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SCHEDULE 5E+WHIGHER RATES RESIDENTIAL PROPERTY TRANSACTIONS

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Modifications etc. (not altering text)

PART 4 E+WBUYER IS NOT AN INDIVIDUAL

IntroductoryE+W

19This Part sets out when a chargeable transaction where the buyer is not an individual is a ““higher rates residential property transaction”” for the purpose of regulations under section 24(1)(b).

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Commencement Information

I1Sch. 5 para. 19 in force at 1.4.2018 by S.I. 2018/34, art. 3

Transaction involving a dwellingE+W

20(1)A chargeable transaction is a higher rates residential property transaction if—E+W

(a)the buyer is not an individual,

(b)the main subject-matter of the transaction consists of a major interest in a dwelling (““the purchased dwelling””), and

(c)the chargeable consideration for the dwelling is £40,000 or more.

(2)But a transaction is not a higher rates residential property transaction under sub-paragraph (1) if at the end of the day that is the effective date of the transaction—

(a)the purchased dwelling is subject to a lease,

(b)the main subject-matter of the transaction is reversionary on that lease, and

(c)the lease meets the conditions set out in sub-paragraph (3).

(3)The conditions are that—

(a)the lease is not held by a person connected with the buyer, and

(b)the lease has an unexpired term of more than 21 years.

Annotations:

Commencement Information

I2Sch. 5 para. 20 in force at 1.4.2018 by S.I. 2018/34, art. 3

Transaction involving multiple dwellingsE+W

21(1)A chargeable transaction is a higher rates residential property transaction if—E+W

(a)the buyer is not an individual,

(b)the main subject-matter of the transaction consists of a major interest in two or more dwellings (““the purchased dwellings””), and

(c)at least one of the purchased dwellings is a dwelling to which sub-paragraph (2) applies.

(2)This sub-paragraph applies to a purchased dwelling if the amount of the chargeable consideration for the transaction which is attributable on a just and reasonable basis to the purchased dwelling is £40,000 or more.

(3)But sub-paragraph (2) does not apply to a purchased dwelling if at the end of the day that is the effective date of the transaction—

(a)the purchased dwelling is subject to a lease,

(b)the main subject-matter of the transaction is reversionary on that lease, and

(c)the lease meets the conditions set out in sub-paragraph (4).

(4)The conditions are that—

(a)the lease is not held by a person connected with the buyer, and

(b)the lease has an unexpired term of more than 21 years.

(5)A transaction within section 72(9) is not a higher rates residential property transaction save where Schedule 13 applies (see in particular paragraph 6(6) of that Schedule).

Annotations:

Commencement Information

I3Sch. 5 para. 21 in force at 1.4.2018 by S.I. 2018/34, art. 3

Two or more buyersE+W

22Where there are two or more buyers in a transaction, the transaction is a higher rates residential property transaction if paragraph 20 or 21 applies in relation to any one of the buyers.

Annotations:

Commencement Information

I4Sch. 5 para. 22 in force at 1.4.2018 by S.I. 2018/34, art. 3