(1) In this section “payment entitlement” has the same meaning as it has for the purposes of >Council Regulation (EC) No. 1782/2003 of 29 September 20031<>Regulation (EU) No. 1307/2013 of the European Parliament and of the Council of 17 December 20131<.
(2) Subject to subsection (3), stamp duty shall not be chargeable under or by reference to any heading in Schedule 1 on an instrument for the sale, transfer or other disposition of a payment entitlement.
(3) Where stamp duty is chargeable on an instrument under or by reference to any heading in Schedule 1 and part of the property concerned consists of a payment entitlement—
(a) the consideration in respect of which stamp duty would otherwise be chargeable shall be apportioned, on such basis as is just and reasonable, as between the part of the property which consists of a payment entitlement and the part which does not, and
(b) the instrument shall be chargeable only in respect of the consideration attributable to such of the property as is not a payment entitlement.
(4) The amount or value of the consideration attributable to a payment entitlement, shall be disregarded for the purposes of the statement provided for in paragraphs 7 to 14A of the heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance” and any statement referred to in those paragraphs shall be construed accordingly.
(5) Where part of the property referred to in subsection (1) of section 45 consists of a payment entitlement, that subsection shall have effect as if the words “in such manner as is just and reasonable” were substituted for “in such manner, as the parties think fit”.
(6) Where part of the property referred to in subsection (3) of section 45 consists of a payment entitlement and both or, as the case may be, all the relevant persons are connected with one another, that subsection shall have effect as if the words “, 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 to such separate part or parcel, and such conveyance shall be charged with ad valorem duty in respect of such distinct consideration.” were substituted for “for distinct parts of the consideration, then the conveyance of each separate part or parcel shall be charged with ad valorem duty in respect of the distinct part of the consideration specified in the conveyance.”.
(7) For the purposes of subsection (6), a person is a relevant person if that person is a person by or for whom the property is contracted to be purchased and the question of whether persons are connected with one another shall be construed in accordance with section 10 of the Taxes Consolidation Act 1997 and as if the reference to the Capital Gains Tax Acts in the definition of “relative” in that section was replaced by a reference to the Stamp Duties Consolidation Act 1999.
(8) Where subsection (5) or (6) applies, and the consideration is apportioned in a manner that is not just and reasonable, the conveyance relating to the separate part or parcel of property shall be chargeable with ad valorem duty as if the value of that separate part or parcel of property were substituted for the distinct consideration set forth in that conveyance.
1 OJ No. L270 of 21.10.2003, p.1
1 OJ No. L347, 20.12.2013, p.608
Inserted by FA06 s109(1). This section applies as respects instruments executed on or after 1 January 2005.
Deleted by FA12 s97(1)(c). Applies as respects instruments executed on or after 7 December 2011. Does not apply as respects any instrument executed before 1 July 2012 where— (a) the effect of the application of that subsection would be to increase the duty otherwise chargeable on the instrument, and (b) the instrument contains a statement, in such form as the Revenue commissioners may specify, certifying that the instrument was executed solely in pursuance of a binding contract entered into before 7 December 2011.
Substituted by FA14 sched3(2). Has effect as respects instruments executed on or after 1 January 2015.