Section 77A — Finance Act 2008: Exceptions for certain acquisitions of major interests in land

Exceptions for certain acquisitions of major interests in land 77A 1 The exceptions referred to in section 77(1)(a) are as follows.

1 An acquisition which is exempt from charge under Schedule 3.

2 An acquisition (other than the grant, assignment or surrender of a lease) where the chargeable consideration for that acquisition, together with the chargeable consideration for any linked transactions, is less than £40,000.

3 The grant of a lease for a term of 7 years or more where—

a any chargeable consideration other than rent is less than £40,000, and b the relevant rent is less than £1,000.

4 The assignment or surrender of a lease where—

a the lease was originally granted for a term of 7 years or more, and b the chargeable consideration for the assignment or surrender is less than £40,000.

5 The grant of a lease for a term of less than 7 years where the chargeable consideration does not exceed the zero rate threshold.

6 The assignment or surrender of a lease where—

a the lease was originally granted for a term of less than 7 years, and b the chargeable consideration for the assignment or surrender does not exceed the zero rate threshold.

2 Chargeable consideration for an acquisition does not exceed the zero rate threshold if it does not consist of or include—

a any amount in respect of which tax is chargeable at a rate of 1% or higher, or b any amount in respect of which tax would be so chargeable but for a relief.

3 In this section— “ annual rent ” has the meaning given in paragraph 9A of Schedule 5, “ relevant rent ” means— the annual rent, or in the case of the grant of a lease to which paragraph 11 or 19 of Schedule 15 applies, the relevant chargeable proportion of the annual rent (as calculated in accordance with that paragraph), and “ relief ” does not include an exemption from charge under Schedule 3.