A charity buys a five-storey office block and intends to dispose
of the top three floors at the time of acquisition.
For whatever reason the ground and first floors represent 55%
of the total monetary value of the block with the remaining upper
three floors representing 45%.
The charity would qualify for relief as it intended to hold
the greater part of the land, even though in terms of floor space
it would have disposed of more than half.
A charity buys a housing development with 10 equal residential
units for a total of £1m with the intention to dispose of
three of these units on the open market.
The charity would initially gain full stamp duty land tax
charity relief on the whole £1m purchase price.
When the charity disposes of the three units, a clawback of
relief on the £300,000 apportioned value of the three units is
made.
The clawback would be taxed at the rate appropriate to the
whole initial consideration i.e. 4% stamp duty land tax on the
£300,000 proportion attributed to the units would mean
£12,000 clawed-back Tax
