Statutory Instruments
2003 No. 2914
TAXES
The Stamp Duty Land Tax (Amendment of Schedule 5 to the Finance Act 2003) Regulations 2003
Made
13th November 2003
Coming into force
1st December 2003
Whereas a draft of this instrument was laid before the House of Commons in accordance with section 112(3) of the Finance Act 2003( 1 ) and approved by resolution of that House;
Now, therefore, the Treasury, in exercise of the powers conferred upon them by section 112(1), (2) and (4) of the Finance Act 2003, make the following Regulations:
Citation and commencement
1. These Regulations may be cited as the Stamp Duty Land Tax (Amendment of Schedule 5 to the Finance Act 2003) Regulations 2003 and shall come into force on 1st December 2003.
Amendment of Schedule 5 to the Finance Act 2003
2.Schedule 5 to the Finance Act 2003 is amended in accordance with the Schedule to these Regulations.
Nick Ainger
Derek Twigg
Two of the Lords Commissioners of Her Majesty’s Treasury
13th November 2003
Regulation 2
SCHEDULE AMENDMENTS TO SCHEDULE 5 TO THE FINANCE ACT 2003
Tax to be chargeable in respect of rent on “slice” system
1. In paragraph 2 (calculation of tax chargeable in respect of rent), for sub-paragraphs (2) to (5) substitute—
“ (2) The tax chargeable is the total of the amounts produced by taking the relevant percentage of so much of the relevant rental value as falls within each rate band.
(3) The relevant percentages and rate bands are determined by reference to whether the relevant land—
(a) consists entirely of residential property (in which case Table A below applies), or
(b) consists of or includes land that is not residential property (in which case Table B below applies).
TABLE A: RESIDENTIAL
| Rate bands | Percentage |
|---|---|
| £0 to £60,000 | 0% |
| Over £60,000 | 1% |
TABLE B: NON-RESIDENTIAL OR MIXED
| Rate bands | Percentage |
|---|---|
| £0 to £150,000 | 0% |
| Over £150,000 | 1% |
(4) For the purposes of sub-paragraphs (2) and (3)—
(a) the relevant rental value is the net present value of the rent payable over the term of the lease, and
(b) the relevant land is the land that is the subject of the lease.
(5) If the lease in question is one of a number of linked transactions for which the chargeable consideration consists of or includes rent, the above provisions are modified.
(6) In that case the tax chargeable is determined as follows.
First, calculate the amount of the tax that would be chargeable if the linked transactions were a single transaction, so that—
(a)the relevant rental value is the total of the net present values of the rent payable over the terms of all the leases, and
(b)the relevant land is all land that is the subject of any of those leases.
Then, multiply that amount by the fraction:
where—
NPV is the net present value of the rent payable over the term of the lease in question, and
TNPV is the total of the net present values of the rent payable over the terms of the all the leases. ” .
Rent and other consideration: treatment of linked transactions
2. —(1)Paragraph 9 (tax chargeable in respect of consideration other than rent) is amended as follows.
(2) In sub-paragraph (2) (exclusion of 0% band for other consideration if annual rent exceeds £600 a year), for “annual rent” substitute “relevant rental figure”.
(3) After that sub-paragraph insert—
“ (2A) For the purposes of sub-paragraph (2) the relevant rental figure is—
(a) the annual rent in relation to the transaction in question, or
(b) if that transaction is one of a number of linked transactions for which the chargeable consideration consists of or includes rent, the total of the annual rents in relation to all those transactions. ” .
(4) In sub-paragraph (3) (meaning of “annual rent”) for “For the purposes of sub-paragraph (2)” substitute “In sub-paragraph (2A)”.