Section 1C | Non-UK residents: disposing of an “interest in UK land” ^F1

(1)For the purposes of section 1A(3)(b) an “interest in UK land” means—^F1

(a)an estate, interest, right or power in or over land in the United Kingdom, or^F1

(b)the benefit of an obligation, restriction or condition affecting the value of an estate, interest, right or power in or over land in the United Kingdom,^F1

other than an excluded interest.

(2)The following interests are “excluded interests”—^F1

(a)any interest or right held for securing the payment of money or the performance of any other obligation,^F1

(b)a licence to use or occupy land,^F1

(c)in England and Wales or Northern Ireland, a tenancy at will or an advowson, franchise or manor, and^F1

(d)such other descriptions of interest or right in relation to land in the United Kingdom as may be specified in regulations made by the Treasury.^F1

(3)An interest or right is not within subsection (2)(a) if it is—^F1

(a)a rentcharge, or^F1

(b)in Scotland, a feu duty or a payment mentioned in section 56(1) of the Abolition of Feudal Tenure etc (Scotland) Act 2000.^F1

(4)The grant of an option by a person binding the person to dispose of an interest in UK land is (so far as it would not otherwise be the case) regarded as a disposal of an interest in UK land by the person for the purposes of section 1A(3)(b).^F1

(5)This does not affect the operation of section 144 in relation to the grant of the option (or otherwise).^F1

(6)In this section—^F1

“franchise” means a grant from the Crown such as the right to hold a market or fair, or the right to take tolls, and

“land” includes—

(a)buildings and structures, and

(b)land under the sea or otherwise covered by water.