Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 Schedule 18 paragraph 8

Partial charities relief for non-qualifying charities in joint purchases

Schedule 18 paragraph 8 provides a route for a charity that is not a "qualifying charity" to still benefit from partial charities relief when it jointly purchases land as a tenant in common, provided the charity intends to use the greater part of its share for qualifying charitable purposes.

• A charity that is not a qualifying charity can still claim partial charities relief when it buys land jointly with others as tenants in common, as long as it intends to hold the greater part of its share for qualifying charitable purposes.
• If the charity qualifies under this paragraph, the partial relief and withdrawal rules in paragraphs 6 and 7 apply as though the charity were a qualifying charity, but with additional disqualifying events specific to non-qualifying charities.
• Extra disqualifying events include transferring a major interest in the property, or granting a lease at a premium with annual rent below £1,000, where either action is not in furtherance of the charity's charitable purposes — and the date of such a disqualifying event is treated as the effective date of the original relieved transaction.
• A lease is treated as granted "at a premium" if there is any consideration other than rent, and as a "low-rental" lease if the annual rent is less than £1,000 per year.