Introduction Relief for the original purchaser in qualifying subsale cases
81.Schedule 2A Paragraph 16 sets out the conditions for relief from SDLT where there is a qualifying subsale.
82.Sub-paragraph (1) provides that relief from SDLT is available where the pre-completion transaction is: (i) a qualifying subsale (see sub-paragraph (8)); (ii) the original purchaser would (apart from this paragraph) be liable to SDLT on the land transaction effected by completion or substantial performance of the original contract; (iii) the qualifying subsale is performed at the same time as and in connection with the original contract; and (iv) relief is claimed in a land transaction return in accordance with sub-paragraph (6)
83.Sub-paragraph (2) provides that where the qualifying subsale is for the whole of the subject-matter of the original contract, no liability to SDLT arises on that transaction.
84.Sub-paragraph (3) provides that where the qualifying subsale relates to part of the subject-matter of the original contract then full relief is not available but the amount of the consideration is reduced accordingly.
85.Sub-paragraph (4) sets out that there may be more than one reduction in SDLT for qualifying subsales of a part which relate to the same original contract.
86.Sub-paragraph (5) provides that relief from SDLT under this paragraph is not available if: (i) the original contract was substantially performed before the qualifying subsale was entered into; or (ii) the transaction effected by the qualifying subsale is exempt from charge by virtue of the alternative property finance rules.
87.Sub-paragraph (6) provides that relief under this paragraph must be claimed by the submission of a land transaction return.
88.Sub-paragraph (7) sets out the meaning of “performed” in respect of a contract for land transaction under this paragraph. It is the earlier of substantial performance or completion.
89.Sub-paragraph (8) defines what is meant by a “qualifying subsale”.