Section 85 — Finance Act 2003: Liability for tax

Liability for tax 85 1 The purchaser is liable to pay the tax in respect of a chargeable transaction.

2 As to the liability of purchasers acting jointly see— section 103(2)(c) (joint purchasers); Part 2 of Schedule 15 (partners); and paragraph 5 of Schedule 16 (trustees). 2A Where relief is withdrawn to any extent under paragraph 5L of Schedule 4A (qualifying housing co-operatives) in a case to which paragraph 5L(4) or (7) applies—

a subsection (1) does not apply in relation to the additional tax payable as a result of the withdrawal of the relief, and b the relevant successor is liable to pay that additional tax. 2B In subsection (2A) “the relevant successor” has the same meaning as it has in subsections (1C) , (1D) and (3)(e) of section 81 (see subsections (6) and (7) of that section).

3 Where relief given in respect of a transaction entered into under alternative finance arrangements is withdrawn to any extent under any of paragraphs 6D, 6F, 6G , 6H and 6I of Schedule 4A (higher rate: alternative finance arrangements) or under Part 3 of Schedule 6C (relief for special tax sites ) in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies —

a subsection (1) does not apply in relation to the additional tax payable as a result of the withdrawal of the relief, and b the relevant person is liable to pay that additional tax.

4 In subsection (3) “ the relevant person ” has the same meaning as in section 81ZA (see subsections (6) and (7) of that section) .