SDLTM28510 - Reliefs: Exercise of collective rights by tenants of flats
Detailed rules and definitions
FA03/S74 provides detailed rules to determine the rate at which Stamp Duty Land Tax is charged for these transactions.
The relief applies only where the purchase is in exercise of
- a right of first refusal under Part 1 Landlord and Tenant Act 1987 or
- a right of collective enfranchisement under Chapter 1 of Part 1 Leasehold Reform, Housing and Urban Development Act 1993.
It applies where a chargeable transaction is entered into by a person or persons nominated or appointed by qualifying tenants of flats contained in premises.
The rate of tax is determined by the fractional proportion of the relevant consideration produced by dividing the total amount of the relevant consideration by the number of qualifying flats contained in the premises. 바카라 사이트淩elevant consideration바카라 사이트� has the meaning given by FA03/S55.
바카라 사이트淨ualifying flats바카라 사이트� means flats held by qualifying tenants who are participating in the exercise of the statutory right concerned, under the terms of that right. This may be fewer than the total number of flats in the block. 바카라 사이트淔lats바카라 사이트� and 바카라 사이트渜ualifying tenants바카라 사이트� in respect of each statutory right are defined in the legislation which confers that right.
Flats leased by qualifying tenants who reach a separate agreement with the nominee or appointee, but do not participate in the exercise of the statutory right, cannot be taken into account for the purposes of the relief.
The higher rate of 15% is still applicable where the conditions of SCH4A FA03 apply, so the relief does not apply in these circumstances.