SCHEDULES

SCHEDULE 8Stamp duty land tax: charities relief

F1Cases where first condition not fully met

Annotations:
Amendments (Textual)
F1

Sch. 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—

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.