SCHEDULE 18CHARITIES RELIEF

Key terms

2

(1)

In this Schedule, a charity (““C””) which is a buyer in a land transaction is a ““qualifying charity””—

(a)

for the purposes of paragraphs 3, 4 and 5, if C intends to hold the whole of the subject-matter of the transaction for qualifying charitable purposes;

(b)

for the purposes of paragraphs 6, 7 and 8, if C intends to hold the whole of its undivided share of the subject-matter of the transaction for qualifying charitable purposes.

(2)

For the purposes of this Schedule, C holds the subject-matter of the transaction for ”qualifying charitable purposes” if C holds it—

(a)

for use in furtherance of the charitable purposes of C or another charity, or

(b)

as an investment from which the profits are applied to the charitable purposes of C.

(3)

In this Schedule—

(a)

“"charity”” has the meaning given by F1paragraph 2A, and

(b)

“"charitable purpose”” has the meaning given by section 2 of the Charities Act 2011 (c. 25).

(4)

In this Schedule, in relation to C which is a buyer in a land transaction, a ““disqualifying event”” occurs when—

(a)

C ceases to be established for charitable purposes only, or

(b)

the whole or any part of the subject-matter of the transaction relieved from tax under this Schedule, or any interest or right derived from it, is used or held by C otherwise than for qualifying charitable purposes.