PART 3

Annual tax on enveloped dwellings

Reliefs

Rental property: preparation for sale, demolition etc
134
1
A day (“day X”) on which a person (“P”) is entitled to a single-dwelling interest is relievable in relation to that interest if—
a
on day X the dwelling is unoccupied and any of the first to fourth conditions is met (see below),
b
day X is preceded by one or more days (“qualifying days”) that are relievable under section 133 in relation to the interest and on which P, or a relevant partner, was entitled to the interest, and
c
the days (if any) between day X and the last of the qualifying days to precede day X are all relievable under this section.
- First condition The first condition is that steps are being taken to secure that the interest will be sold without undue delay.
- Second condition The second condition is that—
  1. steps are being taken to secure that the dwelling will be demolished without undue delay, and
  2. if it is intended that a new dwelling will be constructed on the site of the existing dwelling, the intention is that it will be used in a relievable way.
- Third condition The third condition is that—
  1. steps are being taken to secure that the dwelling will be converted into a different dwelling without undue delay, and
  2. it is intended that the new dwelling will be used in a relievable way.
- Fourth condition The fourth condition is that steps are being taken to secure that the dwelling will be converted into a building other than a dwelling without undue delay.
2
A dwelling is “used in a relievable way” for the purposes of subsection (1) if the single-dwelling interest in question is exploited in such a way, or held in such a way and for such purposes, (or, as the case requires, the dwelling itself is exploited or used in such a way) that a day of such exploitation, ownership or use would be relievable under any of sections 133, 137, 145 and 148.
3
In this section—
- “relevant partner”, where P is (on day X) entitled to the interest as a member of a partnership, means a person who was at the time in question carrying on the qualifying rental property business concerned as a member of that partnership;
- “without undue delay” means without delay, except so far as delay is justified by commercial considerations or cannot be avoided.
Pt. 3 applied (17.7.2014) by Finance Act 2014 (c. 26), s. 223(8)(9)(e)
Pt. 3 modified (temp.) (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 24 para. 2