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Amendments made: No. 155, in page 252, line 22, at end insert—
Cases where first condition not fully met
§ 3 (1) This paragraph applies where—
- a land transaction is not exempt from charge under paragraph 1 because the first condition in that paragraph is not met, but
- the purchaser ("C") intends to hold the greater part of the subject-matter of the transaction for qualifying charitable purposes.
§ (2) In such a case—
- the transaction is exempt from charge, but
- for the purposes of paragraph 2 (withdrawal of charities relief) "disqualifying event" includes—
- (i) any transfer by C of a major interest in the whole or any part of the subject-matter of the transaction, or
- (ii) any grant by C at a premium of a low-rental lease of the whole or any part of that subject-matter,
§ (3) For the purposes of sub-paragraph (2)(b)(ii)—
- a lease is granted "at a premium" if there is consideration other than rent, and
- a lease is a "low-rental" lease if the annual rent (if any) does not exceed £600 a year.
§ (4) In relation to a transaction that, by virtue of this paragraph, is a disqualifying event for the purposes of paragraph 2—
- the date of the event for those purposes is the effective date of the transaction;
- paragraph 2 has effect as if—
- (i) in sub-paragraph (1)(b), for "at the time of" there were substituted "immediately before",
- (ii) in sub-paragraph (4)(a), for "at the time of" there were substituted "immediately before and immediately after", and
- (iii) sub-paragraph (4)(b) were omitted.
§ (5) In this paragraph—
§ "qualifying charitable purposes" has the same meaning as in paragraph 1;
§ "rent" has the same meaning as in Schedule 5 (amount of tax chargeable: rent) and "annual rent" his the same meaning as in paragraph 9(2) of that Schedule.".'.
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No. 156, in page 252, line 22, at end insert—
'() After paragraph 3 of that Schedule (inserted by subsection (1) above) insert—
§ No. 157, in page 252, line 24, leave out '3' and insert '4'.
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No. 158, in page 252, line 35, at end insert—
'(c) the reference in paragraph 3(2)(b) to the charitable purposes of C is to those of the beneficiaries or unit holders, or any of them.'.
§ No. 159, in page 252, line 35, at end insert—
'() In paragraph 1(1) of that Schedule, for "this paragraph" substitute "this Schedule".
() In paragraph 2(1) of that Schedule, for "paragraph 1 (charities relief)" substitute "this Schedule".
() In section 81 (further return where relief withdrawn), in paragraph (c) of subsection (4) (meaning of "the disqualifying event"), after "paragraph 2(3)" insert "or 3(2)".
() In section 87 (interest on unpaid tax), in paragraph (c) of subsection (4) (meaning of "the disqualifying event"), after "paragraph 2(3)" insert "or 3(2)".'.—[Dawn Primarolo.]