SDLTM20270 - Freeports and Investment Zones relief – attributing chargeable consideration

It is the chargeable consideration, not the area of the land, that is apportioned when determining what land and buildings are intended to be used in a qualifying manner.

It will be necessary to identify and measure which areas are intended for use in particular ways to assess how much, if any, of the related consideration qualifies for use in a qualifying manner and therefore qualifies for relief. The actual use of those areas that have been identified as meeting the ‘use in a qualifying manner’ test, and whose consideration qualified for relief, will need to be monitored in the ‘control period’ following purchase in case the conditions for withdrawal of relief are met.

The apportionment of consideration to land and buildings for the ‘use in a qualifying manner’ test is done on a just and reasonable basis (para 7(1)).

There may be more than one method of apportioning the land and buildings intended for ‘use in a qualifying manner’ that meets the just and reasonable test.

Apportionment might be on the basis of the percentage areas quoted in planning applications, where appropriate, or alternatively of floor space relating to the respective uses. Other methods of apportionment will be considered as part of a claim. Each case will be considered on its merits.

All relevant documentation should be retained in support of the apportionment stated in the land transaction return.