Finance Act 2003

Use of land in a qualifying manner U.K.

[F1 3 (1) For the purposes of this Schedule, transaction land is used in a qualifying manner if—

(a) it is used by the purchaser or a connected person in the course of a commercial trade or profession,

(b) it is developed or redeveloped by the purchaser or a connected person for use (by any person) in the course of a commercial trade or profession,

(c) it is exploited by the purchaser or a connected person, in the course of a commercial trade or profession, as a source of rents or other receipts (other than excluded rents), or

(d) it is used in two or more of the ways described in paragraphs (a) to (c).

(2) But land is not used in a qualifying manner to the extent that it is—

(a) used as a dwelling or as the garden or grounds of a dwelling,

(b) developed or redeveloped to become residential property,

(c) exploited as a source of rents or other receipts payable by a person using the land as a dwelling or as the garden or grounds of a dwelling, or

(d) held (as stock of the business) for resale without development or redevelopment.

(3) For the purposes of this paragraph, use of land in the course of a commercial trade or profession includes use of land for a purpose that is ancillary to the use of other land which—

(a) is situated in a [F2 special tax site], and

(b) is being used, or developed or redeveloped, in the course of a commercial trade or profession.

(4) The references in sub-paragraph (2) to land used as the garden or grounds of a dwelling include a building or structure on the land.

(5) The references in this paragraph to doing something in the course of a commercial trade or profession include doing something in the course of a property rental business.

(6) In this paragraph—

• “commercial”, in relation to a trade or profession, means carried on—

  (a)

  on a commercial basis, and

  (b)

  with a view to profit;

• “excluded rents” has the same meaning as in section 133 of the Finance Act 2013;

• “property rental business” means a property business as defined in Chapter 2 of Part 3 of the Income Tax (Trading and Other Income) Act 2005.]

Textual Amendments

F1 Sch. 6C inserted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 23 para. 8

F2 Words in Sch. 6C substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 8(c)