Part 4Stamp duty land tax

Liability for and payment of tax

F187AInterest on unpaid tax: cases involving Reserved Investor Fund (Contractual Schemes)

(1)

This section makes provision about the meaning of “relevant date” for the purposes of section 87 in the cases set out below where co-ownership seeding relief in relation to a land transaction has been withdrawn under paragraph 13 of Schedule 7A as a result of the purchaser ceasing to be a Reserved Investor Fund (Contractual Scheme) (and, accordingly, ceasing to be a co-ownership contractual scheme).

(2)

In those cases this section applies instead of section 87(3)(a)(iib) for the purposes of determining the relevant date.

(3)

The first case is where—

(a)

the purchaser ceases to be a Reserved Investor Fund (Contractual Scheme) by virtue of breaching the ownership requirement or the restriction requirement, and

(b)

the effective date of the relevant land transaction fell before the start of the cure period that applied in relation to the breach,

and in such a case the “relevant date” is the date on which the breach mentioned in paragraph (a) first occurred.

(4)

The second case is where—

(a)

the purchaser ceases to be a Reserved Investor Fund (Contractual Scheme) by virtue of breaching the ownership requirement or the restriction requirement, and

(b)

the effective date of the relevant land transaction fell within the cure period that applied in relation to the breach,

and in such a case the “relevant date” is the effective date of the relevant land transaction.

(5)

The third case is where—

(a)

the purchaser ceases to be a Reserved Investor Fund (Contractual Scheme) as a result of ceasing to meet the UK property rich condition in regulation 12 of the 2025 Regulations, and

(b)

regulation 19 of those Regulations applied in relation to the scheme,

and in such a case the “relevant date” means the date on which regulation 19 first applied in relation to the scheme.

(6)

The fourth case is where—

(a)

the purchaser ceases to be a Reserved Investor Fund (Contractual Scheme) by virtue of the scheme no longer being able to rely on regulation 9 of the 2025 Regulations to meet the ownership requirement, and

(b)

the effective date of the relevant land transaction fell at a time when the scheme was relying on that regulation to meet the ownership requirement,

and in such a case the “relevant date” means the effective date of the relevant land transaction.

(7)

In this section—

“the 2025 Regulations” means the Co-ownership Contractual Schemes (Tax) Regulations 2025;

“cure period”—

(a)

in relation to a breach of the ownership requirement, means—

  1. (i)

    “the 9 month period” that applies in relation to the breach under regulation 16 of the 2025 Regulations (as defined in that regulation), or

  2. (ii)

    if a notice is given in relation to the breach under paragraph (2) of that regulation, the period beginning with the day on which the breach occurred and ending on the day on which the notice is given;

(b)

in relation to a breach of the restriction requirement, means—

  1. (i)

    “the 9 month period” that applies in relation to a breach under regulation 18 of the 2025 Regulations (as defined in that regulation), or

  2. (ii)

    if a notice is given in relation to the breach under paragraph (3) of that regulation, the period beginning with the day on which the breach occurred and ending on the day on which the notice is given;

“ownership requirement” has the meaning given in regulation 5 of the 2025 Regulations;

“relevant land transaction” means the land transaction to which the withdrawal of seeding relief relates;

“restriction requirement” has the meaning given in regulation 10(1) of the 2025 Regulations;

“UK property rich condition” has the meaning given in regulation 12 of the 2025 Regulations.