HC Deb 23 April 2002 vol 384 cc295-6

Resolved,

That the following provisions shall have effect for the period beginning 23rd April 2002 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973—

(1) No stamp duty shall be chargeable on an instrument for the sale, transfer or other disposition of goodwill.

(2) The provisions of paragraphs (3) to (7) of this Resolution shall apply where stamp duty under Part 1 of Schedule 13 to the Finance Act 1999 is chargeable on an instrument that relates partly to goodwill and partly to property other than goodwill.

(3) In such a case—

  1. (a) the consideration in respect of which duty would otherwise be charged shall be apportioned, on a just and reasonable basis, as between the goodwill and the other property, and
  2. (b) the instrument shall be charged only in respect of the consideration attributed to the other property.
(4) Where part of the property referred to in section 58(1) of the Stamp Act 1891 consists of goodwill, that provision shall have effect as if "the parties think fit" read "is just and reasonable".

(5) Where part of the property referred to in section 58(2) of the Stamp Act 1891 consists of goodwill, and both or (as the case may be) all the relevant persons are connected with one another, that provision shall have effect as if the words from "for distinct parts of the consideration" to the end of the subsection read ", the consideration shall be apportioned in such manner as is just and reasonable, so that a distinct consideration for each separate part or parcel is set forth in the conveyance relating thereto, and such conveyance is to be charged with ad valorem duty in respect of such distinct consideration.".

(6) In a case where paragraph (4) or (5) of this Resolution applies and the consideration is apportioned in a manner that is not just and reasonable, the enactments relating to stamp duty shall have effect as if—

  1. (a) the consideration had been apportioned in a manner that is just and reasonable, and
  2. (b) the amount of any distinct consideration set forth in any conveyance relating to a separate part or parcel of property were such amount as is found by a just and reasonable apportionment (and not the amount actually set forth).
(7) For the purposes of paragraph (5) of this Resolution—
  1. (a) a person is a relevant person if he is a person by or for whom the property is contracted to be purchased;
  2. (b) the question whether persons are connected with one another shall be determined in accordance with section 839 of the Income and Corporation Taxes Act 1988.
(8) Goodwill shall be disregarded for the purposes of paragraph 6 of Schedule 13 to the Finance Act 1999.

(9) Any statement as mentioned in paragraph 6(1) of that Schedule shall be construed as leaving out of account any matter which is to be so disregarded.

(10) Section 12 of the Finance Act 1895 does not require any person who is authorised to purchase any property as mentioned in that section after 23rd April 2002 to include any goodwill in the instrument of conveyance required by that section to be produced to the Commissioners.

(11) If the property consists wholly of goodwill no instrument of conveyance need be produced to the Commissioners under that section.

(12) Paragraphs (1) to (9) of this Resolution shall apply to instruments executed on or after 23rd April 2002.

(13) Paragraphs (10) and (11) of this Resolution shall apply where the Act mentioned in that section, and by virtue of which property is vested or a person is authorised to purchase property, is passed after 23rd April 2002.

(14) In this Resolution "the enactments relating to stamp duty" means the Stamp Act 1891 and any enactment amending that Act or that is to be construed as one with that Act.

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.