I3.711 The disposal condition: land
The 'disposal condition' in relation to any land is that:
(a) at any time after 17 March 1986 the chargeable person owned an interest:
(i) in the relevant land, or
(ii) in other property the proceeds of the disposal of which were (directly or indirectly) applied by another person towards the acquisition of an interest in the relevant land, and
(b) the chargeable person has disposed of all, or part of, his interest in the relevant land or the other property, otherwise than by an excluded transaction1.
The requirement in (a)(i) above (contained in FA 2004, Sch 15, para 3(2)(a)(i)) applies where the taxpayer occupies any land in which they previously owned an interest at any time after 17 March 1986 (hence the expression 'pre-owned asset').
The requirement in (a)(ii) above (contained in FA 2004, Sch 15, para 3(2)(a)(ii)) applies where the taxpayer occupies any land which they did not previously own, but an interest in which was acquired using (directly or indirectly) the disposal proceeds from an interest in any other property that they owned at any time after 17 March 1986. The replaced property (ie the property previously owned) did not need to be land or an interest in land, and may have been any kind of property.
The expression 'property' is defined as having the same meaning as in IHTA 19842. Although IHTA 1984 contains no specific definition of 'property', it states that it includes rights and interests of any description but does not include
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