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HMRC internal manual

Stamp Duty Land Tax Manual

From
HM Revenue & Customs
Updated
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Reliefs: Charities relief

Circumstances when relief to a charitable trust is withdrawn FA03/SCH8/PARA2 andFA03/SCH8/PARA4

If, within three years of the relevant transaction, that is, the transaction for whichcharities relief was claimed, or in carrying out, or in connection with, an arrangemententered into within that period

  • the beneficiaries or unit holders cease 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 beneficiaries or unit holders hold

  • 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then the relief granted, or an appropriate proportion in the case of a derivedinterest, is withdrawn and stamp duty land tax is chargeable.

A new land transaction return and payment of the tax should be made. See SDLTM50400.

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, anappropriate proportion of that stamp duty land tax if a derived interest is held.

An appropriate proportion is calculated having regard to what was acquired in the relevanttransaction and what is being used for non-charitable purposes.