Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017

Withdrawal of charities relief

4 (1) This paragraph applies where—

(a) a land transaction is relieved from tax under paragraph 3 (“the relieved transaction”),

(b) a disqualifying event occurs in relation to a charity (“C”) which was the buyer under the relieved transaction, and

(c) the disqualifying event occurs in the circumstances required by sub-paragraphs (3) and (4).

(2) Where this paragraph applies, relief under paragraph 3, or an appropriate proportion of it, is withdrawn and tax is chargeable (see sub-paragraph (5)).

(3) The disqualifying event must occur—

(a) before the end of the period of 3 years beginning with the effective date of the relieved transaction, or

(b) in pursuance of, or in connection with, arrangements made before the end of that period.

(4) At the time of the disqualifying event C must hold a chargeable interest that—

(a) was acquired by C under the relieved transaction, or

(b) that is derived from an interest so acquired.

(5) The amount chargeable is the amount of tax that would have been chargeable but for paragraph 3 or, as the case may be, an appropriate proportion of that amount.

(6) An “appropriate proportion” means an appropriate proportion having regard to—

(a) what was acquired by C under the relieved 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 is or becomes used or held for purposes other than qualifying charitable purposes.