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Detailed rules for charitable trusts to qualify for relief FA03/SCH8/PARA4

Relief from stamp duty land tax is available to charitable trusts on the purchase of achargeable interest if two conditions are met. »Ê¹ÚÌåÓýappse are

• the purchasing charitable trusts must intend to hold the chargeable interest for qualifying charitable purposes. This means

• for use in the furtherance of the charitable purposes of the beneficiaries or unit holders
• as an investment, the profits of which are applied to the charitable purposes of the beneficiaries or unit holders

• that the transaction must not have been entered into for the purposes of avoiding stamp duty land tax by either the beneficiaries or unit holders

A charitable trust is defined as a trust of which all beneficiaries are charities or aunit trust scheme in which all unit holders are charities.

»Ê¹ÚÌåÓýappse restrictions are not meant to restrict the genuine use by charitable trusts ofproperties they purchase for charitable purposes and most charitable trusts will have nodifficulty in fulfilling these conditions.