SCHEDULES
F1SCHEDULE 2ATransactions entered into before completion of contract
Relief for original purchaser: qualifying subsales
16
1
This paragraph applies if—
a
the pre-completion transaction is a qualifying subsale,
b
the original purchaser would, in the absence of this paragraph, be liable to pay tax in respect of a land transaction effected by the completion of the original contract or deemed to be effected by the substantial performance of the original contract,
c
the performance of the qualifying subsale takes place at the same time as, and in connection with, the performance of the original contract, and
d
relief is claimed in respect of the land transaction mentioned in paragraph (b).
2
If the subject-matter of the qualifying subsale is the whole of the subject-matter of the original contract, no liability to tax arises in respect of the land transaction.
3
If the subject-matter of the qualifying subsale is part (but not the whole) of the subject-matter of the original contract, the amount of the consideration for the land transaction is taken to be—
a
the amount that it would be apart from this subsection, less
b
so much of that amount as is referable to the subject-matter of the qualifying subsale.
4
The amount mentioned in sub-paragraph (3)(a) may be reduced more than once under sub-paragraph (3) if there is more than one qualifying subsale.
5
Sub-paragraphs (2) to (4) do not apply if—
a
the original contract had been substantially performed when the qualifying subsale was entered into, or
b
the transaction effected, or deemed to be effected, by the performance of the qualifying subsale is exempt from charge by virtue of any of sections 71A to 73.
6
Relief under this section must be claimed in a land transaction return or an amendment of a land transaction return.
7
For the purposes of this paragraph a contract for a land transaction is taken to be “performed” when it is substantially performed or completed (whichever is earlier).
8
A pre-completion transaction is a “qualifying subsale” if it is a contract under which the original purchaser contracts to sell the whole or part of the subject-matter of the original contract to the transferee.
Sch. 2A inserted (with effect in accordance with Sch. 39 para. 11 of the amending Act) by Finance Act 2013 (c. 29), Sch. 39 para. 3