SDLTM26010 - Reliefs: Charities relief
Detailed rules to qualify for the relief FA03/SCH8/PARA1
Relief from stamp duty land tax is available to charities on the purchase of a chargeable interest if two conditions are met. These are
- the purchasing charity must intend to hold the chargeable interest for qualifying charitable purposes. This means
- for use in the furtherance of the charitable purposes of the purchaser or another charity
- as an investment, the profits of which are applied to the charitable purposes of the purchaser
- that the transaction must not have been entered into for the purposes of avoiding stamp duty land tax by either the purchaser or any other person
A charity is defined as a body of persons or a trust established
for charitable purposes only.
Only bodies constituted under the laws of the UK, and subject
to regulation by the UK courts, can be charities for tax purposes.
These restrictions are not meant to restrict the genuine use
by charities of properties they purchase for charitable purposes
and most charities will have no difficulty in fulfilling these
conditions.
See
SDLTM 26010a, example
where a dwelling is provided to a vicar or priest.
