Introduction Details of the Schedule
2.Paragraph 2 inserts new sub-paragraph (3A) into paragraph 1 of Schedule 8, which defines “qualifying charitable purposes” for the purposes of the schedule as being:
3.Paragraph 3 inserts new paragraphs 3A, 3B and 3C into Schedule 8.
4.New paragraph 3A provides for partial relief for joint purchasers.
5.Sub-paragraph 1 provides that sub-paragraphs 3 to 5 apply where –
6.Sub-paragraph 2 defines a “qualifying charity” as a charity which intends to hold its share in the property for qualifying charitable purposes.
7.Sub-paragraph 3 provides for partial relief to be available by reducing the SDLT due on the transaction by the amount of relief provided for under sub-paragraph (4).
8.Sub-paragraph 4 provides that the relief available is equal to the “relevant proportion” of the tax that would otherwise have been chargeable on the transaction.
9.Sub-paragraph 5 defines the relevant proportion as the lower of:
10.New paragraph 3B provides for withdrawal of the relief given under paragraph 3A.
11.Sub-paragraph 1 provides that paragraph 3B applies where relief has been given under paragraph 3A and a disqualifying event occurs.
12.Sub-paragraph 2 defines a “disqualifying event” as:
13.Sub-paragraph 3 provides that a disqualifying event must occur before the end of three years from the effective date of the transaction or in pursuance of, or in connection with, arrangements that were made before the end of that three year period.
14.Sub-paragraph 4 provides that, at the time of the disqualifying event, the charity must hold a chargeable interest in, or an interest derived from, the land that was acquired under the original transaction.
15.Sub-paragraph 5 provides that the relief under paragraph 3A, or an appropriate proportion of it, is withdrawn, and tax becomes chargeable.
16.Sub-paragraph 6 provides that the amount of tax chargeable, in respect of a charity, is the amount of relief given under paragraph 3A, or an appropriate portion of that relief.
17.Sub-paragraph 7 provides that the amount of tax chargeable is dependant on whether the relief given under paragraph 3A(5) was based on P1 or P2.
18.Sub-paragraph 8 sets out how to calculate the charity’s proportion of the relief, where more than one qualifying charity is a purchaser, and the relief given was based on P1 (the proportion of the land acquired by the charities).  This is:
19.Sub-paragraph 9 sets out how to calculate the charity’s proportion of the relief, where more than one qualifying charity is a purchaser, and the relief given was based on P2 (the proportion of the chargeable consideration given by the charities).  This is:
20.Sub-paragraph 10 provides that in determining the appropriate proportions, as referred to in sub-paragraphs (5) and (6), account must be taken of –
21.New paragraph 3C allows for relief to be available where the charity does not fully meet the “qualifying charity” condition.
22.Sub-paragraph 1 provides that paragraph 3C applies where –
23.Sub-paragraph 2 provides that in such a case paragraph 3A applies but that, for the purposes of withdrawal of the relief under paragraph 3B, “additional disqualifying events” apply.
24.Sub-paragraph 3 defines “additional disqualifying transactions” as –
25.Sub-paragraph 4 imports the definitions of “at a premium” and “low-rental” from paragraph 3(3).
26.Sub-paragraph 5 provides that for the purposes of paragraph 3B the date of the disqualifying event is the effective date of the transaction.
27.Sub-paragraph 6 sets out some modifications that apply to paragraph 3B in its application to an additional disqualifying event.
28.Paragraph 4 makes consequential amendments to paragraph 4 of Schedule 8.
29.Paragraph 5 provides that the amendments made by paragraphs 1 to 4 will have effect for transactions with an effective date on or after the date of Royal Assent of                 Finance Act 2014.