188ÌåÓý

Land or buildings intended to be used for residential purposes will not qualify for relief unless it does so under the 100% relief rule see –�SDLTM20280.

Where land and buildings that are intended to be used for residential purposes qualify for relief under this rule, only the land and buildings that met the “qualifying land� condition is subject to the use in qualifying manner test after purchase.

Looking back at the example in SDLTM20280, where the purchaser acquired 25 acres of land for £2,500,000.

20 of the acres was situated inside the designated special tax site and was intended for use in a qualifying manner � meaning that these 20 acres counted as qualifying land. The other 5 acres was situated elsewhere outside the special tax site. The 20 acres was valued at £2,375,000.

Relief was available for the whole £2,500,000 paid because 90% or more of the consideration is attributable to qualifying land.

The 5 acres that was not intended to be used in a qualifying manner could have been used for a residential development and the relief claimed would not be withdrawn unless any part of the 20 acres was used for the residential development.