Commentary

B6.753A ATED—occupation by employees or partners of qualifying trade or property rental business

Business tax
Business tax | Commentary

B6.753A ATED—occupation by employees or partners of qualifying trade or property rental business

Business tax | Commentary

B6.753A ATED—occupation by employees or partners of qualifying trade or property rental business

Broadly, relief may be available from ATED in certain situations where a dwelling is owned by either a trading business or (for chargeable periods beginning on or after 1 April 2016) a qualifying property rental business and it is used to provide living accommodation to qualifying employees or, in cases where the business is structured as a partnership, qualifying partners. For example, a company may own a flat in London which is made available as accommodation for employees from foreign offices who are visiting the UK for short periods of time or who are seconded to the UK. Provided certain conditions are met, relief from ATED is available in relation to such dwellings.

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

  1.  

    (a)     a person ('P') is entitled to an SDI

  2.  

    (b)     P, or a 'relevant group member', carries on a 'qualifying trade' or for chargeable periods beginning on or after 1 April 2016, a 'qualifying property rental business' (see below)

  3.  

    (c)     the interest is held for the purpose of making the dwelling available to one or more 'qualifying employees' or 'qualifying partners' (see below) for use as living accommodation, and

  4.  

    (d)     the dwelling is, or is to be, so made available solely or mainly for the purposes of the trade or property

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