SCHEDULE 18CHARITIES RELIEF
Withdrawal of charities relief
I14
1
This paragraph applies where—
a
a land transaction is relieved from tax under paragraph 3 (““the relieved transaction””),
b
a disqualifying event occurs in relation to a charity (““C””) which was the buyer under the relieved transaction, and
c
the disqualifying event occurs in the circumstances required by sub-paragraphs (3) and (4).
2
Where this paragraph applies, relief under paragraph 3, or an appropriate proportion of it, is withdrawn and tax is chargeable (see sub-paragraph (5)).
3
The disqualifying event must occur—
a
before the end of the period of 3 years beginning with the effective date of the relieved transaction, or
b
in pursuance of, or in connection with, arrangements made before the end of that period.
4
At the time of the disqualifying event C must hold a chargeable interest that—
a
was acquired by C under the relieved transaction, or
b
that is derived from an interest so acquired.
5
The amount chargeable is the amount of tax that would have been chargeable but for paragraph 3 or, as the case may be, an appropriate proportion of that amount.
6
An “"appropriate proportion”” means an appropriate proportion having regard to—
a
what was acquired by C under the relieved transaction and what is held by C at the time of the disqualifying event, and
b
the extent to which what is held by C at that time is or becomes used or held for purposes other than qualifying charitable purposes.