Motion made, and Question,
That the following provisions shall have effect for the period beginning 23 March 1981 and ending thirty-one days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973—
(1) Section 97 of the Finance Act 1980 (shared ownership transactions) shall have effect with the amendments specified in paragraphs (2) and (3) below.
(2) In subsection (1) after the word "value" there shall be inserted the words "or sum".
(3) In subsection (2)—
(a) for paragraph (b) there shall be substituted—
(b) is granted partly in consideration of a premium calculated by reference to—
- (i) the market value of the dwelling, or
- (ii) a sum calculated by reference to that value, and partly in consideration of rent"; and
(b) in paragraph (d) for the words "paragraph (b) above" there shall be substituted the words "paragraph (b)(i) above or, as the case may be, the sum referred to in paragraph (b)(ii) above" and at the end there shall be added the words "or as the case may be, to that sum".
(4) Where a lease is granted by a body mentioned in subsection (3) of the said section 97 which—
paragraph (5) below shall apply; and in this paragraph "minimum rent" in relation to any lease means the lowest rent which could become payable under the lease if it were altered as mentioned in paragraph (b) above at the date of the grant.
- (a) is of a dwelling for the exclusive use of the lesso:, or, if there are joint lessees, of those lessees;
- (b) provides that the lessee may on payment of a sum require the terms of the lease to be altered so that the rent payable under it is reduced;
- (c) is granted partly in consideration of rent and partly in consideration of a premium calculated by reference to—
- (i) the premium obtainable on the open market for the grant of a lease containing the same terms as the lease but with the substitution for the rent payable under the lease of the minimum rent, or
- (ii) a sum calculated by reference to that premium; and
- (d) contains a statement of the premium referred to in paragraph (c)(i) above, or as the case may be the sum referred to in paragraph (c)(ii) above, and the minimum rent and a statement to the effect that the parties intend duty to be charged in accordance with this section by reference to that premium, or as the case may be that sum, and that rent,
(5) Where this paragraph applies the lease shall be chargeable to stamp duty as if the premium paid by the lessee were equal to the premium, or as the case may be the sum, stated in the lease in accordance with paragraph (4)(d) above and the rent payable were as so stated.
(6) The foregoing provisions shall apply to instruments executed on or after 23rd March 1981.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of section 50 of the Finance Act 1973.—[Sir Geoffrey Howe.]
§ put forthwith pursuant to Standing Order No. 94 (Ways and Means motions), and agreed to.