SDLTM28310 - Reliefs: Alternative property finance

Land sold to a financial institution and individual in common: Scotland: Detailed rules FA03/S72A(1) and FA03/S72A(5)

To take advantage of this relief, arrangements must be entered into between an individual and a financial institution whereby the financial institution and the individual

• purchase a major interest in land as owners in common - the first transaction
• enter into an agreement by which the individual has an exclusive right to occupation - the second transaction
• enter into an agreement where the individual has a right to require the institution, or its successor in title, to transfer that interest held by the bank - further and final transactions

For the purposes of FA03/S72(1) relief is not available if that individual enters into the arrangements, or holds the lease or sublease, as a partner and any of the other partners is not an individual

This ensures that relief is not available where any of the benefit of the relief could accrue to a person who is not a living individual at the time the arrangements are entered into.

FA03/S72(5) provides that the third transaction is not to be treated

• as substantially performed by taking possession or paying a substantial amount of the consideration, so disapplying FA03/S44(4)
• as the grant of an option to which FA03/S46 applies

This subsection disapplies various provisions which may have effect. It ensures that, where the arrangements are completed in the manner provided for, and all the other rules are complied with, only one stamp duty land tax charge is payable.