SCHEDULE 9Stamp duty land tax: right to buy, shared ownership leases etc
F1Rent to shared ownership trust: charge to tax
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(1)
The chargeable consideration for transactions forming part of a rent to shared ownership trust scheme is determined in accordance with this paragraph.
(2)
A “rent to shared ownership trust scheme” means a scheme or arrangement under which—
(a)
a qualifying body grants an assured shorthold tenancy of a dwelling to a person (“the tenant”) or persons (“the tenants”), and
(b)
the tenant, or one or more of tenants, subsequently becomes the purchaser under a shared ownership trust of the dwelling, or another dwelling, under which the qualifying body is the social landlord.
(3)
The following transactions are to be treated as if they were not linked to each other—
(a)
the grant of the assured shorthold tenancy,
(b)
the declaration of the shared ownership trust, and
(c)
any other land transaction between the qualifying body and the tenant, or any of the tenants, entered into as part of the scheme.
(4)
For the purpose of determining the effective date of the declaration of the shared ownership trust, the possession of the dwelling by the tenant or tenants pursuant to the assured shorthold tenancy is to be disregarded.
(5)
In this paragraph—
“assured shorthold tenancy” has the same meaning as in Part 1 of the Housing Act 1988;
“qualifying body” has the same meaning as in paragraph 5;
“social landlord” and “purchaser”, in relation to a shared ownership trust, have the same meaning as in paragraph 7.