What is Stamp Duty Land Tax?
Stamp Duty Land Tax (SDLT) is payable when property or land in England or Northern Ireland is purchased for over a certain threshold. For non-residential land, this is currently set at £150,000. The payment must be made within 14 days of completion otherwise you may be liable to penalties and interest. The tax is due for a range of transactions including: the purchase of a freehold property; the purchase of a new or existing leasehold (over seven years); and the exchange of land.
SDLT relief is available for a charity or a charitable trust which purchases an interest in land, subject to certain conditions.
The relief is available on the purchase as long as the reason for holding the interest is for a qualifying charitable purpose.
Two conditions must be met:
1.- The land or property held for charitable purposes must either be used:
2- The purpose of the transaction must not be for the intention of avoiding SDLT either by the purchaser or any other person
If within three years of the transaction, the charity still owns the land and uses the property for purposes other than charitable or the charity ceases to be a charity, HMRC can withdraw the relief previously granted on the transaction. The position is the same for charitable trusts. This means that tax would be payable at that point.