Citation and commencement

1. These Regulations may be cited as the Stamp Duty Land Tax (Avoidance Schemes) (Specified Proposals or Arrangements) Regulations 2012 and come into force on 1st November 2012.

Interpretation

2. In these Regulations—

“chargeable interests” has the meaning given by section 48 of the Finance Act 2003( 2 );

“partnership” has the meaning given by paragraph 1 of Schedule 15 to the Finance Act 2003;

“settlement” has the meaning given by paragraph 1 of Schedule 16 to the Finance Act 2003.

Application

3. These Regulations apply where conditions A and B are met.

4. —(1) Condition A is that a chargeable interest is acquired under a contract, the substantial performance or completion of which falls to be disregarded by virtue of section 45(3) of the Finance Act 2003.

(2) Condition B is that the secondary contract referred to in section 45(3) of the Finance Act 2003 arises from a transaction with one or more of the following features—

(i) a distribution in specie ;

(ii) an acquisition by a partnership;

(iii) an acquisition by a settlement;

(iv) an element of gift or transfer at an undervalue;

(v) the grant of an option;

(vi) an assignment or novation.

(3) In regulation 4(2) above, a distribution in specie means a distribution of an asset in physical form without selling it and distributing the proceeds of sale.

Modification of section 308 of the Finance Act 2004

5.Section 308 of the Finance Act 2004 shall apply with the following modifications.

6. —(1) Where, for the purposes of section 308 of the Finance Act 2004—

(a) a promoter has provided to HMRC before 1st April 2010 information prescribed by the Stamp Duty Land Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2005( 3 ) in relation to a notifiable proposal or notifiable arrangements,

(b) the description of the notifiable proposal or arrangements, or part of the description of the notifiable proposal or arrangements, falls within conditions A and B contained in regulation 4 above, and

(c) the promoter is, on or after 1st November 2012, a promoter in relation to a notifiable proposal or notifiable arrangements that are of the same, or substantially the same, description as those in respect of which the prescribed information in paragraph (a) was provided,

the modifications specified in paragraphs (2) and (3) shall apply.

(2)Section 308(5) of the Finance Act 2004 shall be disregarded on the first occasion on or after 1st November 2012 that the promoter would, but for section 308(5) of the Finance Act 2004, have a duty to provide prescribed information concerning the proposal or arrangements, falling within regulation 6(1)(c), by virtue of either section 308(1) or (3) of the Finance Act 2004.

(3) The exception from the requirement to provide prescribed information contained in the concluding words of section 308(3) of the Finance Act 2004 shall be disregarded on the first occasion on or after 1st November 2012 that the promoter would, but for the application of the exception, have a duty to provide prescribed information concerning notifiable arrangements falling within regulation 6(1)(c), by virtue of section 308(3) of the Finance Act 2004.