OpenLegislation

Section 73 Alternative property finance: land sold to financial institution and re-sold to personI1F2

United Kingdom

(1)

This section applies where arrangements are entered into between F1a person and a financial institution under which—

(a)

the institution—

(i)

purchases a major interest in land (“the first transaction”), and

(ii)

sells that interest to the person (“the second transaction”), and

(b)

the person grants the institution a legal mortgage over that interest.

(2)

The first transaction is exempt from charge if the vendor is—

(a)

the person concerned, or

(b)

another financial institution by whom the interest was acquired under other arrangements of the kind mentioned in F3section 71A(1)F4... entered into between it and the person.

(3)

The second transaction is exempt from charge if the financial institution complies with the provisions of this Part relating to the first transaction (including the payment of any tax chargeable F5on a chargeable consideration that is not less than the market value of the interest and, in the case of the grant of a lease at a rent, the rent.).

(F64)

This section does not apply if—

(a)

the person enters into the arrangements as trustee and any beneficiary of the trust is not a person, or

(b)

the person enters into the arrangements as partner and any of the other partners is not a person.

(5)

In this section—

F7(a)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)

“legal mortgage”—

(i)

in relation to land in England F8..., means a legal mortgage as defined in section 205(1)(xvi) of the Law of Property Act 1925 (c. 20);

F9(ii)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii)

in relation to land in Northern Ireland, means a mortgage by conveyance of a legal estate or by demise or sub-demise or a charge by way of legal mortgage.

(6)

References in this section to a person shall be read, in relation to times after the death of the person concerned, as references to his personal representatives.

Annotations

Textual amendments

F1

Words in ss. 71A-73 substituted (with effect in accordance with s. 168(5) of the amending Act) by Finance Act 2006 (c. 25), s. 168(1)

F2

Word in ss. 71A-73 substituted (with effect in accordance with s. 168(5) of the amending Act) by Finance Act 2006 (c. 25), s. 168(1)

F3

Words in s. 73(2)(b) substituted (with effect in accordance with Sch. 8 para. 7 of the amending Act) by Finance Act 2005 (c. 7), Sch. 8 para. 5(2)

F4

Words in s. 73(2)(b) omitted (with effect in accordance with s. 29(4) of the amending Act) by virtue of Scotland Act 2012 (c. 11), s. 44(2)(b)(3)(b), Sch. 3 para. 11(a) (with s. 29(5)(6)); S.I. 2015/637, art. 2

F5

Words in s. 73(3) inserted (with effect in accordance with s. 168(5) of the amending Act) by Finance Act 2006 (c. 25), s. 168(3)

F6

S. 73(4) ceased to have effect (with effect in accordance with s. 168(5) of the amending Act) by virtue of Finance Act 2006 (c. 25), s. 168(2)

F7

S. 73(5)(a) omitted (with effect in accordance with Sch. 21 para. 6 of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 21 para. 3(1)

F8

Words in s. 73(5)(b)(i) omitted (1.4.2018 with effect in accordance with s. 16(4)(5) of the amending Act) by virtue of Wales Act 2014 (c. 29), s. 29(2)(b)(3), Sch. 2 para. 6; S.I. 2018/214, art. 2(a)

F9

S. 73(5)(b)(ii) omitted (with effect in accordance with s. 29(4) of the amending Act) by virtue of Scotland Act 2012 (c. 11), s. 44(2)(b)(3)(b), Sch. 3 para. 11(b) (with s. 29(5)(6)); S.I. 2015/637, art. 2

Commencement

I1

Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)

Notes on Part 4

Modifications

C1

Pt. 4 construed as one with S.I. 2006/575, reg. 43 (6.4.2006) by The Pension Protection Fund (Tax) Regulations 2006 (S.I. 2006/575), regs. 1, 43(4)

C2

Pt. 4 modified (coming into force at 2 p.m. on 6.12.2006) by The Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2006 (S.I. 2006/3237), regs. 1, 2, Sch.

C3

Pt. 4 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 194(8)-(12)

C4

Pt. 4 applied (17.7.2014) by Finance Act 2014 (c. 26), ss. 223(8)(9)(d)

C5

Pt. 4 modified (temp.) (22.7.2020) by Stamp Duty Land Tax (Temporary Relief) Act 2020 (c. 15), s. 1 (as amended (10.6.2021) by 2021 c. 26, s. 87(2))

C6

Pt. 4 modified (temp.) (10.6.2021) by 2020 c. 15, s. 1A (as inserted by Finance Act 2021 (c. 26), s. 87(3))

C7

Pt. 4 applied (19.3.2025) by The Co-ownership Contractual Schemes (Tax) Regulations 2025 (S.I. 2025/200), regs. 1(2), 29(2)(5) (with reg. 63)

C8

Pt. 4 modified (19.3.2025) by The Co-ownership Contractual Schemes (Tax) Regulations 2025 (S.I. 2025/200), regs. 1(2), 28, 30 (with reg. 63)