Finance Act 1994 (c. 9)

(The document as of February, 2008)

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(b) if the underwriting year in which the loss is declared falls within a single accounting period, the insurance money shall be treated as a trading receipt in computing the profits arising from the business for that period.

(3) Where, as respects the payment of any such insurance money as is mentioned in subsection (2) above--

(a) the inspector is not notified of the payment at least 30 days before the time after which any assessment or further assessment of profits for any of the accounting periods or (as the case may be) the accounting period is precluded by section 34 of the Management Act (ordinary time limit), and

(b) the inspector is not entitled, after that time, to make any such assessment or further assessment by virtue of section 36 (fraudulent or negligent conduct) of that Act,

that subsection shall have effect in relation to the apportioned part of that insurance money or (as the case may be) that insurance money as if, instead of that accounting period, it referred to the accounting period in which the payment is made.

(4) In this section--

"apportioned part", in relation to any insurance money, means a part apportioned under section 72 of the Taxes Act 1988;
"quota share contract" means any contract between a corporate member and another person which--
(a)
is made in accordance with the rules or practice of Lloyd's; and
(b)
provides for that other person to take over any rights and liabilities of the member under any of the syndicates of which it is a member.

Miscellaneous

226 Provisions which are not to apply

(1) Sections 92 to 95 of the 1993 Act (corporation tax: currency to be used) shall not apply for the purposes of computing for the purposes of corporation tax the profits or losses of a corporate member's underwriting business.

(2) No asset forming part of or liability attaching to a premiums trust fund of a corporate member shall be a qualifying asset or liability for the purposes of Chapter II of Part II of the 1993 Act (exchange gains and losses); and no contract forming part of such a fund shall be a currency contract for those purposes.

(3) No contract or option forming part of a premiums trust fund of a corporate member shall be a qualifying contract for the purposes of Chapter II of this Part of this Act (interest rate and currency contracts and options).

227 Cessation: final underwriting year

(1) This section applies where a corporate member ceases to carry on its underwriting business, whether by reason of being wound up or otherwise.

(2) Subject to the provisions of any regulations made by the Board--

(a) the member's final underwriting year shall be that in which its deposit at Lloyd's is paid over to it or its liquidator, and

(b) the member's underwriting business shall be treated as continuing until the end of that year.

228 Lloyd's underwriters: individuals

(1) Chapter III of Part II of the 1993 Act (Lloyd's underwriters: individuals) shall have effect subject to the amendments specified in Schedule 21 to this Act.

(2) The following provisions shall cease to have effect, namely--

(a) section 627 of the Taxes Act 1988 (elections by Lloyd's underwriters with respect to retirement annuities);

(b) in section 641 of that Act, subsection (2) (elections by Lloyd's underwriters with respect to carry-back of contributions); and

(3) Subject to any provision to the contrary, the provisions of Schedule 21 to this Act have effect for the year 1994-95 and subsequent years of assessment.

(4) Subsection (2) above has effect for the year 1997-98 and subsequent years of assessment.

Supplemental

229 Regulations

The Board may by regulations provide--

(a) for the assessment and collection of tax charged in accordance with section 219 above (so far as not provided for by Schedule 19 to the 1993 Act as applied by section 221 above);

(b) for making, in the event of any changes in the rules or practice of Lloyd's, such amendments of this Chapter as appear to the Board to be expedient having regard to those changes;

(c) for modifying the application of this Chapter in cases where a syndicate continues after the end of its closing year or a corporate member becomes insolvent or otherwise ceases to carry on its underwriting business;

(d) for giving credit for foreign tax.

230 Interpretation and commencement

(1) In this Chapter, unless the context otherwise requires--

"the 1993 Act" means the [1993 c. 34.] Finance Act 1993;
"ancillary trust fund", in relation to a corporate member, does not include a premiums trust fund but, subject to that, means any trust fund required or authorised by the rules of Lloyd's, or required by a members' agent or regulating trustee of the corporate member;
"closing year"--
(a)
in relation to an underwriting year, means the underwriting year next but one following that year; and
(b)
in relation to a syndicate, means the closing year of the underwriting year for which it was formed;
"corporate member" means a body corporate which is a member of Lloyd's and is or has been an underwriting member;
"inspector" includes any officer of the Board;
"the Management Act" means the [1970 c. 9.] Taxes Management Act 1970;
"managing agent", in relation to a syndicate and an underwriting year, means--
(a)
the person registered as a managing agent at Lloyd's who was acting as such an agent for the syndicate at the end of that year, or
(b)
such other person as may be determined in accordance with regulations made by the Board;
"member" means a member of Lloyd's who is or has been an underwriting member;
"members' agent", in relation to a corporate member, means a person registered as a members' agent at Lloyd's who has been appointed by the corporate member to act as its members' agent in respect of all or any part of its underwriting business;
"premiums trust fund" means such a trust fund as is referred to in section 83 of the [1982 c. 50.] Insurance Companies Act 1982;
"prescribed" means prescribed by regulations made by the Board;
"profits" includes gains;
"regulating trustee", in relation to a corporate member, means a person designated as such by the terms of any trust deed by which a premiums trust fund of the corporate member is constituted;
"stop-loss insurance" means any insurance taken out by a corporate member against losses in its underwriting business;
"syndicate" means a syndicate of underwriting members of Lloyd's formed for an underwriting year;
"underwriting business", in relation to a corporate member, means its underwriting business as a member of Lloyd's;
"underwriting year" means the calendar year.

(2) For the purposes of this Chapter, unless the contrary intention appears--

(a) the profits or losses of a corporate member's underwriting business include profits or losses arising to it--

(i) from assets forming part of a premiums trust fund or an ancillary trust fund; or

(ii) from assets employed by it in, or in connection with, its underwriting business; and

(b) any charge made on a corporate member by the managing agent of a syndicate of which it is a member, and any expense incurred on its behalf by the managing agent of such a syndicate, shall be treated as expenses arising directly from its membership of that syndicate.

(3) Subject to any provision to the contrary, the provisions of this Chapter have effect for accounting periods ending on or after 1st January 1994 or, as the case may require, for the underwriting year 1994 and subsequent underwriting years.

Part V Oil Taxation

Chapter I Election by Reference to Pipe-Line Usage

231 Election by reference to pipe-line with excess capacity

(1) The provisions of this Chapter apply where, on or before 1st January 1996, a participator in a taxable field makes, in accordance with Part I of Schedule 22 to this Act, an election with respect to that field by reference to a pipe-line--

(a) which is a qualifying asset;

(b) which is used or intended to be used for transporting oil in circumstances which give rise or are expected to give rise to tariff receipts;

(d) for which the initial usage fraction does not exceed one-half.

(2) A participator may not make an election--

(a) unless the field to which the election applies is (or, as the case may be, is intended to be) the chargeable field in relation to the tariff receipts referred to in subsection (1)(b) above; or

(b) if the first chargeable period of that field ended on or before 30th June 1982; or

and for the purposes of paragraph (c) above no account shall be taken of the operation of section 113 of the [1981 c. 35.] Finance Act 1981 (loss following net profit period).

(3) If there is more than one pipe-line by reference to which the electing participator could, apart from this subsection, make an election (with respect to the same field) he may make an election only by reference to that pipe-line which is the longer or longest.

(4) In this Chapter, in relation to a pipe-line or an election made by reference to a pipe-line, "the initial usage fraction" means the fraction of which--

(a) the numerator is the daily contracted and production throughput of oil in relation to the pipe-line on 16th March 1993; and

(b) the denominator is the design capacity of the pipe-line, expressed on a daily basis.

(5) Subject to subsection (6) below, where an election is in operation it shall apply to all those assets which, by reference to the field to which the election applies, are at the date of the election or subsequently become--

(a) qualifying assets in relation to the electing participator; and

(b) assets to which are or are expected to be referable any tariff receipts of the electing participator attributable to that field.

(6) If the electing participator specifies in his election that the election is to be limited to oil which is, or is expected to be, transported by the pipe-line by reference to which the election is made, the election shall apply only to such of the assets referred to in subsection (5) above as, in whole or in part, are or subsequently become used in connection with that oil.

(7) For the purposes of this Chapter, unless it is just and reasonable to determine some other quantity of oil, the daily contracted and production throughput of oil in relation to a pipe-line on 16th March 1993 is the aggregate of--

(a) the maximum daily capacity specified in contracts then in force for the use of the pipe-line (whether at that date or in the future) for transporting oil won from any taxable field (including the field to which the election applies); and

(b) the maximum expected daily throughput, otherwise than pursuant to such contracts, of oil transported by the pipe-line and won from the field to which the election applies or any other taxable field, being the throughput ascertained by reference to what was at that date the most recent development plan applicable to the field to which the election applies or, as the case may be, the other taxable field.

(8) For the purposes of this Chapter, unless it is just and reasonable to determine some other capacity, the design capacity of a pipe-line is that which is specified for the pipe-line as a whole in what was, on 16th March 1993, the most recent development plan applicable to the field to which the election applies or, as the case may be, the pipe-line itself.

232 Restriction on electing participator's allowable expenditure on elected assets

(1) This section has effect in relation to expenditure which is incurred on an asset to which an election applies; and in this section "allowable or allowed", in relation to any expenditure, means allowable or allowed under any of the expenditure relief provisions.

(2) Subject to the following provisions of this section, in the case of expenditure incurred before the date of the election, the amount which, apart from this section, would be allowable or allowed in the case of the electing participator shall be reduced by multiplying it by the initial usage fraction.

(3) Subject to subsection (5) below, in the case of expenditure incurred on or after the date of the election, the amount which, apart from this section, would be allowable or allowed in the case of the electing participator shall be reduced to nil.

(4) Where, after 30th November 1993 and before the date of the election, expenditure was incurred on an asset to which the election applies and--

(a) apart from this section, that expenditure would have qualified for supplement by virtue of paragraph (c) or paragraph (d) of subsection (5) of section 3 of the principal Act, and

(b) the effect of the expenditure is to increase the maximum capacity of the pipe-line by reference to which the election was made above its design capacity or to increase the capacity of any asset used or to be used for the initial treatment or initial storage of oil transported by the pipe-line above its development plan capacity,

that expenditure shall be treated for the purposes of the application of subsections (2) and (3) above as if it had been incurred after the date of the election.

(5) Where, at the date of the election, an asset to which the election applies is for the time being leased or hired under a contract which was entered into before 16th March 1993, any expenditure--

(a) which is incurred on or after the date of the election on the leasing or hiring of the asset under the contract, and

(b) which is not of a description falling within paragraphs (a) and (b) of subsection (4) above,

shall be treated for the purposes of the application of subsections (2) and (3) above as if it had been incurred before the date of the election.

(6) For the purposes of subsection (4)(b) above, the development plan capacity of any asset used or to be used for the initial treatment or initial storage of oil transported by a pipe-line is--

(a) the maximum capacity of that asset as specified in what, on 16th March 1993, was the most recent development plan applicable to the field to which the election applies or, as the case may be, to the asset itself; or

(b) if no such maximum capacity was so specified in relation to an asset, its actual maximum capacity on that date or, if there was no such capacity on that date, nil.

(7) Where a claim under Schedule 5 or Schedule 6 to the principal Act relates to the allowance of any expenditure to which subsection (2) above applies, the amount claimed shall take account of the operation of that subsection; and where subsection (3) above applies to any expenditure, no such claim shall be made with respect to it.

(8) Where a claim has been made under Schedule 5 or Schedule 6 to the principal Act with respect to any expenditure and, subsequently, an election is made which has the effect of altering the amount of expenditure which is allowable or allowed,--

(a) a notice of variation such as is mentioned in paragraph 9 of Schedule 5 to the principal Act may be served after the end of the period referred to in sub-paragraph (1) of that paragraph if it is served before the expiry of the period of three years beginning on the date of the election; and

(b) if the effect of such a notice is that the net profit period with respect to the field to which the election applies is changed, the change shall not (by virtue of section 231(2) above) affect the validity of the election.

(9) Nothing in this section affects the determination of the question whether an asset is a qualifying asset for the purposes of the 1983 Act and, accordingly, for that purpose, the preceding provisions of this section shall be disregarded in determining whether any expenditure is allowable or allowed.

233 Tax relief for certain receipts of an electing participator

(1) If any sum--

(a) is received or receivable by the electing participator on or after the date of an election, and

(b) is so received or receivable from a participator in a non-taxable field in respect of the use, in connection with that non-taxable field, of an asset to which the election applies or the provision of services or other business facilities of whatever kind in connection with that use, and

that sum shall not be regarded as a tariff receipt for the purposes of the Oil Taxation Acts.

(2) If any sum--

(a) is received or receivable by the electing participator on or after the date of an election, and

(b) is so received or receivable in respect of the disposal of an asset to which the election applies or of an interest in such an asset, and

(c) constitutes a disposal receipt of the electing participator attributable to the field to which to the election applies,

that sum shall, for the purposes of the Oil Taxation Acts, be taken to be reduced in accordance with subsection (4) below.

(3) Any reference in subsection (1) or subsection (2) above to a sum received or receivable includes a reference to an amount which (apart from this section) would be treated as a tariff receipt or disposal receipt by virtue of paragraph 5 of Schedule 2 to the 1983 Act (acquisition and disposal of qualifying assets otherwise than at arm's length).

(4) Unless it is just and reasonable to make a different reduction, the reduction referred to in subsection (2) above shall be determined by reference to that applicable under subsection (2) or subsection (3) of section 232 above to the expenditure incurred on the asset concerned so that if, for the purposes of determining under those subsections the amount of that expenditure which was allowed or allowable,--

(a) the whole or any part of that expenditure was reduced by multiplying it by the initial usage fraction, or

(b) the whole or any part of that expenditure was reduced to nil,

a similar reduction shall apply to the whole or, as the case may require, to each correspondingly proportionate part of any sum falling within subsection (2) above.

(5) In this section "the Oil Taxation Acts" means Parts I and III of the principal Act, the 1983 Act and any other enactment relating to petroleum revenue tax.

234 Interpretation of Chapter and supplementary provisions

(1) In this Chapter "the 1983 Act" means the [1983 c. 56.] Oil Taxation Act 1983 and expressions used in this Chapter have the same meaning as in that Act.

(2) In this Chapter--

(a) "election" means an election under section 231 above and "electing participator" means a participator who makes or has made an election;

(b) "the expenditure relief provisions" means sections 3 and 4 of the principal Act and section 3 of the 1983 Act; and

(3) In this Chapter--

(a) any reference to the assets to which an election applies is a reference to the pipe-line by reference to which the election is made together with the assets determined in accordance with subsections (5) and (6) of section 231 above;

(b) any reference to the net profit period is a reference to the chargeable period which is the net profit period for the purposes of section 111 of the [1981 c. 35.] Finance Act 1981 (restriction of expenditure supplement); and

(c) any reference to a development plan is a reference to a consent for, or programme of, development granted, served or approved by the Secretary of State.

(4) Any reference in this Chapter to expenditure incurred on an asset is a reference to expenditure (whether or not of a capital nature) which--

(a) is incurred in acquiring, bringing into existence or enhancing the value of the asset, or

(b) is incurred (for any of the purposes mentioned in section 3(1) of the principal Act) by reference to the use of the asset in connection with a taxable field,

other than expenditure which, in the hands of the recipient, constitutes a tariff receipt.

(5) For the purposes of this Chapter--

(a) an election is "in operation" if it has been accepted by the Board; and

(b) the date of an election which is in operation is the date on which the election was received by the Board.

(6) The provisions of Part II of Schedule 22 to this Act shall have effect for supplementing the preceding provisions of this Chapter.

(7) The Board may make all such amendments of assessments or determinations or of decisions on claims as may be necessary in consequence of the provisions of this Chapter.

Chapter II Miscellaneous

235 Valuation of oil

(1) With respect to chargeable periods ending after 31st December 1993, subsection (5A) of section 2 of the [1975 c. 22.] Oil Taxation Act 1975 (special rules for valuation of oil consisting of gas which is disposed of in a sale at arm's length on terms including transportation costs etc.) shall be amended as follows--

(a) for the words "oil consisting of gas" there shall be substituted "oil";

(b) for the word "gas", in each place where it subsequently occurs, there shall be substituted "oil";

(c) for the words "for delivery at a place" there shall be substituted "or another country for delivery at another place in or"; and

(d) in paragraph (ii) after the words "United Kingdom", in the second place where they occur, there shall be inserted "or, in the case of oil first landed in another country, at the place in that or any other country".

(2) In Schedule 3 to that Act, in each of paragraphs 2(3) and 2A(3) for "(2)(e)" there shall be substituted "(2)(f)".

(3) In Schedule 10 to the [1987 c. 16.] Finance Act 1987 (nomination scheme for disposals and appropriations of oil), in paragraph 4 (timing of nominations)--

(a) in sub-paragraph (1) for the words "sub-paragraph (2)" there shall be substituted "sub-paragraphs (2) and (2A)"; and

(b) after sub-paragraph (2) there shall be inserted--

" (2A) Where the proposed transaction has a transaction base date later than 31st December 1993, sub-paragraph (1) above has effect with the substitution for the reference to the second business day of a reference to the first business day. "

(4) In paragraph 11 of that Schedule (a participator's aggregate nominated proceeds for a month), in sub-paragraph (2) for the words "sub-paragraph (2A)" there shall be substituted "sub-paragraphs (2A) and (2B)" and after sub-paragraph (2A) there shall be inserted the following sub-paragraph--

" (2B) In the case of a nominated transaction which is a disposal to which subsection (5A) of section 2 of the principal Act applies, for the amount which, apart from this sub-paragraph, would be the nominated price for the purposes of sub-paragraph (2) above there shall be substituted the amount which, under that subsection, is deemed to be the price received or receivable for the oil in question. "

236 Valuation of certain light gases

(1) Subject to subsection (2) below, the principal Act shall have effect subject to the amendments in Schedule 23 to this Act, being--

(a) amendments altering the rules for determining the market value of certain light gases for the purposes of petroleum revenue tax; and

(b) amendments consequential upon, or incidental to, those amendments.

(2) The amendments in Schedule 23 to this Act do not have effect in relation to any light gases if, before 1st January 1994, an election was made under section 134 of the [1982 c. 39.] Finance Act 1982 (alternative valuation of certain ethane) or section 109 of the [1986 c. 41.] Finance Act 1986 (alternative valuation of certain light gases) and the election applies to those gases.

(3) No election may be made after 31st December 1993 under section 134 of the Finance Act 1982 or section 109 of the Finance Act 1986; and, accordingly--

(a) in subsection (2) of the said section 134, after the word "section" there shall be inserted "must be made before 1st January 1994 and"; and

(b) in subsection (1) of the said section 109, after the word "section" there shall be inserted "before 1st January 1994".

(4) In section 12 of the principal Act (interpretation), in subsection (1) after the definition of "licensee" there shall be inserted--

" "light gases", except in relation to an election under section 134 of the Finance Act 1982 or section 109 of the Finance Act 1986, means oil consisting of gas of which the largest component by volume over any chargeable period, measured at a temperature of 15 degrees centigrade and a pressure of one atmosphere, is methane or ethane or a combination of those gases " .

237 Abortive exploration expenditure

(1) In section 5 of the principal Act (allowance of abortive exploration expenditure incurred before 16th March 1983), after subsection (2) there shall be inserted the following subsection--

" (2A) For the purpose only of determining under paragraph (c) of subsection (1) above whether expenditure is or is likely to become allowable for any oil field, it shall be assumed that any oil field which, apart from this subsection, would be a non-taxable field is or, as the case may be, will be a taxable field and, accordingly, that section 185(4)(e) of the Finance Act 1993 (no expenditure allowable for non-taxable fields) does not apply. "

(2) Subsection (1) above shall be deemed to have come into force at the same time as Part III of the [1993 c. 34.] Finance Act 1993 (27th July 1993).

(3) The Board may make all such amendments of assessments or determinations or of decisions on claims as may be necessary in consequence of the preceding provisions of this section.

238 Disposals of assets producing tariff receipts

(1) With respect to disposals made after 30th November 1993, paragraph 5 of Schedule 2 to the [1983 c. 56.] Oil Taxation Act 1983 (acquisition and disposal of qualifying assets otherwise than at arm's length: limit on tariff and disposal receipts) shall be amended in accordance with subsections (2) and (3) below; and in this subsection "disposal" has the same meaning as in that paragraph.

(2) In sub-paragraph (1) of paragraph 5, at the end of paragraph (c), and in place of the amendment made by section 190(5)(b) of the [1993 c. 34] Finance Act 1993, there shall be inserted " and

(d) the use of the asset will be wholly by that person in connection with a taxable field in which he is a participator (and accordingly, and in particular, there will be no use giving rise to tariff receipts) " ; and for the words "those receipts", where they next occur, there shall be substituted "the receipts referred to in paragraphs (b) and (c) above".

(3) In sub-paragraph (3) of paragraph 5, for paragraph (b) there shall be substituted the following paragraph--

" (b) the disposal does not fall within sub-paragraph (1) above, and " .

(4) The Board may make all such amendments of assessments or determinations or of decisions on claims as may be necessary in consequence of the preceding provisions of this section.

Part VI Stamp Duty

239 Execution of deeds

(1) In section 122 of the [1891 c. 39.] Stamp Act 1891 (definitions)--

(a) after subsection (1) there shall be inserted--

" (1A) For the purposes of this Act a deed (or, in Scotland, a deed for which delivery is required) shall be treated as executed when it is delivered or, if it is delivered subject to conditions, when the conditions are fulfilled " , and

(b) at the end of the definition of "executed" and "execution" in subsection (1) there shall be added "(but subject to subsection (1A) of this section)".

(2) In section 27 of the [1891 c. 38.] Stamp Duties Management Act 1891 (definitions), in the definition of "executed" and "execution", for the words following "execution" there shall be substituted "have the same meaning as in the [1891 c. 39.] Stamp Act 1891".

(3) This section shall apply to any instrument except one which, on or before 7th December 1993, has been executed for the purposes of the [1891 c. 39.] Stamp Act 1891 as that Act has effect before amendment by this section.

240 Time for presenting agreements for leases

(1) If there are presented for stamping at the same time in pursuance of the Stamp Act 1891--

(a) an agreement for a lease or tack, and

(b) the lease or tack which gives effect to the agreement,

and the duty (if any) chargeable on the agreement is paid, the agreement shall be treated for the purposes of section 15 of that Act (penalty upon stamping instruments after execution) as if it had been first executed when the lease or tack which gives effect to the agreement was first executed.

(2) No lease or tack shall be treated as duly stamped unless--

(a) it contains a certificate that there is no agreement to which it gives effect, or

(b) it is stamped with a stamp denoting--

(i) that there is an agreement to which it gives effect which is not chargeable with duty, or

(ii) the duty paid on the agreement to which it gives effect.

(3) For the purposes of this section a lease or tack gives effect to an agreement if the lease or tack is granted subsequent to the agreement and either is in conformity with the agreement or relates to substantially the same property and term as the agreement.

(4) Subsection (1) above shall apply to agreements executed on or after 6th May 1994; and subsection (2) above shall apply to any lease or tack executed on or after that day.

241 Exchange, partition, etc

(1) Where--

(a) the consideration for the transfer or vesting of any estate or interest in land or the grant of any lease or tack consists of or includes any property, and

(b) for the purposes of stamp duty chargeable under or by reference to the heading "Conveyance or Transfer on sale" in Schedule 1 to the [1891 c. 39.] Stamp Act 1891 no amount or value is, apart from this section, attributed to that property on that transfer, vesting or grant,

then, for those purposes, the consideration or, as the case may be, the consideration so far as relating to that property shall be taken to be the market value of the property immediately before the instrument in question is executed and accordingly the instrument shall be charged with ad valorem duty under that heading.

(2) For the purposes of this section 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.

(3) Stamp duty shall not be chargeable under the heading "Exchange or Excambion" in Schedule 1 to the Stamp Act 1891, and section 73 of that Act (exchange and partition or division) shall cease to apply to the exchange of property; and, accordingly, in that section the words from first "upon" to "heritable property, or" and the words "exchange or" shall cease to have effect.

(4) In that section, as amended by subsection (3) above, for "real or heritable property" there shall be substituted "estate or interest in land".

(5) In Schedule 1 to that Act, in paragraph (3) of the heading "Lease or Tack" (consideration consisting of money, stock or security charged as on a conveyance on sale), for "or security" there shall be substituted "security or other property".

(6) This section shall apply to instruments executed after 7th December 1993, not being instruments executed in pursuance of a contract made before 30th November 1993.

242 Where consideration not ascertainable from conveyance or lease

(1) Where, for the purposes of stamp duty chargeable under or by reference to the heading "Conveyance or Transfer on sale" in Schedule 1 to the [1891 c. 39.] Stamp Act 1891, the consideration, or any part of the consideration, for--

(a) the transfer or vesting of any estate or interest in land, or

(b) the grant of any lease or tack,

cannot, apart from this subsection, be ascertained at the time the instrument in question is executed, the consideration for the transfer, vesting or grant shall for those purposes be taken to be the market value immediately before the instrument is executed of the estate or interest transferred or vested or, as the case may be, the lease or tack granted.

(2) Where, for the purposes of stamp duty chargeable under paragraph (3) of the heading "Lease or Tack" in Schedule 1 to that Act, the rent, or any part of the rent, payable under any lease or tack cannot, apart from this subsection, be ascertained at the time it is executed, the rent shall for those purposes be taken to be the market rent at that time.

(3) For the purposes of this section--

(a) the cases where consideration or rent cannot be ascertained at any time do not include cases where the consideration or rent could be ascertained on the assumption that any future event mentioned in the instrument in question were or were not to occur, and

(b) the market rent of a lease or tack at any time is the rent which the lease or tack might reasonably be expected to fetch at that time in the open market,

and in this section "market value" has the same meaning as in section 241 above.

(4) This section shall apply to instruments executed after 7th December 1993.

243 Agreements to surrender leases

(1) Where, in pursuance of any agreement, any lease is surrendered (or, in Scotland, renounced) at any time otherwise than by deed, the agreement shall be treated for the purposes of any duty chargeable under the [1891 c. 39.] Stamp Act 1891 as if it were a deed executed at that time effecting the surrender (or, as the case may be, renunciation).

(2) This section shall apply to any agreement made after 7th December 1993.

244 Production of documents on transfer of land in Northern Ireland

(1) Subject to section 245 below, on the occasion of--

(a) any transfer on sale of any freehold interest in land in Northern Ireland, or

(b) the grant, or any transfer on sale, of any lease of such land,

the transferee, lessee or proposed lessee shall produce to the Commissioners the instrument by means of which the transfer is effected or the lease granted or agreed to be granted, as the case may be.

(2) Any transferee, lessee or proposed lessee required to produce any instrument under subsection (1) above shall produce with it a document (signed by him or by some person on his behalf and showing his address) giving such particulars as may be prescribed.

(3) Any person who, within thirty days--

(a) after the execution of an instrument which he is required under subsection (1) above to produce, or

(b) in the case of such an instrument executed at a place outside Northern Ireland, after it is first received in Northern Ireland,

fails to comply with that subsection or subsection (2) above shall be liable on summary conviction to a fine not exceeding level 1 on the standard scale.

(4) Where any agreement for any lease of land in Northern Ireland is produced to the Commissioners together with a document (signed as mentioned in subsection (2) above) giving such particulars as may be prescribed--

(a) it shall not be necessary to produce to them the instrument granting the lease, or any further such document as is referred to in that subsection, unless that instrument is inconsistent with the agreement, but

(b) the Commissioners shall, if any such instrument is produced to them and application is made for that purpose, denote on the instrument that it has been produced to them.

(5) Notwithstanding anything in section 12 of the [1891 c. 39.] Stamp Act 1891, no instrument required by this section to be produced to the Commissioners shall be deemed, for the purposes of section 14 of that Act, to be duly stamped unless it is stamped with a stamp denoting that the instrument has been so produced.

245 Production of documents: supplementary

(1) Section 244 above shall not apply to any instrument (an "exempt instrument") falling within any prescribed class; but regulations may, in respect of exempt instruments or such descriptions of exempt instruments as may be prescribed, require such a document as is mentioned in subsection (2) of that section to be furnished in accordance with the regulations to the Commissioner of Valuation for Northern Ireland.

(2) The information contained in any document produced to the Commissioners under section 244(2) above shall be available for use by the Commissioner of Valuation for Northern Ireland.

(3) Any person who fails to comply with any requirement imposed by virtue of subsection (1) above shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(4) Section 244 above shall also not apply to any instrument which relates solely to--

(a) incorporeal hereditaments or to a grave or right of burial, or

(b) land subject to land purchase annuities which are registered in the Land Registry in Northern Ireland.

(5) In this section and section 244 above--

"lease"--
(a)
includes an underlease or other tenancy and an agreement for a lease, underlease or tenancy, but
(b)
does not include a mortgage, charge or lien on any property for securing money or money's worth,

and "lessee" and "grant" shall be construed accordingly,
"prescribed" means prescribed by regulations, and
"regulations" means regulations made by the Commissioners under this section.

(6) The power to make regulations under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.

(7) Regulations under this section may make different provision for different cases.

(8) This section and section 244 above shall come into force on such day as the Treasury may by order made by statutory instrument appoint.

Part VII Inheritance Tax

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