Section 112 — Finance Act 2014: SDLT: exercise of collective rights by tenants of flats

SDLT: exercise of collective rights by tenants of flats 112 1 In section 74 of FA 2003 (exercise of collective rights by tenants of flats), in subsection (1A) for “£2,000,000”, in each place it occurs, substitute “ £500,000 ” .

2 The amendments made by this section have effect in relation to any chargeable transaction of which the effective date is on or after 1 July 2014.

3 But the amendments do not have effect in relation to a transaction—

a effected in pursuance of a contract entered into and substantially performed before 20 March 2014, or b effected in pursuance of a contract entered into before that date and not excluded by subsection (4).

4 A transaction effected in pursuance of a contract entered into before 20 March 2014 is excluded by this subsection if—

a there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 20 March 2014, b the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or c on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.