Finance Act 2013

134 Rental property: preparation for sale, demolition etc

(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—

  (a)

  steps are being taken to secure that the dwelling will be demolished without undue delay, and

  (b)

  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—

  (a)

  steps are being taken to secure that the dwelling will be converted into a different dwelling without undue delay, and

  (b)

  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.