SCHEDULE 15RELIEF FOR CERTAIN TRANSACTIONS RELATING TO SOCIAL HOUSING
PART 3SHARED OWNERSHIP LEASES
Shared ownership lease: election for market value treatment
I13
1
This paragraph applies where—
a
a lease is granted—
i
by a qualifying bodyF1...
F1ii
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
the conditions in sub-paragraph (2) are met, and
c
the buyer elects for tax to be charged in accordance with this paragraph.
2
The conditions are—
a
that the lease must be of a dwelling;
b
that the lease must give the tenant exclusive use of the dwelling;
c
that the lease must provide for the tenant to acquire the reversion;
d
that the lease must be granted partly in consideration of rent and partly in consideration of a premium calculated by reference to—
i
the market value of the dwelling, or
ii
a sum calculated by reference to that value;
e
that the lease must contain a statement of—
i
the market value of the dwelling, or
ii
the sum calculated by reference to that value,
by reference to which the premium is calculated.
3
An election for tax to be charged under this paragraph—
a
must be included in the return made in respect of the grant of the lease (or in an amendment to that return), and
b
is irrevocable, so that the return may not be amended so as to withdraw the election.
4
Where this paragraph applies the chargeable consideration for the grant of the lease is taken to be the amount stated in the lease in accordance with sub-paragraph (2)(e)(i) or (ii).
5
Where this paragraph applies no account is taken for the purposes of land transaction tax of the rent mentioned in sub-paragraph (2)(d).
6
Section 70 (meaning of market value) does not apply to this paragraph.