C1C2C4C5C6C7Part 4Stamp duty land tax

Annotations:
Modifications etc. (not altering text)
C4

Pt. 4 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 194(8)-(12)

C5

Pt. 4 applied (17.7.2014) by Finance Act 2014 (c. 26), ss. 223(8)(9)(d)

C6

Pt. 4 modified (temp.) (22.7.2020) by Stamp Duty Land Tax (Temporary Relief) Act 2020 (c. 15), s. 1 (as amended (10.6.2021) by 2021 c. 26, s. 87(2))

C7

Pt. 4 modified (temp.) (10.6.2021) by 2020 c. 15, s. 1A (as inserted by Finance Act 2021 (c. 26), s. 87(3))

Reliefs

74C3I1F3Exercise of collective rights by tenants of flats

F11

This section applies where a chargeable transaction is entered into by a person or persons nominated or appointed by qualifying tenants of flats contained in premises in exercise of—

a

a right under Part 1 of the Landlord and Tenant Act 1987 (right of first refusal), or

b

a right under Chapter 1 of Part 1 of the Leasehold Reform, Housing and Urban Development Act 1993 (right to collective enfranchisement).

F41A

The F7amount of tax is determined as follows.

  • Step 1 Determine the fraction of the relevant consideration produced by dividing the total amount of that consideration by the number of qualifying flats contained in the premises.

  • Step 2 If the amount produced by step 1 is F5£500,000 or less, determine the F8amount of tax chargeable in accordance with F9subsection (1B).

  • Step 3 If the amount produced by step 1 is more than F5£500,000 and the condition in paragraph 3(3) of Schedule 4A is not met with respect to the transaction, determine the F10amount of tax chargeable in accordance with F11subsection (1B).

  • Step 4 If the amount produced by step 1 is more than F5£500,000 and the condition in paragraph 3(3) of Schedule 4A is met with respect to the transaction, F12subsection (1B) does not apply, and the amount of tax chargeable in respect of the transaction is 15% of the chargeable consideration for the transaction.

F61B

Where step 2 or 3 of subsection (1A) requires the amount of tax chargeable to be determined in accordance with this subsection, it is determined as follows.

  • Step 1 Determine the amount of tax chargeable under section 55 as if the relevant consideration for the chargeable transaction were the fraction of the relevant consideration calculated under step 1 of subsection (1A).

  • Step 2 Multiply the amount determined at step 1 by the number of qualifying flats contained in the premises.

F24

In this section—

  • “flat” and “qualifying tenant” have the same meaning as in the Chapter or Part of the Act conferring the right being exercised;

  • “qualifying flat” means a flat that is held by a qualifying tenant who is participating in the exercise of the right.

5

References in this section to the relevant consideration have the same meaning as in section 55.