SCHEDULES
SCHEDULE 9Stamp duty land tax: right to buy, shared ownership leases etc
Rent to mortgage or rent to loan: chargeable consideration
7F1Shared ownership trust: introduction
1
In this Schedule “shared ownership trust” means a trust of land, within the meaning of section 1 of the Trusts of Land and Appointment of Trustees Act 1996, which satisfies the following conditions.
2
Condition 1 is that the trust property is—
a
a dwelling, and
b
in England or Wales.
3
Condition 2 is that one of the beneficiaries (“the social landlord”) is a qualifying body (within the meaning of paragraph 5(2)).
4
Condition 3 is that the terms of the trust—
a
provide for one or more of the individual beneficiaries (“the purchaser”) to have exclusive use of the trust property as the only or main residence of the purchaser,
b
require the purchaser to make an initial payment to the social landlord (“the initial capital”),
c
require the purchaser to make additional payments to the social landlord by way of compensation under section 13(6)(a) of the Trusts of Land and Appointment of Trustees Act 1996 (“rent-equivalent payments”),
d
enable the purchaser to make other additional payments to the social landlord (“equity-acquisition payments”),
e
determine the initial beneficial interests of the social landlord and of the purchaser by reference to the initial capital,
f
specify a sum, equating or relating to the market value of the dwelling, by reference to which the initial capital was calculated, and
g
provide for the purchaser's beneficial interest in the trust property to increase, and the social landlord's to diminish (or to be extinguished), as equity-acquisition payments are made.
5
Section 118 (meaning of “market value”) does not apply to this paragraph.
6
In Condition 1 “dwelling” includes—
a
a building which is being constructed or adapted for use as a dwelling,
b
land which is to be used for the purpose of the construction of a dwelling, and
c
land which is, or is to become, the garden or grounds of a dwelling.