Exception where purchaser has prior interest in purchased dwelling

7A

1

A chargeable transaction which would (but for this paragraph) fall within paragraph 3 or paragraph 6 does not fall within that paragraph if—

a

the purchaser had a major interest (“the prior interest”) in the relevant purchased dwelling immediately before the effective date of the transaction, and

b

the relevant purchased dwelling had been the purchaser's only or main residence throughout the period of three years ending with the effective date of the transaction.

2

Sub-paragraph (1) does not apply if—

a

the prior interest is a term of years absolute or a leasehold estate, and

b

immediately before the effective date of the transaction, the remaining term of the prior interest is less than 21 years.

3

Sub-paragraph (1) does not apply if immediately before the effective date of the transaction—

a

the purchaser is beneficially entitled as a joint tenant to the prior interest, and

b

there are more than three other joint tenants.

4

Sub-paragraph (1) does not apply if immediately before the effective date of the transaction the purchaser is beneficially entitled as a tenant in common or coparcener to less than a quarter of the prior interest.

5

In this paragraph “relevant purchased dwelling” means—

a

the purchased dwelling mentioned in paragraph 3(1)(b), or (as the case may be)

b

the purchased dwelling which meets the conditions mentioned in paragraph 6(1)(c).