SCHEDULE 5HIGHER RATES RESIDENTIAL PROPERTY TRANSACTIONS
PART 4BUYER IS NOT AN INDIVIDUAL
19Introductory
This Part sets out when a chargeable transaction where the buyer is not an individual is a “higher rates residential property transaction” for the purpose of regulations under section 24(1)(b).
20Transaction involving a dwelling
1
A chargeable transaction is a higher rates residential property transaction if—
a
the buyer is not 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 dwelling is £40,000 or more.
2
But a transaction is not a higher rates residential property transaction under sub-paragraph (1) 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 (3).
3
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.
21Transaction involving multiple dwellings
1
A chargeable transaction is a higher rates residential property transaction if—
a
the buyer is not an individual,
b
the main subject-matter of the transaction consists of a major interest in two or more dwellings (“the purchased dwellings”), and
c
at least one of the purchased dwellings is a dwelling to which sub-paragraph (2) applies.
2
This sub-paragraph applies to a purchased dwelling if the amount of the chargeable consideration for the transaction which is attributable on a just and reasonable basis to the purchased dwelling is £40,000 or more.
3
But sub-paragraph (2) does not apply to a purchased dwelling 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
A transaction within section 72(9) is not a higher rates residential property transaction save where Schedule 13 applies (see in particular paragraph 6(6) of that Schedule).
22Two or more buyers
Where there are two or more buyers in a transaction, the transaction is a higher rates residential property transaction if paragraph 20 or 21 applies in relation to any one of the buyers.