Finance Act 2003

[F1 PART 1 U.K. Eligibility for relief

Textual Amendments

F1 Sch. 6ZA inserted (with effect in accordance with s. 41(8) of the amending Act) by Finance Act 2018 (c. 3), s. 41(3)

Eligibility for relief U.K.

1 (1) Relief may be claimed for a chargeable transaction if the following conditions are met (but this is subject to sub-paragraph (7)). U.K.

(2) The first condition is that the main subject-matter of the transaction consists of a major interest in a single dwelling (“the purchased dwelling”).

(3) The second condition is that the relevant consideration for the transaction (other than any consisting of rent) is not more than £500,000.

(4) The third condition is that the purchaser, or (if more than one) each of the purchasers, is a first-time buyer who intends to occupy the purchased dwelling as the purchaser's only or main residence.

(5) The fourth condition is that—

(a) the transaction is not linked to another land transaction, or

(b) the transaction is linked only to land transactions that are within sub-paragraph (6).

(6) A land transaction is within this sub-paragraph if the main subject-matter of the transaction consists of—

(a) an interest in land that is or forms part of the garden or grounds of the purchased dwelling, or

(b) an interest in or right over land that subsists for the benefit of—

(i) the purchased dwelling, or

(ii) land that is or forms part of the garden or grounds of the purchased dwelling.

(7) Relief may not be claimed under this paragraph for a chargeable transaction if it is a higher rates transaction for the purposes of paragraph 1 of Schedule 4ZA.

Eligibility for relief: linked transactions within paragraph 1(6) U.K.

2 (1) Where a land transaction (“the main transaction”) is eligible for relief under paragraph 1 (or would be if it were a chargeable transaction), relief may also be claimed for any chargeable transaction that is linked to the main transaction. U.K.

(2) But relief may not be claimed under this paragraph for a chargeable transaction if the purchaser, or (if more than one) any of the purchasers in relation to the transaction is not a purchaser in relation to the main transaction.

Eligibility for relief: alternative finance arrangements U.K.

3 (1) This paragraph applies in relation to a land transaction which is the first transaction under an alternative finance arrangement entered into between a person and a financial institution. U.K.

(2) The person (rather than the institution) is to be treated as the purchaser in relation to the transaction for the purposes of paragraphs 1(4) and 2(2).

(3) In this paragraph—

• “alternative finance arrangement” means an arrangement of a kind mentioned in section 71A(1) or 73(1),

• “financial institution” has the meaning it has in those sections (see section 73BA), and

• “first transaction”, in relation to an alternative finance arrangement, has the meaning given by section 71A(1)(a) or (as the case may be) section 73(1)(a)(i).]

[F2 Eligibility for relief: acquisition of new lease on bare trust U.K.

Textual Amendments

F2 Sch. 6ZA para. 3A and cross-heading inserted (with effect in accordance with s. 8(4) of the amending Act) by Finance (No. 2) Act 2024 (c. 12), s. 8(2)

3A U.K. In determining who is the purchaser for the purposes of paragraphs 1(4) and 2(2), paragraph 3 of Schedule 16 is to have effect as if sub-paragraphs (2) and (3) (trustee of bare trust granted a lease treated as purchaser of the whole of the interest acquired) were omitted.]