Textual Amendments
F1Sch. 8 para. 3 and cross-heading inserted (with effect in accordance with s. 302(7) of the amending Act) by Finance Act 2004 (c. 12), s. 302(1)
3(1)This paragraph applies where—U.K.
(a)a land transaction is not exempt from charge under paragraph 1 because the first condition in that paragraph is not met, but
(b)the purchaser (“C”) intends to hold the greater part of the subject-matter of the transaction for qualifying charitable purposes.
(2)In such a case—
(a)the transaction is exempt from charge, but
(b)for the purposes of paragraph 2 (withdrawal of charities relief) “disqualifying event” includes—
(i)any transfer by C of a major interest in the whole or any part of the subject-matter of the transaction, or
(ii)any grant by C at a premium of a low-rental lease of the whole or any part of that subject-matter,
that is not made in furtherance of the charitable purposes of C.
(3)For the purposes of sub-paragraph (2)(b)(ii)—
(a)a lease is granted “at a premium” if there is consideration other than rent, and
(b)a lease is a “low-rental”lease if the annual rent (if any) does not exceed £600 a year.
(4)In relation to a transaction that, by virtue of this paragraph, is a disqualifying event for the purposes of paragraph 2—
(a)the date of the event for those purposes is the effective date of the transaction;
(b)paragraph 2 has effect as if—
(i)in sub-paragraph (1)(b), for “at the time of” there were substituted “ immediately before ”,
(ii)in sub-paragraph (4)(a), for “at the time of” there were substituted “ immediately before and immediately after ”, and
(iii)sub-paragraph (4)(b) were omitted.
(5)In this paragraph—
“qualifying charitable purposes” has the same meaning as in paragraph 1;
“rent” has the same meaning as in Schedule 5 (amount of tax chargeable: rent) and “annual rent” has the same meaning as in paragraph 9(2) of that Schedule.]