# The Enactment of Extra-Statutory Concessions Order 2013, Note: Explanatory note


(This note is not part of the Order)
This Order is made under section 160 of the Finance Act 2008 (c. 9). It enacts an existing HMRC extra-statutory concession (“ESC”) insofar as it applied to stamp duty, and amends statutory provisions inserted by previous Enactment of Extra-Statutory Concessions Orders (S.I 2010/157 and S.I. 2011/1037).
This Order comes into force on 1 March 2013 and the individual articles enacting the concession or amending statutory provisions have effect, as the case may be, for disposals, payments made, transfers on sale executed or transactions entered into on or after 1 March 2013.
Article 2 replaces subsections (1) and (2) of section 248B of the Taxation of Chargeable Gains Act 1992 (c.12) (“TCGA”). The effect of these changes is to amend the method for the calculation of roll-over relief where there is an exchange of interests in land for which provision is made under sections 248A to 248D of the TCGA. These amendments are made so that sections 248A to 248D of the TCGA enact the ESC as originally intended in 2010.
Section 413A of the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (“ITEPA”) relieves the payment of certain legal costs from the charge to income tax in section 403 ITEPA. Article 3 replaces the term “compromise” with “settlement” and removes the definition of compromise agreement.
Articles 4 to 9 enact Extra-Statutory Concession C10 as it was applied in practice by HMRC to stamp duty.
Articles 4 and 5 amend the Finance Act 1930 (c. 28) (“FA 1930”) to insert sections 42A and 42B. Articles 7 and 8 amend Schedule 7 to the Finance Act 2003 (c. 14) (“FA 2003) to insert paragraphs 2A and 2B.
Section 42A of FA 1930 and paragraph 2A of Schedule 7 to FA 2003 respectively provide that section 42 of FA 1930 (relief from transfer stamp duty in case of transfer of property as between associated companies) and paragraph 2 of Schedule 7 to FA 2003 (restrictions on availability of group relief) will not apply, prior to various contingencies occurring, in relation to certain types of agreement regulating the affairs of two or more members of a joint venture company carrying on a commercial activity.
Section 42B of FA 1930 and paragraph 2B of Schedule 7 to FA 2003 respectively provide that section 42 of FA 1930 and paragraph 2 of Schedule 7 to FA 2003 do not apply, prior to a default or other event which allows the mortgagee to exercise his rights against the mortgagor, if shares or securities in a company are used as a security under a mortgage in certain situations.
In line with government commitments, a Tax Information and Impact Note has not been prepared in respect of this Order. There has been no change in policy, and there is no change to the tax, administrative or other impacts.

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Source: https://www.legislation.gov.uk/ukdsi/2013/9780111533000/note (the official version)
Page: https://openlegislation.uk/draft-enactment-of-extra-statutory-concessions-order-2013/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.