1(1)This Schedule makes provision about the application of this Act (in particular section 10 (contract and transfer)) to pre-completion transactions (the meaning of which is set out in paragraph 3).E+W
(2)The Schedule is arranged as follows—
(a)this Part makes introductory provisions setting out the circumstances where this Schedule applies (paragraph 2) and explaining the meaning of ““pre-completion transaction”” and other key terms referred to in the Schedule;
(b)Part 2 sets out how this Act applies in cases where the pre-completion transaction is an assignment of rights (the meaning of which is set out in paragraph 6);
(c)Part 3 sets out how this Act applies in cases involving free-standing transfers (the meaning of which is set out in paragraph 12);
(d)Part 4 provides for a special rule (““the minimum consideration rule””) which applies to determine the consideration given in cases where the parties in relation to a pre-completion transaction are connected or are otherwise not acting at arm's length;
(e)Part 5 provides for relief to be available to certain buyers in cases where certain pre-completion transactions are entered into;
(f)Part 6 makes some general interpretative provisions.
Commencement Information
I1Sch. 2 para. 1 in force at 1.4.2018 by S.I. 2018/34, art. 3
2(1)This Schedule applies where—E+W
(a)a person (““the original buyer””) enters into a contract (““the original contract””) for the acquisition by the original buyer of a chargeable interest under which the acquisition is to be completed by a transfer, and
(b)there is a pre-completion transaction.
(2)The reference in sub-paragraph (1)(a) to a contract does not include a contract that is an assignment of rights in relation to another contract.
(3)For any one contract for the acquisition of a chargeable interest there is only one original buyer (and for the purposes of this Schedule joint original buyers are to be treated as one original buyer).
(4)This Schedule does not apply where paragraph 21 of Schedule 6 (assignment of agreement for lease) applies (and accordingly, despite paragraph 3, the assignment of an agreement for lease is not a pre-completion transaction).
Commencement Information
I2Sch. 2 para. 2 in force at 1.4.2018 by S.I. 2018/34, art. 3
3(1)A transaction is a pre-completion transaction if—E+W
(a)as a result of the transaction a person other than the original buyer (“"the transferee””) becomes entitled to call for a transfer to the transferee of the whole or part of the subject-matter of the original contract, and
(b)immediately before the transaction took place a person (other than the transferee but not necessarily the original buyer) was entitled under the original contract to call for a transfer of the whole or that part of that subject-matter.
(2)A transaction that gives effect to a person's acquisition of the whole or part of the subject-matter of the original contract is not a pre-completion transaction.
(3)The grant or assignment of an option is not a pre-completion transaction.
(4)The fact that a transaction has the effect of discharging the original contract does not prevent that transaction from being a pre-completion transaction.
Commencement Information
I3Sch. 2 para. 3 in force at 1.4.2018 by S.I. 2018/34, art. 3
4(1)In this Schedule, references to part of the subject-matter of the original contract—E+W
(a)are to a chargeable interest that is the same as the chargeable interest referred to in paragraph 2(1)(a) except that it relates to part only of the land concerned, and
(b)also include, so far as is appropriate, interests or rights appurtenant or pertaining to the chargeable interest.
(2)In this Schedule, “"the transferor””, in relation to a pre-completion transaction, means a party to the pre-completion transaction who immediately before the pre-completion transaction took place was entitled to call for a transfer of (what became) the subject-matter of the pre-completion transaction.
(3)References in this Schedule to the ““subject-matter”” of a pre-completion transaction—
(a)are to the chargeable interest the transfer of which the transferee is entitled to call for as a result of the pre-completion transaction, and
(b)also include, so far as is appropriate, interests or rights appurtenant or pertaining to the chargeable interest.
Commencement Information
I4Sch. 2 para. 4 in force at 1.4.2018 by S.I. 2018/34, art. 3
5E+WThe transferee is not regarded as entering into a land transaction only by reason of the pre-completion transaction.
Commencement Information
I5Sch. 2 para. 5 in force at 1.4.2018 by S.I. 2018/34, art. 3