# Finance Act 2003, Paragraph 3

Extent: E+W+S+N.I.

(1) This paragraph applies where—
(a) a land transaction is not exempt from charge under paragraph 1 because the first condition in that paragraph is not met, but
(b) the purchaser (“C”) intends to hold the greater part of the subject-matter of the transaction for qualifying charitable purposes.
(2) In such a case—
(a) the transaction is exempt from charge, but
(b) for the purposes of paragraph 2 (withdrawal of charities relief) “disqualifying event” includes—
(i) any transfer by C of a major interest in the whole or any part of the subject-matter of the transaction, or
(ii) any grant by C at a premium of a low-rental lease of the whole or any part of that subject-matter,
that is not made in furtherance of the charitable purposes of C.
(3) For the purposes of sub-paragraph (2)(b)(ii)—
(a) a lease is granted “at a premium” if there is consideration other than rent, and
(b) a lease is a “low-rental”lease if the annual rent (if any) is less than £1,000 a year.
(4) In relation to a transaction that, by virtue of this paragraph, is a disqualifying event for the purposes of paragraph 2—
(a) the date of the event for those purposes is the effective date of the transaction;
(b) paragraph 2 has effect as if—
(i) in sub-paragraph (1)(b), for “at the time of” there were substituted “ immediately before ”,
(ii) in sub-paragraph (4)(a), for “at the time of” there were substituted “ immediately before and immediately after ”, and
(iii) sub-paragraph (4)(b) were omitted.
(5) In this paragraph—
“qualifying charitable purposes” has the same meaning as in paragraph 1;
“rent” has the same meaning as in Schedule 5 (amount of tax chargeable: rent) and “annual rent” has the same meaning as in paragraph 9A of that Schedule.

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Source: https://www.legislation.gov.uk/ukpga/2003/14/schedule/8/paragraph/3 (the official version)
Page: https://openlegislation.uk/finance-act-2003/schedule-8/paragraph-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.