HC Deb 14 April 2003 vol 403 cc754-5

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 113 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, after "the acquiring company" there shall be inserted "or a relevant associated company";
  2. (b) in sub-paragraph (i) for "to it" there shall be substituted "to the acquiring 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 section 76 relief was not claimed".

(4) In subsection (3) for "what the acquiring company holds" there shall be substituted "what is held by that company or, as the case may be, by that company and any relevant associated companies".

(5) After subsection (3) there shall be inserted—

"(3A) In this section "relevant associated company", in relation to the acquiring company, means a company—

  1. (a) that is controlled by the acquiring company immediately before the control of that company changes, and
  2. (b) of which control changes in consequence of the change of control of that company.".

(6) In Schedule 35 to the Finance Act 2002, in paragraphs 3(3)(b) and 4(3)(b)—

  1. (a) in the opening words, after "the acquiring company" there shall be inserted "or a relevant associated company",
  2. (b) in sub-paragraph (i) for "to it" there shall be substituted "to the acquiring 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 section 76 relief was not claimed".

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

(8) 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.

(9) 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.