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
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. “Relevant consideration” has
the meaning given by FA03/S55.
“Qualifying flats” 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.
“Flats” and “qualifying tenants” 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.
