HC Deb 23 April 2002 vol 384 cc290-1

Resolved,

That the following provisions shall have effect for the period beginning with 24th April 2002 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973—

(1) Section 76 of the Finance Act 1986 shall be amended as follows.

(2) In subsection (2) for "the condition mentioned in subsection (3) below" substitute "the first and second conditions (as defined below)".

(3) In subsection (3) for "The condition" substitute "The first condition".

(4) After subsection (3) insert— (3A) The second condition applies only in relation to an instrument transferring land in the United Kingdom and is that the acquiring company is not associated with another company that is a party to arrangements with the target company relating to shares of the acquiring company issued in connection with the transfer of the undertaking or part. (3B) Where an instrument transfers land in the United Kingdom together with other property, the provisions of this section apply as if there were two separate instruments, one relating to land in the United Kingdom and the other relating to other property.". (5) In subsection (5) for "subsection (2) above" (twice) substitute "this section".

(6) After subsection (6) insert— (6A) For the purposes of subsection (3A) above—

  1. (a) companies are associated if one has control of the other or both are controlled by the same person or persons, and
  2. (b) "arrangements" includes any scheme, agreement or understanding, whether or not legally enforceable.".
The references in paragraph (a) above to control shall be construed in accordance with section 416 of the Taxes Act 1988.". (7) This Resolution shall apply to instruments executed after 23rd April 2002.

(8) But this Resolution does not apply to an instrument giving effect to a contract made on or before 17th April 2002, 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.
(9) This Resolution shall come into force on 24th April 2002.

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.