HC Deb 14 April 2003 vol 403 cc753-4

Resolved,

That the following provisions shall have effect for the period beginning with 15th April 2003 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973—

(1) Section 111 of the Finance Act 2002 shall be amended as follows.

(2) In subsection (1)(b) for "two years" there shall be substituted "three years".

(3) In subsection (1)(c)—

  1. (a) in the opening words—
    1. (i) for "it ceases" there shall be substituted "the transferee company ceases", and
    2. (i) for "it holds" there shall be substituted "it or a relevant associated company holds";
  2. (b) in sub-paragraph (i) for "to it" there shall be substituted "to the transferee company"; and
  3. (c) for the closing words there shall be substituted "and that has not subsequently been transferred at market value by a duly stamped instrument on which ad valorem duty was paid and in respect of which group relief was not claimed".

(4) In subsection (3)—

  1. (a) after "transferred" there shall be inserted "to the transferee company", and
  2. (b) for "what the transferee company holds at the time it ceases to be a member" there shall be substituted "what is held by that company or, as the case may be, that company and any relevant associated companies, at the time it or they cease to be members".

(5) After subsection (4) there shall be inserted—

"(4A) In this section "relevant associated company", in relation to the transferee company, means a company that—

  1. (a) is a member of the same group as the transferee company immediately before that company ceases to be a member of the same group as the transferor company, and
  2. (b) ceases to be a member of the same group as the transferor company in consequence of the transferee company so ceasing.".

(6) In paragraph 4(3) of Schedule 34 to the Finance Act 2002, in paragraph (b)—

  1. (a) in the opening words—
    1. (i) for "it ceases" there shall be substituted "the transferee company ceases", and
    2. (ii) for "it holds" there shall be substituted "it or a relevant associated company (as defined in sub-paragraph (4) below) holds";
  2. (b) in sub-paragraph (i) for "to it" there shall be substituted "to the transferee company"; and
  3. (c) for the closing words there shall be substituted "and that has not subsequently been transferred at market value by a duly stamped instrument on which ad valorem duty was paid and in respect of which group relief was not claimed".

(7) In the closing words of that sub-paragraph, for the words from "as if" to the end there shall be substituted "as if the transferee had then ceased to be a member of the same group as the transferor company and had then held the estate or interest referred to in paragraph (b).".

(8) After that sub-paragraph there shall be inserted— (4) In sub-paragraph (3)(b) "relevant associated company", in relation to the transferee company, means a company that is in the same group as the transferee company immediately before the transferee company ceases to be a member of the new group and which ceases to be a member of the new group in consequence of the transferee company so ceasing.".

(9) This Resolution shall apply to instruments executed after 14th April 2003.

(10) But this Resolution shall not apply to an instrument giving effect to a contract made on or before 9th April 2003, 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.

(11) This Resolution shall come into force on 15th April 2003.

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.