Commentary

B6.749 ATED—property developers

Business tax
Business tax | Commentary

B6.749 ATED—property developers

Business tax | Commentary

B6.749 ATED—property developers

For the latest New Development, see ND.1943.

A day in a chargeable period is eligible for relief under these provisions if on that day1:

  1.  

    (a)     a person carrying on a property development trade ('the property developer') is entitled to the interest

  2.  

    (b)     the interest is held exclusively for the purpose of developing and reselling the land in the course of the trade, and

  3.  

    (c)     a non-qualifying individual (defined as for the rules described in B6.746)2 is not permitted to occupy the dwelling3. Occupation of any part of a dwelling is regarded as occupation of the dwelling4. Also refer to the rules on the effect of non-qualifying occupation on look forward and look back (see below).

The developer must ultimately intend to sell the property and not let it out. However, if the developer intends to let the property out as part of a qualifying rental business before selling it on then the relief may still be available, see B6.7465.

Meaning of 'property development trade'

'Property development trade' means a trade6:

  1.  

    •     that consists of or includes buying and developing for resale residential or non-residential property,

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