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Finance Act 2003

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Finance Act 2003, Paragraph 2 is up to date with all changes known to be in force on or before 29 January 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

Meaning of “non-resident transaction”U.K.

[F12(1)A chargeable transaction is a “non-resident transaction” for the purposes of this Part of this Act if—

(a)the purchaser is, or (if there is more than one) the purchasers include, a person who is non-resident in relation to the transaction,

(b)the main subject-matter of the transaction consists of—

(i)a major interest in one or more dwellings, or

(ii)a major interest in one or more dwellings and other property,

(c)that major interest, at the beginning of the effective date of the transaction, is not a term of years absolute or leasehold estate that has 7 years or less to run, and

(d)the de minimis threshold is exceeded.

(2)A reference in sub-paragraph (1)(b) or (c) to a major interest in a dwelling includes an undivided share in a major interest in a dwelling.

(3)For the purposes of sub-paragraph (1)(d), the de minimis threshold is exceeded if—

(a)in a case in which the chargeable consideration for the transaction does not consist of or include rent, the chargeable consideration for the transaction is £40,000 or more;

(b)in a case in which the chargeable consideration for the transaction consists of or includes rent—

(i)the chargeable consideration other than rent is £40,000 or more, or

(ii)the annual rent is £1,000 or more.

(4)In sub-paragraph (3) “annual rent” in relation to a transaction, means the average annual rent over the term of the lease to which the transaction relates or, if—

(a)different amounts of rents are payable for different parts of the term, and

(b)those amounts (or any of them) are ascertainable at the effective date of the transaction,

the average annual rent over the period for which the highest ascertainable rent is payable.

(5)For provision modifying sub-paragraph (1)(a) in its application to chargeable transactions of particular descriptions, see—

  • paragraph 13 (bare trust acquiring new lease);

  • paragraph 14 (purchases by certain settlements).

(6)Sub-paragraph (1) is subject to paragraph 17 (completion of contract previously substantially performed).]

Textual Amendments

F1Sch. 9A inserted (with effect in accordance with Sch. 16 para. 6 of the amending Act) by Finance Act 2021 (c. 26), Sch. 16 para. 5

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