Changes to the option to tax

Revenue & Customs Brief 3/11 has been published to explain minor changes to the option to tax for land and buildings (anti-avoidance rule) and in particular the treatment of occupation by grantors (see also Revenue & Customs Brief 50/10).

RCB 3/11 states that the option to tax is currently disapplied where the grantor or a person connected to the grantor is in exempt occupation of the land (and the other conditions in the anti-avoidance rule are met).

The changes to be introduced from 1 March mean an option to tax will no longer be disapplied where the grantor or persons connected with the grantor only occupy minor parts of buildings (no more than 2%) even if the other conditions of the anti-avoidance rule are met.

With regard to automatic teller machines (ATMs) from 1 March 2011 occupation of any building which is...