SCHEDULES
SCHEDULE 8Stamp duty land tax: charities relief
F1Withdrawal of relief given under paragraph 3A
3B
1
This paragraph applies where—
a
relief has been given under paragraph 3A in respect of a transaction (“the relevant transaction”),
b
a disqualifying event occurs in relation to a qualifying charity (“C”) which was a purchaser under the transaction, and
c
the disqualifying event occurs in the circumstances required by sub-paragraphs (2) and (3).
2
The disqualifying event must occur—
a
before the end of the period of 3 years beginning with the effective date of the transaction, or
b
in pursuance of, or in connection with, arrangements made before the end of that period.
3
At the time of the disqualifying event C must hold a chargeable interest that—
a
was acquired by C under the relevant transaction, or
b
is derived from an interest so acquired.
4
There is a “disqualifying event” in relation to C if —
a
C ceases to be established for charitable purposes only, or
b
the chargeable interest acquired by C under the transaction, or any interest or right derived from that interest, is used or held by C otherwise than for qualifying charitable purposes.
5
C's portion of the relief mentioned in sub-paragraph (1)(a), or an appropriate proportion of C's portion of that relief, is withdrawn and tax is chargeable in accordance with this paragraph.
6
The amount chargeable is equal to C's portion of the relief or, as the case may be, the appropriate proportion of C's portion of the relief.
7
C's portion of the relief depends on whether P1 or P2 was lower in the calculation under paragraph 3A(5).
8
If P1 was lower, C's portion of the relief is equal to—
where—
p1 is the proportion of the subject-matter of the transaction that was acquired by C under the transaction;
P1 has the same meaning as in paragraph 3A(5);
9
If P2 was lower, C's portion of the relief is equal to—
where—
p2 is the proportion of chargeable consideration for the transaction that was given by C;
P2 has the same meaning as in paragraph 3A(5);
10
In sub-paragraphs (5) and (6) “appropriate proportion” means an appropriate proportion having regard to—
a
what was acquired by C under the relevant transaction and what is held by C at the time of the disqualifying event, and
b
the extent to which what is held by C at that time becomes used or held for purposes other than qualifying charitable purposes.
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