HC Deb 27 March 2000 vol 347 cc177-8

Resolved, 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 a lease is granted to a company ("A") and—

  1. (a) the person granting the lease ("B") is connected with A; or
  2. (b) some or all of the consideration for the grant of the lease consists of the issue or transfer of shares in a company with which B is connected.

(2) Paragraph (3) has effect for the purposes of stamp duty chargeable under Part II of Schedule 13 to the Finance Act 1999 by reference to Part I of that Schedule.

(3) If, apart from this paragraph, the amount or value of the consideration for the grant would be less than the value determined under paragraph (4), the consideration shall be taken to be the value determined under paragraph (4).

(4) That value is—

  1. (a) the market value, immediately before the instrument granting the lease is executed, of the lease granted; but
  2. (b) reduced by the value of so much of any actual consideration as does not consist of property.

(5) This Resolution applies only if, in consequence of its application, the lease is chargeable with a greater amount of stamp duty than it would be apart from this Resolution.

(6) 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.

(7) 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.

(8) 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.

(9) This Resolution shall be construed as one with the Stamp Act 1891.

(10) This Resolution applies to instruments executed on or after 28th March 2000.

(11) But this Resolution does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless—

  1. (a) the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right; or
  2. (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.

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.