# Finance Act 2003, Paragraph 3A


(1) Sub-paragraphs (3) to (5) apply in any case where—
(a) there are two or more purchasers under a land transaction,
(b) the purchasers acquire the subject-matter of the transaction as tenants in common (or, in Scotland, as owners in common),
(c) at least one of them is, and at least one of them is not, a qualifying charity, and
(d) no purchaser enters into the transaction for the purpose of the avoidance of tax under this Part (whether by that purchaser or another person).
(2) A charity (“C”) that is a purchaser under a land transaction is a “qualifying charity” in relation to the transaction if C intends to hold its undivided share of the subject-matter of the transaction for qualifying charitable purposes.
(3) The tax chargeable in respect of the transaction is reduced by the amount of the relief under sub-paragraph (4).
(4) The relief is equal to the relevant proportion of the tax that would have been chargeable in respect of the transaction without this Schedule.
(5) The “relevant proportion”, in the case of a qualifying charity, is the lower of P1 and P2, where—
P1 is the proportion of the subject-matter of the transaction that is acquired by all the qualifying charities that are purchasers under the transaction (in aggregate);
P2 is the proportion of the chargeable consideration for the transaction that is given by all the qualifying charities that are purchasers under the transaction (in aggregate).

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