PART 3

Annual tax on enveloped dwellings

Reliefs

Property developers
138
1
A day in a chargeable period is relievable in relation to a single-dwelling interest if on that day—
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 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 reselling it) is treated as not being a separate purpose in applying the test in subsection (1)(b).
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—
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.
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