[F13(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.]
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)