Finance Act 2021

7 (1) Schedule 4A (stamp duty land tax: higher rate for certain transactions) is amended as follows.

(2) In paragraph 2(6)(a)—

(a) for “5K” substitute “5L”;

(b) for “6H” substitute “6I”.

(3) In paragraph 6A—

(a) in sub-paragraph (4), for “and 5F(1)” substitute “, 5F(1) and 5FA”;

(b) in sub-paragraph (5), for “or 5F(1)” substitute “, 5F(1) or 5FA”.

(4) In paragraph 6C(2)(b), for “and 5F(1)” substitute “, 5F(1) and 5FA”.

(5) After paragraph 6H insert—

“6I (1) This paragraph applies where relief under paragraph 5FA (qualifying housing co-operatives) has been allowed, in accordance with paragraph 6A(4), in relation to the purchase of a major interest in land.

(2) The relief is withdrawn (subject to sub-paragraph (3)) if—

(a) on any day in the period of three years beginning with the effective date of the first transaction (“the control period”), the relevant person is not a qualifying housing body, and

(b) immediately before the first day on which that is the case the relevant person holds a relevant interest (whether jointly, or in common, or otherwise).

(3) If, on any day in the control period, the relevant person is not a qualifying housing body because it ceases to exist (whether by virtue of a conversion into, or amalgamation with, another person or for any other reason), relief is not to be withdrawn under this paragraph unless—

(a) another person (“the first successor”) has succeeded to the engagements of the relevant person, and

(b) condition A or condition B is met (and if condition B is met, subject to sub-paragraph (6)).

(4) Condition A is that, on the day the first successor succeeds to the engagements of the relevant person (“the day of succession”), the first successor is not a qualifying housing body.

(5) Condition B is that—

(a) on any day in the part of the control period that falls after the day of succession, the first successor is not a qualifying housing body, and

(b) immediately before the first day on which that is the case the first successor still holds a relevant interest (whether jointly, or in common, or otherwise).

(6) If condition B is met because the first successor ceases to exist (whether by virtue of a conversion into, or amalgamation with, another person or for any other reason), relief is not to be withdrawn under this paragraph unless it would have been withdrawn by virtue of sub-paragraph (3) if references in sub-paragraphs (3) to (5)—

(a) to the relevant person were references to the first successor, and

(b) to the first successor were references to the person who has succeeded to the engagements of the first successor (“the second successor”).

(7) Sub-paragraph (6) is to apply to the second successor as it applies to the first successor, and so on, subject to the necessary modifications.

(8) In this paragraph—

(a) “qualifying housing body” means—

(i) a company that is a qualifying housing co-operative for the purposes of section 150(3A) of the Finance Act 2013 (relief from ATED),

(ii) a registered provider of social housing, or

(iii) a registered social landlord;

(b) “relevant interest” has the same meaning as in paragraph 6D;

(c) “the relevant person” means the person (other than the financial institution) who enters into the arrangements mentioned in section 71A(1) or 73(1);

(d) references to a major interest include an undivided share in a major interest in land.”

(6) In paragraph 9, in the definition of “financial institution”, for “6H” substitute “6I”.