Commentary

B6.742 ATED—demolition

Business tax
Business tax | Commentary

B6.742 ATED—demolition

Business tax | Commentary

B6.742 ATED—demolition

Broadly, where a building (including part of a building) that is a dwelling is demolished, any question as to whether a person has an SDI in the dwelling, and any question as to the taxable value of such an SDI, is determined as if the dwelling had not been demolished (ie the demolition is effectively ignored)1. However, there are exceptions to this rule (see below 'demolition without replacement', 'demolition and replacement–new dwellings' and 'demolition and replacement-other cases').

For these purposes, the demolition of a building is treated as occurring on the first day on which2:

  1.  

    (a)     the demolition has begun, and

  2.  

    (b)     as a result, the building is no longer suitable for use as a dwelling

Demolition without replacement

If a person entitled to an SDI in the old dwelling notifies an officer of HMRC that to the best of their knowledge there is no proposal to construct any dwelling or dwellings on 'the

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