Section 77A | Exceptions for certain acquisitions of major interests in land ^F1

(1)The exceptions referred to in section 77(1)(a) are as follows.^F1

(1)An acquisition which is exempt from charge under Schedule 3.^F1

(2)An acquisition (other than the grant, assignment or surrender of a lease) where the chargeable consideration for that acquisition, together with the chargeable consideration for any linked transactions, is less than £40,000.^F1

(3)The grant of a lease for a term of 7 years or more where—^F1

(a)any chargeable consideration other than rent is less than £40,000, and^F1

(b)the relevant rent is less than £1,000.^F1

(4)The assignment or surrender of a lease where—^F1

(a)the lease was originally granted for a term of 7 years or more, and^F1

(b)the chargeable consideration for the assignment or surrender is less than £40,000.^F1

(5)The grant of a lease for a term of less than 7 years where the chargeable consideration does not exceed the zero rate threshold.^F1

(6)The assignment or surrender of a lease where—^F1

(a)the lease was originally granted for a term of less than 7 years, and^F1

(b)the chargeable consideration for the assignment or surrender does not exceed the zero rate threshold.^F1

(2)Chargeable consideration for an acquisition does not exceed the zero rate threshold if it does not consist of or include—^F1

(a)any amount in respect of which tax is chargeable at a rate of more than 0%, or^F1F2

(b)any amount in respect of which tax would be so chargeable but for a relief.^F1

(3)In this section—^F1

“annual rent” has the meaning given in paragraph 9A of Schedule 5,

“relevant rent” means—

(a)the annual rent, or

(b)in the case of the grant of a lease to which paragraph 11 or 19 of Schedule 15 applies, the relevant chargeable proportion of the annual rent (as calculated in accordance with that paragraph), and

“relief” does not include an exemption from charge under Schedule 3.