SCHEDULES

SCHEDULE 8Stamp duty land tax: charities relief

F1Partial relief: charity not fully meeting the “qualifying charity” condition

Annotations:
Amendments (Textual)
F1

Sch. 8 paras. 3A-3C and cross-headings inserted (with effect in accordance with Sch. 23 para. 5 of the amending Act) by Finance Act 2014 (c. 26), Sch. 23 para. 3

3C

1

This paragraph applies where—

a

a charity (“C”) is one of two or more purchasers acquiring the subject-matter of a land transaction (“the relevant transaction”) as tenants in common (or, in Scotland, as owners in common),

b

C is not a qualifying charity in relation to the transaction,

c

paragraph 3A(3) to (5) would apply if C were a qualifying charity, and

d

C intends to hold the greater part of its undivided share of the subject-matter of the transaction for qualifying charitable purposes.

2

In such a case—

a

paragraph 3A has effect as if C were a qualifying charity, but

b

for the purposes of paragraph 3B (withdrawal of relief under paragraph 3A) “disqualifying event” includes any additional disqualifying transaction.

3

The following are “additional disqualifying transactions” if they are not made in furtherance of the charitable purposes of C—

a

any transfer by C of a major interest in the whole or any part of the chargeable interest acquired by C under the relevant transaction;

b

any grant by C at a premium of a low-rental lease of the whole or any part of that chargeable interest.

4

Paragraph 3(3) (meaning of “at a premium” and “low-rental”) applies for the purposes of sub-paragraph (3)(b) as it applies for the purposes of paragraph 3(2)(b)(ii).

5

In relation to a transaction that, by virtue of this paragraph, is a disqualifying event for the purposes of paragraph 3B—

a

the date of the event for those purposes is the effective date of the transaction;

b

paragraph 3B has effect with the modifications in sub-paragraph (6).

6

The modifications to paragraph 3B are—

a

in sub-paragraph (3), for “At the time of” substitute “ Immediately before ”;

b

in sub-paragraph (10)(a), for “at the time of” substitute “ immediately before and immediately after ”;

c

omit sub-paragraph (10)(b).