Finance Act, 1991

Provision relating to voluntary disposition inter vivos, etc.

103.—(1) Where an instrument operates or is deemed to operate as a voluntary disposition inter vivos by operation of the provisions of section 74 of the Finance (1909-10) Act, 1910 , or section 24 of the Finance Act, 1949 , and the statement of value of such property, or in the case of a lease the minimum amount or value referred to in the said section 24, provided to the Commissioners under subsection (5) of section 5 of the Act of 1891 (hereafter in this section referred to as the “submitted value”) is less than the value of the property as agreed with, or ascertained by, the Commissioners (hereafter in this section referred to as the “ascertained value”) then, as a penalty, the duty chargeable upon the conveyance or transfer, or lease, shall be increased by an amount (hereafter in this section referred to as the “surcharge”) calculated according to the following provisions:

(a) where the submitted value is less than the ascertained value by an amount which is greater than 10 per cent. of the ascertained value but not greater than 30 per cent. of the ascertained value, a surcharge equal to 50 per cent. of the total duty chargeable on the instrument:

Provided that no surcharge shall be chargeable where the difference between the submitted value and the ascertained value is less than £5,000;

(b) where the submitted value is less than the ascertained value by an amount which is greater than 30 per cent. of the ascertained value but not greater than 50 per cent. of the ascertained value, a surcharge equal to the total duty chargeable on the instrument;

(c) where the submitted value is less than the ascertained value by an amount which is greater than 50 per cent. of the ascertained value, a surcharge equal to double the total duty chargeable on the instrument.

(2) Where a statement of value, or in the case of a lease the minimum amount or value referred to in section 24 of the Finance Act, 1949 , is not provided in accordance with the provisions of subsection (5) of section 5 of the Act of 1891, then the liability of an instrument to a surcharge under this section may be ascertained by the Commissioners by the substitution of the consideration, other than rent in the case of lease, stated in the instrument for the submitted value.

(3) Any surcharge payable by operation of this section shall be chargeable and recoverable in the same manner as if it were part of the duty on the instrument to which it relates.

(4) Notwithstanding the provisions of subsection (4) of section 15 of the Act of 1891, any surcharge imposed by operation of this section shall not be denoted on an instrument to which it relates by impressed stamps or otherwise.

(5) Subsection (3) of section 74 of the Finance (1909-10) Act, 1910 , is hereby repealed.

(6) This section shall have effect as respects instruments executed on or after the 1st day of November, 1991.