|
|
Amendment of section 81 (young trained farmers) of Principal Act.
|
119.—(1) Section 81 of the Principal Act is amended in subsection (7) by substituting the following for paragraph (a):
|
|
| |
“(a) Where any person to whom land was conveyed or transferred by any instrument in respect of which relief from stamp duty under subsection (2) applied—
|
|
| |
(i) disposes of such land, or part of such land (in this subsection referred to as a ‘part disposal’), within a period of 5 years from the date of execution of that instrument, and
|
|
| |
(ii) does not fully expend the proceeds from such disposal, or as the case may be, such part disposal, in acquiring other land within a period of one year from the date of such disposal,
|
|
| |
then, such person or, where there is more than one such person, each such person, jointly and severally, shall become liable to pay to the Commissioners a penalty equal to an amount determined by the formula—
|
| |
|
|
| |
where—
|
|
| |
S is the amount of stamp duty which would have been charged on that instrument had relief under subsection (2) not applied,
|
|
| |
V is the market value of all the land that was conveyed or transferred by the instrument immediately before the disposal, or as the case may be, the part disposal of the land, and
|
|
| |
N is the amount of proceeds from the disposal, or as the case may be, the part disposal of the land that was not expended in acquiring other land.
|
|
| |
(aa) Interest shall be payable on a penalty incurred under paragraph (a) at a rate of 0.0322 per cent for each day or part of a day from the date of disposal, or as the case may be, part disposal of the land to the date the penalty is remitted.
|
|
| |
(ab) For the purposes of paragraph (a)—
|
|
| |
(i) where a disposal of land is effected in whole or in part by way of a voluntary disposition inter vivos, an amount equal to the market value of the lands disposed of, at the date of the disposal, shall be deemed to be the proceeds from such disposal,
|
|
| |
(ii) where any property is received by way of exchange, in whole or in part for a disposal, an amount equal to the market value of such property, at the date of the disposal, shall be deemed to be proceeds from such disposal, and
|
|
| |
(iii) where subparagraph (ii) applies and property received by way of exchange is land or includes land, an amount equal to the market value of such land at the date of the disposal shall be deemed to have been expended in acquiring other land.
|
|
| |
(ac) A person shall not be liable to a penalty under paragraph (a), if and to the extent that any penalty or, as the case may be, the aggregate of any penalties, paid by that person under paragraph (a), exceeds the stamp duty which would have been charged on the instrument had relief under subsection (2) not applied.”.
|
|
| |
(2) This section shall apply as respects disposals or part disposals of land effected on or after 3 February 2005.
|
