PART 3

Annual tax on enveloped dwellings

Reliefs

Property developers: supplementary
140
1
Subsection (2) applies if on a day in a chargeable period—
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 139), 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 138(1) or 139(1) if—
a
the day falls within that chargeable period, or any of the subsequent 3 chargeable periods, and
b
there is continuity of ownership on that day.
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 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 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 138(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 138(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
if the trade mentioned in section 138(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 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 relation to the same single-dwelling interest.
7
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
b
where the trade mentioned in section 139(1) is carried on in 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 occupation.
8
If a day that is relievable by virtue of section 133(1)(a) falls between the earlier day mentioned in subsection (5) or (as the case may be) (7) and the day of non-qualifying occupation, that subsection does not apply in relation to that earlier day.
9
For the purposes of sections 138 and 139 and this section—
a
“non-qualifying individual” has the meaning given by section 136(1);
b
occupation of any part of a dwelling is regarded as occupation of the dwelling.
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