Section 111 — Finance Act 2014: SDLT : threshold for higher rate applying to certain transactions

SDLT : threshold for higher rate applying to certain transactions 111 1 Schedule 4A to FA 2003 (SDLT: higher rate for certain transactions) is amended as follows.

2 In paragraph 1(2) (meaning of “higher threshold interest”) for “£2,000,000” substitute “ £500,000 ” .

3 In consequence of the amendment made by subsection (2), in the following provisions, for “£2,000,000” substitute “ £500,000 ” a paragraph 4(1)(c);

b paragraph 6(2);

c paragraph 6(3)(b).

4 The amendments made by this section have effect in relation to any chargeable transaction of which the effective date is on or after 20 March 2014.

5 But the amendments do not have effect in relation to a transaction—

a effected in pursuance of a contract entered into and substantially performed before 20 March 2014, b effected in pursuance of a contract entered into before that date and not excluded by subsection (6), or c excepted by subsection (7).

6 A transaction effected in pursuance of a contract entered into before 20 March 2014 is excluded by this subsection if—

a there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 20 March 2014, b the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or c on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.

7 A transaction treated as occurring under paragraph 17(2) or 17A(4) of Schedule 15 to FA 2003 (partnerships) is excepted by this subsection if the effective date of the land transfer referred to in sub-paragraph (1)(a) of the paragraph concerned is before 20 March 2014.