SDLTM20285 | Freeports and Investment Zones relief – partial relief

Where the proportion of the chargeable consideration that is attributable to “qualifying land” is 10% or more and below 90%, the tax charge is reduced by that proportion (para 6).

Chargeable consideration is to be attributed to qualifying land on a just and reasonable basis (para 7(1)).

For example, a purchaser acquires 5 acres of land at a cost of £250,000 per acre. All 5 acres are inside the designated special tax site.

Only 4 acres (representing 80% of the purchase price) are intended for use in a qualifying manner however, and therefore only these 4 acres that represent 80% of the purchase price count as qualifying land.

The tax is reduced by 80% of the total tax that would have been due for the whole purchase had relief not been claimed.