SDLTM85935 - Interest on unpaid tax: Relevant date on withdrawal of Seeding Relief
Further guidance on Seeding Relief can be found at SDLTM24700
When relief is withdrawn because:
in the case of a PAIF, the fund:
ceases to be a PAIF
there is a relevant disposal of units
a dwelling has been occupied by a non-qualifying individual
in the case of a CoCS, the scheme:
the scheme ceases to be a CoCS
there is a relevant disposal of units
a dwelling has been occupied by a non-qualifying individual
then the relevant date will be the date of the disqualifying event. See FA03/ S81/ PARA 4 for the definition of a disqualifying event.
PAIF and CoCS Seeding Relief – Portfolio test
Where PAIF or CoCS Seeding relief is claimed and an amount is payable due to not meeting the portfolio test, the relevant date is the first date that the test is not met.
CoCS Seeding Relief – Genuine Diversity of Ownership (GDO) Condition
Where CoCS Seeding relief is claimed for a CoACS and an amount is payable due to the GDO condition not being met, the relevant date is the first date that the condition is not met.
Special rules for RIFs
There are different rules in some cases where the purchaser ceased to be a RIF. The relevant date depends on the circumstances under which relief was withdrawn:
If the relief was withdrawn because the RIF breached the GDO condition, the non-close condition or the restriction requirement (see IFM9200 ), then if:
the effective date of the transaction fell before the cure period, the relevant date is the date on which the breach first occurred
the effective date of the land transaction fell within the cure period, the relevant date is the effective date of the land transaction
If the relief was withdrawn because the RIF ceased to be a RIF as a result of ceasing to meet the UK property rich condition, and the RIF was wound up (see IFM9250), the relevant date is the date on which the RIF first ceased to meet this condition.
If the effective date of the land transaction occurred when the RIF relied on a grace period to meet the GDO condition (See IFM9225 ) or the non-close condition (See IFM9230 ), and SDLT seeding relief was withdrawn because the RIF ceased to be a RIF as it was no longer able to rely on the grace period to meet one of those conditions, the relevant date is the effective date of the land transaction.