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Section 138: Property developers

Finance Act 2013 · 2013 c. 29View on legislation.gov.uk

Part 3: Annual tax on enveloped dwellings

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

a person carrying on a property development trade ("the property developer") is entitled to the interest, and
the interest is held exclusively for the purpose of developing and reselling the land in the course of the trade.

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).

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

In this Part "property development trade" means a trade that—

consists of or includes buying and developing for resale residential or non-residential property, and
is run on a commercial basis and with a view to profit.

In this section references to development include redevelopment.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.