Section 55 — Finance Act 2003: Amount of tax chargeable: general

Amount of tax chargeable: general 55 1 The amount of tax chargeable in respect of a chargeable transaction to which this section applies is determined in accordance with subsections (1B) . and (1C) 1A This section applies to any chargeable transaction other than a transaction to which paragraph 3 of Schedule 4A or step 4 of section 74(1A) (higher rate for certain transactions) applies. 1B If ... the transaction is not one of a number of linked transactions, the amount of tax chargeable is determined as follows— Step 1 Apply the rates specified in the second column of the appropriate table below to the parts of the relevant consideration specified in the first column of the appropriate table . “The “appropriate table” is— (a) Table A, if the relevant land consists entirely of residential property, and (b) Table B, if the relevant land consists of or includes land that is not residential property. Step 2 Add together the amounts calculated at Step 1 (if there are two or more such amounts). TABLE A: RESIDENTIAL Part of relevant consideration Rate So much as does not exceed £125,000 0% So much as exceeds £125,000 but does not exceed £250,000 2% So much as exceeds £250,000 but does not exceed £925,000 5% So much as exceeds £925,000 but does not exceed £1,500,000 10% The remainder (if any) 12% Table B: Non-residential or mixed Relevant consideration Percentage So much as does not exceed £150,000 0% So much as exceeds £150,000 but does not exceed £250,000 2% The remainder (if any) 5% 1C If ... the transaction is one of a number of linked transactions, the amount of tax chargeable in respect of the particular transaction under consideration is determined as follows— Step 1 Apply the rates specified in the second column of the appropriate table in subsection (1B) to the parts of the relevant consideration specified in the first column of the appropriate table . “The “appropriate table” is— (a) Table A, if the relevant land consists entirely of residential property, and (b) Table B, if the relevant land consists of or includes land that is not residential property. Step 2 Add together the amounts calculated at Step 1 (if there are two or more such amounts). Step 3 Multiply the amount given by Step 1 or Step 2, as the case may be, by— C R where— C is the chargeable consideration for the transaction, and R is the relevant consideration. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 For the purposes of subsection (1B) —

a the relevant land is the land an interest in which is the main subject-matter of the transaction, and b the relevant consideration is the chargeable consideration for the transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 For the purposes of subsection (1C) —

a the relevant land is any land an interest in which is the main subject-matter of any of the linked transactions, and b the relevant consideration is the total of the chargeable consideration for all those transactions. 4A Schedule 4ZA (higher rates for additional dwellings and dwellings purchased by companies) modifies this section as it applies for the purpose of determining the amount of tax chargeable in respect of certain transactions involving major interests in dwellings.

5 This section has effect subject to— section 74(1B) ( exercise of collective rights by tenants of flats ), ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (which provides for the amount of tax to be determined by reference to a fraction of the relevant consideration).

6 In the case of a transaction for which the whole or part of the chargeable consideration is rent this section has effect subject to section 56 and Schedule 5 (amount of tax chargeable: rent). 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .