SDLTM20220 | Freeports and Investment Zones relief – use of land in a “qualifying manner”

Qualifying use (para 3(1)) of land means -

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 (a) to (c) above.

For definitions of key terms above see SDLTM20230. Use in the course of a trade or profession includes use in the course of a property rental business (para 3(5)).

A purchaser may qualify for relief where the land is bought for use by a different person or persons. For example, a factory might be bought by one person (A) for use by another, unconnected, person (B) and will qualify for relief provided B pays rent to A.

Land the use of which is ancillary to land that is used in qualifying manner may also qualify for relief – see SDLTM20240