SCHEDULE 5HIGHER RATES RESIDENTIAL PROPERTY TRANSACTIONS

PART 2BUYER IS AN INDIVIDUAL: SINGLE DWELLING TRANSACTIONS

Higher rates residential property transactions

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(1)

A chargeable transaction is a higher rates residential property transaction if—

(a)

it falls within sub-paragraph (2), and

(b)

paragraph 5 applies.

(2)

A transaction falls within this sub-paragraph if—

(a)

the buyer is an individual,

(b)

the main subject-matter of the transaction consists of a major interest in a dwelling (““the purchased dwelling””), and

(c)

the chargeable consideration for the transaction is £40,000 or more.

(3)

But a transaction does not fall within sub-paragraph (2) if at the end of the day that is the effective date of the transaction—

(a)

the purchased dwelling is subject to a lease,

(b)

the main subject-matter of the transaction is reversionary on that lease, and

(c)

the lease meets the conditions set out in sub-paragraph (4).

(4)

The conditions are that—

(a)

the lease is not held by a person connected with the buyer, and

(b)

the lease has an unexpired term of more than 21 years.

(5)

This paragraph applies subject to the exceptions provided for in—

(a)

paragraph 7 (interest in same main residence exception), and

(b)

paragraph 8 (replacement of main residence exception).

(6)

In this Part of this Schedule, “"purchased dwelling”” has the meaning given by sub-paragraph (2)(b).