Section 138 | Property developers

(1)A day in a chargeable period is relievable in relation to a single-dwelling interest if on that day—

(a)a person carrying on a property development trade (“the property developer”) is entitled to the interest, and

(b)the interest is held exclusively for the purpose of developing and reselling the land in the course of the trade.

(2)If the property developer holds an interest for the purpose mentioned in subsection (1)(b), any additional purpose the property developer may have of exploiting the interest as a source of rents or other receipts in the course of a qualifying property rental business (after developing the land and before reselling it) is treated as not being a separate purpose in applying the test in subsection (1)(b).

(3)A day is not relievable by virtue of subsection (1) if on the day a non-qualifying individual is permitted to occupy the dwelling.

(4)In this Part “property development trade” means a trade that—

(a)consists of or includes buying and developing for resale residential or non-residential property, and

(b)is run on a commercial basis and with a view to profit.

(5)In this section references to development include redevelopment.