62.Schedule 2A Paragraph 13 sets out the meaning of first minimum amount and how this is calculated for the purposes of paragraph 12.
63.Sub-paragraph (1) provides that the “first minimum amount” (see paragraph 12(2)(b)) is in respect of a chargeable interest that is acquired under a land transaction (see paragraph 4(4) and 9(2)): (i) the amount of consideration for the subject matter of the original contract (if the whole of the subject matter of that contract is acquired); or (ii) the amount of consideration just and reasonably apportioned (if a part of the subject-matter of the original contract is acquired).
64.Sub-paragraph (2) provides that if certain conditions are met (see sub-paragraph 3) the first minimum amount is total of any consideration required to be given by the transferor (the first T – see sub-paragraph (4)) under the terms of the contract for the first T’s acquisition (see sub-paragraph (5)) of the subject matter of that contract and, if not included, any consideration required to be given by the first T under any pre-completion transaction where the first T is a transferee.
65.Sub-paragraph (3) sets out the conditions that need to be met for the first minimum amount to apply.
66.Sub-paragraph (4) sets out the meaning of “the first T” for purposes of paragraph 13.
67.Sub-paragraph (5) provides a definition of “the transfer to the first T” for the purposes of paragraph 13(2). It is the pre-completion transaction where the first T is a transferee or the original contract (if T (see Condition B in sub-paragraph (3)) is the original purchaser).
68.Sub-paragraph (6) provides the meaning of “original contract” and “tax advantage” for the purposes of this paragraph.
Introduction Calculation of minimum amounts for the purposes of the minimum consideration rule