SCHEDULE 18CHARITIES RELIEF

Joint purchase by qualifying charity and another person: partial relief

I16

1

This paragraph applies where—

a

there are two or more buyers under a land transaction,

b

the buyers acquire the subject-matter of the transaction as tenants in common, and

c

at least one of the buyers is a qualifying charity and at least one of the buyers is another person who is not a qualifying charity.

2

The tax chargeable in respect of the transaction is reduced by the amount of the relief under sub-paragraph (3) (but see paragraph 7 (withdrawal of partial relief)).

3

The relief is equal to the relevant proportion of the tax that would, ignoring paragraph 3, otherwise have been chargeable in respect of the transaction.

4

The ““relevant proportion””, in the case of a qualifying charity, is the lower of P1 and P2, where—

  • P1 is the proportion of the subject-matter of the transaction that is acquired by all the qualifying charities that are buyers under the transaction (in aggregate);

  • P2 is the proportion of the chargeable consideration for the transaction that is given by all the qualifying charities that are buyers under the transaction (in aggregate).