Section 9A — Finance Act 2008: Tax chargeable in respect of consideration other than rent: 0% band

Tax chargeable in respect of consideration other than rent: 0% band 9A 1 This paragraph applies in the case of a transaction to which this Schedule applies where there is chargeable consideration other than rent.

2 If—

a the relevant land consists entirely of land that is non-residential property, and b the relevant rent is at least £1,000, the 0% band in Table B in section 55(2) does not apply in relation to the consideration other than rent and any case that would have fallen within that band is treated as falling within the 1% band.

3 Sub-paragraphs (4) and (5) apply if—

a the relevant land is partly residential property and partly non-residential property, and b the relevant rent attributable, on a just and reasonable apportionment, to the land that is non-residential property is at least £1,000.

4 For the purpose of determining the amount of tax chargeable under section 55 in relation to the consideration other than rent, the transaction (or, where it is one of a number of linked transactions, that set of transactions) is treated as if it were two separate transactions (or sets of linked transactions), namely—

a one whose subject-matter consists of all of the interests in land that is residential property, and b one whose subject-matter consists of all of the interests in land that is non-residential property.

5 For that purpose, the chargeable consideration attributable to each of those separate transactions (or sets of linked transactions) is the chargeable consideration so attributable on a just and reasonable apportionment.

6 In this paragraph “ the relevant rent ” means—

a the annual rent in relation to the transaction in question, or b if that transaction is one of a number of linked transactions for which the chargeable consideration consists of or includes rent, the total of the annual rents in relation to all of those transactions.

7 In sub-paragraph (6) the “ annual rent ” means the average annual rent over the term of the lease or, if—

a different amounts of rent are payable for different parts of the term, and b those amounts (or any of them) are ascertainable at the effective date of the transaction, the average annual rent over the period for which the highest ascertainable rent is payable.

8 In this paragraph “ relevant land ” has the meaning given in section 55(3) and (4).