F1Schedule 16D (introduced by section 27)Green Freeports Relief

Annotations:

PART 4Withdrawal of relief

8Withdrawal of relief

1

The relief is withdrawn if, at any time during the control period, the qualifying green freeport land is not used exclusively in a qualifying manner.

2

But the relief is not withdrawn where, because of a change in circumstances that is unforeseen and beyond the buyer’s control, it is not reasonable to expect the qualifying green freeport land to be used exclusively in a qualifying manner at that time.

3

Where, at a time during the control period, the use of all or part of the qualifying green freeport land in a qualifying manner has not yet begun, that land (or that part of the land) is to be treated as being used exclusively in a qualifying manner if reasonable steps are being taken to ensure that it is used in that manner.

4

Where, at a time during the control period, the use of all or part of the qualifying green freeport land in a qualifying manner has ceased, that land (or that part of the land) is to be treated as being used exclusively in a qualifying manner if reasonable steps are being taken—

a

to ensure that it is used in that manner, or

b

to dispose of all chargeable interests in that land (or that part of the land) that are held by the buyer and connected persons in a timely manner.

5

Where the relief is withdrawn, the amount of tax chargeable is the amount that would have been chargeable in respect of the transaction but for the relief.

9The control period

1

In this schedule, the “control period”, in relation to a land transaction, means the shorter of—

a

the period of three years beginning with the effective date of that transaction, and

b

the period beginning with the effective date of that transaction and ending with the effective date of the final transaction.

2

For the purposes of this paragraph, a land transaction is the “final transaction” if, immediately after the effective date of the transaction, neither the buyer nor a connected person holds a chargeable interest in the qualifying green freeport land (whether as a result of that transaction alone or as a result of that transaction and other land transactions).

10Disposal of interest in part of qualifying green freeport land during control period

1

This paragraph applies where the buyer ceases to hold a chargeable interest in part of the qualifying green freeport land during the control period.

2

The references in paragraphs 8 and 9 to the qualifying green freeport land are to be treated as references only to the part of the qualifying green freeport land in relation to which the buyer still holds a chargeable interest (whether the chargeable interest acquired in the land transaction in respect of which relief was allowed under Part 2 of this schedule or another chargeable interest).