# Finance Act 2003, Paragraph 5

Extent: E+W+S+N.I.

(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—
(a) exploitation as a source of rents or other receipts (other than excluded rents) in the course of a qualifying property rental business;
(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;
(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);
(c) resale in the course of a property development trade (in a case where the chargeable transaction is part of a qualifying exchange);
(d) resale (as stock of the business) in the course of a property trading business.
(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.
(3) In this paragraph—
“excluded rents” has the same meaning as in section 133 of the Finance Act 2013;
“property development trade” means a trade that—
(a)consists of or includes buying and developing or redeveloping for resale residential or non-residential property, and
(b)is run on a commercial basis and with a view to profit;
“part of a qualifying exchange” is to be construed in accordance with section 139(4) of the Finance Act 2013;
“property trading business” means a business that—
(a)consists of or includes activities in the nature of a trade of buying and selling dwellings, and
(b)is run on a commercial basis and with a view to profit;
“qualifying property rental business” has the same meaning as in section 133 of the Finance Act 2013.
“relievable trade” means a trade that is run on a commercial basis and with a view to profit.

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Source: https://www.legislation.gov.uk/ukpga/2003/14/schedule/4A/paragraph/5 (the official version)
Page: https://openlegislation.uk/finance-act-2003/schedule-4A/paragraph-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.