Section 95 — Finance Act 2008: Charge where consideration includes rent: 0% band

Charge where consideration includes rent: 0% band 95 1 Schedule 5 to FA 2003 (amount of SDLT chargeable: rent) is amended as follows.

2 In paragraph 9 (SDLT chargeable in respect of consideration other than rent)—

a in sub-paragraph (1), insert at the end “ (but see paragraph 9A) ” , and b omit sub-paragraphs (2), (2A) and (3), and, accordingly, in the heading before that paragraph, insert at the end “ . : general ” 3 After that paragraph insert— Tax chargeable in respect of consideration other than rent: 0% band 9A 1 This paragraph applies in the case of a transaction to which this Schedule applies where there is chargeable consideration other than rent.

2 If—

a the relevant land consists entirely of land that is non-residential property, and b the relevant rent is at least £1,000, the 0% band in Table B in section 55(2) does not apply in relation to the consideration other than rent and any case that would have fallen within that band is treated as falling within the 1% band.

3 Sub-paragraphs (4) and (5) apply if—

a the relevant land is partly residential property and partly non-residential property, and b the relevant rent attributable, on a just and reasonable apportionment, to the land that is non-residential property is at least £1,000.

4 For the purpose of determining the amount of tax chargeable under section 55 in relation to the consideration other than rent, the transaction (or, where it is one of a number of linked transactions, that set of transactions) is treated as if it were two separate transactions (or sets of linked transactions), namely—

a one whose subject-matter consists of all of the interests in land that is residential property, and b one whose subject-matter consists of all of the interests in land that is non-residential property.

5 For that purpose, the chargeable consideration attributable to each of those separate transactions (or sets of linked transactions) is the chargeable consideration so attributable on a just and reasonable apportionment.

6 In this paragraph “ the relevant rent ” means—

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 of those transactions.

7 In sub-paragraph (6) the “ annual rent ” means the average annual rent over the term of the lease or, if—

a different amounts of rent are payable for different parts of the term, and b those amounts (or any of them) are ascertainable at the effective date of the transaction, the average annual rent over the period for which the highest ascertainable rent is payable.

8 In this paragraph “ relevant land ” has the meaning given in section 55(3) and (4).

4 Each of the following provisions of Schedule 6 to that Act (SDLT: disadvantaged areas relief) is amended in accordance with subsection (5)—

a paragraph 5(4) (residential land wholly situated in disadvantaged area),

b paragraph 6(6) (mixed land wholly situated in disadvantaged area),

c paragraph 9(4) (residential land partly situated in disadvantaged area),

and d paragraph 10(6) (mixed land wholly partly situated in disadvantaged area).

5 In those provisions—

a in paragraph (a), omit sub-paragraph (i) (and the “and” after it),

and b omit paragraph (b). 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7 In Schedule 8 to that Act (SDLT: charities relief), in paragraph 3—

a in sub-paragraph (3)(b), for “does not exceed £600” substitute “ is less than £1,000 ” , and b in sub-paragraph (5), for “9(2)” substitute “ 9A ” .

8 In Schedule 9 to that Act (SDLT: right to buy etc), after paragraph 4A insert— Shared ownership lease: grant not linked with staircasing transactions etc 4B 1 For the purpose of determining the rate of tax chargeable on the grant of a shared ownership lease of a dwelling, the grant shall be treated as if it were not linked to—

a any acquisition of an interest in the dwelling to which paragraph 4A applies, or b a transfer of the reversion to the lessee or lessees under the terms of the lease.

2 In this paragraph “ shared ownership lease ” has the same meaning as in paragraph 4A.

9 In that Schedule, in paragraphs 10(1) and (2) and 11(b) (shared ownership trusts), omit “additional”.

10 In that Schedule, insert at the end— Shared ownership trust: declaration not linked with staircasing transactions etc 12 For the purpose of determining the rate of tax chargeable on the declaration of a shared ownership trust, the declaration shall be treated as if it were not linked to—

a any equity-acquisition payment under the trust or any consequent increase in the purchaser's beneficial interest in the trust property, or b a transfer to the purchaser of an interest in the trust property upon the termination of the trust.

11 In Schedule 15 to that Act (SDLT: partnerships)—

a in paragraph 11(2B)(a), for “9(2A)” substitute “ 9A(6) ” , b in paragraph 19(2B), for “9(2A)” substitute “ 9A(6) ” , and c in paragraph 23(3)(c), for “9(2)” substitute “ 9A ” .

12 In Schedule 17A to that Act (SDLT: further provisions relating to leases), in paragraph 18A(5)(a)—

a for “9(2)” substitute “ 9A ” , b for “the Tables” substitute “ Table B ” , and c for “the relevant rental figure exceeds £600” substitute “ the relevant rent attributable to non-residential property is not less than £1,000 ” .

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