Higher rates residential property transactions
3(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).