Finance Act 2003

• (7) If condition B is met because the first successor ceases to exist (whether by virtue of a conversion into, or amalgamation with, another person or for any other reason), relief is not to be withdrawn under this paragraph unless it would have been withdrawn by virtue of sub-paragraph (4) if references in sub-paragraphs (4) to (6)—

• (a) to the purchaser were references to the first successor, and

• (b) to the first successor were references to the person who has succeeded to the engagements of the first successor (“the second successor”).

• (8) Sub-paragraph (7) is to apply to the second successor as it applies to the first successor, and so on, subject to the necessary modifications.

6I

• (1) This paragraph applies where relief under paragraph 5FA (qualifying housing co-operatives) has been allowed, in accordance with paragraph 6A(4), in relation to the purchase of a major interest in land.

• (2) The relief is withdrawn (subject to sub-paragraph (3)) if—

• (a) on any day in the period of three years beginning with the effective date of the first transaction (“the control period”), the relevant person is not a qualifying housing body, and

• (b) immediately before the first day on which that is the case the relevant person holds a relevant interest (whether jointly, or in common, or otherwise).

• (3) If, on any day in the control period, the relevant person is not a qualifying housing body because it ceases to exist (whether by virtue of a conversion into, or amalgamation with, another person or for any other reason), relief is not to be withdrawn under this paragraph unless—

• (a) another person (“the first successor”) has succeeded to the engagements of the relevant person, and

• (b) condition A or condition B is met (and if condition B is met, subject to sub-paragraph (6)).

• (4) Condition A is that, on the day the first successor succeeds to the engagements of the relevant person (“the day of succession”), the first successor is not a qualifying housing body.

• (5) Condition B is that—

• (a) on any day in the part of the control period that falls after the day of succession, the first successor is not a qualifying housing body, and

• (b) immediately before the first day on which that is the case the first successor still holds a relevant interest (whether jointly, or in common, or otherwise).

• (6) If condition B is met because the first successor ceases to exist (whether by virtue of a conversion into, or amalgamation with, another person or for any other reason), relief is not to be withdrawn under this paragraph unless it would have been withdrawn by virtue of sub-paragraph (3) if references in sub-paragraphs (3) to (5)—

• (a) to the relevant person were references to the first successor, and

• (b) to the first successor were references to the person who has succeeded to the engagements of the first successor (“the second successor”).

• (7) Sub-paragraph (6) is to apply to the second successor as it applies to the first successor, and so on, subject to the necessary modifications.

• (8) In this paragraph—

• (a) “qualifying housing body” means—

• (i) a company that is a qualifying housing co-operative for the purposes of section 150(3A) of the Finance Act 2013 (relief from ATED),

• (ii) a registered provider of social housing, or

• (iii) a registered social landlord;

• (b) “relevant interest” has the same meaning as in paragraph 6D;

• (c) “the relevant person” means the person (other than the financial institution) who enters into the arrangements mentioned in section 71A(1) or 73(1);

• (d) references to a major interest include an undivided share in a major interest in land.

SCHEDULE 6C

PART 1 — qualifying land

1

In this Schedule, “transaction land”, in relation to a land transaction, means land a chargeable interest in which is the subject matter of the transaction.

2

For the purposes of this Schedule, transaction land is “qualifying land” if, on the effective date of the transaction—

• (a) it is situated in a special tax site, and

• (b) the purchaser intends it to be used exclusively in a qualifying manner.

3

• (1) For the purposes of this Schedule, transaction land is used in a qualifying manner if—

• (a) it is used by the purchaser or a connected person in the course of a commercial trade or profession,

• (b) it is developed or redeveloped by the purchaser or a connected person for use (by any person) in the course of a commercial trade or profession,

• (c) it is exploited by the purchaser or a connected person, in the course of a commercial trade or profession, as a source of rents or other receipts (other than excluded rents), or

• (d) it is used in two or more of the ways described in paragraphs (a) to (c).

• (2) But land is not used in a qualifying manner to the extent that it is—

• (a) used as a dwelling or as the garden or grounds of a dwelling,

• (b) developed or redeveloped to become residential property,

• (c) exploited as a source of rents or other receipts payable by a person using the land as a dwelling or as the garden or grounds of a dwelling, or

• (d) held (as stock of the business) for resale without development or redevelopment.

• (3) For the purposes of this paragraph, use of land in the course of a commercial trade or profession includes use of land for a purpose that is ancillary to the use of other land which—

• (a) is situated in a special tax site, and

• (b) is being used, or developed or redeveloped, in the course of a commercial trade or profession.

• (4) The references in sub-paragraph (2) to land used as the garden or grounds of a dwelling include a building or structure on the land.

• (5) The references in this paragraph to doing something in the course of a commercial trade or profession include doing something in the course of a property rental business.

• (6) In this paragraph—

• “commercial”, in relation to a trade or profession, means carried on—on a commercial basis, andwith a view to profit;

• “excluded rents” has the same meaning as in section 133 of the Finance Act 2013;

• “property rental business” means a property business as defined in Chapter 2 of Part 3 of the Income Tax (Trading and Other Income) Act 2005.

4

• (1) In this Schedule, “connected person” means a person who is connected with the purchaser.

• (2) Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this paragraph.

PART 2 — The relief

5

• (1) This paragraph applies to a land transaction if at least 90% of the chargeable consideration for the transaction is attributable to qualifying land.

• (2) The transaction is exempt from charge.

6

• (1) This paragraph applies to a land transaction if the proportion of the chargeable consideration for the transaction that is attributable to qualifying land (“the relevant proportion”) is less than 90% but at least 10%.

• (2) The tax chargeable in respect of the transaction is reduced by the relevant proportion.

7

• (1) For the purposes of this Schedule, the consideration attributable to qualifying land must be determined on a just and reasonable basis.

• (2) Sub-paragraphs (3) and (4) apply if less than 100% of the chargeable consideration attributable to transaction land situated in a special tax site (“the relevant consideration”) is attributable to land that satisfies the condition in paragraph 2(b).

• (3) If at least 90% of the freeport consideration is attributable to land that satisfies the condition in paragraph 2(b) then, for the purposes of this Schedule, all of the relevant consideration is to be treated as being attributable to qualifying land.

• (4) If less than 10% of the relevant consideration is attributable to land that satisfies the condition in paragraph 2(b) then, for the purposes of this Schedule, all of the freeport consideration is to be treated as not being attributable to qualifying land.

PART 3 — Withdrawal of relief

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 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 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 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 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.

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 qualifying land (whether as a result of that transaction alone or as a result of that transaction and other land transactions).

10

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

• (2) The references in paragraphs 8 and 9 to the qualifying land are to be treated as references only to the part of the 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).

PART 4 — Alternative finance arrangements

11

• (1) This paragraph applies where either of the following applies—

• (a) section 71A (land sold to financial institution and leased to person), or

• (b) section 73 (land sold to financial institution and re-sold to person).

• (2) This paragraph applies for the purposes of determining—

• (a) whether relief is available under Part 2 of this Schedule for the first transaction, and

• (b) whether relief allowed for the first transaction is withdrawn under Part 3 of this Schedule.

• (3) For those purposes this Schedule has effect as if—

• (a) references to the purchaser were references to the relevant person, and

• (b) the reference in paragraph 3(2)(d) to land held (as stock of the business) for resale without development or redevelopment were a reference to land held in that manner by the relevant person.

• (4) The first transaction does not qualify for relief under Part 2 of this Schedule except where it does so by virtue of this paragraph.

• (5) In this paragraph—

• “the first transaction” has the same meaning as in section 71A or 73 (as appropriate);

• “the relevant person” means the person, other than the financial institution, who entered into the arrangements mentioned in section 71A(1) or 73(1) (as appropriate).

PART 5 — Power to change when relief is available

12

• (1) The Treasury may by regulations—

• (a) amend the meaning of “qualifying land”, or

• (b) make other provision about the availability of relief under this Schedule, including provision—

• (i) adding, removing or altering, or otherwise about, conditions that must be met in order for relief to be available,

• (ii) about the withdrawal of relief, or

• (iii) about returns where relief is withdrawn.

• (2) Regulations under this paragraph may not remove the requirement for land to be situated in a special tax site.

• (3) Regulations under this paragraph may, among other things—

• (a) make provision by reference to the land, the land transaction, the purchaser or connected persons;

• (b) impose conditions relating to accounts or other records;

• (c) impose other conditions requiring a person to take steps specified in the regulations.

• (4) Regulations under this paragraph—

• (a) may amend, repeal or otherwise modify provisions of this Schedule, and

• (b) where made in reliance on sub-paragraph (1)(b) of this paragraph or on section 114(6)(c), may amend, repeal or otherwise modify other provisions of this Act.

• (5) The power to make regulations under this paragraph may be exercised only in relation to transactions with an effective date that is on or after the date on which the regulations come into force.

13

• (1) An instrument containing regulations under paragraph 12 must be laid before the House of Commons after being made.

• (2) If the regulations are not approved by the House of Commons before the end of the period of 28 days beginning with the day on which they are made, they cease to have effect at the end of that period (if they have not already ceased to have effect under sub-paragraph (3)).

• (3) If, on any day during that period of 28 days, the House of Commons, in proceedings on a motion that (or to the effect that) the regulations be approved, comes to a decision rejecting the regulations, they shall cease to have effect at the end of that day.

• (4) In reckoning any such period of 28 days, no account is to be taken of any time during which—

• (a) Parliament is prorogued or dissolved, or

• (b) the House of Commons is adjourned for more than four days.

• (5) Where regulations cease to have effect under sub-paragraph (3), their ceasing to have effect is without prejudice to anything done in reliance on them.

Meaning of “major interest” in land

Charge and rates for 2003-04

Deferred unascertainable consideration: election for treatment of loss

Authorised unit trusts, OEICs and common investment funds

Eligibility for relief: acquisition of new lease on bare trust

3A

In determining who is the purchaser for the purposes of paragraphs 1(4) and 2(2), paragraph 3 of Schedule 16 is to have effect as if sub-paragraphs (2) and (3) (trustee of bare trust granted a lease treated as purchaser of the whole of the interest acquired) were omitted.

87A

• (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”—in relation to a breach of the ownership requirement, means—“the 9 month period” that applies in relation to the breach under regulation 16 of the 2025 Regulations (as defined in that regulation), orif 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;in relation to a breach of the restriction requirement, means—“the 9 month period” that applies in relation to a breach under regulation 18 of the 2025 Regulations (as defined in that regulation), orif 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.

Taxable benefits: lower threshold for cars with a CO2 emissions figure

Supplies not known to be taxable when made, etc

Consequential claims etc