Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 Schedule 18 paragraph 5

Charities relief: buyers that are charities but not qualifying charities

Schedule 18 paragraph 5 provides a route to charities relief for a charity that is not a "qualifying charity" but still intends to use the greater part of the property for qualifying charitable purposes, and sets out additional disqualifying events that can cause such relief to be withdrawn.

• A charity that is not a qualifying charity can still claim charities relief if it intends to hold the greater part of the property for qualifying charitable purposes.
• If such a charity transfers a major interest in the property, or grants a low-rental lease at a premium, other than in furtherance of its charitable purposes, this counts as a disqualifying event and the relief is withdrawn.
• Where withdrawal is triggered by such a disqualifying event, the date of that event is treated as the effective date of the original relieved transaction, and the withdrawal rules are modified accordingly.
• A lease is "low-rental" if the annual rent is less than £1,000 per year, and it is granted "at a premium" if there is any consideration other than rent.