PART 3CALCULATION OF TAX AND RELIEFS
Calculation of tax
28Amount of tax chargeable: linked transactions
1
Where a chargeable transaction is one of a number of linked transactions, the amount of tax chargeable in respect of the transaction is to be determined as follows.
Step 1
Calculate the tax which would be chargeable in accordance with section 27(1), if the chargeable consideration for the transaction were the total consideration.
Step 2
Divide the chargeable consideration for the transaction by the total consideration.
Step 3
Multiply the amount arrived at under Step 1 by the fraction arrived at under Step 2.
The result is the amount of tax chargeable.
2
In subsection (1), the “total consideration” is the total of the chargeable consideration for all the linked transactions (not including any chargeable consideration which is rent).
3
Where the whole or part of the chargeable consideration for a linked transaction is rent this section does not apply for the purposes of calculating the amount of any tax chargeable in respect of the rent; instead see—
a
in the case of a residential property transaction, paragraph 27 of Schedule 6 and any regulations made under that paragraph, and
b
in the case of a non-residential property transaction, paragraph 30 of that Schedule (calculation of tax chargeable in respect of rent: linked transactions).