SCHEDULE 14RELIEF FOR CERTAIN ACQUISITIONS OF DWELLINGS

PART 3RELIEF FOR PERSONS EXERCISING COLLECTIVE RIGHTS

Relief for transactions entered into by persons exercising collective rights

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1

This paragraph applies where a chargeable transaction is entered into by a person or persons nominated or appointed by qualifying tenants of flats contained in premises in exercise of—

a

a right under Part 1 of the Landlord and Tenant Act 1987 (c. 31) (right of first refusal), or

b

a right under Chapter 1 of Part 1 of the Leasehold Reform, Housing and Urban Development Act 1993 (c. 28) (right to collective enfranchisement).

2

The amount of tax chargeable is determined as follows.

  • Step 1 Determine the fraction of the chargeable consideration produced by dividing the total amount of that consideration by the number of qualifying flats contained in the premises.

  • Step 2 Determine the amount of tax chargeable under section 27 as if the chargeable consideration for the chargeable transaction were the fraction of the chargeable consideration calculated under Step 1.

  • Step 3 Multiply the amount determined at Step 2 by the number of qualifying flats contained in the premises.

3

In this paragraph—

a

“"flat”” and “"qualifying tenant”” have the same meaning as in the Chapter or the Part of the Act conferring the right being exercised;

b

“"qualifying flat”” means a flat that is held by a qualifying tenant who is participating in the exercise of the right.