Income Tax Act 2007 section 433

Meaning of "qualifying interest in land"

Section 433 defines what counts as a "qualifying interest in land" for the purposes of income tax relief on gifts of land to charity, and explains how certain related disposals are treated.

• A qualifying interest in land means either a freehold interest or a leasehold interest (with a definite term of years) in land situated in the United Kingdom
• Where an individual donates both a beneficial interest in land and an associated right such as an easement or servitude to a charity, the disposal of the right is treated as a separate qualifying disposal in its own right
• Granting a lease to a charity over all or part of land the individual owns is treated as a disposal of the whole beneficial interest in that leasehold, even though the individual retains the freehold or leasehold reversion
• An agreement to acquire a freehold interest, or an agreement for a lease, does not in itself count as a qualifying interest in land