Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 section Schedule 7 paragraph 42

Charities relief for transfers of partnership interests

Schedule 7 paragraph 42 explains how the charities relief rules are adapted when applied to chargeable transfers of partnership interests, rather than ordinary land transactions.

• Charities relief (set out in Schedule 18) can apply to transfers of partnership interests that are chargeable transactions, but the relief rules are modified to fit the partnership context.
• References to a "buyer in a land transaction" are replaced with references to a "transferee" acquiring an interest in a partnership, and references to the "subject-matter of the transaction" are replaced with references to chargeable interests held as partnership property.
• The qualifying condition for relief focuses on whether every chargeable interest held as partnership property immediately after the transfer is held for qualifying charitable purposes, rather than looking at a single property being acquired.
• If relief is later withdrawn due to a disqualifying event, the amount of tax clawed back is calculated by reference to an appropriate proportion, taking into account both the partnership property held immediately after the relieved transaction and the partnership property held at the time of the disqualifying event.