C1C2C3C4Part 4Stamp duty land tax

Annotations:
Modifications etc. (not altering text)
C3

Pt. 4 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 194(8)-(12)

C4

Pt. 4 applied (17.7.2014) by Finance Act 2014 (c. 26), ss. 223(8)(9)(d)

Reliefs

73I1Alternative property finance: land sold to financial institution and re-sold to F5person

1

This section applies where arrangements are entered into between F4a person and a financial institution under which—

a

the institution—

i

purchases a major interest in land (“the first transaction”), and

ii

sells that interest to the F5person (“the second transaction”), and

b

the F5person grants the institution a legal mortgage over that interest.

2

The first transaction is exempt from charge if the vendor is—

a

the F5person concerned, or

b

another financial institution by whom the interest was acquired under other arrangements of the kind mentioned in F1section 71A(1)F7... entered into between it and the F5person.

3

The second transaction is exempt from charge if the financial institution complies with the provisions of this Part relating to the first transaction (including the payment of any tax chargeable F2on a chargeable consideration that is not less than the market value of the interest and, in the case of the grant of a lease at a rent, the rent.).

F34

This section does not apply if—

a

the F5person enters into the arrangements as trustee and any beneficiary of the trust is not F4a person, or

b

the F5person enters into the arrangements as partner and any of the other partners is not F4a person.

5

In this section—

F6a

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b

“legal mortgage”—

i

in relation to land in England F9or Wales, means a legal mortgage as defined in section 205(1)(xvi) of the Law of Property Act 1925 (c. 20);

F8ii

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

iii

in relation to land in Northern Ireland, means a mortgage by conveyance of a legal estate or by demise or sub-demise or a charge by way of legal mortgage.

6

References in this section to F4a person shall be read, in relation to times after the death of the F5person concerned, as references to his personal representatives.