PART 2Key concepts

CHAPTER 1Land transactions and chargeable interests

Acquisition and disposal of chargeable interest

I16Acquisition and disposal of chargeable interest

1

Each of the following is an acquisition and a disposal of a chargeable interest—

a

the creation of the interest,

b

the renunciation or release of the interest,

c

the variation of the interest (but not the variation of a lease).

2

The variation of a lease is treated as an acquisition and a disposal of a chargeable interest only where paragraph 29 of schedule 19 (reduction of rent or term or other variation of lease) applies.

3

A person acquires a chargeable interest where—

a

the person becomes entitled to the interest on its creation,

b

the person's interest or right is benefitted or enlarged by the renunciation or release of the interest, or

c

the person benefits from the variation of the interest.

4

A person disposes of a chargeable interest where—

a

the person's interest or right becomes subject to the interest on its creation,

b

the person ceases to be entitled to the interest on its being renounced or released, or

c

the person's interest or right is subject to or limited by the variation of the interest.

5

Except as otherwise provided, this Act applies however the acquisition is effected, whether by act of the parties, by order of a court or other authority, by or under any enactment or by operation of law.