Commentary

I3.710 The pre-owned assets charge on land

IHT, trusts and estates

I3.710 The pre-owned assets charge on land

Land and chattels

I3.710 The pre-owned assets charge on land

A charge to income tax arises on an individual ('the chargeable person') where:

  1.  

    •     he occupies any land ('the relevant land'), whether alone or together with other persons, and

  2.  

    •     either the 'disposal condition' (see I3.711) or the 'contribution condition' (see I3.712) is met as respects that land1

The tax charge on land arises only on individuals2. Where it applies, the 'chargeable amount' as defined for pre-owned assets purposes is treated as income chargeable to income tax3.

Meaning of 'occupies'

The term 'occupies' is not defined for the purpose of FA 2004, Sch 15. An oral assurance from the Revenue at a pre-owned assets consultative meeting on 29 April 2004 confirmed that it denotes actual physical occupation, and would not extend to an unexercised right to occupy land, but this point has not been confirmed in writing. The concept of 'occupation' is used in rating legislation and has been examined in many judicial decisions concerning rating. For pre-owned assets purposes there is no requirement that occupation need be for

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