Share this content
15

SDLT relief on purchase of a church building...

SDLT relief on purchase of a Church by a Charitable Trust

Didn't find your answer?

A religious denomination has a Charitable Trust ( Trust deed has been created by Solicitors)

Purpose of the trust: Charitable

Note: Charitable Trust has not been registered with any other institution ( eg Charity Commission or HMRC)

Question:  Can the Trust claim SDLT relief on the purchase of the Church ?

Replies (15)

Please login or register to join the discussion.

Psycho
By Wilson Philips
01st Nov 2019 18:52

Does the trust fit the definition at paragraph 4 of schedule 8 to FA 2003?

Thanks (0)
Replying to Wilson Philips:
avatar
By WESTA
04th Nov 2019 10:55

Yes. All below conditions met.

This Schedule applies in relation to a charitable trust as it applies in relation to a charity.
(2)In this paragraph “charitable trust” means—

(a)a trust of which all the beneficiaries are charities, or

(b)a unit trust scheme in which all the unit holders are charities,

and “charity” has the same meaning as in paragraph 1.
(3)In this Schedule as it applies by virtue of this paragraph—

(a)references to the purchaser in paragraphs (a) and (b) of paragraph 1(2) are to the beneficiaries or unit holders, or any of them;

(b)the reference to the purchaser in paragraph 2(3)(a) is to any of the beneficiaries or unit holders;

(c)the reference in paragraph 3(2)(b) to the charitable purposes of C is to those of the beneficiaries or unit holders, or any of them.]

Thanks (0)
avatar
By WhichTyler
03rd Nov 2019 21:18

Slightly off topic, but if it has enough money to buy a church, how has it avoided the need to register with Charity Commission?

Thanks (0)
Replying to WhichTyler:
avatar
By WESTA
04th Nov 2019 10:51

It is in the process of registering with CC

Thanks (0)
Replying to WESTA:
avatar
By The Dullard
04th Nov 2019 10:55

If it needs to register, it needs to be registered before completion for the relief to apply.

Thanks (0)
Replying to The Dullard:
avatar
By WESTA
04th Nov 2019 11:02

That is the point I am after... "if it needs to register"...
Has anyone spot this as prerequisite before completion ?

Thanks (0)
Replying to WESTA:
avatar
By The Dullard
04th Nov 2019 11:13

Actually, I'm wrong. What FA 2010, Sch. 6, para. 3 actually says is that "[it] must have complied with any requirement to be registered", before it is considered to be a charity. And it needs to be a charity at completion for the relief to be in point.

You see. You did miss a significant detail out of the OP.

Thanks (0)
Replying to The Dullard:
Psycho
By Wilson Philips
04th Nov 2019 11:25

But if it meets the definition of Charitable Trust (as opposed to Charity) does it matter whether or not it is registered as a Charity?

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdlt...

Thanks (0)
Replying to Wilson Philips:
avatar
By The Dullard
04th Nov 2019 11:24

Er, did you miss the bit where it says ""charitable trust" means a trust that is a charity"

Condition A is that the body of persons [=charitable company] or trust [=charitable trust] has complied with any requirement to be registered".

Thanks (0)
Replying to The Dullard:
Psycho
By Wilson Philips
04th Nov 2019 11:40

I obviously did - can you provide the reference, please.

Paragraph 4(1) says "This Schedule applies in relation to a charitable trust as it applies in relation to a charity". The only logical conclusion from that statement is that a charitable trust is not a charity. If charitable trusts are in fact charities then there would be no need for the separate provisions for charitable trusts, would there?

Edited - OK, I found the provisions in FA 2010 (I had been looking at FA 2003). It does, though, beg the question above - if a charitable trust is necessarily a charity, why the separate provision for charitable trusts?

Thanks (0)
Replying to Wilson Philips:
avatar
By The Dullard
04th Nov 2019 11:47

We're at cross purposes. At charitable trust as defined for FA 2003, Sch 8, para 4 would not, itself, need to register. The charities that are beneficiaries/unit holders, within the definition of that paragraph, would ALL need to register, if necessary, in order to each be a charity for it then to be within that definition.

I was referring to the definitions of charity, charitable company and charitable trust for SDLT purposes, outwith FA 2003, Sch 8, para 4, set out in FA 2010, Sch 6.

Thanks (0)
Replying to The Dullard:
Psycho
By Wilson Philips
04th Nov 2019 11:58

I do find it quite confusing, though. On the one hand we have a definition (in FA 2010) that expressly says that it applies for the purposes of, inter alia, SDLT and then in FA 2003 we have a different definition.

But I think we are in agreement that in this case there should be no need for the trust itself to register since it has been confirmed that the FA 2003 definition conditions are met?

Thanks (0)
Replying to Wilson Philips:
avatar
By The Dullard
04th Nov 2019 12:01

No. The FA 2010 definition applies for ALL purposes of FA 2003, other than FA 2003, Sch 8, para 4. The definition there is quite clear that it only applies for the purposes of that paragraph.

And I think that the OP's description, and the fact that it needs to register, puts it within the FA 2010 definition, such that FA 2003, Sch 8, para 4 just isn't in point.

Thanks (0)
avatar
By The Dullard
04th Nov 2019 10:48

This doesn't seem particularly hard. See https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdlt...

Seems to me that, amongst the little that is said, there is something significant not being said. Call me cynical.

Thanks (0)
Replying to The Dullard:
avatar
By WESTA
04th Nov 2019 10:53

All relevant facts have been said.

Thanks (0)
Share this content