SCHEDULES
F1SCHEDULE 6ARelief for certain acquisitions of residential property
1Acquisition by house-building company from individual acquiring new dwelling
1
Where a dwelling (“the old dwelling”) is acquired by a house-building company from an individual (whether alone or with other individuals), the acquisition is exempt from charge if the following conditions are met.
2
The conditions are—
a
that the individual (whether alone or with other individuals) acquires from the house-building company a new dwelling,
b
that the individual—
i
occupied the old dwelling as his only or main residence at some time in the period of two years ending with the date of its acquisition, and
ii
intends to occupy the new dwelling as his only or main residence,
c
that each acquisition is entered into in consideration of the other, and
d
that the area of land acquired by the house-building company does not exceed the permitted area.
3
Where the conditions in sub-paragraph (2)(a) to (c) are met but the area of land acquired by the house-building company exceeds the permitted area, the chargeable consideration for the acquisition is taken to be the amount calculated by deducting the market value of the permitted area from the market value of the old dwelling.
4
A “house-building company” means a company that carries on the business of constructing or adapting buildings or parts of buildings for use as dwellings.
References in this paragraph to such a company include any company connected with it.
5
In this paragraph—
a
references to the acquisition of the new dwelling are to the acquisition, by way of grant or transfer, of a major interest in the dwelling;
b
references to the acquisition of the old dwelling are to the acquisition, by way of transfer, of a major interest in the dwelling; and
c
references to the market value of the old dwelling and of the permitted area are, respectively, to the market value of that major interest in the dwelling and of that interest so far as it relates to that area.
Sch. 6A inserted (with effect in accordance with Sch. 39 para. 26 of the amending Act) by Finance Act 2004 (c. 12), Sch. 39 para. 17(2) (which amending provision re-enacts, subject to certain changes, a corresponding amendment made by the now revoked Stamp Duty and Stamp Duty Land Tax (Variation of the Finance Act 2003) (No. 2) Regulations 2003 (S.I. 2003/2816), see Sch. 39 para. 14)