81ZAAlternative finance arrangements: return where relief withdrawn

1

Where relief given in respect of a transaction entered into under alternative finance arrangements is withdrawn to any extent under any of paragraphs 6D, 6F, 6G or 6H of Schedule 4A (higher rate of tax: alternative finance arrangements)—

a

the relevant person must deliver a return to HMRC before the end of the period of 30 days after the date of the disqualifying event;

b

the return must contain a self-assessment of the additional tax chargeable as a result of the withdrawal of the relief;

c

the tax so chargeable is calculated by reference to the rates in force at the effective date of the transaction in respect of which the relief was allowed.

2

The provisions of Schedule 10 (returns, enquiries, assessments and other matters) apply to a return under this section as they apply to a return under section 76 (general requirement to make land transaction return), but with the following adaptations—

a

references to the effective date of the transaction are to be read as references to the date of the disqualifying event;

b

references to the purchaser are to be read as references to the relevant person so far as that is necessary as a result of subsection (1) of this section or section 85(3) (payment of additional tax by relevant person where relief withdrawn).

3

In this section “the date of the disqualifying event” means the first day in the control period on which a relevant requirement was not met.

4

In subsection (3) “relevant requirement” means—

a

where the relief was given under paragraph 5 of Schedule 4A (businesses of letting, trading in or redeveloping properties), a requirement under paragraph 5G(3) of that Schedule;

b

where the relief was given under paragraph 5B of that Schedule (trades involving making a dwelling available to the public), a requirement under paragraph 5H(3) of that Schedule;

c

where the relief was given under paragraph 5C of that Schedule (financial institutions acquiring dwellings in the course of lending), a requirement under paragraph 5I(3) of that Schedule;

d

where the relief was given under paragraph 5D of that Schedule (dwellings for occupation by certain employees etc), a requirement under paragraph 5J(3) of that Schedule;

e

where the relief was given under paragraph 5F of that Schedule (farmhouses), a requirement under paragraph 5K(3) of that Schedule.

5

In subsection (3) “the control period” has the same meaning as in paragraph 5G, 5H, 5I, 5J or 5K (as the case requires) of Schedule 4A.

6

In this section—

• “alternative finance arrangements” means any arrangements such as are mentioned in section 71A, 72, 72A or 73;

• “the relevant person” means the person (other than the financial institution) who entered into the arrangements in question.