SDLTM26040 - Reliefs: Charities relief
Detailed rules for charitable trusts to qualify for relief
FA03/SCH8/PARA4
Relief from stamp duty land tax is available to charitable
trusts on the purchase of a chargeable interest if two conditions
are met. These are
- the purchasing charitable trusts must
intend to hold the chargeable interest for qualifying charitable
purposes. This means
- for use in the furtherance of the charitable
purposes of the beneficiaries or unit holders
- as an investment, the profits of which are applied
to the charitable purposes of the beneficiaries or unit
holders
- that the transaction must not have been
entered into for the purposes of avoiding stamp duty land tax by
either the beneficiaries or unit holders
A charitable trust is defined as a trust of which all
beneficiaries are charities or a unit trust scheme in which all
unit holders are charities.
These restrictions are not meant to restrict the genuine use
by charitable trusts of properties they purchase for charitable
purposes and most charitable trusts will have no difficulty in
fulfilling these conditions.
