Section 433 — Income Tax Act 2007: Meaning of “qualifying interest in land”

Meaning of “qualifying interest in land” 433 1 In this Chapter “ qualifying interest in land ” means—

a a freehold interest in land in the United Kingdom, or b a leasehold interest in land in the United Kingdom which is a term of years absolute. This is subject to subsections (2) to (5).

2 Subsection (3) applies if an individual with a beneficial interest in a freehold or leasehold interest mentioned in subsection (1)(a) or (b) makes a disposal to a charity of—

a the whole of the beneficial interest, and b an easement, servitude, right or privilege so far as benefiting the land in question.

3 The disposal mentioned in subsection (2)(b) is regarded for the purposes of this Chapter as a disposal by the individual of the whole of the individual's beneficial interest in a qualifying interest in land separate from the disposal mentioned in subsection (2)(a).

4 If an individual who has a freehold or leasehold interest in land in the United Kingdom grants a lease for a term of years absolute to a charity of the whole or part of that land, the grant of the lease is regarded for the purposes of this Chapter as a disposal by the individual of the whole of the beneficial interest in the leasehold interest so granted.

5 Neither an agreement to acquire a freehold interest nor an agreement for a lease is a qualifying interest in land.

6 In the application of this section to Scotland—

a references to a freehold interest in land are to the interest of the owner, b references to a leasehold interest in land which is a term of years absolute are to a tenant's right over or interest in a property subject to a lease, c references to an agreement for a lease do not include missives of let that constitute an actual lease, and d in subsection (4) the reference to granting a lease for a term of years absolute is to granting a lease.