603A.—(1) This section applies to the disposal of land which at the date of disposal has a market value which does not exceed £200,000.
(2) Subject to this section, a chargeable gain shall not accrue on a disposal of land to which this section applies where the disposal—
(a) is by a parent to a child of the parent, and
(b) is for the purpose of enabling the child to construct a dwelling house on the land which dwelling house is to be occupied by the child as his or her only or main residence.
(3) Where a child—
(a) at any time disposes of the land or a part of the land referred to in subsection (2), other than to his or her spouse, and
(b) the land being disposed of does not contain a dwelling house which—
(i) was constructed by the child since the time of acquisition of the land, and
(ii) has been occupied by the child as his or her only or main residence for a period of 3 years,
the chargeable gain which, but for subsection (2), would have accrued on the disposal of that land to the child, shall be treated as accruing to the child at the time of the disposal referred to in paragraph (a).
(4) Where subsection (2) applies to a disposal of land by a parent to a child, it shall not apply to any such subsequent disposal to that child unless, by virtue of subsection (3), the full amount of the chargeable gain which, but for subsection (2) would have accrued to the parent, is treated as accruing to the child.”.
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