SCHEDULES

F1SCHEDULE 9AIncreased rates for non-resident transactions

Annotations:
Amendments (Textual)
F1

Sch. 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

PART 2Meaning of “non-resident transaction”

2Meaning of “non-resident transaction”

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).