Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Stamp Duty Land Tax Manual

HM Revenue & Customs
, see all updates

Reliefs: Alternative Property Finance

Interest held by financial institution: FA03/S73B

The interest held by a financial institution as a result of the ‘firsttransaction’ (‘the FI interest’) (FA03/S71A(1)(a), FA03/S72(1)(a) orFA03/S72A(1)(a)) is an ‘exempt interest’ within the meaning of FA03/SCH3. thismeans in particular that dealings in that interest, or an interest derived from thatinterest, 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 firsttransaction.

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

    • The lease or agreement mentioned in FA03/S71A(1)(c), FA03/S72(1)(b) or FA03/S72A(1)(b) ceases to have effect, or
    • The right under FA03/S71A(1)(d), FA03/S72(1)(c) or FA03/S72A(1)(c) (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.
FA03/S73B has effect in relation to anything that would, but for the exemption, be aland transaction with an effective date on or after 22 March 2007. It is immaterial whenthe FI interest originally came into existence.

  *   * 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), FA03/S72(4) or FA03/S72A(4) (these transactions will generally be exempt from charge, but remain notifiable).