Commentary

B6.752 ATED—financial institutions acquiring dwellings in the course of lending

Business tax
Business tax | Commentary

B6.752 ATED—financial institutions acquiring dwellings in the course of lending

Business tax | Commentary

B6.752 ATED—financial institutions acquiring dwellings in the course of lending

This is intended to provide relief from the charge to ATED where a financial institution has repossessed a property as a result of its business of lending money and has become beneficially entitled to the property. It is not relevant where a financial institution simply exercises its control of the property under its security interest in a property (as this is not a chargeable interest for ATED purposes). See B6.720 for the definition of 'chargeable interest'.

A day in a chargeable period is a relievable day in relation to an SDI if matters stand as follows on that day1:

  1.  

    •     a financial institution carrying on a business that involves the lending of money is entitled to the interest

  2.  

    •     the financial institution has acquired the interest in the course of that business and in connection with those lending activities, and

  3.  

    •     the interest is held with the intention that it will be sold in the course

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