Charity not a qualifying charity
389.Paragraph 5 makes provision for charities relief to be available where a charity (“C”) is a buyer but not a qualifying charity but still intends to hold the greater part of its share of the subject-matter for qualifying charitable purposes. In this situation C is eligible for charities relief, and the rules relating to disqualifying events (paragraph 4) apply as already outlined (subject to the modifications at paragraph 5(4)) but includes that relief may be wholly or partially withdrawn if -
C transfers a major interest in the whole or part of the subject-matter of the relieved transaction; or
C grants a low rental lease at a premium for reasons other than C’s charitable purposes.
390.In this Schedule, a lease is granted at a premium if there is consideration other than rent and a lease is a “low rental” lease if the annual rent is less than £1000 a year.