SDLTM26030 - Reliefs: Charities relief

Circumstances where relief is available where a charity or charitable trust holds the greater part of the land FA03/SCH8/PARA3

Where a charity or charitable trust is unable to claim relief on a land transaction

• because it does not intend to hold the whole of the land for qualifying charitable purposes
• but it does intend to hold the greater part for such purposes

then the whole of the transaction will be exempt from charge.

The greater part means 51% or more of the monetary value of the land; see the example 1 at SDLTM26030a.

If the charity disposes of part of that land or holds part of it for use for other than qualifying charitable purposes, a relevant portion of the relief will be clawed back. See the example 2 at SDLTM26030a. Disposal includes the grant of a low rental (less than £1,000 per annum) premium lease

This ensures that the relief granted is in proportion to the share of the land retained and held by the charity in furtherance of its charitable aims.