{
  "url": "https://openlegislation.uk/finance-act-2003/schedule-7A/paragraph-18",
  "json_url": "https://openlegislation.uk/finance-act-2003/schedule-7A/paragraph-18.json",
  "legislation": "ukpga/2003/14",
  "legislation_title": "Finance Act 2003",
  "legislation_url": "https://openlegislation.uk/finance-act-2003",
  "path": "schedule/7A/paragraph/18",
  "kind": "paragraph",
  "number": "18",
  "heading": null,
  "text": "(1) This paragraph applies to a transaction (“the relevant transaction”) if—\n(a) co-ownership scheme seeding relief has been allowed in respect of the transaction,\n(b) the main subject-matter of the transaction consists of a chargeable interest in or over land which is or includes a dwelling, and\n(c) a non-qualifying individual (see paragraph 19) is permitted to occupy the dwelling at any time on or after the effective date of the transaction.\nThe dwelling which a non-qualifying individual is permitted to occupy is referred to as “the disqualifying dwelling”.\n(2) The relief, or an appropriate proportion of it, is withdrawn, and tax is chargeable in accordance with this paragraph.\nThis is subject to sub-paragraphs (3) and (4).\n(3) Relief is withdrawn only if, at the time a non-qualifying individual is permitted to occupy the disqualifying dwelling, the co-ownership ... contractual scheme holds a chargeable interest in or over that dwelling—\n(a) that was acquired by the scheme under the relevant transaction, or\n(b) that is derived from an interest so acquired.\n(4) 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is first permitted to occupy the disqualifying dwelling at a time after the end of the control period, relief is withdrawn only if, at that time, the scheme fails to meet the genuine diversity of ownership condition (see paragraph 15).\n(5) The amount chargeable is the amount that would have been chargeable in respect of the relevant transaction but for co-ownership scheme seeding relief or, as the case may be, an appropriate proportion of the tax that would have been so chargeable.\n(6) 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.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Sch. 7A inserted (with effect in accordance with Sch. 16 para. 15 of the amending Act) by Finance Act 2016 (c. 24), Sch. 16 para. 4"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in Sch. 7A para. 18(1)(a) substituted (19.3.2025) by The Co-ownership Contractual Schemes (Tax) Regulations 2025 (S.I. 2025/200), regs. 1(2), 59(15)(a) (with reg. 63)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Word in Sch. 7A para. 18(3) omitted (19.3.2025) by virtue of The Co-ownership Contractual Schemes (Tax) Regulations 2025 (S.I. 2025/200), regs. 1(2), 59(15)(b) (with reg. 63)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in Sch. 7A para. 18(5) substituted (19.3.2025) by The Co-ownership Contractual Schemes (Tax) Regulations 2025 (S.I. 2025/200), regs. 1(2), 59(15)(c) (with reg. 63)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2003/14/schedule/7A/paragraph/18",
    "retrieved_at": "2026-10-29T09:18:27.996599+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}