SDLTM28050 - Reliefs: Alternative Property Finance

Interest held by financial institution: FA03/S73B

The interest held by a financial institution as a result of the ‘first transaction’ (‘the FI interest’) (FA03/S71A(1)(a), FA03/S72(1)(a) is an ‘exempt interest’ for the purposes of stamp duty land tax. this means in particular that dealings in that interest, or an interest derived from that interest, are not notifiable.

The interest ceases to be an exempt interest if:

The FI interest is not an exempt interest if group relief was claimed on the first transaction.

The FI interest is not an exempt interest in respect of:

• The lease or agreement mentioned in FA03/S71A(1)(c) ceases to have effect, or
• The right under FA03/S71A(1)(d) (that is, the right to require a transfer of the financial institution’s interest to the person entering into the arrangements) cease to have effect or becomes subject to a restriction.
• The first transaction itself (so that even if the first transaction is exempt from charge it remains notifiable), or
• A further transaction or third transaction within the meaning of FA03/S71A(4) (these transactions will generally be exempt from charge, but remain notifiable).

FA03/S73B has effect in relation to anything that would, but for the exemption, be a land transaction with an effective date on or after 22 March 2007. It is immaterial when the FI interest originally came into existence.