[F1[F25F(1)Paragraph 3 does not apply to a chargeable transaction so far as its subject-matter consists of a higher threshold interest in or over a dwelling—U.K.
(a)that is, or is to be, a farmhouse, and
(b)in relation to which the conditions in sub-paragraph (3) are met.
(2)The reference in sub-paragraph (1) to a dwelling that “is or is to be a farmhouse” is to a dwelling that forms part of land that is to be occupied, or to continue to be occupied, for the purposes of a qualifying trade of farming.
(3)The conditions are that—
(a)the dwelling is to be occupied for the purposes of that trade by a qualifying farm worker,
(b)reasonable commercial plans have been formulated under which such occupation is either to continue from the effective date of the chargeable transaction or to begin without delay (except so far as delay may be justified by commercial considerations or cannot be avoided), and
(c)occupation of the farmhouse by a qualifying farm worker is then expected to continue as part of the normal way in which the trade is, or is to be, carried on.
(4)In sub-paragraph (3) “qualifying farm worker” means an individual who occupies the dwelling for the purposes of the trade mentioned in that sub-paragraph and has a substantial involvement—
(a)in the day-to-day work of the trade, or
(b)in the direction and control of the conduct of the trade.
(5)“Qualifying trade of farming” means a trade of farming that is carried on—
(a)on a commercial basis, and
(b)with a view to profit.
(6)A person occupying part of a dwelling is regarded as occupying the dwelling for the purposes of this paragraph.
(7)In this paragraph—
(a)“farming” has the same meaning as in the Corporation Tax Acts (see section 1125 of CTA 2010), except that in this paragraph “farming” includes market gardening;
(b)“market gardening” has the same meaning as in the Corporation Tax Acts (see section 1125(5) of CTA 2010).]]
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 paras. 5A-5K and cross-headings inserted (with effect in accordance with Sch. 40 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 40 para. 2(4)