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Paragraph 7 Use of land in a qualifying mannerF1

(1)

For the purposes of this schedule, transaction land is used in a qualifying manner if it is used in one or more of the following ways—

(a)

it is used by the buyer or a connected person in the course of a commercial trade or profession,

(b)

it is developed or redeveloped by the buyer or a connected person for use (by any person) in the course of a commercial trade or profession,

(c)

it is exploited by the buyer or a connected person, in the course of a commercial trade or profession, as a source of rents or other receipts (other than excluded rents).

(2)

But land is not used in a qualifying manner to the extent that it is—

(a)

used as a dwelling or as the garden or grounds of a dwelling (including any building or other structure on such land),

(b)

developed or redeveloped to become residential property,

(c)

exploited as a source of rents or other receipts payable by a person using the land as a dwelling or as the garden or grounds of a dwelling, or

(d)

held (as stock of the business) for resale without development or redevelopment.

(3)

For the purposes of this paragraph, use of land in the course of a commercial trade or profession includes use of land for a purpose that is ancillary to the use of other land which—

(a)

is situated in a green freeport tax site, and

(b)

is being used, or developed or redeveloped, in the course of a commercial trade or profession.

(4)

The references in this paragraph to doing something in the course of a commercial trade or profession include doing something in the course of a property rental business.

(5)

In this paragraph—

  • “commercial”, in relation to a trade or profession, means carried on—

    1. (a)

      on a commercial basis, and

    2. (b)

      with a view to profit,

  • “excluded rents” means rents within any of classes 2 to 6 in the table in section 605(2) of the Corporation Tax Act 2010,

  • “property rental business” means a property business as defined in Chapter 2 of Part 3 of the Income Tax (Trading and Other Income) Act 2005.

Annotations

Textual amendments

F1

Sch. 16D inserted (1.10.2023) by The Land and Buildings Transaction Tax (Green Freeports Relief) (Scotland) Order 2023 (S.S.I. 2023/280), art. 1(1), sch.