Could rebuilding a property be caught by land development provisions?
Our client bought a house in November 2013 where he has lived since. It is his only residence. He has obtained planning permission to redevelop the property by demolishing and completely rebuilding it.
The original intention was that our client would move into rental accommodation while the development was undertaken and move back on completion. There has now been a change of plan whereby our client will buy a second property and move in before he hopes selling the current property within 18 months.
Our concern is that if the client sells the property after development has started he may be caught by the disposals of land in the UK legislation introduced in 2016. In particular ITA 2007 s 517B(7) states: ‘Condition D is that (in a case where the land is developed) the main purpose or one of the main purposes of...
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