SCHEDULE 4CHARGEABLE CONSIDERATION

Arrangements involving public or educational bodies

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1

This paragraph applies in any case where arrangements are entered into under which—

a

there is a transfer, or the grant or assignment of a lease, of land by a qualifying body (““A””) to a person who is not a qualifying body (““B””) (““the main transfer””),

b

in consideration (whether in whole or in part) of the main transfer there is a grant by B to A of a lease or sub-lease of the whole, or substantially the whole, of that land (““the leaseback””),

c

B undertakes to carry out works or provide services to A, and

d

some or all of the consideration given by A to B for the carrying out of those works or the provision of those services is consideration in money,

whether or not there is also a transfer, or the grant or assignment of a lease, of any other land by A to B (a ““transfer of surplus land””).

2

The following are qualifying bodies—

a

public bodies within paragraph 1 of Schedule 20 or specified in regulations under that paragraph (relief for certain transactions involving public bodies);

b

institutions within the further education sector or the higher education sector within the meaning of section 91 of the Further and Higher Education Act 1992 (c. 13);

c

further education corporations within the meaning of section 17 of that Act;

d

higher education corporations within the meaning section 90 of that Act.

3

The following do not count as chargeable consideration for the main transfer or any transfer of surplus land—

a

the leaseback,

b

the carrying out of building works by B for A, or

c

the provision of services by B to A.

4

The chargeable consideration for the leaseback does not include—

a

the main transfer,

b

any transfer of surplus land, or

c

the consideration in money paid by A to B for the building works or other services referred to in sub-paragraph (3).

5

Sub-paragraphs (3) and (4) are to be disregarded for the purposes of determining whether the land transaction in question is notifiable.