The references in sub-paragraph (2) to land used as the garden or grounds of a dwelling include a building or structure on the land.

The references in this paragraph to doing something in the course of a commercial trade or profession include doing something in the course of a property rental business.

In this paragraph—

• “commercial”, in relation to a trade or profession, means carried on—

  1. a

     on a commercial basis, and

  2. b

     with a view to profit;

• “excluded rents” has the same meaning as in section 133 of the Finance Act 2013;

• “property rental business” means a property business as defined in Chapter 2 of Part 3 of the Income Tax (Trading and Other Income) Act 2005.

In this Schedule, “connected person” means a person who is connected with the purchaser.

Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this paragraph.

This paragraph applies to a land transaction if at least 90% of the chargeable consideration for the transaction is attributable to F6qualifying land.

The transaction is exempt from charge.

This paragraph applies to a land transaction if the proportion of the chargeable consideration for the transaction that is attributable to F6qualifying land (“the relevant proportion”) is less than 90% but at least 10%.

The tax chargeable in respect of the transaction is reduced by the relevant proportion.

For the purposes of this Schedule, the consideration attributable to F6qualifying land must be determined on a just and reasonable basis.

Sub-paragraphs (3) and (4) apply if less than 100% of the chargeable consideration attributable to transaction land situated in a F7special tax siteF10(“the relevant consideration”) is attributable to land that satisfies the condition in paragraph 2(b).

If at least 90% of the freeport consideration is attributable to land that satisfies the condition in paragraph 2(b) then, for the purposes of this Schedule, all of F11the relevant consideration is to be treated as being attributable to F6qualifying land.

If less than 10% of F12the relevant consideration is attributable to land that satisfies the condition in paragraph 2(b) then, for the purposes of this Schedule, all of the freeport consideration is to be treated as not being attributable to F6qualifying land.

This paragraph applies where relief under Part 2 of this Schedule has been allowed in respect of a land transaction.

The relief is withdrawn if, at any time during the control period, the F6qualifying land is not used exclusively in a qualifying manner.

But the relief is not withdrawn where, because of a change in circumstances that is unforeseen and beyond the purchaser’s control, it is not reasonable to expect the F6qualifying land to be used exclusively in a qualifying manner at that time.

Where, at a time during the control period, the use of all or part of the F6qualifying land in a qualifying manner has not yet begun, that land, or that part of the land, is to be treated as being used exclusively in a qualifying manner if reasonable steps are being taken to ensure that it is used in that manner.

For the purposes of this paragraph, a land transaction is “the final transaction” if, immediately after the effective date of the transaction, neither the purchaser nor a connected person holds a chargeable interest in the F6qualifying land (whether as a result of that transaction alone or as a result of that transaction and other land transactions).

This paragraph applies where the purchaser ceases to hold a chargeable interest in part of the F6qualifying land during the control period.

The references in paragraphs 8 and 9 to the F6qualifying land are to be treated as references only to the part of the F6qualifying land in relation to which the purchaser still holds a chargeable interest (whether the chargeable interest acquired in the land transaction in respect of which relief was allowed under Part 2 of this Schedule or another chargeable interest).

The first transaction does not qualify for relief under Part 2 of this Schedule except where it does so by virtue of this paragraph.

In this paragraph—

• “the first transaction” has the same meaning as in section 71A or 73 (as appropriate);

• “the relevant person” means the person, other than the financial institution, who entered into the arrangements mentioned in section 71A(1) or 73(1) (as appropriate).

Regulations under this paragraph may not remove the requirement for land to be situated in a F7special tax site.

The power to make regulations under this paragraph may be exercised only in relation to transactions with an effective date that is on or after the date on which the regulations come into force.

An instrument containing regulations under paragraph 12 must be laid before the House of Commons after being made.

If the regulations are not approved by the House of Commons before the end of the period of 28 days beginning with the day on which they are made, they cease to have effect at the end of that period (if they have not already ceased to have effect under sub-paragraph (3)).

If, on any day during that period of 28 days, the House of Commons, in proceedings on a motion that (or to the effect that) the regulations be approved, comes to a decision rejecting the regulations, they shall cease to have effect at the end of that day.

Where regulations cease to have effect under sub-paragraph (3), their ceasing to have effect is without prejudice to anything done in reliance on them.