SCHEDULE 15RELIEF FOR CERTAIN TRANSACTIONS RELATING TO SOCIAL HOUSING
PART 3SHARED OWNERSHIP LEASES
Shared ownership lease: staircasing transactions
I16
1
This paragraph applies where under a shared ownership lease—
a
the tenant has the right, on the payment of a sum, to require the terms of the lease to be varied so that the rent payable under it is reduced, and
b
by exercising that right the tenant acquires an interest, additional to one already held, calculated by reference to the market value of the dwelling and expressed as a percentage of that dwelling or its value (a ““share of the dwelling””).
2
Where this paragraph applies, the acquisition is relieved from tax if—
a
an election was made under paragraph 3 (shared ownership lease: election for market value treatment) or paragraph 5 (shared ownership lease: election where staircasing allowed) and any tax chargeable in respect of the grant of the lease has been paid, or
b
immediately after the acquisition the total share of the dwelling held by the tenant does not exceed 80%.
3
Section 70 (meaning of market value) does not apply in relation to the references in this paragraph to the market value of the dwelling.