Scope: What is chargeable: Land transactions: Meaning of chargeable interest FA03/S48
‘Chargeable interest’ means:
1. an estate, interest, right or power in or over land in the UK, or 2. the benefit of an obligation, restriction or condition affecting the value of any such estate, interest, right or power (FA03/S48(1))
other than an ‘exempt interest’. For ‘exempt interests’ see SDLTM00320.
Chargeable interests in England & Wales and Northern Ireland include:
* a freehold estate (the nearest equivalent to absolute ownership, sometimes referred to as an ‘estate in fee simple’) * a leasehold estate (sometimes referred to as a ‘term of years’) * an undivided share in land * a right in or over land such as an easement or profit a prendre, for example a right of light * a rentcharge * in Northern Ireland, a ground rent or fee farm rent * the right to receive rent (IRC v John Lewis Properties Ltd  STC 1118 at 1134) * the benefit of a restrictive covenant * the benefit of a positive covenant (an example of the benefit of an obligation) * an equitable or beneficial interest in land such as a life interest or an interest in reversion or in remainder. * a executor’s or trustee’s power of appointment (the only likely example in practice of a power over land).
Chargeable interests in Scotland include:
* ownership of land * any other heritable right in or over land * the tenant’s interest under a lease of land * a servitude * a liferent.