

(b) any estate or interest in property except--

(i) land,

(ii) goods, wares or merchandise,

(iii) stock or marketable securities,

(iv) any ship or vessel, or a part interest, share or property of or in any ship or vessel, or

(v) property of any description situated outside the United Kingdom,

is chargeable with the same ad valorem duty, to be paid by the purchaser, as if it were an actual conveyance on sale of the estate, interest or property contracted or agreed to be sold.

(2) Where the purchaser has paid ad valorem duty and before having obtained a conveyance or transfer of the property enters into a contract or agreement for the sale of the same, the contract or agreement is chargeable, if the consideration for that sale is in excess of the consideration for the original sale, with the ad valorem duty payable in respect of the excess consideration but is not otherwise chargeable.

(3) Where duty has been paid in conformity with sub-paragraphs (1) and (2), the conveyance or transfer to the purchaser or sub-purchaser, or any other person on his behalf or by his direction, is not chargeable with any duty.

(4) In that case, upon application and upon production of the contract or agreement (or contracts or agreements) duly stamped, the Commissioners shall either--

(a) denote the payment of the ad valorem duty upon the conveyance or transfer, or

(b) transfer the ad valorem duty to the conveyance or transfer.

8 (1) Where a contract or agreement would apart from paragraph 7 not be chargeable with any duty and a conveyance or transfer made in conformity with the contract or agreement is presented to the Commissioners for stamping with the ad valorem duty chargeable on it--

(a) within the period of six months after the execution of the contract or agreement, or

(b) within such longer period as the Commissioners may think reasonable in the circumstances of the case,

the conveyance or transfer shall be stamped accordingly, and both it and the contract or agreement shall be deemed to be duly stamped.

(2) Nothing in this paragraph affects the provisions as to the stamping of a conveyance or transfer after execution.

9 The ad valorem duty paid upon a contract or agreement by virtue of paragraph 7 shall be repaid by the Commissioners if the contract or agreement is afterwards rescinded or annulled or is for any other reason not substantially performed or carried into effect so as to operate as or be followed by a conveyance or transfer.

Part II Lease

Charge

10 Stamp duty is chargeable on a lease.

Rates of duty

11 In the case of a lease for a definite term less than a year the duty is as follows--

1.	Lease of furnished dwelling-house or apartments where the rent for the term exceeds £500	£5
2.	Any other lease of land	The same duty as for a lease for a year at the rent reserved for the definite term

12 (1) In the case of a lease of land for any other definite term, or for an indefinite term, the duty is determined as follows.

(2) If the consideration or part of the consideration moving to the lessor or to any other person consists of any money, stock, security or other property, the duty in respect of that consideration is the same as that on a conveyance on a sale for the same consideration.

But if--
(a)
part of the consideration is rent, and
(b)
that rent exceeds £600 a year,

the duty is calculated as if paragraph 1 of the Table in paragraph 4 of this Schedule were omitted.

(3) If the consideration or part of the consideration is rent, the duty in respect of that consideration is determined by reference to the rate or average rate of the rent (whether reserved as a yearly rent or not), as follows.

1.	Term less than 7 years or indefinite-- (a) if the rent is £500 or less (b) if the rent is more than £500	Nil 1%
2.	Term more than 7 years but not more than 35 years	2%
3.	Term more than 35 years but not more than 100 years	12%
4.	Term more than 100 years	24%

13 Stamp duty of £5 is chargeable on a lease not within paragraph 11 or 12 above.

Agreement for a lease charged as a lease

14 (1) An agreement for a lease is chargeable with the same duty as if it were an actual lease made for the term and consideration mentioned in the agreement.

(2) Where duty has been duly paid on an agreement for a lease and subsequent to that agreement a lease is granted which either--

(a) is in conformity with the agreement, or

(b) relates to substantially the same property and term as the agreement,

the duty which would otherwise be charged on the lease is reduced by the amount of the duty paid on the agreement.

(3) Sub-paragraph (1) does not apply to missives of let in Scotland that constitute an actual lease.

Subject to that, references in this paragraph to an agreement for a lease include missives of let in Scotland.

Lease for fixed term and then until determined

15 (1) For the purposes of this Part a lease granted for a fixed term and thereafter until determined is treated as a lease for a definite term equal to the fixed term together with such further period as must elapse before the earliest date at which the lease can be determined.

(2) Paragraph 14 (agreement for a lease charged as a lease) shall be construed accordingly.

Part III Other instruments

Conveyance or transfer otherwise than on sale

16 (1) Stamp duty of £5 is chargeable on a conveyance or transfer of property otherwise than on sale.

(2) In sub-paragraph (1) "conveyance or transfer" includes every instrument, and every decree or order of a court or commissioners, by which any property is transferred to or vested in any person.

Declaration of use or trust

17 (1) Stamp duty of £5 is chargeable on a declaration of any use or trust of or concerning property unless the instrument constitutes a conveyance or transfer on sale.

(2) This does not apply to a will.

Dispositions in Scotland

18 (1) The following are chargeable with duty as a conveyance on sale--

(a) a disposition of heritable property in Scotland to singular successors or purchasers;

(b) a disposition of heritable property in Scotland to a purchaser containing a clause declaring all or any part of the purchase money a real burden upon, or affecting, the heritable property thereby disponed, or any part of it;

(2) A disposition in Scotland of any property, or any right or interest in property, that is not so chargeable is chargeable with stamp duty of £5.

Duplicate or counterpart

19 (1) A duplicate or counterpart of an instrument chargeable with duty is chargeable with duty of £5.

(2) The duplicate or counterpart of an instrument chargeable with duty is not duly stamped unless--

(a) it is stamped as an original instrument, or

(b) it appears by some stamp impressed on it that the full and proper duty has been paid on the original instrument of which it is the duplicate or counterpart.

(3) Sub-paragraph (2) does not apply to the counterpart of an instrument chargeable as a lease, if that counterpart is not executed by or on behalf of any lessor or grantor.

Instrument increasing rent

20 (1) An instrument (not itself a lease)--

(a) by which it is agreed that the rent reserved by a lease should be increased, or

(b) which confirms or records any such agreement made otherwise than in writing,

is chargeable with the same duty as if it were a lease in consideration of the additional rent made payable by it.

(2) Sub-paragraph (1) does not apply to an instrument giving effect to provision in the lease for periodic review of the rent reserved by it.

Partition or division

21 (1) Where on the partition or division of an estate or interest in land consideration exceeding £100 in amount or value is paid or given, or agreed to be paid or given, for equality, the principal or only instrument by which the partition or division is effected is chargeable with the same ad valorem duty as a conveyance on sale for the consideration, and with that duty only.

(2) Where there are several instruments for completing the title of either party, the principal instrument is to be ascertained, and the other instruments shall be charged with duty, as provided by sections 58(3) and 61 of the [1891 c. 39.] Stamp Act 1891 in the case of several instruments of conveyance.

(3) Stamp duty of £5 is chargeable on an instrument effecting a partition or division to which the above provisions do not apply.

Release or renunciation

22 Stamp duty of £5 is chargeable on a release or renunciation of property unless the instrument constitutes a conveyance or transfer on sale.

Surrender

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