SCHEDULES
SCHEDULE 9Stamp duty land tax: right to buy, shared ownership leases etc
F1Shared ownership lease: treatment of staircasing transaction
4A
1
This paragraph applies where under a shared ownership lease—
a
the lessee or lessees have the right, on the payment of a sum, to require the terms of the lease to be altered so that the rent payable under it is reduced, and
b
by exercising that right the lessee or lessees acquire an interest, additional to one already held, calculated by reference to the market value of the dwelling and expressed as a percentage of the dwelling or its value (a “share of the dwelling”).
2
Such an acquisition is exempt from charge if—
a
an election was made for tax to be charged in accordance with paragraph 2 or, as the case may be, paragraph 4 and any tax chargeable in respect of the grant of the lease has been paid, or
b
immediately after the acquisition the total share of the dwelling held by the lessee or lessees does not exceed 80%.
3
In this paragraph “shared ownership lease” means a lease granted—
a
by a qualifying body, or
b
in pursuance of the preserved right to buy,
in relation to which the conditions in paragraph 2(2) or 4(2) are met.
4
Section 118 (meaning of “market value”) does not apply in relation to the references in this paragraph to the market value of the dwelling.
Sch. 9 para. 4A and cross-heading inserted (with effect in accordance with s. 303(4) of the amending Act) by Finance Act 2004 (c. 12), s. 303(1)