Finance Act 2013 - Update For Commercial Property Industry

Finance Act 2013 (“FA 2013”) introduced a number of provisions which will be of relevance to those in and / or interacting with the commercial property sector.  The following is an overview of the new measures and changes.

Stamp duty

FA 2013 introduced a number of anti-avoidance provisions with respect to stamp duty.  In the past, it was possible to avoid or defer stamp duty on land purchases by either leaving the transaction ‘resting on contract’, by obtaining a building licence from the landowner or by entering into an agreement for a ‘long lease’ with the landowner.  While provisions aimed at targeting these practices had previously been on the statute books, they were subject to a commencement order and were never in fact made effective.  The provisions now enacted are similar to those sections originally proposed in 2007.  The provisions are as follows: