|
| |
| |
(a) | that the dwelling will (in that or a future chargeable period) be |
| |
exploited as a source of income in the course of a qualifying trade such |
| |
as is mentioned in subsection (2), and |
| |
(b) | that it will be so exploited without delay, except so far as delay is |
| |
justified by commercial considerations or cannot otherwise be avoided. |
| 5 |
(4) | In this section “qualifying trade” means a trade carried on on a commercial |
| |
basis and with a view to profit. |
| |
(5) | For the purposes of this section persons are not taken to have an opportunity |
| |
to make use of, stay in or otherwise enjoy a dwelling unless the areas that they |
| |
are permitted to make use of, stay in or otherwise enjoy include a significant |
| 10 |
part of the interior of the dwelling. |
| |
(6) | The size (relative to the size of the whole dwelling), nature, and function of the |
| |
area or areas concerned are to be taken into account in determining whether |
| |
they form a significant part of the interior of the dwelling. |
| |
| 15 |
(1) | A day in a chargeable period is relievable in relation to a single-dwelling |
| |
| |
(a) | a person carrying on a property development trade (“the property |
| |
developer”) is entitled to the interest, and |
| |
(b) | the interest is held exclusively for the purpose of developing and |
| 20 |
reselling the land in the course of the trade. |
| |
(2) | If the property developer holds an interest for the purpose mentioned in |
| |
subsection (1)(b), any additional purpose the property developer may have of |
| |
exploiting the interest as a source of rents or other receipts in the course of a |
| |
qualifying property rental business (after developing the land and before |
| 25 |
reselling it) is treated as not being a separate purpose in applying the test in |
| |
| |
(3) | A day is not relievable by virtue of subsection (1) if on the day a non-qualifying |
| |
individual is permitted to occupy the dwelling. |
| |
(4) | In this Part “property development trade” means a trade that— |
| 30 |
(a) | consists of or includes buying and developing for resale residential or |
| |
non-residential property, and |
| |
(b) | is run on a commercial basis and with a view to profit. |
| |
(5) | In this section references to development include redevelopment. |
| |
137 | Property developers: exchange of dwellings |
| 35 |
(1) | A day in a chargeable period is relievable in relation to a single-dwelling |
| |
| |
(a) | a person (“the property developer”) is on that day entitled to a single- |
| |
dwelling interest (“the returned interest”) that was acquired (by the |
| |
relevant person) in the course of a property development trade, and |
| 40 |
(b) | that acquisition (“the reverse acquisition”) was part of a qualifying |
| |
| |
(2) | A day is not relievable by virtue of this section if on that day a non-qualifying |
| |
individual is permitted to occupy the dwelling. |
| |
| |
| |
|
| |
| |
(3) | In this section “the relevant person” means— |
| |
(a) | if the property developer is entitled to the returned interest as a |
| |
member of a partnership, the persons who acquired the interest as |
| |
members of the partnership, or |
| |
(b) | otherwise, the property developer (and any person who acquired the |
| 5 |
returned interest jointly with the property developer). |
| |
(4) | The reverse acquisition is “part of a qualifying exchange” only if— |
| |
(a) | it was made by way of transfer, |
| |
(b) | the person from whom the acquisition was made itself acquired (by |
| |
way of grant or transfer) a chargeable interest in or over a new dwelling |
| 10 |
from the relevant person, and |
| |
(c) | each of those acquisitions was entered into in consideration of the |
| |
| |
(5) | A building or part of a building is a “new dwelling” if— |
| |
(a) | it has been constructed for use as a single dwelling and has not |
| 15 |
previously been occupied, or |
| |
(b) | it has been adapted for use as a single dwelling and has not been |
| |
occupied since its adaptation. |
| |
138 | Property developers: supplementary |
| |
(1) | Subsection (2) applies if on a day in a chargeable period— |
| 20 |
(a) | a person carrying on a property development trade (“the property |
| |
developer”) is entitled to a single-dwelling interest that has been |
| |
acquired in the course of that trade (whether or not the acquisition was |
| |
part of a qualifying exchange for the purposes of section 137), and |
| |
(b) | a non-qualifying individual is permitted to occupy the dwelling. |
| 25 |
(2) | No subsequent day is relievable in the case of the single-dwelling interest by |
| |
virtue of section 136(1) or 137(1) if— |
| |
(a) | the day falls within that chargeable period, or any of the subsequent 3 |
| |
| |
(b) | there is continuity of ownership on that day. |
| 30 |
(3) | There is “continuity of ownership” on any day on which— |
| |
(a) | the property developer is entitled to the single-dwelling interest, or |
| |
(b) | if the property developer carried on the property development trade in |
| |
partnership, another member of the partnership is entitled to the |
| |
| 35 |
(4) | Subsection (5) applies if— |
| |
(a) | on a day in a chargeable period (“the day of non-qualifying |
| |
occupation”) a person who is a non-qualifying individual in relation to |
| |
a single-dwelling interest is occupying the dwelling in question, and |
| |
(b) | on an earlier day in that, or the preceding, chargeable period (“the |
| 40 |
earlier day”) the conditions in section 136(1)(a) and (b) are met in |
| |
relation to the same single-dwelling interest. |
| |
(5) | The earlier day is not relievable by virtue of section 136(1) in the case of the |
| |
single-dwelling interest if— |
| |
(a) | a person who is entitled to the interest on the earlier day is also entitled |
| 45 |
to it on the day of non-qualifying occupation, or |
| |
| |
| |
|
| |
| |
(b) | if the trade mentioned in section 136(1) is carried on in partnership, a |
| |
person who has at any time carried that business on in partnership is |
| |
entitled to the interest on the day of non-qualifying occupation. |
| |
(6) | Subsection (7) applies if— |
| |
(a) | on a day in a chargeable period (“the day of non-qualifying |
| 5 |
occupation”) a person who is a non-qualifying individual in relation to |
| |
a single-dwelling interest is occupying the dwelling in question, and |
| |
(b) | on an earlier day in that, or the preceding, chargeable period (“the |
| |
earlier day”) the conditions in section 137(1)(a) and (b) are met in |
| |
relation to the same single-dwelling interest. |
| 10 |
(7) | The earlier day is not relievable by virtue of section 137(1) in the case of the |
| |
single-dwelling interest if— |
| |
(a) | a person who is entitled to the interest on the earlier day is also entitled |
| |
to it on the day of non-qualifying occupation, or |
| |
(b) | where the trade mentioned in section 137(1) is carried on in |
| 15 |
partnership, a person who has at any time carried that trade on in |
| |
partnership is entitled to the interest on the day of non-qualifying |
| |
| |
(8) | If a day that is relievable by virtue of section 131(1)(a) falls between the earlier |
| |
day mentioned in subsection (5) or (as the case may be) (7) and the day of non- |
| 20 |
qualifying occupation, that subsection does not apply in relation to that earlier |
| |
| |
(9) | For the purposes of sections 136 and 137 and this section— |
| |
(a) | “non-qualifying individual” has the meaning given by section 134(1); |
| |
(b) | occupation of any part of a dwelling is regarded as occupation of the |
| 25 |
| |
| |
(1) | A day in a chargeable period is relievable in relation to a single-dwelling |
| |
| |
(a) | a person carrying on a property trading business is entitled to the |
| 30 |
| |
(b) | the interest is held as stock of the business and for the sole purpose of |
| |
resale in the course of the business. |
| |
(2) | A single-dwelling interest in a dwelling is taken not to be held for the sole |
| |
purpose of resale in the course of a property trading business at any time when |
| 35 |
a non-qualifying individual is permitted to occupy the dwelling. |
| |
(3) | In this Part “property trading business” means a business that— |
| |
(a) | consists of or includes activities in the nature of a trade of buying and |
| |
| |
(b) | is carried on on a commercial basis and with a view to profit. |
| 40 |
140 | Property traders: supplementary |
| |
(1) | Subsection (2) applies if on a day in a chargeable period (“the day of non- |
| |
| |
| |
| |
|
| |
| |
(a) | a person carrying on a property trading business (“the property |
| |
trader”) is entitled to a single-dwelling interest that is held as |
| |
mentioned in section 139(1)(b), and |
| |
(b) | a non-qualifying individual is permitted to occupy the dwelling. |
| |
(2) | No subsequent day is relievable in the case of the single-dwelling interest by |
| 5 |
virtue of section 139(1) if— |
| |
(a) | the day falls within that chargeable period, or any of the subsequent 3 |
| |
| |
(b) | the property trader or a relevant partner is entitled to the interest on |
| |
| 10 |
(3) | If on the day of non-qualifying occupation mentioned in subsection (1) the |
| |
property trader carries on the property trading business in partnership, |
| |
“relevant partner” means any other person who is, at any time, a member of |
| |
| |
(4) | Subsection (5) applies if— |
| 15 |
(a) | on a day in a chargeable period (“the day of non-qualifying |
| |
occupation”) a person who is a non-qualifying individual in relation to |
| |
a single-dwelling interest is occupying the dwelling in question, and |
| |
(b) | on an earlier day in that, or the preceding, chargeable period (“the |
| |
earlier day”) the conditions in section 139(1)(a) and (b) are met in |
| 20 |
relation to the same single-dwelling interest. |
| |
(5) | The earlier day is not relievable by virtue of section 139(1) in the case of the |
| |
single-dwelling interest if— |
| |
(a) | a person who is entitled to the interest on the earlier day is also entitled |
| |
to it on the day of non-qualifying occupation, or |
| 25 |
(b) | if the business mentioned in section 139(1) is carried on in partnership, |
| |
a person who has at any time carried that business on in partnership is |
| |
entitled to the interest on the day of non-qualifying occupation. |
| |
(6) | Subsection (5) does not apply in relation to the earlier day if a day that is |
| |
relievable by virtue of section 131(1)(a) falls between the earlier day and the |
| 30 |
day of non-qualifying occupation. |
| |
(7) | For the purposes of this section and section 139— |
| |
(a) | “non-qualifying individual” has the meaning given by section 134(1); |
| |
(b) | occupation of any part of a dwelling is regarded as occupation of the |
| |
| 35 |
141 | Financial institutions acquiring dwellings in the course of lending |
| |
(1) | A day in a chargeable period is relievable in relation to a single-dwelling |
| |
interest if matters stand as follows on that day— |
| |
(a) | a financial institution carrying on a business that involves the lending |
| |
of money is entitled to the interest, |
| 40 |
(b) | the financial institution has acquired the interest in the course of that |
| |
business and in connection with those lending activities, and |
| |
(c) | the interest is held with the intention that it will be sold in the course of |
| |
that business without delay (except so far as delay is justified by |
| |
commercial considerations or cannot be avoided). |
| 45 |
| |
| |
|
| |
| |
(2) | A single-dwelling interest in a dwelling is taken not to be held with the |
| |
intention mentioned in subsection (1)(c) at any time when a non-qualifying |
| |
individual is permitted to occupy the dwelling. |
| |
(3) | In this Part (except where otherwise stated) “financial institution” has the |
| |
meaning given by section 564B of ITA 2007; but for this purpose section 564B(1) |
| 5 |
is to be read as if paragraph (d) of that subsection were omitted. |
| |
142 | Section 141: supplementary |
| |
(1) | Subsection (2) applies if on a day in a chargeable period— |
| |
(a) | a financial institution that carries on a business involving the lending of |
| |
money is entitled to a single-dwelling interest that has been acquired by |
| 10 |
it as mentioned in section 141(1)(b), and |
| |
(b) | a non-qualifying individual is permitted to occupy the dwelling. |
| |
(2) | No subsequent day is relievable in the case of the single-dwelling interest by |
| |
virtue of section 141(1) if— |
| |
(a) | the day falls within that chargeable period, or any of the subsequent 3 |
| 15 |
| |
(b) | there is continuity of ownership on that day. |
| |
(3) | There is continuity of ownership on a day on which— |
| |
(a) | the financial institution is entitled to the single-dwelling interest, or |
| |
(b) | if the financial institution carried on the business mentioned in |
| 20 |
subsection (1)(a) in partnership, another member of the partnership is |
| |
entitled to the interest. |
| |
(4) | Subsection (5) applies if— |
| |
(a) | on a day in a chargeable period (“the day of non-qualifying |
| |
occupation”) a person who is a non-qualifying individual in relation to |
| 25 |
a single-dwelling interest is occupying the dwelling in question, and |
| |
(b) | on an earlier day in that, or the preceding, chargeable period (“the |
| |
earlier day”) the conditions in section 141(1)(a) to (c) are met in relation |
| |
to the same single-dwelling interest. |
| |
(5) | The earlier day is not relievable by virtue of section 141(1) in the case of the |
| 30 |
single-dwelling interest if— |
| |
(a) | a person who is entitled to the interest on the earlier day is also entitled |
| |
to it on the day of non-qualifying occupation, or |
| |
(b) | if the business mentioned in section 141(1) is carried on in partnership, |
| |
a person who has at any time carried that business on in partnership is |
| 35 |
entitled to the interest on the day of non-qualifying ownership. |
| |
(6) | Subsection (5) does not apply in relation to the earlier day if a day that is |
| |
relievable by virtue of section 131(1)(a) falls between the earlier day and the |
| |
day of non-qualifying occupation. |
| |
(7) | For the purposes of this section and section 141— |
| 40 |
(a) | “non-qualifying individual” has the meaning given by section 134(1); |
| |
(b) | occupation of any part of a dwelling is regarded as occupation of the |
| |
| |
| |
| |
|
