SCHEDULES

F1SCHEDULE 7APaif seeding relief and coacs seeding relief

Annotations:
Amendments (Textual)
F1

Sch. 7A inserted (with effect in accordance with Sch. 16 para. 15 of the amending Act) by Finance Act 2016 (c. 24), Sch. 16 para. 4

PART 2Co-ownership authorised contractual schemes

Withdrawal of relief: units disposed of

17

1

This paragraph applies where—

a

a person (“V”) makes a relevant disposal of one or more units in a co-ownership authorised contractual scheme—

i

at any time in the seeding period,

ii

at any time in the control period, or

iii

in pursuance of, or in connection with, arrangements made before the end of the control period, and

b

there is, in relation to that disposal, a relevant seeding transaction (see sub-paragraph (6)).

2

In respect of a transaction which is, in relation to the relevant disposal, a relevant seeding transaction—

a

COACS seeding relief is withdrawn to the extent set out in this paragraph, and

b

tax is chargeable in accordance with this paragraph.

3

V's disposal of units in a scheme is a “relevant disposal” for the purposes of this paragraph if, in relation to the disposal, A exceeds B.

4

In this paragraph—

  • “A” means—

    1. a

      where the value of V's investment in the scheme immediately before the disposal is equal to or greater than the total of the chargeable consideration for all relevant seeding transactions, the total of the chargeable consideration for all relevant seeding transactions, or

    2. b

      where the value of V's investment in the scheme immediately before the disposal is less than the total of the chargeable consideration for all relevant seeding transactions, the value of V's investment in the scheme immediately before the disposal, and

  • “B” means the value of V's investment in the scheme immediately after the disposal.

5

The amount chargeable in respect of a relevant seeding transaction (“RST”) is—

where—

“C” means the difference between A and B;

“CCRST” means the total of the chargeable consideration for all relevant seeding transactions;

“SDLT” means the amount of tax that would have been chargeable in respect of RST but for COACS seeding relief, ignoring any amount of tax that has been charged under this paragraph in respect of RST in relation to an earlier disposal of units by V.

6

In this paragraph—

  • “group company” means (where V is a company) a company which is a member of the same group of companies as V for the purposes mentioned in paragraph 1(2) of Schedule 7 (group relief);

  • “relevant seeding transaction”, in relation to a disposal of units by V in a co-ownership authorised contractual scheme, means a seeding transaction—

    1. a

      the effective date of which is, or is before, the date of the disposal,

    2. b

      in which that scheme is the purchaser, and

    3. c

      in which a vendor is—

      1. i

        V, or

      2. ii

        (where V is a company) a company which is a group company at the time of the disposal;

  • “seeding transaction” means a transaction in respect of which COACS seeding relief is allowed (whether or not relief is subsequently withdrawn to any extent);

  • “the value of V's investment in the scheme” at a particular time means the market value of all units in the co-ownership authorised contractual scheme held at that time by—

    1. a

      V, and

    2. b

      (where V is a company) a company which—

      1. i

        is a group company at that time, and

      2. ii

        before that time, has been a vendor in one or more seeding transactions in which the scheme was the purchaser.

7

For the purposes of this paragraph, the “market value” on a particular date of units in the scheme is an amount equal to the buying price (that is, the lower price) published by the operator on that date (or, if no such price is published on that date, on the latest date before).