PART 8SDLT and ATED

Stamp duty land tax

129SDLT higher rate: land purchased for commercial use

(1)

Schedule 4A to FA 2003 (SDLT: higher rate for certain transactions) is amended in accordance with subsections (2) to (4).

(2)

In paragraph 5—

(a)

in sub-paragraph (1)—

(i)

after paragraph (a) insert—

“(aa)

use as business premises for the purposes of a qualifying property rental business (other than one which gives rise to income consisting wholly or mainly of excluded rents);

(ab)

use for the purposes of a relievable trade;”;

(ii)

for paragraph (b) substitute—

“(b)

development or redevelopment and—

(i)

resale in the course of a property development trade, or

(ii)

exploitation falling within paragraph (a) or use falling within paragraph (aa) or (ab);”;

(b)

in sub-paragraph (2), for “the dwelling” substitute “ a dwelling on the land ”;

(c)

in sub-paragraph (3), at the appropriate place insert—

““relievable trade” means a trade that is run on a commercial basis and with a view to profit.”

(3)

In paragraph 5G, in sub-paragraph (3)(c) for “the dwelling” substitute “ any dwelling on the land ”.

(4)

In paragraph 6D(3)(b), for “the dwelling” substitute “ any dwelling on the land concerned ”.

(5)

The amendments made by this section have effect in relation to any land transaction of which the effective date is on or after 1 April 2016.