Section 12A — Finance Act 2003: Election by property-investment partnership to disapply paragraph 10

Election by property-investment partnership to disapply paragraph 10 12A 1 Paragraph 10 does not apply to a transfer of a chargeable interest to a property-investment partnership if the purchaser in relation to the transaction elects for that paragraph not to apply.

2 Where an election under this paragraph is made in respect of a transaction—

a paragraph 18 (if relevant) is also disapplied, b the chargeable consideration for the transaction shall be taken to be the market value of the chargeable interest transferred, and c the transaction falls within Part 2 of this Schedule.

3 An election under this paragraph must be included in the land transaction return made in respect of the transaction or in an amendment of that return.

4 Such an election is irrevocable and a land transaction return may not be amended so as to withdraw the election.

5 Where an election under this paragraph in respect of a transaction (the “main transaction”) is made in an amendment of a land transaction return—

a the election has effect as if it had been made on the date on which the land transaction return was made, and b any land transaction return in respect of an affected transaction may be amended (within the period allowed for amendment of that return) to take account of that election.

6 In sub-paragraph (5) “ affected transaction ”, in relation to the main transaction, means a transaction—

a to which paragraph 14 applied, and b with an effective date on or after the effective date of the main transaction.

7 In this paragraph “ property-investment partnership ” has the meaning given in paragraph 14(8).