Section 94 — Finance Act 2008: Notification and registration of transactions

Notification and registration of transactions 94 1 Part 4 of FA 2003 (stamp duty land tax) is amended as follows.

2 For section 77 substitute— Notifiable transactions 77 1 A land transaction is notifiable if it is—

a an acquisition of a major interest in land that does not fall within one or more of the exceptions in section 77A, b an acquisition of a chargeable interest other than a major interest in land where there is chargeable consideration in respect of which tax is chargeable at a rate of 1% or higher or would be so chargeable but for a relief, c a land transaction that a person is treated as entering into by virtue of section 44A(3), or d a notional land transaction under section 75A.

2 This section has effect subject to—

a sections 71A(7) and 72A(7),

and b paragraph 30 of Schedule 15.

3 In this section “ relief ” does not include an exemption from charge under Schedule 3. Exceptions for certain acquisitions of major interests in land 77A 1 The exceptions referred to in section 77(1)(a) are as follows.

1 An acquisition which is exempt from charge under Schedule 3.

2 An acquisition (other than the grant, assignment or surrender of a lease) where the chargeable consideration for that acquisition, together with the chargeable consideration for any linked transactions, is less than £40,000.

3 The grant of a lease for a term of 7 years or more where—

a any chargeable consideration other than rent is less than £40,000, and b the relevant rent is less than £1,000.

4 The assignment or surrender of a lease where—

a the lease was originally granted for a term of 7 years or more, and b the chargeable consideration for the assignment or surrender is less than £40,000.

5 The grant of a lease for a term of less than 7 years where the chargeable consideration does not exceed the zero rate threshold.

6 The assignment or surrender of a lease where—

a the lease was originally granted for a term of less than 7 years, and b the chargeable consideration for the assignment or surrender does not exceed the zero rate threshold.

2 Chargeable consideration for an acquisition does not exceed the zero rate threshold if it does not consist of or include—

a any amount in respect of which tax is chargeable at a rate of 1% or higher, or b any amount in respect of which tax would be so chargeable but for a relief.

3 In this section— “ annual rent ” has the meaning given in paragraph 9A of Schedule 5, “ relevant rent ” means— the annual rent, or in the case of the grant of a lease to which paragraph 11 or 19 of Schedule 15 applies, the relevant chargeable proportion of the annual rent (as calculated in accordance with that paragraph), and “ relief ” does not include an exemption from charge under Schedule 3.

3 In section 79(2) (registration of land transactions), after “every” insert “ notifiable ” .

4 Schedule 30 contains consequential provision.

5 The amendments made by this section and that Schedule have effect in relation to transactions with an effective date on or after 12 March 2008.