Home Forums Patrick Cannon Meaning of the word ‘occupy’

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    Sch 2a of FA 2003 includes various exemptions from SDLT that apply in certain limited circumstances. In connection with a property trader, one of the conditions is that the buyer “must not permit any of its principals or employees (or any person connected with any of its principals or employees) to occupy the old dwelling” . My question is what is the meaning of the word ‘occupy’, would it include for example if the director of the trader company sells the property to another company of which he is a director? Is a company deemed a legal person so it would be caught by the term ‘any person connected’ ? Or does it mean ‘occupy’ in the sense of being lived in by an individual linked to the trader.

    #5031 Reply
    AJ Mussell

    Hi, do you mean para 2(2)(d)(iii) of Schedule 6A? I have recently spent a day in the tax tribunal discussing the meaning of “occupy” with HMRC and the decision is likely to be published in the near future. Although the case was in the context of Schedule 4A and not Schedule 6A it is clear to me from that hearing that HMRC are likely to challenge the type of situation you describe particularly in the light of para 8(3).

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