SDLTM20225 - Freeports and Investment Zones relief – use of land in a “non-qualifying manner”

Relief is not given where the land is used by any person in a non-qualifying way. Non-qualifying uses (para 3(2)) of land are –

a) as a dwelling or as the garden or grounds of a dwelling,

b) development or redevelopment to become residential property,

c) exploitation as a source of rents or other receipts payable by a person using the land as a dwelling or as the garden or grounds of a dwelling, or

d) held (as stock of the business) for resale without development or redevelopment.

References to land used as the garden or grounds for a dwelling include use of buildings or structures on that land (para 3(4)).

For cases involving certain alternative finance arrangements, land held by the “financial institution” is deemed to be held by the “relevant person” (the person other than the financial institution who entered into the alternative finance arrangement). This means that land will only be regarded as being held for resale as stock of the financial institution’s business without development or redevelopment if it would be were it held by the “relevant person” (para 11(3)(b)).