{
  "url": "https://openlegislation.uk/finance-act-2003/schedule-4A/paragraph-5",
  "json_url": "https://openlegislation.uk/finance-act-2003/schedule-4A/paragraph-5.json",
  "legislation": "ukpga/2003/14",
  "legislation_title": "Finance Act 2003",
  "legislation_url": "https://openlegislation.uk/finance-act-2003",
  "path": "schedule/4A/paragraph/5",
  "kind": "paragraph",
  "number": "5",
  "heading": null,
  "text": "(1) Paragraph 3 does not apply to a chargeable transaction so far as its subject-matter consists of a higher threshold interest that is acquired exclusively for one or more of the following purposes—\n(a) exploitation as a source of rents or other receipts (other than excluded rents) in the course of a qualifying property rental business;\n(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);\n(ab) use for the purposes of a relievable trade;\n(b) development or redevelopment and—\n(i) resale in the course of a property development trade, or\n(ii) exploitation falling within paragraph (a) or use falling within paragraph (aa) or (ab);\n(c) resale in the course of a property development trade (in a case where the chargeable transaction is part of a qualifying exchange);\n(d) resale (as stock of the business) in the course of a property trading business.\n(2) A chargeable interest does not count as being acquired exclusively for one or more of those purposes if it is intended that a non-qualifying individual will be permitted to occupy a dwelling on the land.\n(3) In this paragraph—\n“excluded rents” has the same meaning as in section 133 of the Finance Act 2013;\n“property development trade” means a trade that—\n(a)consists of or includes buying and developing or redeveloping for resale residential or non-residential property, and\n(b)is run on a commercial basis and with a view to profit;\n“part of a qualifying exchange” is to be construed in accordance with section 139(4) of the Finance Act 2013;\n“property trading business” means a business that—\n(a)consists of or includes activities in the nature of a trade of buying and selling dwellings, and\n(b)is run on a commercial basis and with a view to profit;\n“qualifying property rental business” has the same meaning as in section 133 of the Finance Act 2013.\n“relievable trade” means a trade that is run on a commercial basis and with a view to profit.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Sch. 4A inserted (with effect in accordance with Sch. 35 para. 10 of the amending Act) by Finance Act 2012 (c. 14), Sch. 35 para. 4"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Sch. 4A para. 5 substituted (with effect in accordance with Sch. 40 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 40 para. 2(3)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Sch. 4A para. 5(1)(aa)(ab) inserted (with effect in accordance with s. 129(5) of the amending Act) by Finance Act 2016 (c. 24), s. 129(2)(a)(i)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Sch. 4A para. 5(1)(b) substituted (with effect in accordance with s. 129(5) of the amending Act) by Finance Act 2016 (c. 24), s. 129(2)(a)(ii)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in Sch. 4A para. 5(2) substituted (with effect in accordance with s. 129(5) of the amending Act) by Finance Act 2016 (c. 24), s. 129(2)(b)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in Sch. 4A para. 5(3) inserted (with effect in accordance with s. 129(5) of the amending Act) by Finance Act 2016 (c. 24), s. 129(2)(c)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2003/14/schedule/4A/paragraph/5",
    "retrieved_at": "2026-10-29T09:18:27.996599+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}