SCHEDULE 8Stamp duty land tax: charities relief
F1Cases where first condition not fully met
3
(1)
This paragraph applies where—
(a)
a land transaction is not exempt from charge under paragraph 1 because the first condition in that paragraph is not met, but
(b)
the purchaser (“C”) intends to hold the greater part of the subject-matter of the transaction for qualifying charitable purposes.
(2)
In such a case—
(a)
the transaction is exempt from charge, but
(b)
for the purposes of paragraph 2 (withdrawal of charities relief) “disqualifying event” includes—
(i)
any transfer by C of a major interest in the whole or any part of the subject-matter of the transaction, or
(ii)
any grant by C at a premium of a low-rental lease of the whole or any part of that subject-matter,
that is not made in furtherance of the charitable purposes of C.
(3)
For the purposes of sub-paragraph (2)(b)(ii)—
(a)
a lease is granted “at a premium” if there is consideration other than rent, and
(b)
a lease is a “low-rental”lease if the annual rent (if any) F2is less than £1,000 a year.
(4)
In relation to a transaction that, by virtue of this paragraph, is a disqualifying event for the purposes of paragraph 2—
(a)
the date of the event for those purposes is the effective date of the transaction;
(b)
paragraph 2 has effect as if—
(i)
in sub-paragraph (1)(b), for “at the time of” there were substituted “
immediately before
”
,
(ii)
in sub-paragraph (4)(a), for “at the time of” there were substituted “
immediately before and immediately after
”
, and
(iii)
sub-paragraph (4)(b) were omitted.
(5)
In this paragraph—
“qualifying charitable purposes” has the same meaning as in paragraph 1;
“rent” has the same meaning as in Schedule 5 (amount of tax chargeable: rent) and “annual rent” has the same meaning as in paragraph F39A of that Schedule.