SCHEDULE 18CHARITIES RELIEF
Charity not a qualifying charity
I15
1
This paragraph applies where—
a
a land transaction is not relieved from tax under paragraph 3 because the buyer is not a qualifying charity, but
b
the buyer is a charity (““C””) which intends to hold the greater part of the subject-matter of the transaction for qualifying charitable purposes.
2
In such a case—
a
paragraphs 3 and 4 have effect as if C were a qualifying charity, but
b
for the purposes of paragraph 4, “"disqualifying event”” includes the following if they are made otherwise than in furtherance of C's charitable purpose—
i
any transfer by C of a major interest in the whole or any part of the subject-matter of the relieved transaction;
ii
any grant by C at a premium of a low-rental lease of the whole or any part of that subject-matter.
3
In relation to a transfer or grant that, by virtue of sub-paragraph (2)(b), is a disqualifying event for the purposes of paragraph 4—
a
the date of the disqualifying event for those purposes is the effective date of the relieved transaction, and
b
paragraph 4 has effect with the modifications in sub-paragraph (4).
4
The modifications to paragraph 4 are—
a
sub-paragraph (4) is to have effect as if for ““At the time of”” there were substituted “
Immediately before
”
;
b
sub-paragraph (6)(a) is to have effect as if for ““at the time of”” there were substituted “
immediately before and immediately after
”
;
c
sub-paragraph (6) is to have effect as if paragraph (b) were omitted.
5
For the purposes of this paragraph—
a
a lease is granted ““at a premium”” if there is consideration other than rent, and
b
a lease is a ““low-rental”” lease if the annual rent (if any) is less than £1,000 a year.
6
In this paragraph—
a
“"annual rent”” has the meaning given by paragraph 36(2) of Schedule 6, and
b
“"rent”” has the same meaning as in that Schedule.