Finance Act 2003

48 Chargeable interests U.K.

(1) In this Part “chargeable interest” means—

(a) an estate, interest, right or power in or over land in the United Kingdom, or

(b) the benefit of an obligation, restriction or condition affecting the value of any such estate, interest, right or power,

other than an exempt interest.

(2) The following are exempt interests—

(a) any security interest;

(b) a licence to use or occupy land;

(c) in England and Wales or Northern Ireland—

(i) a tenancy at will;

(ii) an advowson, franchise or manor.

(3) In subsection (2)—

(a) “security interest” means an interest or right (other than a rentcharge) held for the purpose of securing the payment of money or the performance of any other obligation; and

(b) “franchise” means a grant from the Crown such as the right to hold a market or fair, or the right to take tolls.

[F1 (3A) Section 73B makes additional provision about exempt interests in relation to alternative finance arrangements.]

(4) In the application of this Part in Scotland the reference in subsection (3)(a) to a rentcharge shall be read as a reference to a feu duty or a payment mentioned in section 56(1) of the Abolition of Feudal Tenure etc. (Scotland) Act 2000 (asp 5).

(5) The Treasury may by regulations provide that any other description of interest or right in relation to land in the United Kingdom is an exempt interest.

(6) The regulations may contain such supplementary, incidental and transitional provision as appears to the Treasury to be appropriate.

[F2 (7) This section has effect subject to subsection (3) of section 44A (contract and conveyance to third party) [F3 and to paragraph 15A of Schedule 17A (reduction of rent or term of lease)].]

Textual Amendments

F1 S. 48(3A) inserted (19.7.2007) by Finance Act 2007 (c. 11), s. 75(2)

F2 S. 48(7) inserted (with effect in accordance with Sch. 39 para. 13(1) of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 4(2)

F3 Words in s. 48(7) inserted (with effect in accordance with s. 297(9) of the amending Act) by Finance Act 2004 (c. 12), s. 297(3)

Commencement Information

I1 Pt. 4 wholly in force at Royal Assent subject to Sch. 19, see s. 124, Sch. 19 para. 1(1)