Finance Act 2003

[F1 PART 3 U.K. Withdrawal of relief

Textual Amendments

F1 Sch. 6C inserted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 23 para. 8

Withdrawal of relief U.K.

8 (1) This paragraph applies where relief under Part 2 of this Schedule has been allowed in respect of a land transaction.

(2) The relief is withdrawn if, at any time during the control period, the [F2 qualifying land] is not used exclusively in a qualifying manner.

(3) But the relief is not withdrawn where, because of a change in circumstances that is unforeseen and beyond the purchaser’s control, it is not reasonable to expect the [F2 qualifying land] to be used exclusively in a qualifying manner at that time.

(4) Where, at a time during the control period, the use of all or part of the [F2 qualifying land] in a qualifying manner has not yet begun, that land, or that part of the land, is to be treated as being used exclusively in a qualifying manner if reasonable steps are being taken to ensure that it is used in that manner.

(5) Where, at a time during the control period, the use of all or part of the [F2 qualifying land] in a qualifying manner has ceased, that land, or that part of the land, is to be treated as being used exclusively in a qualifying manner if reasonable steps are being taken—

(a) to ensure that it is used in that manner, or

(b) to dispose of all chargeable interests in that land, or that part of the land, that are held by the purchaser and connected persons in a timely manner.

Textual Amendments

F2 Words in Sch. 6C substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 8(b)

The control period U.K.

9 (1) In this Schedule, “the control period”, in relation to a land transaction, means the shorter of—

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

(b) the period beginning with the effective date of that transaction and ending with the effective date of the final transaction.

(2) For the purposes of this paragraph, a land transaction is “the final transaction” if, immediately after the effective date of the transaction, neither the purchaser nor a connected person holds a chargeable interest in the [F2 qualifying land] (whether as a result of that transaction alone or as a result of that transaction and other land transactions).

Textual Amendments

F2 Words in Sch. 6C substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 8(b)

Disposal of interest in part of [F2 qualifying land] during control period U.K.

10 (1) This paragraph applies where the purchaser ceases to hold a chargeable interest in part of the [F2 qualifying land] during the control period.

(2) The references in paragraphs 8 and 9 to the [F2 qualifying land] are to be treated as references only to the part of the [F2 qualifying land] in relation to which the purchaser still holds a chargeable interest (whether the chargeable interest acquired in the land transaction in respect of which relief was allowed under Part 2 of this Schedule or another chargeable interest).]

Textual Amendments

F2 Words in Sch. 6C substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 8(b)