Textual Amendments
F1Sch. 6C inserted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 23 para. 8
F2Words in Sch. 6C heading substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 8(e)
Textual Amendments
F3Words in Sch. 6C substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 8(b)
1In this Schedule, “transaction land”, in relation to a land transaction, means land a chargeable interest in which is the subject matter of the transaction.
[F42For the purposes of this Schedule, transaction land is “qualifying land” if, on the effective date of the transaction—
(a)it is situated in a special tax site, and
(b)the purchaser intends it to be used exclusively in a qualifying manner.]
Textual Amendments
F4Sch. 6C para. 2 and cross-heading substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 8(a)
3(1)For the purposes of this Schedule, transaction land is used in a qualifying manner if—
(a)it is used by the purchaser or a connected person in the course of a commercial trade or profession,
(b)it is developed or redeveloped by the purchaser or a connected person for use (by any person) in the course of a commercial trade or profession,
(c)it is exploited by the purchaser or a connected person, in the course of a commercial trade or profession, as a source of rents or other receipts (other than excluded rents), or
(d)it is used in two or more of the ways described in paragraphs (a) to (c).
(2)But land is not used in a qualifying manner to the extent that it is—
(a)used as a dwelling or as the garden or grounds of a dwelling,
(b)developed or redeveloped to become residential property,
(c)exploited as a source of rents or other receipts payable by a person using the land as a dwelling or as the garden or grounds of a dwelling, or
(d)held (as stock of the business) for resale without development or redevelopment.
(3)For the purposes of this paragraph, use of land in the course of a commercial trade or profession includes use of land for a purpose that is ancillary to the use of other land which—
(a)is situated in a [F5special tax site], and
(b)is being used, or developed or redeveloped, in the course of a commercial trade or profession.
(4)The references in sub-paragraph (2) to land used as the garden or grounds of a dwelling include a building or structure on the land.
(5)The references in this paragraph to doing something in the course of a commercial trade or profession include doing something in the course of a property rental business.
(6)In this paragraph—
“commercial”, in relation to a trade or profession, means carried on—
on a commercial basis, and
with a view to profit;
“excluded rents” has the same meaning as in section 133 of the Finance Act 2013;
“property rental business” means a property business as defined in Chapter 2 of Part 3 of the Income Tax (Trading and Other Income) Act 2005.
Textual Amendments
F5Words in Sch. 6C substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 8(c)
4(1)In this Schedule, “connected person” means a person who is connected with the purchaser.
(2)Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this paragraph.]