4Chargeable transactions: purchases by third parties(1)

Section 3 of the 2024 Act (levy to be charged on purchase of overnight accommodation) is modified as follows.

(2)

After subsection (2) insert—(2A)

Subsection (2B) applies if—

(a)

the right to reside in or at overnight accommodation mentioned in subsection (2) is purchased from the accommodation provider by a third party (“the initial transaction”), and

(b)

the right is then purchased from the third party (or another person who subsequently purchased the right) by a person who takes entry to the accommodation in exercise of the right (or by a person acting on their behalf) (in this Act, a purchase of the right by any person after the initial transaction is referred to as a “subsequent transaction”).

(2B)

If this subsection applies—

(a)

the chargeable transaction for the purposes of this Act is the initial transaction (and not any subsequent transaction), and

(b)

the person who takes entry to the overnight accommodation in exercise of the right is to be treated for the purposes of this Act—

(i)

as taking entry to the overnight accommodation in pursuance of the initial transaction, and

(ii)

as being provided overnight accommodation by the accommodation provider in pursuance of the initial transaction.

(3)

After subsection (3) insert—(4)

In this section—

“accommodation provider”, in relation to overnight accommodation, means the person who—

(a)

provides the overnight accommodation to visitors in pursuance of chargeable transactions, and

(b)

is the occupier of the premises at which the overnight accommodation is provided,

“third party” means a person other than a visitor (or a person acting on behalf of a visitor).