Textual Amendments
F1Sch. 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—U.K.
(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).]