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HMRC internal manual

Stamp Duty Land Tax Manual

HM Revenue & Customs
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Reliefs: Charities relief

Circumstances when relief is withdrawn FA03/SCH8/PARA2

If, within three years of the transaction for which charities relief was claimed, or ifin pursuance of, or in connection with, an arrangement is entered into within that period

  • the purchaser ceases to be established for charitable purposes only
  • the chargeable interest acquired by the relevant transaction, or a chargeable interest derived from it, is used or held for purposes other than charitable ones

and the purchaser holds

  • the chargeable interest acquired under the relevant transaction
  • a chargeable interest derived from the interest acquired under the relevant transaction

then the relief granted, or an appropriate proportion of the relief, is withdrawn andstamp duty land tax is chargeable.

The amount chargeable is the stamp duty land tax which would have been chargeable inrespect of the relevant land transaction if charities relief had not applied or, as thecase may be, an appropriate proportion of that stamp duty land tax.

An appropriate proportion is calculated having regard to

  • what was acquired in the relevant transaction and is still held by the purchaser
  • what is being used for non-charitable purposes

A new land transaction return and payment of the tax should be made. SeeSDLTM50400.