That the following provisions shall have effect for the period beginning 28th March 2000 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973—
§ (1) This Resolution applies where an estate or interest in land is transferred to or vested in a company ("A") and—
- (a) the person transferring or vesting the estate or interest ("B") is connected with A; or
- (b) some or all of the consideration for the transfer or vesting consists of the issue or transfer of shares in a company with which B is connected.
§ (2) For the purposes of Part I of Schedule 13 to the Finance Act 1999, an instrument transferring or vesting the estate or interest shall he taken to be a transfer on sale of the estate or interest.
§ (3) If for those purposes the amount or value of the consideration for the transfer on sale of the estate or interest would, apart from this paragraph, be less than the value determined under paragraph (4), the consideration shall be taken for those purposes to be the value determined under paragraph (4).
§ (4) That value is—
- (a) the market value of the estate or interest immediately before the execution of the instrument transferring or vesting it; but
- (b) reduced by the value of so much of any actual consideration as does not consist of property.
§ (5) Where—
- (a) apart from this Resolution, an instrument would be chargeable to stamp duty in accordance with the Resolution of the House (Stamp duty: land transferred etc for other property) of 27th March 2000, and
- (b) apart from that Resolution, the instrument would be chargeable to stamp duty in accordance with this Resolution,
§ (6) This Resolution applies only if, in consequence of its application, the instrument transferring or vesting the estate or interest is chargeable with a greater amount of stamp duty than it would be apart from this Resolution and that Resolution.
§ (7) For the purposes of this Resolution, the market value of property at any time is the price which that property might reasonably be expected to fetch on a sale at that time in the open market.
(8) In this Resolution—
company" means any body corporate;
shares" includes stock and the reference to shares in a company includes a reference to securities issued by a company.
§ (9) For the purposes of this Resolution, the question whether any person is connected with another shall be determined in accordance with the provisions of section 839 of the Income and Corporation Taxes Act 1988.
§ (11) This Resolution applies to instruments executed on or after 28th March 2000.
§ (12) But this Resolution does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless—
- (a) the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right; or
- (b) the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract, because of an assignment (or, in Scotland, assignation) or further contract made after that date.