[F1[F2Businesses of letting, trading in or redeveloping propertiesU.K.
Textual Amendments
F1Sch. 4A inserted (with effect in accordance with Sch. 35 para. 10 of the amending Act) by Finance Act 2012 (c. 14), Sch. 35 para. 4
F2Sch. 4A para. 5 substituted (with effect in accordance with Sch. 40 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 40 para. 2(3)
5(1)Paragraph 3 does not apply to a chargeable transaction so far as its subject-matter consists of a higher threshold interest that is acquired exclusively for one or more of the following purposes—U.K.
(a)exploitation as a source of rents or other receipts (other than excluded rents) in the course of a qualifying property rental business;
(b)development or redevelopment and resale in the course of a property development trade;
(c)resale in the course of a property development trade (in a case where the chargeable transaction is part of a qualifying exchange);
(d)resale (as stock of the business) in the course of a property trading business.
(2)A chargeable interest does not count as being acquired exclusively for one or more of those purposes if it is intended that a non-qualifying individual will be permitted to occupy the dwelling.
(3)In this paragraph—
“excluded rents” has the same meaning as in section 133 of the Finance Act 2013;
“property development trade” means a trade that—
(a)consists of or includes buying and developing or redeveloping for resale residential or non-residential property, and
(b)is run on a commercial basis and with a view to profit;
“part of a qualifying exchange” is to be construed in accordance with section 139(4) of the Finance Act 2013;
“property trading business” means a business that—
(a)consists of or includes activities in the nature of a trade of buying and selling dwellings, and
(b)is run on a commercial basis and with a view to profit;
“qualifying property rental business” has the same meaning as in section 133 of the Finance Act 2013.]]