Paragraph 18 F1

This paragraph applies to a transaction (“the relevant transaction”) if—

The dwelling which a non-qualifying individual is permitted to occupy is referred to as “the disqualifying dwelling”.

The relief, or an appropriate proportion of it, is withdrawn, and tax is chargeable in accordance with this paragraph.

This is subject to sub-paragraphs (3) and (4).

Relief is withdrawn only if, at the time a non-qualifying individual is permitted to occupy the disqualifying dwelling, the co-ownership F3... contractual scheme holds a chargeable interest in or over that dwelling—

Where a non-qualifying individual is first permitted to occupy the disqualifying dwelling at a time after the end of the control period, relief is withdrawn only if, at that time, the scheme fails to meet the genuine diversity of ownership condition (see paragraph 15).

The amount chargeable is the amount that would have been chargeable in respect of the relevant transaction but for F4co-ownership scheme seeding relief or, as the case may be, an appropriate proportion of the tax that would have been so chargeable.

In sub-paragraphs (2) and (5), an “appropriate proportion” means an appropriate proportion having regard to the extent to which the subject-matter of the relevant transaction was an interest in or over land other than the disqualifying dwelling.