SCHEDULE 14RELIEF FOR CERTAIN ACQUISITIONS OF DWELLINGS

PART 2RELIEF FOR CERTAIN ACQUISITIONS OF DWELLINGS

Withdrawal of reliefs available to property traders

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1

Relief under paragraphs 3 (acquisition by property trader from individual acquiring new dwelling) and 4 (acquisition by property trader from individual where chain of transactions breaks down) is withdrawn if the property trader—

a

spends more than the permitted amount on refurbishment of the old dwelling,

b

grants a lease or licence of the old dwelling, or

c

permits any of its principals or employees (or any person connected with any of its principals or employees) to occupy the old dwelling.

2

Sub-paragraph (1)(b) does not apply to the grant of lease or licence to the individual acquiring the new dwelling or the second dwelling for a period of no more than 6 months.

3

Relief under paragraph 5 (relief for acquisition by property trader from personal representatives) is withdrawn if the property trader—

a

spends more than the permitted amount on refurbishment of the dwelling,

b

grants a lease or licence of the dwelling, or

c

permits any of its principals or employees (or any person connected with any of its principals or employees) to occupy the dwelling.

4

Relief under paragraph 6 (acquisition by property trader in case of relocation of employment) is withdrawn if the property trader—

a

spends more than the permitted amount on refurbishment of the dwelling,

b

grants a lease or licence of the dwelling, or

c

permits any of its principals or employees (or any person connected with any of its principals or employees) to occupy the dwelling.

5

Sub-paragraph (4)(b) does not apply to the grant of lease or licence to the individual relocating for a period of no more than 6 months.

6

Where relief is withdrawn, the amount of tax chargeable is the amount that would have been chargeable in respect of the acquisition but for the relief.