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SCHEDULE 5Multiple dwellings relief

PART 5Withdrawal of relief

Full withdrawal of relief

16Relief under this schedule is withdrawn in relation to a relevant transaction if—

(a)an event occurs in the relevant period, and

(b)had the event occurred immediately before the effective date of the transaction, the transaction would not have been a relevant transaction.

17Where relief is withdrawn, the amount of tax chargeable is the amount that would have been chargeable in respect of the transaction but for the relief.

Partial withdrawal of relief

18Relief under this schedule is partially withdrawn in relation to a relevant transaction if—

(a)an event occurs in the relevant period, and

(b)had the event occurred immediately before the effect date of the transaction—

(i)the transaction would have been a relevant transaction, but

(ii)more tax would have been payable in respect of the transaction.

19Where relief is partially withdrawn, tax is chargeable on the transaction as if the event had occurred immediately before the effective date of the transaction.

20In that case, the tax so chargeable must be calculated by reference to the tax rates and tax bands in force at the effective date of the transaction.

Relevant period

21“The relevant period” means the shorter of—

(a)the period of 3 years beginning with the effective date of the transaction, and

(b)the period beginning with the effective date of the transaction and ending with the date on which the buyer disposes of the dwelling, or the dwellings, to a person who is not connected with the buyer.

22In relation to a transaction effected on completion of a contract that was substantially performed before completion, paragraph 21 applies as if references to the effective date of the transaction were to the date on which the contract was substantially performed.

Interpretation

23In this Part of this schedule, “event” includes any change of circumstance or change of plan.