Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 Schedule 18 paragraph 7

Withdrawal of partial charities relief on joint purchases

Schedule 18 paragraph 7 sets out the circumstances in which partial charities relief granted on a joint purchase by a charity and another person is withdrawn, and how the amount of tax that becomes chargeable is calculated.

• Where a charity received partial charities relief on a joint land purchase and a disqualifying event occurs within three years (or under arrangements made within that period), the relief attributable to that charity is withdrawn.
• The charity must still hold a chargeable interest acquired under the original relieved transaction, or one derived from it, at the time of the disqualifying event.
• The amount of tax that becomes chargeable equals the charity's portion of the relief, calculated by reference to whether the charity's share of the property acquired or its share of the consideration paid was lower in the original relief calculation.
• If the charity has disposed of part of its interest or only part is used for non-charitable purposes, only an appropriate proportion of the charity's portion of the relief is withdrawn, reflecting what the charity still holds and the extent of non-qualifying use.