Part 8Other reliefs

Chapter 3Gifts of shares, securities and real property to charities etc

Entitlement to relief

433Meaning of “qualifying interest in land”

1

In this Chapter “qualifying interest in land” means—

a

a freehold interest in land in the United Kingdom, or

b

a leasehold interest in land in the United Kingdom which is a term of years absolute.

This is subject to subsections (2) to (5).

2

Subsection (3) applies if an individual with a beneficial interest in a freehold or leasehold interest mentioned in subsection (1)(a) or (b) makes a disposal to a charity of—

a

the whole of the beneficial interest, and

b

an easement, servitude, right or privilege so far as benefiting the land in question.

3

The disposal mentioned in subsection (2)(b) is regarded for the purposes of this Chapter as a disposal by the individual of the whole of the individual's beneficial interest in a qualifying interest in land separate from the disposal mentioned in subsection (2)(a).

4

If an individual who has a freehold or leasehold interest in land in the United Kingdom grants a lease for a term of years absolute to a charity of the whole or part of that land, the grant of the lease is regarded for the purposes of this Chapter as a disposal by the individual of the whole of the beneficial interest in the leasehold interest so granted.

5

Neither an agreement to acquire a freehold interest nor an agreement for a lease is a qualifying interest in land.

6

In the application of this section to Scotland—

a

references to a freehold interest in land are to the interest of the owner,

b

references to a leasehold interest in land which is a term of years absolute are to a tenant's right over or interest in a property subject to a lease,

c

references to an agreement for a lease do not include missives of let that constitute an actual lease, and

d

in subsection (4) the reference to granting a lease for a term of years absolute is to granting a lease.