SDLTM23070 | Reliefs: Group, reconstruction or acquisition relief

Group relief: Withdrawal: Events which may trigger withdrawal FA03/SCH7/PARA3

For withdrawal of the relief to be considered at the time the purchaser ceases to be a member of the same group as the vendor, under para 3(1)(b) the purchaser (or a relevant associated company)must hold

• the chargeable interest that was acquired under the relevant transaction, or

• a chargeable interest derived from the chargeable interest acquired under the relevant transaction (for example, if a headlease was acquired under the relevant land transaction, a sublease granted out of that headlease would be a chargeable interest derived from the original chargeable interest)

and

• the chargeable interest has not subsequently been acquired at market value by means of a chargeable transaction where group relief was available but was not claimed.

For the purposes of withdrawal of the relief, a relevant associated company (defined in para 3(4) is a company that

• is a member of the same group as the purchaser immediately before the purchaser leaves the same group as the vendor, and

• ceases to be a member of the same group as the vendor in consequence of the purchaser ceasing to be a member.